Forex trading is legal in Barbados, but it operates under strict exchange control regulations administered by the Central Bank of Barbados (CBB). The legal framework for foreign exchange control was established in 1967 with the passing of The Exchange Control Act, Cap.71, which designates the Minister of Finance as the Exchange Control Authority (1). The Central Bank of Barbados has been delegated responsibility to monitor, analyze, and regulate foreign exchange transactions throughout the country.
Barbados residents can engage in forex trading, but they must comply with exchange control requirements that limit foreign currency holdings and transactions. The government has been gradually liberalizing these controls, with the process beginning in the mid-1990s when commercial banks were granted delegated authority to approve certain trade transactions (1). In 2019, the government increased the amount of foreign currency that residents can hold in bank accounts to $10,000, signaling a policy direction toward relaxing exchange controls.
"The process of exchange control liberalization began in the mid-nineteen-nineties when commercial banks were granted delegated authority to approve payment for several trade transactions which hitherto required the prior approval of the Central Bank."
The regulatory environment ensures that forex brokers operating in Barbados must comply with anti-money laundering (AML) and know-your-client (KYC) protocols to maintain transparency and client protection. The Central Bank maintains oversight of the international financial services sector to prevent money laundering and tax evasion (2). While forex trading is permitted, traders must navigate the existing exchange control framework and may need to obtain approvals for certain foreign currency transactions through the CBB's Forex Online platform.
Source:
https://www.centralbank.org.bb/foreign-exchange/exchange-control-guide
https://www.state.gov/reports/2024-investment-climate-statements/barbados/
Last updated: 01-06-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
