Financial Crime World

Reporting Financial Crime in Antigua and Barbuda: A Guide for Individuals and Businesses

Antigua and Barbuda, a small island nation in the Caribbean, has become a hub for financial crimes such as money laundering, drug trafficking, and human trafficking. While the country has made efforts to reform its anti-money laundering (AML) framework, there are still several challenges that need to be addressed.

Key Risks

The US has highlighted corruption risks associated with Antigua’s Citizenship by Investment program, which allows individuals to obtain citizenship in exchange for investing in the country. Other key risks include:

  • Drug trafficking: Cocaine and cannabis are the most commonly trafficked drugs.
  • Fraud and tax evasion: These cases are often referred for further investigations, particularly when connected to the entertainment industry.
  • Human trafficking: Victims often enter the situation voluntarily and are then forced into exploitation.
  • Cybercrime: Phishing and account takeover scams, payment redirection to illegitimate sites, and ‘mystery shopper’ scams are a growing concern.

Criminal Proceeds

An estimated $34 million - $86 million of criminal proceeds is laundered every year in Antigua and Barbuda. The country’s AML efforts are hampered by very low numbers and low-quality Suspicious Activity Reports (SARs) from financial institutions, and designated non-financial business and professions.

AML Policy Summary

Antigua and Barbuda has a too narrow focus on drug trafficking and is considered weak in prevention and detection of money laundering crime. However, it does have strong enforcement. The country was one of the first in the Caribbean region to reform its AML framework after the 2008 mutual evaluation.

The main laws include:

  • The Misuse of Drugs Act 1974
  • The Proceeds of Crime Act 1993
  • The Money Laundering Prevention Act of 1996
  • The Prevention of Terrorism Act of 2005

Weaknesses

The key conduits for financial crime include professional services such as lawyers, accountants, real estate and money services businesses. Car dealerships and international banks are also considered risky. Coordination between authorities is lacking, and Antigua and Barbuda’s AML efforts are hampered by very low numbers and low-quality SARs from financial institutions.

Strengths

The country has a strong political will to tackle financial crime, along with the technical knowledge and capacity in the finance sector. Recently, the country has worked with Interpol and the Canadian government to tackle human trafficking.

Reporting Financial Crime

If you suspect financial crime in Antigua and Barbuda, it is essential to report it to the authorities. You can do this by:

  • Contacting the Royal Police Force of Antigua and Barbuda
  • Filing a Suspicious Activity Report (SAR) with the Financial Intelligence Unit
  • Reaching out to Interpol or other international law enforcement agencies