Banks Urged to Boost Scrutiny of Transactions with Antigua and Barbuda Amid Fraud Concerns
Washington D.C., April 7, 1999
The Treasury Department has issued an advisory urging US banks and financial institutions to give enhanced scrutiny to all transactions routed into or out of Antigua and Barbuda. This move is aimed at preventing fraud and money laundering, following recent changes made by the government of Antigua and Barbuda that have weakened its anti-money laundering laws and supervision of offshore banks.
Recent Amendments to Anti-Money Laundering Laws
In November 1998, the country’s Money Laundering (Prevention) Act was amended. This has led to:
- Strengthened bank secrecy
- Limited scope of investigations
- Compromised international cooperation
Additionally, the government has transferred oversight of its offshore financial services sector to a new International Financial Sector Authority, which includes representatives from the offshore banks it is supposed to regulate. This move violates internationally accepted principles for bank supervision.
Concerns and Recommendations
“We believe that recent actions taken by Antigua and Barbuda will undermine US efforts to crack down on international money laundering through its offshore accounts,” said Under Secretary for Enforcement James E. Johnson. “It’s essential for US financial institutions to give enhanced scrutiny to all transactions into or out of Antigua and Barbuda to guard against the laundering of criminal proceeds.”
The Treasury Department advisory is available online, and US regulators and enforcement officials are urging banks to take immediate action to protect themselves from fraud and money laundering risks associated with transactions involving Antigua and Barbuda.
What You Need to Know
- The advisory urges US banks and financial institutions to give enhanced scrutiny to all transactions routed into or out of Antigua and Barbuda.
- Recent changes made by the government of Antigua and Barbuda have weakened its anti-money laundering laws and supervision of offshore banks.
- The Treasury Department advisory is available online, and US regulators and enforcement officials are urging banks to take immediate action.