Compliance Risks in Banking Threaten Financial System in Antigua and Barbuda: Authorities Take Action
The Supervisory Authority and Financial Institutions in Antigua and Barbuda are working together to safeguard the country’s financial system from transactions linked to criminal activities by implementing robust Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) policies and procedures.
Establishment of the Financial Compliance Unit
The newly established Financial Compliance Unit is at the forefront of this effort, tasked with ensuring that all financial institutions comply with relevant laws and regulations. The unit conducts regular examinations, including onsite and offsite evaluations, to assess the effectiveness of AML/CFT programs in place at financial institutions.
Examination Process
- Onsite and offsite evaluations are conducted to assess the effectiveness of AML/CFT programs
- Remedial feedback and assistance are provided where necessary
- Financial institutions are monitored to ensure they submit mandatory reports on a timely basis
- Training and support are provided to the Financial Intelligence Unit
Regulatory Requirements
Regulation 15 of the Money Laundering (Prevention) Regulations requires all listed financial institutions, including:
- Banking and financial businesses
- International offshore banking business
- Insurance companies
- Internet gambling companies
- Sports betting companies
- Casinos
- Money service businesses
to conduct an annual assessment of their AML/CFT policies and procedures. These institutions must also submit:
- Quarterly Terrorist Property reports
- Annual Audit Review Reports
The Importance of the Financial Compliance Unit
The Financial Compliance Unit’s responsibilities are critical in detecting and deterring money laundering and terrorism financing activities. By conducting regular examinations and providing training and support, the unit aims to ensure that financial institutions are equipped to effectively implement AML/CFT requirements and identify potential compliance risks.
By taking action to address these compliance risks, the authorities in Antigua and Barbuda aim to safeguard the country’s financial system and prevent transactions linked to criminal activities.