St. Kitts and Nevis: A Haven for Drug Trafficking and Money Laundering

The small Caribbean nation of St. Kitts and Nevis has been revealed as a key trans-shipment hub for drug shipments originating in South America, destined for the US and Europe. This report explores the country’s strategic geographic location and how it has become an attractive destination for criminal organizations.

A Strategic Location

St. Kitts and Nevis is situated at the crossroads of the Caribbean and Latin American cocaine trade routes. Its direct flights to the UK make it a convenient stopover point for drug shipments. The country’s remote location and limited law enforcement resources have made it an ideal haven for criminal organizations.

Criminal Economy

Foreign actors are controlling the most pervasive criminal economy in St. Kitts and Nevis, with local groups responsible for transporting and logistics. While cocaine consumption is limited, cannabis is decriminalized for recreational, religious, and medicinal use, making it the most valuable market in the country.

Money Laundering

The report highlights the involvement of state actors in enabling money laundering through the Citizen by Investment Programme, which allows foreign nationals to purchase local passports. Venezuelan nationals are known to be overseeing cocaine shipments through the country.

Challenges in Combating Crime

Despite efforts to curb violence, authorities have struggled to combat money laundering due to strong bank-secrecy laws and a lack of transparency regarding legal entities. The government has taken steps to address these issues by signing and ratifying international treaties related to organized crime and implementing anti-corruption laws.

International Cooperation

The country is open to international cooperation, with programs funded by the UK, US, and EU aimed at improving law enforcement and intelligence-gathering capacities.

Justice System

St. Kitts and Nevis’s justice system appears independent and not affected by high levels of corruption. However, investigations and successful prosecutions against organized crime groups are still rare. The penitentiary system suffers from overcrowding, mainly due to pre-trial detention.

Civil Society Organizations

Civil society organizations play a key role in crime prevention, particularly in areas including human trafficking, drug consumption, arms trading, and law enforcement training. However, victim and witness protection is minimal, and the country’s financial intelligence unit has not brought a single charge related to money laundering since 2015.

Conclusion

St. Kitts and Nevis faces significant challenges in combating organized crime and money laundering due to its vulnerabilities. However, it remains capable of policing its borders. The report concludes that addressing these issues requires sustained international cooperation, improved transparency, and effective law enforcement practices.