Under the Offshore Banking Act of Barbados it is the duty of a licensee in carrying on its business to keep all assets held in trust or all other moneys, securities and properties belonging to clients separate from Bank's other assets and further segregated on a client by client basis. This is accomplished by the use of nominee companies with segregated accounts for each client. In particular, section 25 of Barbados Offshore Banking Act states that, "It is the duty of a licensee carrying on its business (a) to keep all assets held in trust separate from its other assets, and (b) to keep separate from those of its other accounts the assets of each trust account unless they are properly identified as the property of the trust account, but subject to section 26." Section 26 deals with the establishment of common trust funds. The Offshore Banking Act applies to protect clients by keeping investor's assets separate from the Bank's assets in the event that the Bank should experience financial difficulties.

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