Financial Crime World

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AML Compliance in Antigua and Barbuda: Understanding the Risks

As organizations operating in the Caribbean region navigate the complex landscape of anti-money laundering (AML) compliance, it is essential to grasp the unique challenges and responsibilities associated with each jurisdiction. In this article, VinciWorks delves into the key AML concerns and laws in Antigua and Barbuda, shedding light on what businesses should consider when assessing customer, geographic, or matter risk.

The Key Risks

Antigua and Barbuda is a hotspot for various money laundering risks, including:

  • Corruption linked to Citizenship by Investment (CBI) programs: A lucrative scheme that has been criticized for its lack of transparency and oversight.
  • Drug trafficking: Cocaine and cannabis are the most commonly trafficked substances in the region.
  • Fraud and tax evasion: Particularly in the entertainment industry, where creative accounting practices are common.
  • Human trafficking: Often involving victims who are exploited in plain sight.
  • Cybercrime: Including phishing scams, account takeovers, and payment redirection to illegitimate sites.

Estimated $34 Million to $86 Million in Annual Criminal Proceeds

According to estimates, a staggering amount of criminal proceeds is laundered every year in Antigua and Barbuda, with the exact figure ranging from $34 million to $86 million.

Weaknesses in AML Framework

The country’s AML framework has been criticized for its narrow focus on drug trafficking, which hampers efforts to prevent and detect money laundering. The lack of coordination between authorities further exacerbates this issue. Financial institutions are often reluctant to submit Suspicious Activity Reports (SARs), and those that do provide low-quality reports.

Key Conduits for Financial Crime

The most vulnerable sectors in Antigua and Barbuda include:

  • Professional services: Such as lawyers, accountants, real estate, and money services businesses.
  • Car dealerships: Which are largely unregulated and unsupervised.
  • International banks: Where complex financial transactions can be easily concealed.

Strengths in AML Efforts

Despite the challenges, Antigua and Barbuda has shown a strong commitment to tackling financial crime. The country has collaborated with Interpol and the Canadian government to combat human trafficking, demonstrating its technical knowledge and capacity in this area.

A Guide to AML Compliance in Latin America and the Caribbean

VinciWorks has developed a comprehensive guide to support businesses operating or planning to operate in the region. This guide provides an overview of key AML challenges, issues, and country-by-country assessments of AML risks and laws. Download your free copy today.

Download the Free Guide Here: [link]