Financial Crime World

Compliance Risks in Finance in Antigua and Barbuda Highlighted Despite Positive Report from CFATF

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Antigua and Barbuda has received a positive report from the Caribbean Financial Action Task Force (CFATF) on its efforts to combat money laundering and terrorist financing. While the report highlights several areas that require improvement, it also commends the country’s progress in reducing weaknesses identified in previous assessments.

Key Findings

  • Antigua and Barbuda has made significant progress in reducing weaknesses identified in previous assessments.
  • The national AML/CFT policy is well understood, and financial sector examiners are respected for their expertise.
  • The banking sector has a high level of understanding of money laundering and terrorist financing risks.

Areas for Improvement

  • Identification of vulnerable non-profit organizations
  • Lack of awareness among lawyers of their AML/CFT obligations
  • Need for implementation of requirements for annual reports on beneficial ownership of entities

Positive Aspects

  • The Financial Intelligence Unit (FIU) is commended for making financial intelligence and other information accessible.
  • Civil forfeiture cases are well investigated, with successful orders granted by the court.

Challenges

  • The mechanism for criminal confiscation is not being fully utilized.
  • Greater prioritization is needed for mutual legal assistance and extradition to other countries.

Comparison to Previous Assessment

  • In comparison to the 2007 assessment, which identified over 30 areas of significant weakness, this year’s report highlights only eight that require significant improvement.

Recommendations for Improvement

  • Creation of a serious offenses court
  • Increased money laundering prosecutions
  • Stronger risk-based examinations of financial institutions
  • Measures to assist financial institutions and non-financial businesses and professions to better understand their ML/TF risks

Overall, while Antigua and Barbuda has made progress in combating money laundering and terrorist financing, there are still areas that require improvement. Addressing these challenges will be crucial for the country to maintain its positive reputation and prevent potential compliance risks in finance.