Financial Crime World

Saint Lucia Falls Short in Complying with Global Anti-Money Laundering Standards

Saint Lucia has made significant progress in implementing anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations, but still faces challenges in several key areas. According to a recent report, the island nation is partially compliant with 34 out of the 40 recommendations set forth by the Financial Action Task Force (FATF).

Strengths

  • Risk Assessment and National Cooperation: Saint Lucia excels in assessing risk and applying a risk-based approach, receiving praise for its efforts in this regard.
  • National Coordination and Confiscation Measures: The country scores well in terms of national cooperation and coordination, as well as the confiscation and provisional measures it has put in place to combat money laundering.

Areas for Improvement

  • Targeted Financial Sanctions: Saint Lucia is non-compliant with recommendations related to targeted financial sanctions against terrorism and terrorist financing.
  • Proliferation of Weapons of Mass Destruction: The country also falls short in implementing measures to prevent the proliferation of weapons of mass destruction.
  • Financial Institution Secrecy and Customer Due Diligence: Laws regarding financial institution secrecy and customer due diligence require improvement.
  • Internal Controls and Foreign Branches/Subsidiaries: Saint Lucia needs to strengthen its internal controls and foreign branches and subsidiaries, as well as enhance its reliance on third parties.

Progress and Challenges

  • Regulation and Supervision of Financial Institutions: The report highlights Saint Lucia’s efforts to regulate and supervise financial institutions, as well as its financial intelligence unit.
  • AML/CFT Regime Effectiveness: However, more work is needed to ensure the country’s AML/CFT regime is fully effective in preventing financial crimes.

Government Commitment

Saint Lucia’s government has committed to continuing its efforts to improve its AML/CFT regulations, and officials say they are working closely with international partners to address any gaps or weaknesses in their system.