Financial Crime World

Banking Regulations Against Financial Crime in Antigua and Barbuda

The Caribbean island nation of Antigua and Barbuda is seen as having a high risk of money laundering, with an estimated $34 million to $86 million of criminal proceeds laundered every year. The country’s banking regulations aim to prevent financial crime, but weaknesses in its AML framework have been highlighted.

Key Risks

The main risks associated with financial crime in Antigua and Barbuda include:

Citizenship by Investment (CBI)

Corruption risks within the CBI program have been identified by the US, but addressing these concerns is politically sensitive for the government.

Drug trafficking

  • Cocaine
  • Cannabis

are the most commonly trafficked drugs in the country.

Fraud and tax evasion

After drug trafficking, these cases are often referred for further investigation, particularly when connected to the entertainment industry.

Human trafficking

Victims often enter situations voluntarily but are then forced into exploitation, with human trafficking reported to occur in plain sight.

Cybercrime

  • Phishing
  • Account takeover scams
  • Payment redirection to illegitimate sites
  • ‘Mystery shopper’ scams

are a growing concern.

AML Policy Summary

Antigua and Barbuda’s AML framework has been criticized for being too narrow in its focus on drug trafficking. While the country has strong enforcement mechanisms, its prevention and detection of money laundering crimes are considered weak.

The country has implemented various laws to combat financial crime, including:

Misuse of Drugs Act 1974

Proceeds of Crime Act 1993

Money Laundering Prevention Act of 1996

Prevention of Terrorism Act of 2005

Weaknesses

The key conduits for financial crime in Antigua and Barbuda include professional services such as:

  • Lawyers
  • Accountants
  • Real estate
  • Money services businesses

Car dealerships and international banks are also considered high-risk.

Strengths

Despite weaknesses in its AML framework, the country has a strong political will to tackle financial crime, along with technical knowledge and capacity in the finance sector. Recent efforts have been made to work with Interpol and the Canadian government to combat human trafficking.

Conclusion

Antigua and Barbuda’s banking regulations aim to prevent financial crime, but weaknesses in its AML framework have been highlighted. The country faces various risks associated with financial crime, including corruption, drug trafficking, fraud, tax evasion, human trafficking, and cybercrime. While the country has strong enforcement mechanisms, its prevention and detection of money laundering crimes are considered weak.