Financial Crime World

Title: St. Kitts and Nevis Cracks Down on Financial Crimes: FSRC’s Rigorous On-site Examinations Ensuring Compliance

Overview

In the Caribbean paradise of St. Kitts and Nevis, the Financial Services Regulatory Commission (FSRC) ensures that all Regulated Businesses comply with Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) legislation.

FSRC’s Role and Responsibilities

The FSRC branches in St. Kitts and Nevis adopt a Risk-based Supervision Framework (RBS) for supervising these regulated entities, which includes on-site assessments. FSRC-Nevis Branch conducts comprehensive on-site examinations to ensure Nevis-based entities adhere to the Financial Services Regulatory Commission Act and AML/CFT guidelines.

On-site Examinations and Transparency

Entities are required to verify their customers’ and beneficial owners’ (BOs) identities and submit the information to relevant authorities to maintain transparency and meet international standards.

Identifying and Assessing Customers and BOs

During on-site examinations, FSRC assesses entities’ adherence to AML/CFT guidelines, focusing on the identification and risk assessment of their customers and BOs.

  • Collecting and Updating Relevant Records Regulated entities must collect and keep records on their clients and BOs, including government-issued identity documents, letters of reference, proof of address, and additional materials for risk assessment, source of funds, and wealth declarations.
  • Compliance with AML/CFT Legislation Entities’ policies, practices, procedures, and internal controls are evaluated to ensure ongoing compliance with AML/CFT requirements.

Evaluating Entity’s Policies and Controls

Examiners assess entities’ compliance with the following areas during on-site examinations:

  • Ongoing Monitoring Programs
  • Training Schedules
  • Suspicious Transaction Reporting
  • Record-keeping Systems
  • Retention Period
  • Record Condition

Impact of On-site Examinations and Frequency

The results of on-site examinations significantly impact monitoring intensity and frequency:

  • Efficient entities face less frequent monitoring.
  • Weak entities face more frequent and intense monitoring.

Eradicating Financial Crimes and a Reputable Financial Sector

By following this stringent approach, FSRC-Nevis Branch continue to play a crucial role in St. Kitts and Nevis’ efforts to eradicate financial crimes and maintain a reputable financial sector.