Title: Financial Crimes Plague Antigua and Barbuda: AML Challenges and Risks
Antigua and Barbuda, known for its beautiful beaches and vibrant tourism industry, faces significant challenges in combating financial crimes. This article sheds light on the types of financial crimes prevalent in Antigua and Barbuda, key AML risks, and challenges for organizations in this jurisdiction.
Types of Financial Crimes
Antigua and Barbuda’s vulnerable position makes it a prime target for various financial crimes. Here are some of the most common ones:
- Citizenship by Investment (CBI) fraud: US concerns over potential corruption risks within the CBI program remain a sensitive matter for the government.
- Drug trafficking: Antigua and Barbuda is a significant transit country for cocaine and cannabis, posing significant challenges regarding money laundering.
- Fraud and tax evasion: Financial investigations often reveal connections to the entertainment industry.
- Human trafficking: Victims are often exploited and reported to occur in plain sight.
- Cybercrime: Phishing scams, payment redirections, and ‘mystery shopper’ scams are growing concerns as perpetrators continue to adapt to new technologies.
Criminal Proceeds
It is estimated that around $34 million to $86 million in criminal proceeds is laundered in Antigua and Barbuda each year.
AML Policy and Laws
Antigua and Barbuda has taken steps to strengthen its anti-money laundering (AML) framework:
- The Misuse of Drugs Act 1974
- The Proceeds of Crime Act 1993
- The Money Laundering Prevention Act of 1996
- The Prevention of Terrorism Act of 2005
Weaknesses
Certain professional services pose significant risks in Antigua and Barbuda:
- Lawyers
- Accountants
- Real estate
- Money services businesses
- Car dealerships
- International banks
The used car industry, in particular, is unregulated and historically exploited for money laundering. Coordination between authorities is lacking, and there are very few significant Suspicious Activity Reports (SARs) from financial institutions and designated non-financial business and professions.
Strengths
Antigua and Barbuda shows a strong political will to tackle financial crimes and has the technical knowledge and capacity within its finance sector. Recent collaborations with Interpol and the Canadian government to fight human trafficking further highlight this commitment.
For Companies Operating or Considering Expanding their Business in Antigua and Barbuda
It is essential for companies to be aware of the AML risks and challenges in Antigua and Barbuda. VinciWorks has developed a comprehensive guide exploring AML issues and providing a country-by-country assessment of risks and laws.