Financial Crime World

St. Kitts and Nevis National Risk Assessment Reveals Vulnerabilities in Financial Sector

Financial Sector Faces Challenges in Combating Money Laundering

A recent national risk assessment for St. Kitts and Nevis has identified several vulnerabilities in the country’s financial sector, including a lack of convictions for money laundering and inadequate record-keeping practices.

Proceeds of Crime: Primary Sources

The report reveals that proceeds of crime in St. Kitts and Nevis are primarily generated from:

  • Larceny
  • Drug-related offenses
  • Robbery
  • Gun-related crimes

Financial Intelligence Unit (FIU) Activities

Between 2014 and 2018, the FIU processed over 595 Suspicious Transaction Reports (STRs). However, there have been no convictions for money laundering.

Recommendations to Improve Risk Assessment and Prosecution Efforts

  • Augment human resources in the FIU, WCCU, and police force to improve law enforcement efforts.
  • Implement consistent and coherent record-keeping practices to improve data collection and risk assessment processes.
  • Pursue money laundering as a standalone offense more vigorously both investigatively and in terms of prosecution.
  • Focus on confiscation of proceeds of crime even in the absence of actual money laundering charges.

Tax Crimes: A Concern

St. Kitts and Nevis has an effective mechanism for exchange of information for tax purposes, supporting its rating as Largely Compliant in the most recent Global Forum on Transparency and Exchange of Information for Tax Purposes report.

Vulnerability Ratings

The national risk assessment assigns vulnerability ratings to various sectors:

  • Commercial Banking: 16
  • International Banking: N/ A
  • The Development Bank: N/A
  • Domestic Insurance: N/A
  • International Insurance: N/A
  • Securities: N/A
  • Money Services Businesses (MSBs): 8
  • Credit Unions: 12
  • Trust and Corporate Service Providers (TCSPs): 7
  • Gaming Sector: N/A
  • Real Estate Sector: N/A

Conclusion

The national risk assessment highlights the need for continued efforts to strengthen St. Kitts and Nevis’ financial sector and combat money laundering and other financial crimes.