Financial Crime World

Detecting Financial Crime in Antigua and Barbuda: A Guide to Compliance

Introduction

Antigua and Barbuda, a Caribbean island nation, is known for its Citizenship by Investment (CBI) program. However, the country’s financial system is also vulnerable to various forms of financial crime.

Key Risks

  • Citizenship by Investment (CBI): Corruption risks within the CBI have been highlighted by the US.
  • Drug Trafficking: Cocaine and cannabis are the most commonly trafficked drugs in Antigua and Barbuda.
  • Fraud and Tax Evasion: These cases are often referred for further investigation, particularly when connected to the entertainment industry.
  • Human Trafficking: Victims often enter the situation voluntarily, only to be forced into exploitation, which can occur in plain sight.
  • Cybercrime: Phishing and account takeover scams, payment redirection to illegitimate sites, and ‘mystery shopper’ scams are growing concerns.

Estimated Criminal Proceeds

An estimated $34 million - $86 million of criminal proceeds is laundered every year in Antigua and Barbuda.

AML Policy Summary

Antigua and Barbuda has a narrow focus on drug trafficking, which is considered weak in prevention and detection of money laundering crime. However, the country has strong enforcement mechanisms in place.

The country’s AML framework was reformed after its 2008 mutual evaluation. The focus since then has been on training reporting entities. The supervisory agencies are well-informed of AML requirements and risks.

Key Laws

  • Misuse of Drugs Act 1974
  • Proceeds of Crime Act 1993
  • Money Laundering Prevention Act of 1996
  • Prevention of Terrorism Act of 2005

Weaknesses

The key conduits for financial crime include professional services such as lawyers, accountants, real estate and money services businesses. Car dealerships and international banks are also considered risky.

Coordination between authorities is lacking, and Antigua and Barbuda’s AML efforts are hampered by very low numbers and low-quality SARs from financial institutions.

Strengths

The country has a strong political will to tackle financial crime, along with the technical knowledge and capacity in the finance sector. Recently, the country has worked with Interpol and the Canadian government to tackle human trafficking.

By understanding these risks and taking proactive steps, organizations can better protect themselves against financial crime in Antigua and Barbuda.