Introduction
Antigua and Barbuda, known for its beautiful Caribbean archipelago, has emerged as a concern for financial crime in the Latin American and Caribbean region. Money laundering, corruption, drug trafficking, tax evasion, human trafficking, and cybercrime are among the reported illicit activities taking place in this country. For businesses aiming to operate or expand in Antigua and Barbuda, understanding the local financial crime landscape and compliance requirements is indispensable.
Key Risks
Citizenship by Investment Schemes
- Growing popularity for economic development
- Potential for corruption
- US warnings related to these schemes
Common Financial Wrongdoings
- Drug trafficking
- Fraud and tax evasion, linked to the entertainment industry
- Human trafficking, less overt but prevalent
- Cybercrime, including phishing scams and account takeovers
Criminal Proceeds
- Estimated annual inflow: $34 million - $86 million
AML Policy and Laws
- One of the first Caribbean nations to reform AML framework
- Relatively informed supervisory agencies and reporting entities
- Key legislation: The Misuse of Drugs Act 1974, Proceeds of Crime Act 1993, Money Laundering Prevention Act 1996, and Prevention of Terrorism Act 2005
Weaknesses
Primary Conduits for Criminal Proceeds
- Professional services (lawyers, accountants, real estate agents, money services businesses)
- Car dealerships and international banks
- Unregulated and unsupervised used car industry
Other Challenges
- Lack of coordination between authorities
- Inadequate Suspicious Activity Reports (SARs) from financial institutions
Strengths
- Recognized for strong political will to fight financial crime
- Demonstrated technical knowledge and capacity in the finance sector
- Recent collaborations with Interpol and the Canadian government to tackle human trafficking
Anti-Money Laundering Compliance
- VinciWorks comprehensive guide offers an overview of key AML challenges and detailed assessment of risks and laws in various Latin American and Caribbean countries
- Click here to download a free copy
Conclusion
In conclusion, familiarity with the financial crime landscape and AML requirements in Antigua and Barbuda is essential for businesses seeking to establish a presence in the Caribbean. Take proactive measures, such as conducting thorough client due diligence and implementing a robust risk management strategy, to ensure yours stays compliant and ethically responsible.