Barbados: Banks Pledge Compliance with New Rules

• Commercial banks in Barbados have committed to adhering to new Central Bank Market Conduct Guidelines aimed at enhancing transparency and fairness in the financial services industry, according to the head of the banking association.
• Effective on Friday, July 12, the guidelines, set minimum standards for interactions between licensed financial institutions and their clients. The new guidelines address five key areas: bank fees and charges, accessibility, opening accounts, closing accounts, and complaints. They also offer recommendations for improving communication with customers.
• Under the new rules, banks and finance companies must seek the Central Bank’s non-objection at least 60 days before implementing new fees or increasing existing ones. Customers must be notified 30 days in advance of approved changes. The guidelines also prohibit charges for electronic fund transfers or cash management transactions under $ 10,000 per day.
• To promote inclusivity, physical bank locations must be wheelchair accessible and navigable for the visually impaired. Digital interfaces must accommodate various disabilities. As of July, all commercial banks must offer at least one no-fee account and low-fee accounts for vulnerable groups, including pensioners, minors, and students.
• The guidelines also outline procedures for opening and closing accounts, ensuring compliance with Anti-Money Laundering and Combating the Financing of Terrorism (AML-CFT) laws. Banks must provide clear timelines and periodic updates during the account application process, aiming to decide within three to five business days.
• Central Bank Governor, Dr Kevin Greenidge, stressed the importance of these regulations for maintaining consumer confidence in financial institutions. “By issuing and the financial institutions adhering to these, it ensures that we are able to, one, provide a very transparent system, but also be fair to consumers for their confidence in our financial institutions,” he said. The governor also highlighted the potential impact on economic growth, stating, “The more transparent you are, the easier it is to do business; it’s clear rules and guidelines, and so market conduct pulls all those together into a coherent, integrated structure that people can easily follow.”

(Source: Barbados Today)