Both Sides of The Coin: The Story of The Central Bank of Barbados 1972-2017

115 Modern legislation The Bank was in the forefront of efforts to modernise and strengthen the legal framework that underpinned the financial sector. The Bank Supervision Department helped to craft the Financial Institutions Regulatory Act of 1992 (which brought greater coordination in regulatory compliance) as well as its successor, the FIA of 1996. When the International Financial Services Act (that enhanced compliance with the Basel Committee’s Core Principles) replaced the Offshore Banking Act, it benefited from the department’s expertise. In 2003, the Bank Supervision Department also worked on the draft legislation for deposit insurance and made useful contributions to the drafting of the Money Laundering and Financing of Terrorism (Prevention and Control) Act of 2011. In addition to advising on legislation, the Bank’s regulators were also able to identify amendments that helped to enhance a number of existing Acts, including the Companies Act and the Central Bank of Barbados Act. Ensuring compliance with international best practice The Bank continuously tried to ensure that commercial banks complied with regulatory requirements. In 2001, for example, it collaborated with the Anti-Money Laundering Authority to issue revised anti-money laundering (Know-Your-Customer) guidelines and organise a training seminar on anti-money laundering practices. Like other regulatory agencies, the Bank devoted resources to preparing for the new Basel II Capital Accord, the new framework that would measure the adequacy of capital in banks and other similar financial institutions. In 2004, the Bank joined a Regional Working Group that was studying the Accord and, soon after, extensive consultations were held with licensees. Between 2006 and 2008, an impact survey was conducted, a seminar held, a new unit was created to implement the Accord and operational guidelines were issued to the banks. Chapter 4: Maturity, Modernisation and Issues of Governance: 1987 and Beyond