Financial Crime World

Financial Institutions in Antigua and Barbuda Under Scrutiny as Compliance Unit Takes Charge

In a bid to shield the financial system from transactions involving proceeds of crime, the newly established Financial Compliance Unit (FCU) is working closely with regulatory authorities to ensure that all financial institutions in Antigua and Barbuda comply with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations.

The Role of the Financial Compliance Unit

The FCU has been tasked with conducting on-site and off-site examinations to assess the effectiveness of AML/CFT programs implemented by financial institutions, providing remedial feedback and assistance where necessary. The unit is also responsible for monitoring institutions to ensure that they submit mandatory reports in a timely manner and provides assistance to the Financial Intelligence Unit (FIU) in hosting AML/CFT workshops and training.

Regulatory Requirements

Under Regulation 15 of the Money Laundering (Prevention) Regulations, all financial institutions listed in Schedule 1 of the Money Laundering (Prevention) Act are required to conduct an annual assessment of their AML/CFT policies and procedures. They must also submit Terrorist Property reports on a quarterly basis.

Additional Requirements for Certain Institutions

Institutions categorized in Schedule 2 of the Money Laundering (Prevention) Regulations, which include:

  • Banking and financial businesses
  • International offshore banking business
  • Insurance companies
  • Internet gambling companies
  • Sports betting companies
  • Casinos
  • Money service businesses

are required to submit an additional annual Audit Review Report. This report serves as a gauge of the effectiveness of the institution’s implementation of AML/CFT requirements.

Responsibilities of the Financial Compliance Unit

The FCU’s responsibilities include:

  • Conducting examinations to evaluate an institution’s money laundering prevention program
  • Offering remedial feedback and assistance where necessary
  • Carefully monitoring institutions to ensure timely submission of required reports
  • Providing assistance in AML/CFT training workshops