Financial Crime World

Financial Crime Definition in St. Lucia: A Growing Concern for the Island Nation

St. Lucia is facing a significant challenge in combating financial crime, particularly money laundering, terrorist financing, and the proliferation of weapons of mass destruction. These illegal activities not only threaten the country’s stability but also have far-reaching consequences on its reputation and economy.

The Menace of Financial Crime

  • Money Laundering: Money laundering is the process by which illegal proceeds are given the appearance of being acquired through legal means.
    • It involves three stages: placement, layering, and integration. The latter refers to reintegrating “dirty” money into society through legitimate means.

Financing of Terrorism

  • Legitimate and Illegitimate Sources: Financing of terrorism can come from both legitimate and illegitimate sources, including drug trafficking.
  • Problems it Poses: It often finances the proliferation of weapons of mass destruction, which is a major area of concern.

Proliferation of Weapons of Mass Destruction

  • Financing by States: The proliferation of weapons of mass destruction is another area of concern, often financed by states seeking to increase their military capabilities or supporting terrorist activities.
  • Danger it Poses: It can have devastating effects on a country, including an increase in violent and organized crime, corruption, and loss of reputation on the international market.

Consequences of Financial Crime

  • Domestic Effects:
    • Increase in violent and organized crime
    • Corruption
    • Loss of reputation on the international market
  • International Effects:
    • Loss of donor funding
    • Foreign direct investment
    • Credibility for its financial sector

Combating Financial Crime

  • The Forty Recommendations: The Financial Action Task Force (FATF) has issued guidelines called the Forty Recommendations. Saint Lucia is scheduled to be assessed by the Caribbean Financial Action Task Force (CFATF) in September 2019 through these recommendations.
  • National Anti-Money Laundering Oversight Committee: The committee is working closely with private and public sector stakeholders to ensure compliance.

What You Can Do

  • Stay Informed: All Saint Lucians are encouraged to familiarize themselves with these matters, which can have a significant impact on their daily lives.
  • Visit CFATF’s Website: For more information on the work of CFATF, visit its website at https://www.cfatf-gafic.org.