Financial Crime World

Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Regulations in St. Christopher and Nevis

Introduction

The following regulations outline the requirements for anti-money laundering (AML) and combating the financing of terrorism (CFT) in St. Christopher and Nevis. These regulations aim to prevent money laundering and terrorist financing by ensuring that financial institutions verify the identity of customers, particularly in high-risk situations.

Key Requirements

1. Due Diligence Requirements

Relevant persons must perform customer due diligence procedures to verify the identity of customers, including Politically Exposed Persons (PEPs). Enhanced due diligence is required for higher-risk situations.

  • Verify customer identities through reliable and independent sources
  • Obtain documentation that confirms customer identities
  • Conduct regular reviews of customer relationships

2. Politically Exposed Persons (PEPs)

A PEP is an individual who has held a prominent public function or is a family member or close associate of such an individual.

  • PEPs are considered high-risk customers due to their potential vulnerability to corruption and exploitation
  • Enhanced customer due diligence procedures must be applied for PEPs, including regular reviews of their relationships with the financial institution

3. Enhanced Customer Due Diligence

Relevant persons must apply enhanced customer due diligence procedures in situations that present a higher risk of money laundering, including:

  • Business transactions with individuals from countries that do not or insufficiently apply FATF recommendations
  • Foreign branches or subsidiaries in countries that do not or insufficiently apply FATF recommendations
  • Politically Exposed Persons (PEPs)

Enhanced due diligence procedures may include:

  • Conducting more frequent reviews of customer relationships
  • Obtaining additional documentation to verify customer identities
  • Monitoring customer transactions closely for suspicious activity

4. Reduced Customer Due Diligence

Identification procedures are not required for low-risk situations, including:

  • Public authorities acting in their capacity
  • Pension schemes with specific characteristics
  • Insurance policies taken out by virtue of a person’s contract of employment or occupation
  • Low-value insurance premiums (EC$5000.00 or less)

These regulations aim to prevent money laundering and terrorist financing by requiring financial institutions to verify the identity of customers, particularly in high-risk situations, and to monitor customer relationships closely.

Please note that this is an analysis of a specific text and not a comprehensive review of anti-money laundering regulations in St. Christopher and Nevis or globally. If you have any further questions or concerns, feel free to ask!