Financial Crime World

National Risk Assessment (NRA) for St. Kitts and Nevis: Identifying Money Laundering and Terrorist Financing Risks

Overview

The National Risk Assessment (NRA) for St. Kitts and Nevis aims to identify money laundering (ML) and terrorist financing (TF) risks in the country. The assessment involves a team of experts from various sectors, including commercial banking, international banking, insurance, securities, and others.

Structure of the NRA

  • A team of experts from various sectors is involved in the NRA.
  • The World Bank’s Risk Assessment Tool is an Excel-based model used to identify ML/TF risks based on causal relations among money laundering risk factors and variables relating to the regulatory, institutional, and economic environment.

Vulnerability Assessment

The Vulnerability Assessment identified high, medium, and low vulnerabilities in various sectors, including:

  • Commercial banking
  • International banking
  • Insurance
  • Securities

Predicate Offences

The most prevalent predicate offences generating money laundering are:

  • Larceny (including house breaking)
  • Drug-related offences
  • Robbery and other gun-related offences

Prosecution and Enforcement

  • Prosecution tends to pursue cases with strong evidence.
  • Law enforcement efforts could be improved through augmentation of human resources in the FIU, WCCU, and Police Force.

Suspicious Transaction Reports (STRs)

The Financial Intelligence Unit (FIU) processed STRs mainly from banks and money service businesses. However, the overall level of STR reporting is low in some sectors.

Recommendations for Improvement

To prevent and combat ML/TF risks, the following recommendations are made:

  • Awareness raising and capacity building: Greater awareness raising and capacity building are needed throughout different sectors.
  • Internal work by Compliance Officers and AML/CFT Departments: More work needs to be done internally by compliance officers and AML/CFT departments.
  • Law enforcement efforts: Law enforcement efforts could be improved through augmentation of human resources in the FIU, WCCU, and Police Force.
  • Record keeping: Consistent and coherent record keeping needs to be improved among relevant agencies within the Police Force and Court System.

Conclusion

The NRA aims to identify ML/TF risks in St. Kitts and Nevis and provide recommendations for improvement to prevent and combat these risks. By implementing the recommended improvements, the country can strengthen its efforts to combat money laundering and terrorist financing.