Financial Crime World

St. Kitts and Nevis Lacks Effective Anti-Money Laundering Measures, Report Finds

A recent mutual evaluation report by the Caribbean Financial Action Task Force (CFATF) has highlighted several vulnerabilities in St. Kitts and Nevis’ anti-money laundering (AML) regime.

Lack of Coordination and Cooperation

The report found that St. Kitts and Nevis had failed to implement key recommendations aimed at preventing money laundering and terrorist financing. One of the main concerns identified by the CFATF is the lack of coordination and cooperation among the country’s financial intelligence unit (FIU), the financial sector, and other government agencies.

  • The report noted that there was limited training in the use of financial intelligence and relevant information, which has resulted in a low number of suspicious transaction reports (STRs) being submitted to the FIU.
  • The CFATF also found that the country’s National Anti-Money Laundering Committee (NAMLC) had not been established, and that there was no national AML/ CFT strategic plan for 2021.

Confiscation Regime Concerns

The report also highlighted concerns about the country’s confiscation regime, which is aimed at recovering criminal proceeds and assets. It found that:

  • There was no dedicated unit within the FIU or the Office of the Director of Public Prosecutions (DPP) for conducting confiscation proceedings or asset forfeiture under the Proceeds of Crime Act.
  • St. Kitts and Nevis has limited experience in asset recovery with foreign counterparts, either for proceeds of foreign predicates located in the jurisdiction or proceeds from domestic predicates laundered outside the country.

Government Response

In response to the report’s findings, the government of St. Kitts and Nevis has promised to take steps to improve its AML regime, including:

  • Establishing a national AML/ CFT strategic plan
  • Strengthening coordination among relevant agencies
  • Providing training in the use of financial intelligence and relevant information

Key Recommendations

The CFATF’s mutual evaluation process is designed to assess the effectiveness of anti-money laundering measures in jurisdictions around the world. The report’s findings are intended to help countries identify areas for improvement and strengthen their AML regimes.

Here are the key recommendations:

  • Establish a national AML/ CFT strategic plan for 2021
  • Strengthen coordination among relevant agencies, including the FIU, financial sector, and government agencies
  • Provide training in the use of financial intelligence and relevant information
  • Implement a dedicated unit within the FIU or DPP for conducting confiscation proceedings or asset forfeiture under the Proceeds of Crime Act
  • Improve cooperation with foreign counterparts in asset recovery

Timeline

  • March 2021: St. Kitts and Nevis enacts legislation to include civil asset forfeiture
  • 2019-2020: Six (6) ML investigations are conducted by the WCCU, resulting in no convictions
  • First three months of 2021: Two (2) ML investigations are conducted by the WCCU

Sources

  • Caribbean Financial Action Task Force (CFATF)
  • Government of St. Kitts and Nevis
  • Office of the Director of Public Prosecutions (DPP)
  • Financial Intelligence Unit (FIU)

Note: The article has been rewritten to resemble a media article, with a focus on presenting the findings of the CFATF report in an objective and informative manner.