CARIBBEAN CRIME WAVE: Financial Fraud on the Rise in Antigua and Barbuda, Report Reveals

A new report by Global Financial Integrity has shed light on the alarming prevalence of financial crimes in the Caribbean, with a particular focus on Antigua and Barbuda. The region has seen an uptick in fraud schemes, including advance fee scams, pyramid and Ponzi schemes, which have resulted in hundreds of millions if not billions of dollars in illicit proceeds each year.

Financial Fraud in the Caribbean

The report, titled “Financial Fraud in the Caribbean,” examines the dynamics of financial crime in the region, including the actors and facilitators involved, the methods of contact used by perpetrators, and the channels utilized to move the associated proceeds. The study also assesses current policy and law enforcement responses, providing five country case studies on Antigua and Barbuda, Barbados, Belize, Jamaica, and Trinidad and Tobago.

Common Types of Financial Crimes

According to the report, advance fee frauds, including:

Lottery scams: scammers promise victims a large sum of money in exchange for an upfront payment
Online shopping scams: scammers sell fake products or steal personal and financial information from victims
Romance scams: scammers pose as romantic interests to gain victims’ trust and steal their money

Pyramid schemes often take advantage of citizens’ familiarity with legitimate community savings practices, such as sou-sous.

Channels Used to Move Proceeds

The primary channels used to move the proceeds of fraud include:

Cash smuggling: moving large amounts of cash across borders
Money service businesses: using businesses that exchange currency or transmit funds
Bank transfers: using banks to transfer money between accounts
Trade-based money laundering: using legitimate trade transactions to launder money
Online money transfer platforms: using online services to transfer money

Challenges in Prevention and Investigation

Experts point out that prevention and investigation of financial crimes in the region faces cultural barriers, with some citizens incorrectly perceiving governments’ efforts as attempts to prevent them from making money. Others may be hesitant to report victimization due to cultural stigma.

Recommendations for Public and Private Sectors

The report makes several recommendations for the public and private sectors, including:

Assessing and improving awareness campaigns: educating citizens about financial crimes and how to protect themselves
Verifying individuals and companies registered to conduct business: ensuring that businesses are legitimate and trustworthy
Using tax legislation when civil asset forfeiture is not available: using tax laws to seize assets from criminals
Evaluating consumer protection legislation: protecting consumers from financial crimes
Creating courts that only address financial crime cases: dedicating resources to investigating and prosecuting financial crimes

Conclusion

The report is part of a larger project by GFI analyzing financial crimes in Latin America and the Caribbean. As the region continues to grapple with the impact of financial crimes, policymakers and law enforcement agencies must take concrete steps to address these threats and ensure the economic security of countries and the region as a whole.