Financial Crime World

ST KITTS AND NEVIS INTRODUCES BENEFICIAL OWNERSHIP DISCLOSURE TO CURB MONEY LAUNDERING AND TERRORISM FINANCING

The Financial Services Regulatory Commission (FSRC) in Nevis has implemented a risk-based supervision framework to ensure compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) requirements. This framework applies to both on-site and off-site examinations of regulated businesses.

Comprehensive Examinations

As part of its regulatory oversight, the FSRB conducts comprehensive on-site examinations of regulated entities in Nevis to ensure that they are complying with relevant laws and regulations. During these examinations, examiners determine whether entities have established appropriate policies and procedures for:

  • Identifying and verifying customers
  • Identifying and verifying beneficial owners (BOs) of legal persons and legal arrangements

Beneficial Ownership Disclosure

Under AML/CFT legislation, regulated entities are required to:

  • Identify, verify, obtain, maintain, and monitor their BOs, including companies and trusts
  • Make this information available to competent authorities and those conducting due diligence

Know Your Customer (KYC) and Customer Due Diligence (CDD)

To ensure compliance, examiners review relevant customer files and citizenship by investment applications to verify that adequate KYC and CDD documents are obtained and kept up-to-date. These documents include:

  • Passport copies
  • Notarized letters of reference
  • Proof of address
  • Other financial records

Assessment of Policies and Procedures

Examiners also assess a regulated entity’s policies, practices, procedures, and internal controls for compliance with AML/CFT legislation, including:

  • Ongoing monitoring programs
  • Suspicious transaction reporting
  • Record-keeping systems
  • Retention periods
  • Condition of records

Risk-Based Supervision Framework

The results of an on-site examination influence the intensity and frequency of monitoring. Regulated entities that operate satisfactorily will require less frequent monitoring than those with weaknesses and deficiencies. The FSRB’s risk-based supervision framework aims to ensure that regulated businesses in Nevis are operating:

  • Transparently
  • Effectively
  • Reducing the risks associated with money laundering and terrorism financing