Unveiling Insights: CFATF RTMG's Latest Stocktaking on De-risking in the Caribbean

Between June and November 2023, the CFATF Risk, Trends, and Method (CRTMG) conducted an updated stocktaking exercise focused on the intricate landscape of de-risking in the Caribbean region. This comprehensive review aimed to uncover the evolving dynamics, challenges, and potential pathways to address the impacts of de-risking on the region's financial stability and inclusivity.

The CRTMG's exercise delved into the multifaceted aspects of de-risking. It examined the root causes, mapping the ripple effects of correspondent banks’ decisions to sever or limit relationships, and the subsequent implications on sectors, regions, and accessibility to financial services. This holistic approach facilitated a nuanced understanding of the complexities surrounding de-risking.

The insights gleaned from this updated stocktaking exercise can aid informed decision-making. They offer stakeholders, including policymakers, regulators, financial institutions, and communities, a roadmap to navigate the challenges posed by de-risking. This report doesn't merely capture the present landscape; it's a proactive step towards fostering resilience, integrity, and greater financial inclusion in the Caribbean's evolving financial ecosystem.

Please download the report here.

Barbados Approved by the FATF for an On-site Visit

At its just concluded meetings in Paris, the Financial Action Task Force (FATF) reached agreement that Barbados has substantially completed its Action Plan, and qualifies for an on-site visit early next year.  The Action Plan was agreed in 2020 and the on-site visit is the final step towards removal from the FATF List of Jurisdictions Under Enhanced Monitoring (previously referred to as the Grey List).  Barbados’ removal from this List will signify that the country has made substantial progress in strengthening the effectiveness of its regime to combat Money Laundering, Financing of Terrorism and Financing of Proliferation of Weapons of Mass Destruction.

The decision was announced on October 27, 2023 at the FATF Plenary and is the result of the hard work of many agencies. Barbados was represented by Attorney General Dale Marshall and Cheryl Greenidge, Director, Bank Supervision Department of the Central Bank of Barbados and National AML/CFT Coordinator.

In explaining the need for the on-site visit, Attorney General Marshall said, “Barbados, since the adoption of the Action Plan, has put a large and varied body of measures in place to address the recommendations from its 4th Round Mutual Evaluation Report. Some of these measures were statutory and others had to do with improving our regulatory and law enforcement frameworks. We have addressed all of the areas in the Action Plan, and the FATF now needs to be satisfied that the measures are in fact tangible and sustainable. Every country that is in this process has to go through an on-site visit.”

Preparations are advancing for the onsite visit of the Americas Joint Group – a subgroup of the FATF’s International Cooperation Review Group. During the visit, scheduled for early 2024, the assessors will engage with all of the regulatory agencies, law enforcement, the judiciary, government officials and the private sector to confirm the effectiveness and sustainability of the measures that have been implemented. The assessors will then submit a formal report to the FATF at its February 2024 Plenary meeting, at which Barbados will receive confirmation of whether it will be delisted.

The Attorney General welcomes this final stage of the process, and affirms the intention to continue to fully cooperate with the FATF and the assessment team.

Barbados congratulates the Cayman Islands on being de-listed by the FATF; and Jamaica and Haiti for the progress made on their Action Plans.

Turks and Caicos Islands’ progress in strengthening its framework to tackle money laundering and terrorist financing

Port of Spain, Trinidad and Tobago, November 02^nd, 2023 – As a result of the Turks and Caicos Islands’ progress in strengthening its framework to tackle money laundering and terrorist financing since their 2020 mutual evaluation, the Caribbean Financial Action Task Force (CFATF) has re-rated the country on 2 of the 40 Recommendations.

The Turks and Caicos Islands has been in an enhanced follow-up process, following the adoption of the CFATF mutual evaluation report, which assessed the effectiveness of the Turks and Caicos Islands’ anti-money laundering and counter-terrorist financing (AML/CFT) measures and the country’s compliance with the FATF Recommendations. In line with the CFATF Procedures for the Fourth Round of AML/CFT Mutual Evaluations, the Turks and Caicos Islands has reported back to the CFATF on the progress it has made to strengthen its AML/CFT framework.

This report analyses the Turks and Caicos Islands’ progress in addressing the technical compliance deficiencies identified in the mutual evaluation.   

To reflect this progress, the CFATF has re-rated the Turks and Caicos Islands on the following Recommendations:

13 – Correspondent Banking from partially compliant to largely compliant

28 – Regulation and Supervision of DNFBPs from partially compliant to compliant

The report also looks at whether the Turks and Caicos Islands’ measures meet the requirements of FATF Recommendations that have changed since its 2020 mutual evaluation, taking into account any new measures since the mutual evaluation.  

The Turks and Caicos Islands is now rated as Compliant or Largely Compliant with 37 out of the 40 FATF Recommendations.

Click here to access the FUR

The Cayman Islands De-Listed by the FATF

Left to right: Mr. Rohan Bromfield, Head-Fiduciary Services Division, Cayman Islands Monetary Authority; Ms. Simone Ebanks, Policy Analyst, Anti-Money Laundering Unit; Ms. Cindy Scotland, OBE, Managing Director, Cayman Islands Monetary Authority; Honourable Andre Ebanks, Minister of Financial Services and Commerce of Cayman Islands; Honourable Samuel Bulgin K.C., J.P., CFATF Chairman and Attorney General of Cayman Islands.

On 27 October 2023, the Financial Action Task Force (FATF) de-listed the Cayman Islands from its ‘List of Jurisdictions under Increased Monitoring’ also known as the ‘grey list’. The Cayman Islands was represented at the meeting by Honourable Samuel Bulgin, KC, JP, CFATF Chairman and Attorney General of the Cayman Islands, Honourable Andre Ebanks, Minister of Financial Services and Commerce, and Ms. Simone Ebanks Policy Analyst, Anti-Money Laundering Unit.

In addressing the FATF, CFATF Chairman Bulgin noted the hard work that had been undertaken over the past two years by a team of dedicated Cayman Islands professionals from the Hon. Minister of Financial Services and Staff, the Anti-Money Laundering Steering Group, the Interagency Coordination Committee and the private sector. Chairman Bulgin also thanked the CFATF for its support and guidance during the process and acknowledged the assistance of the Americas Joint Group.

The Cayman Islands can now look forward to fully focusing on preparations for its 5^th Round AML/CFT/CPF assessment which will occur in 2027.

As Chairman of the CFATF, Attorney General Bulgin noted that this was indeed a proud moment for the Cayman Islands and its AML/CFT/CPF achievements can be emulated by others in the Caribbean.

Following the Plenary, the Chair congratulated Barbados, Jamaica, and Haiti for their progress and welcomed Barbados obtaining an onsite.

In addition, the Chair expressed gratitude to the COSUNs and Observers for their technical support throughout the process.