Financial Crime World

ST. KITTS AND NEVIS FINANCIAL REGULATORS CRACK DOWN ON COMPLIANCE ISSUES

The Financial Services Regulatory Commission (FSRC) has intensified its efforts to ensure that all regulated businesses in Nevis comply with Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) legislation. As part of this effort, the FSRCC-Nevis Branch has implemented a Risk-Based Supervision Framework (RBS), which was revised in June 2017.

Risk-Based Supervision Framework (RBS)

The RBS is designed to assess the level of risk posed by each regulated entity and tailor the scope of examination accordingly. This framework allows examiners to focus on high-risk areas and entities, ensuring that resources are allocated efficiently.

On-Site Examinations

In conducting on-site examinations, FSRC-Nevis Branch examiners assess whether regulated entities have established adequate policies and procedures for identifying and mitigating AML/CFT risks. They also review relevant customer files, including citizenship by investment applications, to ensure that:

  • Know Your Customer (KYC) documents are obtained and kept up-to-date
  • Customer Due Diligence (CDD) is performed

Regulated entities must provide a range of documentation, including:

  • Passport or identity card copies
  • Letters of reference from recognized banking institutions and professional bodies
  • Proof of address
  • Customer risk assessments
  • Source of funds and wealth declarations
  • Accounting records

Examiners also assess the entity’s policies, practices, procedures, and internal controls for compliance with AML/CFT legislation.

Monitoring and Frequency

The results of on-site examinations influence the intensity and frequency of monitoring. Entities that operate in a satisfactory manner will require less frequent monitoring than those with weaknesses or deficiencies. The FSRCC-Nevis Branch is committed to ensuring that regulated businesses in Nevis are compliant with AML/CFT requirements, thereby maintaining the integrity of the financial system and protecting against money laundering and terrorist financing threats.

Promoting Compliance Culture

By conducting regular on-site examinations, the FSRCC-Nevis Branch aims to promote a culture of compliance among regulated entities, prevent financial crimes, and maintain public trust in the financial sector.