Cybercrime Financial Implications in Antigua and Barbuda Leave Businesses Reeling
Antigua and Barbuda, a small island nation in the Caribbean, has become a hotspot for cybercrime, with an estimated $34 million to $86 million of criminal proceeds being laundered every year. The country’s lack of focus on prevention and detection of money laundering crime has left businesses vulnerable to financial exploitation.
Key Conduits for Financial Crime
According to experts, the key conduits for financial crime in Antigua and Barbuda include:
- Professional services such as lawyers, accountants, real estate agents, and money services businesses
- Car dealerships
- International banks, particularly in the unregulated used car industry
“The used car market is a breeding ground for drug traffickers to launder their proceeds,” said a financial expert.
Challenges in Combating Cybercrime
The Royal Police Force of Antigua and Barbuda has been criticized for its narrow focus on drug trafficking, which means that financial crime investigations are unlikely to occur unless there is a connection to drugs. This has made it difficult for the country to tackle other forms of financial crime, including cybercrime.
Cybercriminals have taken advantage of this lack of focus by targeting businesses and individuals with:
- Phishing scams
- Account takeover schemes
- Payment redirection fraud
- “Mystery shopper” scams
These types of crimes are often undetected due to a lack of coordination between authorities and low-quality Suspicious Activity Reports (SARs) from financial institutions.
Efforts to Reform Anti-Money Laundering Framework
Despite these challenges, Antigua and Barbuda has made efforts to reform its Anti-Money Laundering (AML) framework and train reporting entities. The country’s banks have implemented a risk-based approach and have a high degree of knowledge in the sector. However, more needs to be done to prevent and detect money laundering crime.
Call to Action
The government has shown strong political will to tackle financial crime, including human trafficking, but more resources are needed to combat cybercrime and other forms of financial exploitation. Businesses operating in Antigua and Barbuda must take a proactive approach to AML compliance and risk management to avoid falling victim to these types of crimes.
Additional Resources
A free guide to AML risks and challenges in Latin America and the Caribbean is available for download, providing businesses with an overview of key AML issues and country-by-country assessments of AML risks and laws.