Exchange Control Circular No. 4 - External Accounts

CENTRAL BANK OF BARBADOS EXCHANGE CONTROL ACT. CAP .71

EXCHANGE CONTROL CIRCULAR NUMBER 4 FEBRUARY 2020

TO: AUTHORISED DEALERS AND AUTHORISED DEPOSITARIES

EXTERNAL ACCOUNTS

This Circular sets out the conditions under which Authorised Dealers may establish External Accounts, that is, accounts denominated in Barbados dollars in the names of non-residents.

1. The definitions of residents and non-residents are contained in Exchange Control Circular Number 3.

2. Where customers are treated as non-residents, Authorised Dealers may open and maintain, subject to the provisions of this Circular, External Accounts in their sole names. Such accounts may also be opened and maintained in joint names, if all the persons concerned are non-resident(s).

3. The Bank will consider requests on a case by case basis for any account in joint names with one or more residents.

4. Except with the permission of the Bank, no payments may be credited to or debited from External Accounts other than stated in paragraphs 5 and 6 below.

5. External Accounts may be credited with:

a) payments from other External Accounts; b) interest payable on External Accounts and on accounts which are subject to directions imposed under section 36 of the Exchange Control Act, Cap 71; c) net dividends paid by companies in Barbados to non-resident shareholders up to the equivalent of BDS$500,000 per non-resident on the presentation of dividend warrants to Authorised Dealers; d) payments by residents of Barbados for which permissions have been given by the Bank, either generally or specifically; and e) net salaries, irrespective of source.

6. External Accounts may be debited without restriction up to the balance in the account.

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7. Authorised payments by residents in Barbados to non-residents may be made:

a) in Barbados dollars to an External Account with an Authorised Dealer in Barbados; or b) in any foreign currency.

8. Specific permission of the Bank is required before an External Account may be overdrawn.

9. The Bank reserves the right to request full details of External Accounts including the date on which the account was opened, and the name(s) and address(es) of the account holder(s).

Ian R. Collymore Director, Foreign Exchange and Export Credits Department

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