Key Takeaways
- Barbados has appeared on multiple lists over time, including EU Annex I and Annex II and FATF monitoring, so its status depends on which body and period you check.
- Listings stemmed from specific cited deficiencies, while commitments and action plans addressed those gaps and supported delisting.
- Practical effects for non-residents centre on banking access, enhanced due diligence, and counterparty perception rather than outright prohibition.
- Checking the current status across EU, FATF, and OECD sources matters before relying on any single list when structuring a Barbados entity.
Barbados on the Global Lists: What Foreign Owners Need to Know
The question of where Barbados sits on the grey list and black list maintained by international bodies has a clear answer: the island is off every one of them. It was removed from the Financial Action Task Force (FATF) list of jurisdictions under increased monitoring in February 2024, and from the European Union's anti-money-laundering high-risk list effective 5 August 2025, as confirmed by the Central Bank.
This matters to any foreign owner whose company will move funds through correspondent banks, hold European clients, or undergo cross-border due diligence. The article sets out which lists once touched the jurisdiction, why they applied, how delisting was achieved, and what the position means for your business in practice.
It is most relevant to non-resident investors, their advisers, and anyone weighing Barbados as a base for an international entity that depends on banking access and a clean compliance reputation.
The Aggregator: Every Greylist and Blacklist Touching Barbados at a Glance
Several distinct lists, run by separate bodies, have at one time or another covered the island. Each works on its own criteria and its own timetable, so removal from one does not automatically clear the others.
| List | Body | Status |
|---|---|---|
| Grey list (AML/CFT) | FATF | Removed, February 2024 |
| Black list ("Call for Action") | FATF | Never listed |
| AML high-risk third countries | EU | Removed, effective 5 August 2025 |
| Tax greylist (Annex II) | EU | Removed, confirmed March 2023 |
| Tax blacklist (Annex I) | EU | Never listed |
| High-Risk Third Countries (AML) | United Kingdom | Removed, early 2024 |
| EOIR peer review | OECD Global Forum | Largely Compliant |
| International sanctions | UN / OFAC / EU | None in force |
Only North Korea, Iran, and Myanmar sit on the FATF blacklist as of February 2026. The firm was never among them at any point in its history.
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EU Lists: Barbados in Annex I (Blacklist) and Annex II (Greylist) History
The EU keeps two separate registers for tax purposes. Annex I names non-cooperative jurisdictions; Annex II is the "state of play" greylist for countries that have not yet met every standard but have given firm reform commitments.
Barbados has never appeared on Annex I. When the first EU tax list was adopted on 5 December 2017 with 17 jurisdictions, the island was not included, and it has stayed off the blacklist since.
It did sit on Annex II, the greylist, before fulfilling its commitments and being removed alongside Jamaica, North Macedonia, and Uruguay. That removal was confirmed by the Foreign Affairs Ministry in March 2023, and the jurisdiction does not feature on the Annex II revision published in October 2025.
A separate EU register, the AML high-risk third countries list, is distinct from the tax annexes. The European Parliament acknowledged the island's progress on 10 June 2025, and the regulation removing it entered into force on 5 August 2025.
The EU tax annexes and the EU AML high-risk list are run under different rules by different parts of the EU machinery. Clearing one has no automatic effect on the other, which is why the AML delisting in 2025 came two years after the tax greylist exit.
FATF Standing: Barbados and the Grey and Black List Timeline
The grey-list episode began with assessment, not penalty. The 4th Round Mutual Evaluation Report was adopted by the Caribbean Financial Action Task Force (CFATF) in November 2017, rating the island Compliant on 5 of the 40 FATF Recommendations, Largely Compliant on 20, Partially Compliant on 13, and Non-Compliant on 2, with low effectiveness across all 11 Immediate Outcomes.
Formal increased monitoring followed in February 2020, when the government made a high-level political commitment and agreed a multi-year action plan with FATF and CFATF. That commitment date is the point at which the jurisdiction was placed on the grey list.
Progress on technical compliance came steadily. By June 2023, 33 of the 40 Recommendations were rated Compliant or Largely Compliant, with 7 still Partially Compliant.
The exit was confirmed after assessors completed an onsite visit on 9 to 11 January 2024, and the FATF plenary of 21 to 23 February 2024 finalised the removal. Later that year, five further technical ratings were resolved, closing the 4th round at a satisfactory 38 of 40 Recommendations.
The next test is already scheduled: a 5th Round mutual evaluation by CFATF in June 2027, conducted under the stricter 2022 FATF methodology.
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OECD and Global Forum Assessments Affecting Barbados
Tax transparency is reviewed separately again, this time by the OECD Global Forum. The 2022 Supplementary Peer Review upgraded the overall Exchange of Information on Request rating to "Largely Compliant" from the "Partially Compliant" mark held in 2020.
Two sub-elements stayed Partially Compliant in that report: A.1, on the availability of ownership information, and A.2, on accounting records. Element C.5, covering timeliness of replies, was upgraded to Compliant.
The Global Forum published a further Enhanced Monitoring Report in 2025, a sign of continued oversight rather than any new sanction. The island also takes part in OECD BEPS Action 5 harmful tax practices peer reviews as a standard participant, with editions covering 2023 and 2024.
Engagement runs in both directions. The jurisdiction sits on the Global Forum Peer Review Group for the 2023 to 2025 term and hosted the 11th Global Forum Competent Authorities Conference in Bridgetown on 6 to 7 May 2024, drawing 150 participants from 65 jurisdictions.
Other National and Supranational Lists Worth Tracking
The United Kingdom maintains its own High-Risk Third Countries list under its Money Laundering Regulations. The island was on it and was removed automatically when FATF delisted it in early 2024.
No international sanctions from the UN, OFAC, or the EU are in force against the country. Nor has it appeared on any OECD harmful tax practices blacklist; its BEPS Action 5 reviews are routine participation, not a non-cooperation finding.
Regional monitoring continues through CFATF, the FATF-style regional body that runs the island's mutual evaluations. The IMF's 2023 Article IV Consultation noted progress on risk-based supervision, beneficial ownership data, use of financial intelligence, and asset confiscation, without flagging any outstanding listing concern.
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Why Barbados Was Listed: The Specific Deficiencies Cited
The grey listing traced back to concrete gaps identified in the 4th Round evaluation, not to a finding of bad faith. The report flagged 13 Recommendations as Partially Compliant and 2 as Non-Compliant, with weak effectiveness across the board.
Under Recommendation 1, the National Risk Assessment was judged insufficient, failing to assess threats and vulnerabilities properly or to apply a risk-based approach across all sectors. Recommendation 19 exposed a failure to disseminate FATF and CFATF notices on high-risk jurisdictions to financial institutions, and an absence of provisions for proportionate countermeasures.
Specific shortfalls persisted into mid-2023, shortly before delisting:
- Inadequate risk-based supervision of financial institutions
- Insufficient accuracy and timeliness of beneficial ownership information for competent authorities
- Limited use of financial intelligence
- Weak repatriation and sharing of confiscated assets with other countries
The EU AML listing was consequential to the FATF status rather than a fresh determination. As the Attorney General put it, the EU "is a different animal to the FATF" and reserves its own right to decide, which is why removal there took longer.
Commitments and Action Plans That Led to Delisting
Reform ran through a coordinated network of agencies, including the Central Bank, the Financial Services Commission, the Financial Intelligence Unit, the Corporate Affairs and Intellectual Property Office, the International Business Unit, and the Compliance Unit. The FSC AML/CFT/CPF Guidelines of 2021 codified KYC, beneficial ownership identification, account review, and suspicious transaction reporting duties for regulated firms.
Early movement showed in CFATF's second Enhanced Follow-Up Report of February 2020, which upgraded 11 Recommendations. By 2023, measurable advances had been made on supervision with sanctions, accurate and timely beneficial ownership data, use of financial intelligence, and international asset sharing.
The onsite visit of 9 to 11 January 2024 confirmed effective and sustainable implementation of every action plan item, and removal followed at the February plenary. On the EU AML side, the European Parliament acknowledged progress on 10 June 2025 and the delisting regulation took effect on 5 August 2025, as set out in the Central Bank's message from the Attorney General.
Practical Consequences for Non-Residents: Banking, Due Diligence, and Perception
During the listing period, the practical cost fell on cross-border banking. Correspondent banking relationships came under strain, with sectors such as reinsurance serving European clients directly affected, and businesses had to show that funds moving to partner jurisdictions were untainted.
Grey-list status obliged foreign financial institutions to apply Enhanced Due Diligence to clients and counterparties linked to the island. That meant deeper collection of source-of-funds, beneficial ownership, and transaction-purpose information, and it gave global banks grounds to restrict or attach conditions to such business.
With the FATF exit in February 2024, the UK removal in early 2024, and the EU AML delisting on 5 August 2025, the Enhanced Due Diligence triggered specifically by those listings no longer applies as a blanket rule. Standard customer due diligence now governs your account opening and transactions.
Banks no longer have a listing-based reason to subject your Barbados entity to heightened scrutiny, though ordinary KYC on ownership and source of funds still applies. Keeping clean, current beneficial-ownership records remains the practical key to smooth onboarding.
Current Status and Outlook for Barbados
Across every major register, the jurisdiction stands clear: off the FATF grey list since 23 February 2024, off the EU AML high-risk list since 5 August 2025, off the EU tax greylist since March 2023, off the UK list since early 2024, and never on any blacklist. International sanctions do not apply.
Oversight has not ended, and that is normal for a compliant jurisdiction. The Global Forum's 2025 Enhanced Monitoring Report keeps watch over the "Largely Compliant" EOIR rating, with elements A.1 and A.2 still Partially Compliant as of the 2022 review.
The clearest forward risk is the 5th Round FATF mutual evaluation set for June 2027, run by CFATF under the tougher 2022 methodology that weighs effectiveness more heavily. The government has stated publicly that it will not take any step risking a return to listed status, and the selection of Bridgetown to host the 2024 Competent Authorities Conference reads as a signal of OECD confidence.
How Expanship Can Help Your Business in Barbados
Expanship advises foreign owners on what the island's clean listing position means for their structure, and helps them keep the beneficial-ownership and transparency records that underpin it, so banking and due diligence go smoothly. The same team handles the wider lifecycle of a foreign-owned entity in the jurisdiction.
- Company formation and entity structuring
- Registered agent and registered office services
- Tax registration and filing with the revenue authority
- Ongoing compliance and corporate maintenance
- Accounting and bookkeeping
- Introductions to local and international banks
To discuss your plans, contact Expanship Barbados.
Frequently Asked Questions
No. The island has never appeared on the FATF blacklist, formally the "Call for Action" list, which contains only North Korea, Iran, and Myanmar as of February 2026. It was on the grey list of jurisdictions under increased monitoring from February 2020 until February 2024.
The European Parliament acknowledged the jurisdiction's progress on 10 June 2025, and the regulation removing it entered into force on 5 August 2025. From that date it ceased to be treated as a high-risk third country for EU anti-money-laundering purposes.
The Enhanced Due Diligence triggered specifically by the FATF, UK, and EU AML listings no longer applies as a blanket rule, and standard customer due diligence now governs your transactions. Banks still run ordinary KYC checks on ownership and source of funds, so accurate records remain important.
No public evidence shows it on Annex I, the EU's non-cooperative jurisdictions tax blacklist, at any time. It was on Annex II, the tax greylist, but was removed in March 2023 alongside Jamaica, North Macedonia, and Uruguay.
The 5th Round FATF mutual evaluation, conducted by CFATF, is scheduled for June 2027 under the revised 2022 methodology, which applies stricter effectiveness criteria. The Global Forum's Enhanced Monitoring of the EOIR rating also continues, with a further progress update expected.
The EU runs its own assessment and does not automatically follow FATF decisions; the Attorney General described it as "a different animal to the FATF." That is why removal from the EU AML list in August 2025 lagged the FATF grey-list exit of February 2024.
Legal Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change, and the application of laws can vary widely based on specific facts and circumstances.
Readers should not act upon this information without seeking professional counsel tailored to their individual situation. Expanship and its authors disclaim any liability for actions taken or not taken based on the content of this article.
For specific advice regarding your business setup, compliance requirements, or any legal matters, please consult with qualified legal and tax professionals in the relevant jurisdiction.
