Barbados has achieved a significant and hard-earned victory on the global financial stage. The European Commission has removed the country from the EU list of high-risk third countries under its anti-money laundering and counter-terrorist financing (AML/CFT) regulation. This development marks a critical step forward in restoring the island’s reputation as a credible and compliant financial jurisdiction.
The EU list of high-risk third countries identifies jurisdictions that the European Union considers to have strategic deficiencies in their AML/CFT frameworks. Inclusion has significant implications: European banks and financial institutions must apply enhanced due diligence when dealing with these jurisdictions, increasing compliance burdens, delaying transactions, and often prompting institutions to refuse to do business altogether. The list largely mirrors the Financial Action Task Force (FATF) list of ‘Jurisdictions under Increased Monitoring’, often referred to as the ‘grey list’.
Although the FATF removed Barbados from its grey list in February 2024, it took nearly 18 more months for the European Commission to follow suit. Attorney General Dale Marshall revealed that political disagreements among EU member states, unrelated to Barbados, had delayed the decision, as the bloc requires consensus to make changes.
The listing, Marshall pointed out, had practical consequences. It not only disrupted personal and corporate transactions but also forced some companies to cease operations in Barbados altogether.
The removal is expected to ease cross-border banking challenges, particularly for financial institutions, global businesses and real estate investors who have faced delays or refusals when transacting with EU banks. It restores a level of international credibility crucial for Barbados’ small but strategically important international business and financial services sector.
Barbados’ removal from the blacklist is not an accident. It is the result of years of technical reform, legal overhaul, institutional strengthening and public–private sector coordination. Marshall noted that the government had made “an extraordinary investment”, establishing and staffing new regulatory bodies, enacting modern legislation, training personnel, and embedding global best practices into the nation’s financial systems.
Carmel Haynes, Executive Director of BIBA, credited both regulators and private sector actors for helping Barbados meet its compliance obligations.
Barbados’ removal from the EU blacklist is a vindication of its reform efforts and a fresh opportunity to reposition itself as a trustworthy, agile and competitive player in the global financial landscape. But it must not be viewed as the finish line. In an era of global tax harmonisation, particularly with the introduction of a global minimum corporate tax, the island’s reputation as a well-regulated jurisdiction becomes a key comparative advantage.
Continued investment in regulatory frameworks, public–private cooperation, and international alignment will be essential to staying off blacklists and attracting new opportunities.
The challenge now is to build on this progress and ensure that Barbados is not only compliant but globally competitive. We can use this milestone as a launchpad for deeper economic engagement, higher financial standards, and broader international partnerships.
As the global AML/CFT landscape evolves, especially with developments in virtual assets and fintech, Barbados must stay ahead of the curve. The onus is on policymakers, regulators and the private sector to build on this foundation, not only to stay off the list, but to be a benchmark of compliance and transparency in the region and beyond.
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