Mutual Evaluation Report of Saint Kitts and Nevis by the Caribbean Financial Action Task Force (CFATF)
Executive Summary
This report evaluates the compliance of Saint Kitts and Nevis with international anti-money laundering (AML) and combating the financing of terrorism (CFT) standards. The evaluation highlights areas where the country needs to improve its AML/CFT framework.
Key Findings
Independent Oversight
- Security Concerns: The Financial Intelligence Unit (FIU) is overseen by an officer external to the FIU who is employed by the Ministry of Finance, raising concerns about FIU data confidentiality and independence.
- Impact on Investigations: This oversight may impact the effectiveness of investigations into money laundering (ML).
Technical Framework
- Well-Established Framework: Saint Kitts and Nevis has a well-established technical framework to investigate ML and conduct prosecutions.
- Trained Investigators: Investigators at the Windward Caribbean Financial Intelligence Unit (WCCU) are well-trained and experienced.
Low Level of ML Investigations
- Low Number of Investigations: The number of ML investigations is low, with six (6) for each year in 2019 and 2020, and two (2) for the first three months of 2021.
- Limited Action: This suggests that there may be limited action being taken to prevent or detect ML.
ML Prosecutions
- Prosecutions: There were eight (8) prosecutions before the court for self-laundering ML at the time of the onsite visit, but no ML convictions during the review period.
- Lack of Convictions: This suggests that there may be a lack of effective action being taken to prosecute and convict those involved in ML.
Confiscation Proceedings
- National Policy Objective: St. Kitts and Nevis did not have a national policy objective for confiscation of criminal proceeds until March 2021.
- Dedicated Unit: There was no dedicated unit within the WCCU or DPP for conducting confiscation proceedings or asset forfeiture under POCA.
Asset Recovery
- Limited Experience: The country has limited experience in asset recovery with foreign counterparts, either for proceeds of foreign predicates located in the jurisdiction or proceeds from domestic predicates laundered outside St. Kitts and Nevis.
- Difficulty in Recovering Assets: This suggests that there may be difficulty in recovering assets that have been laundered or hidden.
Recommendations
The report highlights some areas where Saint Kitts and Nevis needs to improve its AML/CFT framework, including:
- Increasing the independence of the FIU
- Improving ML investigations
- Enhancing confiscation proceedings