Financial Crime World

Antigua and Barbuda Faces Scrutiny Over Financial Crime Risk Assessment

Background

A recent report from the Financial Action Task Force (FATF) has highlighted several areas of concern in Antigua and Barbuda’s efforts to combat financial crime. The FATF is an intergovernmental organization that sets standards for anti-money laundering and combating the financing of terrorism.

Key Findings

  • National Cooperation and Coordination: Rated as partially compliant (R.2)
  • Regulation and Supervision of Financial Institutions: Also rated as partially compliant (R.26)
  • Laws on Money Laundering Offenses: Found to be largely compliant (R.3)
  • Confiscation and Provisional Measures: Rated as largely compliant (R.4)
  • Targeting Terrorist Financing: Deemed partially compliant (R.5)
  • Financial Institution Secrecy Laws: Rated as largely compliant (R.9)
  • Customer Due Diligence Requirements: Also rated as largely compliant (R.10)

Areas for Improvement

The report identified several areas where Antigua and Barbuda needs to improve, including:

  • Regulation and Supervision of Designated Non-Financial Businesses and Professions (DNFBPs): Rated as non-compliant
  • Reliance on Third Parties: Found to be partially compliant (R.17)

Government Response

In a statement, the government of Antigua and Barbuda said it is committed to improving its anti-money laundering and combating the financing of terrorism framework and will work to address the areas identified in the report.

Next Steps

The FATF has called on Antigua and Barbuda to implement the necessary reforms by the next review date. The country’s financial sector has faced scrutiny in recent years, with several banks being forced to close due to concerns over their anti-money laundering controls. The government has introduced new regulations aimed at strengthening the sector’s defenses against financial crime, but the FATF report suggests that more needs to be done.