Financial Crime Reporting Requirements in Antigua and Barbuda Under Increased Scrutiny
The United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued an advisory to financial institutions, urging them to exercise enhanced scrutiny when dealing with transactions involving Antigua and Barbuda. This move comes as concerns grow about the island nation’s offshore banking sector, which has been a hotbed of regulatory issues in recent years.
Antigua and Barbuda: A Hub for Offshore Banking
Antigua and Barbuda is home to nine commercial banks licensed by its government, as well as approximately 50 offshore banks that do business with customers outside of the country. However, regulators in the United States, the UK, and other nations have long been concerned about the lack of transparency and oversight in Antigua and Barbuda’s financial sector.
Weakened Anti-Money Laundering Laws
In November 1998, the Antiguan government amended its Money Laundering Prevention Act, weakening its anti-money laundering laws and oversight mechanisms. This move has raised concerns that the country is creating a “haven” for criminal activity, undermining international efforts to combat money laundering and other financial crimes.
FinCEN’s Advisory
As a result, FinCEN is urging banks and other financial institutions to exercise enhanced scrutiny when dealing with transactions involving Antigua and Barbuda or its offshore banking sector. This includes transactions involving:
- Antiguan offshore banks
- Both the nine commercial banks licensed in Antigua and Barbuda and the offshore banks
Reporting Requirements
Financial institutions are advised to carefully examine available facts relating to such transactions, including transactions worth $5,000 or more, to determine if reporting is required under the Bank Secrecy Act. The Treasury Department will consider any reports related to these transactions as suspicious activity relevant to a possible violation of law or regulation.
Broader Effort to Combat Financial Crime
The move is seen as part of a broader effort by international authorities to combat financial crime and strengthen regulatory oversight in offshore banking centers like Antigua and Barbuda.