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Financial Crime Investigation Techniques in Antigua and Barbuda: A Warning to Banks and Institutions

The United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a recent advisory warning banks and other financial institutions to exercise enhanced scrutiny when dealing with transactions involving Antigua and Barbuda. This small island nation in the Caribbean has been a concern for regulators and enforcement officials due to its offshore banking sector.

Concerns Over Antigua and Barbuda’s Offshore Banking Sector

According to FinCEN, the operation of Antigua and Barbuda’s offshore financial sector has been a subject of concern for some time. This concern was particularly heightened following the collapse of European Union Bank in 1997. The bank had emphasized the strength of Antigua and Barbuda’s bank secrecy laws as an incentive for depositors.

Amendments to Money Laundering Act

In November 1998, the government of Antigua and Barbuda amended its Money Laundering (Prevention) Act, which weakened the law and made it easier for financial institutions to maintain secrecy. Additionally, the government changed the supervision of its offshore financial services sector, vesting authority over that sector in a new International Financial Sector Authority.

Concerns Over Criminal Activity

The changes have raised concerns that Antigua and Barbuda’s offshore banking sector may become a “haven” for criminal activity, undermining international efforts to counter money laundering and other financial crimes. As a result, FinCEN is advising banks and institutions to carefully examine transactions involving Antigua and Barbuda or its offshore banks, particularly those involving entities organized or domiciled in the country.

Reporting Suspicious Transactions

Institutions subject to suspicious activity reporting rules should report any transactions of $5,000 or more that may be related to money laundering or other criminal activities. The Treasury Department will consider any report relating to a transaction described in this advisory to constitute a report of a suspicious transaction relevant to a possible violation of law or regulation.

Conclusion

The FinCEN Advisory is a warning to banks and institutions to exercise enhanced scrutiny when dealing with transactions involving Antigua and Barbuda, particularly those that may be related to money laundering or other criminal activities. It is essential for financial institutions to remain vigilant in their efforts to combat financial crime and maintain the integrity of the global financial system.

References

• FinCEN Advisory
• United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN)