Banking Industry Responds to Financial Crime in Antigua and Barbuda
Key Risks
The country’s Citizenship by Investment (CBI) program has been highlighted as a corruption risk by the US government, making it a sensitive issue for the government to tackle. Other key risks include:
- Drug trafficking: cocaine and cannabis are the most commonly trafficked drugs in Antigua and Barbuda.
- Fraud and tax evasion: after drug trafficking, these cases are most often referred for further investigations, particularly when connected to the entertainment industry.
- Human trafficking: victims often enter the situation voluntarily, and are then forced into exploitation.
- Cybercrime: phishing and account takeover scams, payment redirection to illegitimate sites, and ‘mystery shopper’ scams are a growing concern.
AML Policy Summary
Antigua and Barbuda’s AML policy has been criticized for being too narrow in focus on drug trafficking. However, the country has made efforts to train reporting entities and has strong enforcement mechanisms in place.
Legal Framework
The island nation has a robust legal framework in place to combat financial crime, including:
- 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
The country’s AML efforts are hampered by a lack of coordination between authorities, low-quality SARs from financial institutions, and a narrow focus on drug trafficking. The used car industry is also considered a high-risk area due to its lack of regulation.
Strengths
Despite the challenges, Antigua and Barbuda has shown a strong political will to tackle financial crime, along with technical knowledge and capacity in the finance sector. The country has also worked with Interpol and the Canadian government to tackle human trafficking.
The banking industry in Antigua and Barbuda must remain vigilant in addressing financial crime and working closely with authorities to prevent and detect money laundering activities.