Financial Crime World

Mutual Evaluation Report of St. Kitts and Nevis by CFATF

Executive Summary

This report provides a summary of the Mutual Evaluation Report of St. Kitts and Nevis by the Caribbean Financial Action Task Force (CFATF). The report highlights areas where St. Kitts and Nevis needs improvement in its efforts to prevent and combat money laundering and terrorist financing.

Financial Intelligence Unit (FIU)

Overview

  • The FIU is overseen by an external officer from the Ministry of Finance, which raises security concerns about data confidentiality and independence.
  • The FIU has a well-established technical framework to investigate money laundering (ML) and conduct prosecutions.

Concerns

  • Lack of independence in the oversight of the FIU
  • Potential risks to data confidentiality due to external oversight

Money Laundering Investigations

Overview

  • ML investigations are conducted by the WCCU, a unit of the RSCNPF.
  • Investigators at the WCCU are well-trained and experienced.

Statistics

  • Only six ML investigations in 2019 and 2020
  • Two ML investigations in the first three months of 2021
  • Low level of ML investigations compared to predicate offenses

Prosecutions

Overview

  • There were eight prosecutions before the court for self-laundering ML at the time of the onsite visit.
  • However, there were no ML convictions in St. Kitts and Nevis during the review period.

Concerns

  • Lack of ML convictions
  • Impacts on confiscation proceedings and asset forfeiture

Asset Forfeiture

Overview

  • Until March 2021, St. Kitts and Nevis did not have a national policy objective for the confiscation of criminal proceeds and property.
  • The legislative infrastructure was amended to include civil forfeiture in March 2021.

Concerns

  • Lack of dedicated unit within the WCCU or DPP for conducting confiscation proceedings or asset forfeiture
  • Limited experience in asset recovery with foreign counterparts

Confiscation of Proceeds

Overview

  • Confiscation of proceeds and instrumentalities of crime are exceptionally low in St. Kitts and Nevis.
  • Confiscation of criminal proceeds and property for terrorist financing is not pursued as a policy objective.

Concerns

  • Low rate of confiscation
  • Lack of policy objective for confiscation of terrorist financing

Asset Recovery

Overview

  • St. Kitts and Nevis has limited experience in asset recovery with foreign counterparts.
  • Cross-border reports are sent to the FIU by the CED whenever cash and BNIs discovered over the identified threshold of USD 10,000 in an individual’s possession at the ports of entry and exit.

Concerns

  • Limited experience in asset recovery
  • Potential risks due to lack of infrastructure for asset recovery