Money Laundering Charges Surge in St. Kitts and Nevis, Intention to Supply Linked to 59 Incidents

National Risk Assessment Reveals Notable Increase in Suspicious Transaction Reporting, Tax Crimes on the Rise

The Royal St. Christopher and Nevis Police Force has reported a significant surge in money laundering charges between 2016 and 2020, with 59 incidents linked to an intention to supply.

Increased Focus on Combating Financial Crimes

According to data released by the Local Intelligence Office, the number of money laundering charges during this period has increased notably compared to previous years. This trend underscores the increased focus of the Department on combating financial crimes.

Suspicious Transaction Reporting and Tax Compliance

The Financial Intelligence Unit (FIU) has also reported a notable increase in suspicious transaction reporting, with the Banking Sector leading the way. The Gaming Sector has shown some improvement in reporting, attributed to increased training and guidance provided to representatives.

• The WCCU has benefited from additional staffing, with a 50% augmentation in personnel, allowing for improved efficiency and effectiveness in forensic accounting.
• The FIU is currently upgrading its database, which will aid in improved data retention, search, and analysis.

Improvements in Data Collection and Reporting

The Comptroller of Inland Revenue (IRD) has been empowered to bring charges for tax crimes, and targeted training has been provided to relevant staff to improve compliance functions. An International Taxation Unit has been established at the IRD to specialize in handling requests and sharing information with counterparts.

• The IRD has also taken steps to improve its data collection and reporting mechanisms, including an exercise to collect outstanding data on Corporate Income Tax.
• The department’s filing compliance levels for core taxes have shown some improvement over the years, with a notable decrease in non-compliance rates.