Financial Crime World

Antigua and Barbuda’s Struggle with Anti-Money Laundering: Challenges and Weaknesses

Key Risks

  • Corruption: The US government has highlighted corruption risks within Antigua and Barbuda’s Citizenship by Investment program, which has been a significant source of revenue for the island nation.
  • Drug trafficking: Cocaine and cannabis are the most commonly trafficked drugs in the region.
  • Fraud and tax evasion: These cases are often referred for further investigation, particularly when connected to the entertainment industry.
  • Human trafficking: Victims often enter the situation voluntarily but are then forced into exploitation, with many cases reported in plain sight.
  • Cybercrime: Phishing and account takeover scams, payment redirection to illegitimate sites, and “mystery shopper” scams are a growing concern.

Estimated Criminal Proceeds

An estimated $34 million to $86 million of criminal proceeds is laundered every year in Antigua and Barbuda.

AML Policy Summary

Antigua and Barbuda’s AML efforts have been criticized for being too narrow in focus, with a lack of prevention and detection mechanisms. However, the country has strong enforcement mechanisms in place.

The island nation has reformed its AML framework since its 2008 mutual evaluation, with a focus on training reporting entities. The supervisory agencies are well-informed of AML requirements and risks.

Key laws include:

  • Misuse of Drugs Act 1974
  • Proceeds of Crime Act 1993
  • Money Laundering Prevention Act of 1996
  • Prevention of Terrorism Act of 2005

Weaknesses

The country’s AML efforts are hampered by a lack of coordination between authorities, low numbers and quality of Suspicious Activity Reports (SARs) from financial institutions, and a narrow focus on drug trafficking. The used car industry is unregulated and unsupervised, making it vulnerable to money laundering.

Strengths

Despite its challenges, Antigua and Barbuda has shown strong political will to tackle financial crime, along with technical knowledge and capacity in the finance sector. Recently, the country has worked with Interpol and the Canadian government to tackle human trafficking.