Financial Crime World

Antigua and Barbuda’s Banking Industry Struggles to Combat Financial Crime

A recent mutual evaluation by the Financial Action Task Force (FATF) has revealed that Antigua and Barbuda’s banking industry is facing significant challenges in addressing financial crime.

Key Findings

The FATF evaluation found that Antigua and Barbuda scored poorly on several key areas, with the island nation being rated “partially compliant” or “non-compliant” in 21 out of 40 areas evaluated. The main concerns include:

  • Lack of Effective National Cooperation and Coordination (R.2)
    • The FATF noted that Antigua and Barbuda’s financial intelligence unit (FIU) lacks sufficient resources and capacity to effectively identify, assess, and mitigate money laundering risks.
  • Inadequate Customer Due Diligence (R.10)
    • Many banks in Antigua and Barbuda fail to conduct thorough risk assessments on their customers, making it difficult to detect suspicious transactions.
  • Concerns over Regulation and Supervision of Financial Institutions (R.26)
    • The FATF noted that Antigua and Barbuda’s regulatory body lacks adequate powers to oversee the banking industry, which can lead to a lack of compliance with anti-money laundering regulations.

Contrasting Areas

In contrast, Antigua and Barbuda scored well on several areas, including:

  • Confiscation and Provisional Measures (R.4)
  • Regulation and Supervision of Designated Non-Financial Businesses and Professions (DNFBPs) (R.28)

Recommendations for Improvement

To address these concerns, the FATF recommends that Antigua and Barbuda:

  • Strengthen national cooperation and coordination to ensure effective identification, assessment, and mitigation of money laundering risks
  • Improve customer due diligence processes to detect suspicious transactions
  • Enhance regulation and supervision of financial institutions to ensure compliance with anti-money laundering regulations
  • Increase resources and capacity of the FIU to effectively identify, assess, and mitigate money laundering risks

By addressing these concerns, Antigua and Barbuda can improve its reputation as a reputable jurisdiction for international banking and finance.