Barbados regulators monitoring millions linked to international money laundering probe

BRIDGETOWN, Barbados, CMC – Financial regulators in Barbados are monitoring suspicious financial transactions involving millions of dollars allegedly linked to funds misappropriated from Malaysia’s state-owned 1Malaysia Development Berhad (1MDB).

According to Barbados Today, the Central Bank of Barbados and the Financial Services Commission (FSC) confirmed they are tracking developments after the Malaysian Anti-Corruption Commission (MACC) disclosed that it had secured a court order freezing approximately US$1.7 million held in accounts at a Barbados-based bank with Swiss headquarters.

The MACC said the order was granted by a Kuala Lumpur High Court in April under Malaysia’s anti-money laundering legislation after investigators linked the funds to suspected money laundering activities.

According to the Malaysian authorities, investigations found that between 2014 and 2019, several individuals connected to offshore companies allegedly received, concealed, transferred and converted proceeds of unlawful activities through Barbados-based accounts.

The funds subject to the court order include more than US$56,000 linked to one investment entity and approximately US$1.65 million connected to another institution.

Governor of the Central Bank of Barbados, Kevin Greenidge, told Barbados Today that the bank was aware of reports concerning the foreign court order but declined to comment on specific supervisory matters.

Greenidge said Barbados’ regulatory framework requires financial institutions to comply with anti-money laundering and counter-terrorism financing obligations and noted that authorities cooperate with domestic and international agencies in accordance with the law.

The FSC also confirmed it was monitoring the situation, noting that such matters involve coordination among multiple agencies, including Barbados’ Financial Intelligence Unit and overseas authorities.

The 1MDB scandal is one of the world’s largest corruption cases and has involved allegations of money laundering, fraud and theft linked to billions of US dollars from the Malaysian state investment fund.

The scandal contributed to the downfall and imprisonment of former Malaysian Prime Minister Najib Razak.

United States authorities previously alleged that at least US$3.5 billion was stolen from the fund, while later estimates placed the amount at approximately US$4.5 billion.

The United States Department of Justice has since recovered and returned more than US$1.2 billion in misappropriated 1MDB-related assets to Malaysia as part of an ongoing international anti-corruption effort.