AML/CFT Compliance in Anguilla: Serious Deficiencies Found

A recent inspection by the Anguilla Financial Services Commission (AFSC) has revealed significant deficiencies in anti-money laundering and combating the financing of terrorism (AML/CFT) compliance among service providers in the territory.

Key Findings

• A majority of licensees were either partially compliant or non-compliant with AML/CFT regulations.
• The most notable areas of concern were:
  • Monitoring of customer activity
  • Reporting of suspicious transactions
  • Employee training and awareness

Specific Areas of Concern

• Effective due diligence was lacking, as customers’ businesses did not align with the information provided to their service providers.
• Only 33% of licensees compiled lists of suspicious transactions or activities to aid in detection.
• Many licensees did not have policies and procedures for reporting suspicious activity.
• Employee training and awareness were inadequate, with most licensees being either partially compliant or non-compliant with AML/CFT manual requirements.

Bright Spot: Record-Keeping Provisions

• 56% of licensees rated compliant in 2018
• 40% of licensees rated compliant in 2019
• However, 11% of licensees in 2018 and 40% in 2019 were rated non-compliant due to issues with receiving customer due diligence evidence from intermediaries.

Recommendations

• The AFSC strongly advises all service providers to review the AML/CFT Regulations and Code.
• Regularly review the Commission’s guidelines and seek clarification on any areas of uncertainty.
• Participate in outreach programs and engage with the Commission to improve compliance with AML/CFT legislation.

Conclusion

The findings of the inspection serve as a warning to service providers in Anguilla to prioritize AML/CFT compliance to avoid potential penalties and reputational damage.