Financial Crime World

Financial Crime Risks Soar in Antigua and Barbuda: New Report Reveals Alarming Trends

Washington D.C., December 14, 2022 - The Caribbean region is facing an unprecedented surge in financial crimes, including fraud schemes, which poses a significant threat to the economic security of the region.

Background

The report “Financial Fraud in the Caribbean” by Global Financial Integrity (GFI) examines the prevalence and dynamics of financial crime in the region. The study analyzes the actors and facilitators involved, methods used by perpetrators, and channels utilized to move proceeds. It also assesses current policy and law enforcement responses.

Findings

The report reveals that advance fee frauds, online shopping scams, romance scams, and pyramid schemes are among the most common types of financial crime in the Caribbean. Pyramid schemes often exploit citizens’ familiarity with “sou-sous,” a legitimate community savings practice.

Types of Financial Crime

  • Advance fee frauds
  • Online shopping scams
  • Romance scams
  • Pyramid schemes

Methods Used by Perpetrators

  • Lottery scams: largely phone-based
  • Romance scams: perpetrated online and through social media

Channels Utilized to Move Proceeds

  • Cash smuggling
  • Money service businesses
  • Bank transfers
  • Trade-based money laundering
  • Online money transfer platforms

Challenges in Combating Fraud

Despite having laws in place to cover these types of fraud, many Caribbean countries face challenges when translating these laws into effective enforcement actions. The prevention and investigation of fraud in the region also faces cultural barriers, with some citizens perceiving governments’ efforts to combat fraud as an attempt to prevent them from making money.

Recommendations

The report provides recommendations for the public and private sectors:

  • Improve awareness campaigns
  • Verify individuals and companies registered to conduct business
  • Explore tax legislation for civil asset forfeiture
  • Evaluate consumer protection legislation

Impact of Fraud in Jamaica

Experts estimate that the annual value of fraud proceeds in Jamaica alone is up to US$800 million.

Call to Action

GFI’s President and CEO emphasized that all jurisdictions face financial crime threats and called on the private sector to take steps to assess and mitigate risk in a nuanced, evidence-based manner.