22 BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED Throughout it all our commitment to maintaining the highest standards of compliance and governance has been unwavering, and we are excited to share some insights below. Strengthening Transparency and Governance We embraced the new Material Change Disclosure Guideline, which went into effect on November 1, 2024. This guideline emphasises transparency and public confidence by requiring the disclosure of significant changes that could impact our operations. To ensure compliance, we adopted a tiered approach, evaluating our governance, oversight mechanisms, and reporting processes. This proactive stance has enhanced our ability to maintain stability and trust in our operations. Enhancing Fitness and Propriety Standards The Fitness & Propriety (F&P) Guideline introduced stricter criteria for assessing the suitability of key persons and parties associated with the Credit Union, included but not limited to Elected Officers. We enhanced our assessment processes, focusing on ethical standards and ongoing due diligence. This not only aligns us with regulatory expectations but also reinforces our commitment to integrity and accountability within our leadership and operations. Elevating Systemic Importance and Risk Management As a Domestic Non-Bank Systemically Important Financial Institution (NB-SIFI), we are subject to increased regulatory scrutiny. We evaluated and aligned our governance structures to meet these new requirements, ensuring robust risk management frameworks are in place. These requirements included the establishment of a Corporate Governance, Risk Management, and Nomination Committee, all of which play a pivotal role in overseeing our systemic impact and ensuring the stability of our financial systems. Advancing Technology and Cyber Risk Management In response to the Technology & Cyber Risk Management Guideline, we undertook a comprehensive evaluation of our systems to ensure alignment with the latest regulatory expectations. We emphasised the importance of a strong culture of technology risk awareness, strategy development, and resilience. By appointing qualified personnel and conducting regular reviews, we remain agile in mitigating emerging threats and maintaining a secure technological environment. Combatting Financial Crimes Our efforts in Anti-Money Laundering/Combatting the Financing of Terrorism/Combatting Proliferation Financing (AML/CFT/CPF) remained robust. We continuously assessed our risk-based approach, enhanced our member due diligence program, and prioritised training and awareness to address emerging threats. These efforts contributed to Barbados being removed from the Financial Action Task Force (FATF) Grey List in February 2024, a testament to our collective commitment to a secure financial system. As the regulatory landscape continues to evolve, we remain dedicated to staying ahead of compliance requirements. Our focus will be on maintaining a strong governance framework, enhancing our technological resilience, and upholding the highest standards of integrity and accountability. These efforts not only ensure our compliance but also reinforce trust and confidence in our operations. Thank you for your continued support as we navigate this dynamic regulatory environment. Together, we are building a secure and compliant foundation for a stronger future. Data Privacy, Protection & Fraud Protecting your personal information is a top priority for us, and data privacy and the protection of all forms of data used and owned by the Credit Union continue to be a priority for us. In 2024, we focused on compliance with the Barbados Data Protection Act 2019 by drafting a Data Privacy Policy and establishing clear incident management procedures to promptly handle any data breaches that may occur. Additionally, a Data Privacy Officer was appointed to oversee these efforts and ensure we continue on our journey to meet all regulatory requirements. One of our key achievements during the period was the implementation of a data privacy processing agreement for use with all new service providers which ensures that your personal information is fully protected from the moment we start working with any vendors or providers. Many financial institutions (FIs) have been battling with the bad actors who are constantly attempting to compromise and exploit debit and credit cards and the processing systems they run on. A new report from the Federal Reserve estimated that last year, debit cards were among the most targeted payment methods for fraud in the United States, as roughly three-quarters of FIs said debit cards were tied to the most frequent fraud attempts and dollar losses; up 6% over the previous year and singularly responsible for 39% of fraud losses by payment type. Locally all FIS have also been significantly impacted by this fraud typology, our credit union included. Through the use of various response mechanisms, we are determined to ensure that such incidences are reduced and have been making significant progress in this regard. Board of Directors’ Report (Continued)
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