Our previous post dealt with the failure of the Barbados Police to bring drug trafficking under control. This post deals with the banks and money laundering. The source is the US Department of State, Bureau of International Narcotics and Law Enforcement Affairs: International Narcotics Control Strategy Report - 2008 (INCSR-2008)
Volume II: Money Laundering and Financial Crimes.
US and Barbados flags.
Here is a summary of what the report says about money laundering in Barbados:
Money laundering of foreign funds is taking place in the formal banks in Barbados. Barbadian money laundering is largely associated with drug trafficking. Fraud is a major source of the money circulating in Barbados. While the Bajan Police are losing the drug war, the money to finance the drug deals is moving through the Bajan Banks.
In addition to the report, I noted that money laundering also finances terrorism like the attack on the World Trade Center.
Here is a quote from the report:

A transit country for illicit narcotics, Barbados remains vulnerable to money laundering, which primarily occurs in the formal banking system. Domestically, money laundering is largely drug-related and is appears to be derived from the trafficking of cocaine and marijuana. There is also evidence of Barbados being exploited in the layering stage of money laundering with funds originating abroad. The major source of these funds appears to be connected to fraud.
Formal banks, money laundering and fraud! Are Bajan Banks doing all they can to curtail these activities or are they facilitating the international trafficking of drugs?
US $20 - Favourite denomination of dealers
From the same source this is a description of the major Barbadian legislation that addresses money laundering:
The Money Laundering (Prevention and Control) Act 1998 (MLPCA) and subsequent amendments extends the offense of money laundering beyond drug-related crimes by criminalizing the laundering of proceeds from unlawful activities.The MLPCA applies to a wide range of financial institutions, including domestic and offshore banks, IBCs, insurance companies, money remitters, investment services, and any other services of a financial nature. These institutions are required to identify their customers, cooperate with domestic law enforcement investigations, report and maintain records of all transactions exceeding $5,000 for a period of five years, and establish internal audit and compliance procedures. Financial institutions must also report suspicious transactions to the Anti-Money Laundering Authority (AMLA).
BU had a post on banks reporting transactions. Are these rules being observed, or has the Barbadian Government just paid lip service to the US Government? Our observations from our own personal investigations suggest that neither Barbadian corporations nor Barbadian banks are in compliance with the rules.

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Money laundering kills - it was used to fund the World Trade Center attack

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This is not a victimless crime!

- The photograph on the left was actually categorized by openstockphotography
under “money laundering”! Money laundering, the illicit drug trade and terrorism are all interconnected. This article from the American Center for Democracy shows the connections. These criminals even use
charitable organizations to launder money! Did any of the money that financed this carnage come through Bajan Banks?

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Related:


Example of regulations not being followed:


Coming: Shocking Scandal involving Bank with Barbados HQ.