Financial Crime World

Financial Crime Prevention in Antigua and Barbuda: Key Players to Watch

Overview

In the Caribbean region, Antigua and Barbuda has long been a hub for financial transactions, making it an attractive destination for individuals and businesses looking to invest or conduct international trade. However, this has also made the country vulnerable to money laundering and other financial crimes.

Risks and Challenges

According to reports from the US and local authorities, Antigua and Barbuda faces significant risks in terms of corruption, drug trafficking, fraud, tax evasion, human trafficking, and cybercrime. The country’s citizenship by investment program has been particularly criticized for its potential links to money laundering and other financial crimes.

Estimated Financial Losses

Each year, it is estimated that $34 million to $86 million worth of criminal proceeds are laundered through Antigua and Barbuda’s financial system.

Anti-Money Laundering Policy Summary

Antigua and Barbuda’s approach to anti-money laundering (AML) has been criticized for being too narrow in focus on drug trafficking. While the country has made efforts to strengthen its AML framework, it still faces challenges in terms of prevention and detection of money laundering crime.

Key Laws and Regulations

The country has implemented several key laws and regulations aimed at preventing money laundering, including:

  • 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 in the System

Despite these efforts, Antigua and Barbuda’s AML system still faces significant weaknesses, including:

  • Lack of coordination between authorities
  • Low numbers and low-quality suspicious activity reports (SARs) from financial institutions
  • Limited focus on non-drug related financial crimes

Strengths in the System

However, the country also has several strengths that can be leveraged to improve its AML efforts, including:

  • Strong political will to tackle financial crime
  • Technical knowledge and capacity in the finance sector
  • Recent collaborations with international organizations such as Interpol and the Canadian government

Conclusion

Antigua and Barbuda’s struggle against money laundering and other financial crimes is ongoing. However, by understanding the key players involved and the risks and challenges facing the country, it may be possible to develop more effective strategies for prevention and detection.