Financial Crime World

Banks in Saint Kitts and Nevis Required to Complete Compliance Training

Financial institutions operating in Saint Kitts and Nevis are now mandated to undergo compliance training as part of their licensing requirements. This move aims to ensure that financial institutions are aware of their obligations under the Money Services Business Act and the Anti-Money Laundering Regulations, and are equipped to comply with these requirements.

Licensing Requirements

According to the Money Services Business Act, No. 26 of 2008, a licence to operate money services businesses is valid for one year from the date of issue and must be renewed annually by payment of the prescribed fee before January 15th. The Financial Services Regulatory Commission (FSRC) may revoke a licence if:

  • The licensee fails to commence operations within three months
  • The licensee fails to comply with conditions or restrictions
  • The licensee breaches any provision of the Act
  • The licensee conducts business in a manner detrimental to the public interest

Auditor Appointments

Licence holders are also required to appoint an Auditor who must be:

  • A Chartered Accountant
  • A Certified Public Accountant
  • A member of the Institute of Chartered Accountants of the Eastern Caribbean
  • Another professionally qualified accountant

The Auditor must prepare reports on the annual financial statements and financial position of the licensee, which must be submitted to the FSR within three months of the end of their financial year.

Compliance Procedures

In addition, licence holders must institute procedures to ensure that their accounting records and systems of business control comply with the Anti-Money Laundering Regulations, No. 25 of 2008.

Quarterly Returns

The Financial Services Regulatory Commission has also introduced quarterly returns for Class A and B licence holders, which must be filed within 15 days of the end of a quarter along with a written declaration that the information set out in the application remains correct and gives a fair picture of the operations of the money services business.

Annual returns are required from Class C, D, and E licence holders within 15 days of the end of their financial year.

Revocation of Licences

The Commission has the power to revoke a licence if the licensee is found to be operating in breach of any provision of the Act or if it is deemed no longer fit and proper to hold a licence. In such cases, a notice of revocation will be published in the Gazette and a local newspaper and other steps taken to inform the public.

Compliance Training

The compliance training requirement aims to ensure that financial institutions operating in Saint Kitts and Nevis are aware of their obligations under the Money Services Business Act and the Anti-Money Laundering Regulations, and are equipped to comply with these requirements.