Financial Crime World

Title: Financial Fraud Threatens Economic Security in Antigua and Barbuda: A Media Perspective

By Channing Mavrellis, December 14, 2022

The Caribbean region, including Antigua and Barbuda, has faced an alarming increase in financial crimes in recent years. The consequences of these crimes reach beyond individual victims, putting the economic security of nations and regional stability at risk. In this article, we explore the findings of the Global Financial Integrity (GFI) report, “Financial Fraud in the Caribbean,” and discuss the significance of the issue in Antigua and Barbuda.

Prevalence of Financial Fraud in the Caribbean

  • Caribbean region is a hotbed for financial crimes
  • Types of fraud: advance fee frauds, lottery/prize scams, online shopping scams, romance scams, and pyramid/Ponzi schemes
  • Fraudsters exploit innocent citizens’ trust and familiar practices
  • Pyramid schemes commonly masquerade as local “sou-sous”

Techniques Used by Fraudsters

  • Fraudsters use various methods to contact victims
    • Lottery scams: phone calls
    • Romance scams: social media
    • Encrypted messaging apps, physical mail, and other methods

Laundering of Fraud Proceeds

  • Transnational nature of financial fraud
  • Key channels for moving funds: cash smuggling, money service businesses (MSBs), bank transfers, trade-based money laundering, and online money transfer platforms

Addressing Financial Fraud in Antigua and Barbuda

  • Existing regulations face enforcement challenges
  • Cultural barriers and reluctance to report crimes hinder progress
  • Recommendations for public and private sectors
    • Enhance public awareness campaigns
    • Verify business registration for potential investors
    • Explore legal avenues beyond civil asset forfeiture
    • Evaluate consumer protection legislation
    • Set up specialized financial crime courts

Countries Analyzed in the Report

  • Antigua and Barbuda
  • Barbados
  • Belize
  • Jamaica
  • Trinidad and Tobago

Broader Initiative by GFI

  • Upcoming reports to address corruption, drug trafficking, and mineral trafficking throughout Latin America and the Caribbean.

By understanding and addressing the financial fraud landscape in Antigua and Barbuda and the wider Caribbean region, we can work towards mitigating the impact of these nefarious activities and contributing to a more stable economic future.