Financial Crime World

ST. KITTS AND NEVIS: KNOW YOUR RISKS IN REPORTING FINANCIAL CRIME

Saint Kitts and Nevis, a small island nation in the Caribbean, has been identified by the Financial Action Task Force (FATF) as non-cooperative in the fight against money laundering. The country’s weak laws and regulations make it an attractive destination for individuals looking to launder illicit funds.

What’s at Risk?

Financial institutions operating in St. Kitts and Nevis are not required to report suspicious transactions, making it difficult to detect and prevent financial crimes such as money laundering and terrorist financing. Additionally, the country’s bank secrecy laws prohibit government authorities from obtaining financial information about customers’ identities and transactions.

Key Deficiencies

  • Lack of effective legislation: Money laundering is only criminalized in cases involving narcotics trafficking.
  • Weak oversight: Individuals with criminal records are not prohibited from holding management positions in offshore banks registered in Nevis.
  • Inadequate supervision: Offshore companies, including those that operate as financial institutions, are not effectively supervised or required to verify customer identities and maintain relevant records.

Reporting Financial Crime in St. Kitts and Nevis

If you suspect a financial crime has been committed in St. Kitts and Nevis, report it to the authorities immediately. Here’s what you need to know:

  • Enhanced scrutiny: Financial institutions operating in the United States are advised to give enhanced scrutiny to all financial transactions originating in or routed to or through St. Kitts and Nevis.
  • Reporting obligations: A financial institution subject to suspicious transaction reporting rules should carefully examine the available facts relating to any such transaction to determine if it requires reporting.
  • Other applicable law: Institutions not subject to specific suspicious transaction reporting rules should consider the transaction with relation to their reporting obligations under other applicable law.

Getting Help

The Financial Crimes Enforcement Network (FinCEN) is a product of the U.S. Department of the Treasury, and they can provide assistance in reporting financial crimes. You can contact them at:

Remember, reporting financial crime is a critical step in preventing and detecting illicit activities. Don’t hesitate to reach out for help if you suspect something is amiss.