Financial Crime World

Anguilla’s Financial Crime Risk Assessment: Identifying and Mitigating Money Laundering, Terrorist Financing, and Proliferation Financing Threats

Anguilla, known for its beautiful beaches and idyllic lifestyle, is also a significant financial services hub. In this article, we focus on Anguilla’s Money Laundering risk assessment, based on the results of the Government’s National Risk Assessment (NRA), conducted from 2014 to 2020.

Money Laundering Threats in Anguilla

Anguilla’s overall money laundering threat level was assessed as medium. Several predicate offenses were evaluated as high to very high risk:

  1. Human trafficking and sexual exploitation
  2. Fraud
  3. Trafficking of illegal substances

Human Trafficking and Sexual Exploitation

Anguilla faces significant risks from human trafficking and sexual exploitation:

  • Growing issue, particularly within the Spanish-speaking population
  • No evidence of organized crime groups
  • Individual networks operate, moving funds and persons
  • Money service businesses (MSBs) used for money laundering

Fraud

Fraud, both domestic and international, represents a substantial concern with:

  • Small-scale domestic cases by unsophisticated criminals
  • Large-scale international cases linked to organized crime groups
  • Significant resources and money laundering expertise
  • Banks and MSBs used for money laundering activities

Trafficking of Illegal Substances

Anguilla is suspected to be a trans-shipment point for:

  • Cannabis
  • Cocaine
  • Amphetamine-type stimulants
  • Individuals involved: small-scale traffickers to organized crime groups
  • Money laundering methods include MSBs and cross-border cash movements

In conclusion, understanding and addressing Anguilla’s money laundering risks requires swift and effective action. Below are the recommended next steps:

  1. Update legislation
  2. Strengthen regulatory oversight
  3. Increase awareness and training for relevant stakeholders

By addressing these risks, Anguilla can maintain its reputation as a reliable and secure financial services hub in the Caribbean.