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Caribbean AML/CTF Principles
and Associated Guidelines



The Caribbean Association of Banks (CAB), formed in the early Seventies, is an organisation for locally incorporated/owned banks and other financial institutions operating in the Caribbean Community (CARICOM) Region, that provides leadership and advocacy on issues impacting the indigenous banking/financial services sector in the Caribbean.
The Association, which has its Secretariat in St. Lucia, comprises about fifty (50) Member Banks/Financial Institutions and three (3) Honorary Members, namely the Caribbean Development Bank, the CARICOM Secretariat and the Caribbean Centre for Monetary Studies. CAB hosts a major networking event every November during its annual general meeting and conference held in various Caribbean jurisdictions, and it is a forum to encourage good governance and best practices by its membership.

A key issue for Caribbean banks has been the maintenance and strengthening of correspondent banking relationships. Members have no parent offices located in major financial centres through which they can conduct international cash clearing and transfer services, and are entirely reliant on correspondent relations with other banks that provide intermediary services. Given the various international issues that have caused heightened scrutiny over correspondent relations, and the global demands to prevent money laundering (AML) and terrorist financing (CTF), CAB undertook to establish a set of principles to guide its Member Banks. It is an initiative that has been encouraged by the Florida International Bankers association (FIBA) and correspondent banks currently conducting business with Caribbean banks.

In keeping with the principles espoused by the Wolfsberg Group of eleven major banks that provide international correspondent banking services, CAB’s Advocacy Committee developed the Caribbean AML/CTF Principles, which establish risk management standards for Members and comply with related international standards to support the reputation and operational integrity of Caribbean banks.

On October 26th 2009, The CAB Board of Directors formally launched The Caribbean AML/CTF Principles for Correspondent Banking in Port-of-Spain, Trinidad. These Principles, with associated AML/CTF Guidelines, are a core set of standards to which Member Banks will subscribe by having their Board of Directors agree to adopt and ensure the compliance of their institution. CAB will also promote the Caribbean AML/CTF Principles to the several regulatory and supervisory authorities for AML/CTF matters in the Caribbean region, so that Member Banks’ compliance with these standards will also be observed during regular bank examinations.

Subscribing banks to these Principles will be identified on the CAB website, and Caribbean Principles will establish a Registry to host certain bank information that will assist third parties, including correspondent banks and customers, to review the compliance of banks with international standards and expand their trust and confidence in Caribbean financial institutions.

Brian Stuart-Young, Chairman, CAB’s Advocacy Committee

CAB’s Advocacy Committee
Global Bank of Commerce, Ltd. – Antigua
Republic Bank Ltd. – Guyana
Eastern Caribbean Financial Holding Co. Ltd. – St. Lucia
Guyana Bank of Trade and Industry - Guyana