Antigua and Barbuda’s Financial Crime Prevention Strategies Under Scrutiny

The global financial watchdog has recently released a report assessing the efforts of Antigua and Barbuda to prevent financial crime. The country’s ratings reflect its implementation of technical requirements from the Financial Action Task Force (FATF) Recommendations.

Assessing Risk

While Antigua and Barbuda is largely compliant with assessing risk and applying a risk-based approach, there are areas that require improvement. Financial institutions have been urged to strengthen customer due diligence procedures and implement more effective record-keeping practices.

National Cooperation and Coordination

The country has made significant progress in this area, demonstrating a high level of compliance in terms of national cooperation and coordination. This is crucial for an effective financial crime prevention strategy, ensuring that all relevant authorities work together to combat money laundering and terrorist financing.

Money Laundering Offence

Antigua and Barbuda’s laws criminalizing money laundering have been deemed largely compliant with international standards. However, further strengthening is still needed to prevent the misuse of the financial system for illegal activities.

Confiscation and Provisional Measures

The country has made significant progress in this area, showing a high level of compliance with regard to confiscation and provisional measures. These measures are essential in preventing the laundering of proceeds from crime and disrupting organized criminal groups.

Terrorist Financing Offence

Antigua and Barbuda’s laws criminalizing terrorist financing have been deemed partially compliant with international standards. While progress has been made, there is still room for improvement to ensure that these laws are fully effective in preventing the misuse of the financial system for terrorist purposes.

Targeted Financial Sanctions

The country has shown a high level of compliance with targeted financial sanctions related to terrorism and terrorist financing. Financial institutions have been urged to implement more effective measures to prevent the transfer of funds to individuals or entities associated with terrorism.

Non-Profit Organisations

Antigua and Barbuda has demonstrated a non-compliant rating in this area, with significant weaknesses in its regulations governing non-profit organizations. Strengthening these regulations is critical to preventing the misuse of these organizations for financial crime.

Financial Institution Secrecy Laws

The country’s laws governing financial institution secrecy have been deemed compliant with international standards. However, further strengthening is still needed to prevent the misuse of the financial system for illegal activities.

Customer Due Diligence and Record Keeping

Antigua and Barbuda has shown a high level of compliance with regard to customer due diligence practices and record-keeping. Financial institutions have been urged to continue implementing robust measures to identify and verify customers, as well as maintain records for a sufficient period.

Politically Exposed Persons and Correspondent Banking

The country has made significant progress in these areas, demonstrating a high level of compliance with regard to regulations governing politically exposed persons (PEPs) and correspondent banking relationships. Financial institutions have been urged to continue implementing robust measures to identify and verify PEPs and maintain records for a sufficient period.

Money or Value Transfer Services and New Technologies

Antigua and Barbuda has shown a high level of compliance with regard to money or value transfer services and new technologies, such as DNFBPs (designated non-financial businesses and professions) customer due diligence. Financial institutions have been urged to continue implementing robust measures to identify and verify customers and maintain records for a sufficient period.

Strengthening Regulations

Strengthening regulations and implementing robust measures to prevent the misuse of the financial system for illegal activities is critical in preventing money laundering and terrorist financing. While Antigua and Barbuda has made significant progress, further strengthening is still needed to ensure compliance with international standards.