25 CONSOLIDATED FINANCIAL STATEMENTS 2024 Regulatory Environment Review During the 2023-24 fiscal period, the financial services sector experienced intensified regulatory scrutiny and higher privacy standards due to newly introduced (or proposed) legislation and regulatory guidelines. These changes focused on areas such as corporate governance, fitness and propriety, data privacy, whistleblowing, anti-corruption and bribery, and cyber security and technology risks. In response, the Credit Union took proactive steps to enhance existing practices and/or establish new frameworks for these critical areas. Our commitment to maintaining the highest standards of compliance with regulatory requirements remains unwavering. Corporate Governance and Fitness & Propriety Regulatory Guidelines In January 2024, the Financial Services Commission (FSC) issued a notice advising that the Corporate Governance Guidelines became effective on November 20, 2023. Registrants were advised to update their fit and proper frameworks, policies, procedures and practices accordingly. Based on these guidance documents, BPWCCUL is considered a non-banking systemically important financial institution (NB-SIFI) given its size and complexity. Due to its NB-SIFI status, the FSC required BPWCCUL to enhance measures governing the AGM election process to ensure that all persons elected to office are fit and proper as defined in the Guideline and are aware of the new corporate governance standards. Technology & Cyber Risk Management Guideline In June 2023, the FSC issued a consultation paper regarding the draft Technology & Cyber Risk Management Guideline to its registrants for feedback. The draft aligned to requirements seen in the banking sector and international best practices. Hence, BPWCCUL assessed its existing practices to determine any gaps that need to be addressed to enhance its existing technology and cyber security framework. Whistleblowing While it is customary for complaints to be made through various contact channels, it is understood that there is a need to ensure that some concerns are brought to the organization’s attention confidentially. These matters are to be addressed through implementation of the Group Whistleblower Framework. Barbados Revenue Authority (BRA) In November 2023, the BRA issued a guidance note to provide reporting financial institutions (e.g. credit unions, banks and other deposit taking entities) with direction on their obligations for obtaining and reporting Tax Identification Numbers (TIN) of members to satisfy this requirement under the Common Reporting Standard (“CRS”). In November 2023, the BRA also, issued guidance to reporting Barbados financial institutions where an entity opening an account self-certifies as a financial institution to adhere to the requirements under the Common Reporting Standard. It is critical that members provide their TINs to satisfy these requirements. Data Privacy In keeping with data protection legislation, the BPWCCUL has implemented measures to ensure safe and effective collection, processing, usage, storage, distribution of personal data and protection of members’ personal data. There is therefore a legal obligation for BPWCCUL to ensure that all member information is protected from unauthorized access and use, and that information is only used within the confines of regular business activity. There is also a legal obligation for BPWCCUL to ensure that member information is updated as necessary as part of its Know-Your-Member programme. Members are therefore, encouraged to update their information as a requirement. Current business practices rely heavily on technology to facilitate faster, easier and more convenient ways to conduct business activity. This increases the risk of outside forces attempting to gain information through cybercrime. Should such cyber incidents occur, there is a legislative requirement for such matters to be reported to the Data Commissioner and affected individuals. Members should ensure that they employ measures to protect their information. This includes, but is not limited to being mindful of entering information on suspicious websites, not sharing personal identification numbers (PINs) and not sharing personal information. Member Engagement During the 2023-24 reporting period, the Credit Union recorded a steady growth in membership, with total members closing at 113,781 a 2.4 % increase over the prior year. While we acknowledged that there were challenges within our operations,
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