Financial Crime World

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Financial Crime Investigation Methods in Antigua and Barbuda Face Unique Challenges

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In the fight against financial crime, understanding the specific challenges and regulations of different jurisdictions is crucial for effective compliance. In this article, we delve into the key Anti-Money Laundering (AML) challenges and laws in Antigua and Barbuda, highlighting the risks and responsibilities that organizations must consider when assessing customer, geographic or matter risk.

Key Risks

The island nation faces a range of AML threats, including:

  • Citizenship by Investment (CBI)
  • Drug trafficking
  • Fraud and tax evasion
  • Human trafficking
  • Cybercrime

According to estimates, $34 million to $86 million in criminal proceeds is laundered every year in Antigua and Barbuda.

AML Policy Summary

Antigua and Barbuda’s AML framework has been criticized for its narrow focus on drug trafficking, with the country considered weak in prevention and detection of money laundering crime. However, enforcement efforts are strong.

The country reformed its AML laws after a 2008 mutual evaluation, focusing on training reporting entities. Supervisory agencies are well-informed of AML requirements and risks. Key legislation includes:

  • The Misuse of Drugs Act 1974
  • The Proceeds of Crime Act 1993
  • The Money Laundering Prevention Act of 1996
  • The Prevention of Terrorism Act of 2005

Weaknesses

Professional services such as:

  • Lawyers
  • Accountants
  • Real estate
  • Money services businesses

are key conduits for financial crime. Car dealerships and international banks are also considered high-risk. The used car industry is unregulated and unsupervised, making it vulnerable to abuse by drug traffickers. Low-quality Suspicious Activity Reports (SARs) from financial institutions and designated non-financial business and professions also hamper AML efforts.

Coordination Challenges

A lack of coordination between authorities hinders AML efforts in Antigua and Barbuda. The Royal Police Force of Antigua and Barbuda’s narrow focus on drug trafficking means that financial crime investigations are unlikely to occur unless there is a connection to drugs. US-backed interventions and financial support for anti-drug efforts also limit the country’s ability to expand its focus.

Strengths

Despite these challenges, Antigua and Barbuda has shown strong political will to tackle financial crime, along with technical knowledge and capacity in the finance sector. Recent collaborations with Interpol and the Canadian government on human trafficking demonstrate the country’s commitment to combating financial crime.

Learn More

To learn more about AML compliance in Antigua and Barbuda and other countries in Latin America and the Caribbean, download our free guide to compliance: [Insert link]