Financial Crime World

Banking Compliance Issues Plague Antigua and Barbuda’s Financial System

The tiny Caribbean nation of Antigua and Barbuda is facing significant banking compliance issues, threatening to undermine its financial system. According to sources, the Supervisory Authority has identified a lack of comprehensive Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) policies and procedures among financial institutions, leaving the system vulnerable to transactions involving the proceeds of crime.

Financial Compliance Unit Takes Action

To address this issue, the newly established Financial Compliance Unit (FCU) is working closely with financial institutions to ensure compliance with relevant laws, regulations, and guidelines. The FCU conducts onsite and offsite examinations to evaluate the effectiveness of AML/CFT programs and provides remedial feedback and assistance to institutions.

Regulatory Requirements

  • Regulation 15 of the Money Laundering (Prevention) Regulations requires all financial institutions listed in the first schedule of the Money Laundering (Prevention) Act to conduct an annual assessment of their AML/CFT policies and procedures.
  • Institutions categorized in Schedule 2 of the regulations must submit quarterly Terrorist Property reports, while those in Schedule 1 must provide a separate annual Audit Review Report.

Challenges and Concerns

These reports serve as a gauge of an institution’s effectiveness in implementing AML/CFT requirements. However, sources suggest that some institutions have failed to submit required reports in a timely manner, further exacerbating the compliance issues.

The lack of effective AML/CFT measures has raised concerns about money laundering and terrorism financing activities in Antigua and Barbuda’s financial system. The country’s authorities must take swift action to address these compliance issues and ensure that its financial institutions are adequately protected against illicit activities.

Conclusion

In conclusion, the banking compliance issues plaguing Antigua and Barbuda’s financial system require immediate attention from the authorities. The Financial Compliance Unit’s efforts to ensure compliance with relevant laws and regulations are a step in the right direction. However, more needs to be done to address the lack of effective AML/CFT measures and prevent money laundering and terrorism financing activities in the country’s financial system.