Financial Crime World

Financial Crime in Antigua and Barbuda: Understanding the Consequences

Introduction

Antigua and Barbuda, a twin-island nation in the Caribbean, has been grappling with financial crime for years. From money laundering to human trafficking, the island’s vulnerability to illicit activities has raised concerns among regional authorities and international organizations.

Key AML Challenges

Narrow Focus on Drug Trafficking

The country’s Anti-Money Laundering (AML) framework has been criticized for its narrow focus on drug trafficking, which has led to a lack of attention to other areas of financial crime, such as corruption, fraud, tax evasion, cybercrime, and human trafficking.

  • Used Car Industry: A High-Risk Sector The used car industry in Antigua and Barbuda has been identified as a high-risk sector due to the lack of regulation and oversight.
  • Need for Broader AML Approach A more comprehensive approach to AML is necessary to address the complex nature of financial crime.

Weaknesses in AML Enforcement

Limited Focus on Financial Crime Investigations

The Royal Police Force of Antigua and Barbuda’s focus on drug trafficking means that financial crime investigations are often overlooked if they do not have a connection to narcotics.

  • Low Numbers and Poor Quality of SARs The low numbers and poor quality of Suspicious Activity Reports (SARs) submitted by financial institutions, as well as designated non-financial businesses and professions, exacerbate the issue.
  • Need for Improved AML Enforcement Strengthening AML enforcement is crucial to addressing the scale of financial crime in Antigua and Barbuda.

Strengthening AML Efforts

Collaboration with International Organizations

Antigua and Barbuda has shown a strong political will to tackle financial crime by working with international organizations, such as Interpol and the Canadian government, to combat human trafficking.

  • Finance Sector Knowledge and Capacity The finance sector in Antigua and Barbuda has demonstrated a high degree of knowledge and capacity in AML matters.
  • Opportunities for Improvement Building on these strengths can help improve AML efforts in the country.

What’s Next?

As the region continues to grapple with financial crime, it is essential for businesses operating in or planning to expand to Latin America and the Caribbean to understand the risks and challenges associated with AML. VinciWorks’ comprehensive guide provides an overview of key AML issues and a country-by-country assessment of AML risks and laws.

By downloading this free resource, organizations can better navigate the complex landscape of financial crime in Antigua and Barbuda and ensure compliance with relevant regulations. The guide is available for download here.