CIBC Caribbean to Reinstate Domestic Electronic Funds Transfer Fee for Corporate Clients in Barbados in Line with Central Bank Guidelines

CIBC Caribbean says its imminent reinstatement of a domestic electronic funds transfer (EFT) fee for corporate clients in Barbados is consistent with guidelines issued by its regulator the Central Bank of Barbados.

This is confirmed in recent Central Bank communication on its market conduct guideline which took effect on July 12.

CIBC Caribbean has been notifying corporate customers that from November 1, it “will reinstate the fee for domestic electronic transfers to other banks in Barbados”.

“This fee will only apply to our corporate, international corporate and business banking clients processing transactions on corporate online banking, and will not be applied to clients using the personal online banking platform,” the bank said in the notice.

For corporate online banking, CIBC Caribbean currently does not have a fee for standard transfer via the Barbados Automated Clearing House or for instant payments transfer via the real time payments system.

From November 1 there will be a $1 fee for both transactions for corporate clients to which it applies.

Some members of the business community have voiced concern about the fee, but in a statement yesterday CIBC Caribbean explained that “our recent announcement of the reinstatement of the fee for domestic electronic transfers to other banks for corporate, international and business banking clients processing transactions on our corporate online banking portal is consistent with Central Bank of Barbados guidelines on electronic transfers”.

Published on website

“Those guidelines are published on the Central Bank’s website and social media page,” the bank noted.

“In addition, the Central Bank addressed this issue in a number of communications via their social media and also undertook a media campaign via radio which aired the first week in October on four stations (92.9, 95.3, 98.1 and 100.7 FM) three times a day Monday to Thursday that highlighted the difference between the fees for individuals and corporates/businesses on EFTs,” CIBC Caribbean added.

This is confirmed by the Central Bank.

On September 20, the monetary authority shared information on its website and social media pages reminding that in July it issued a market conduct guideline for all entities it regulates, and that this guideline “will also extend to future recognised entities such as digital currency operators and fintech companies”.

The Central Bank said one key aspect of the guideline is that “commercial banks and deposit-taking finance companies must not charge individuals for domestic electronic transfers. This includes transfers you make or receive via batch processing or real-time processing”.