Saint Kitts and Nevis Compliance Risk Assessment Framework Under Review

The Financial Action Task Force (FATF) has released a compliance risk assessment framework for Saint Kitts and Nevis, evaluating the island nation’s efforts to combat money laundering and terrorist financing. The report highlights both strengths and weaknesses in the country’s anti-money laundering and counter-terrorism financing regime.

Strengths and Weaknesses

The report assesses Saint Kitts and Nevis’ compliance with 40 recommendations, assigning ratings ranging from “Compliant” to “Non-Compliant”. The country performed well in areas such as:

• Customer due diligence: Saint Kitts and Nevis received high marks for ensuring that financial institutions collect and verify customer information.
• Financial institution secrecy laws: The country’s laws and regulations were deemed satisfactory, protecting the confidentiality of client information.
• Internal controls: Saint Kitts and Nevis implemented robust internal controls to prevent money laundering and terrorist financing.

However, the report also identified several areas where the country needs improvement:

• Non-profit organizations: Saint Kitts and Nevis was rated “Non-Compliant” for its regulation and supervision of non-profit organizations.
• New technologies: The country struggled with implementing adequate measures to counter money laundering and terrorist financing in new technologies.

Key Areas for Improvement

The report highlights several key areas where Saint Kitts and Nevis must improve:

• Regulation and supervision of financial institutions and DNFBPs (designated non-financial businesses and professions): Strengthening regulatory oversight is crucial to preventing money laundering and terrorist financing.
• Transparency and beneficial ownership of legal persons and arrangements: Improving transparency and identifying the ultimate beneficial owners of companies and trusts will help prevent illicit activities.

Next Steps

Saint Kitts and Nevis has committed to addressing these shortcomings and implementing further reforms to strengthen its anti-money laundering and counter-terrorism financing regime. The country’s compliance risk assessment framework serves as a guide for:

• Financial institutions: To better understand the risks associated with money laundering and terrorist financing in Saint Kitts and Nevis.
• Law enforcement agencies: To identify and disrupt illicit activities related to money laundering and terrorist financing.
• Other stakeholders: To enhance cooperation and information sharing in the fight against money laundering and terrorist financing.