Financial Crime World

Saint Kitts and Nevis Fails to Meet Expectations on Anti-Money Laundering Laws

A recent report by the Financial Action Task Force (FATF) has revealed that Saint Kitts and Nevis has failed to meet expectations on anti-money laundering laws. The country scored a rating of “partially compliant” or “largely compliant” in most areas, indicating significant room for improvement.

Insufficient Efforts to Prevent Money Laundering and Terrorist Financing

According to the report, Saint Kitts and Nevis is not doing enough to prevent money laundering and terrorist financing. While it has made some progress in implementing the FATF Recommendations, there are several key areas that require attention.

Key Findings

  • The country scored a “largely compliant” rating on assessing risk and applying a risk-based approach (R.1), national cooperation and coordination (R.2), and targeted financial sanctions related to terrorism and terrorist financing (R.6).
  • However, it was found to be “partially compliant” in several other areas, including:
    • Confiscation and provisional measures (R.4)
    • Terrorist financing offence (R.5)
    • Customer due diligence (R.10)

Concerns Over Financial Institution Secrecy Laws

The report also highlighted concerns over the country’s financial institution secrecy laws (R.9) and its ability to rely on third parties (R.17).

Non-Compliance in Several Areas

Saint Kitts and Nevis was found to be “non-compliant” in several areas, including: + Transparency and beneficial ownership of legal persons (R.24) + Legal arrangements (R.25)

Call for Immediate Action

The FATF report has called on Saint Kitts and Nevis to take immediate action to address these deficiencies. Failure to do so could result in further scrutiny by international authorities and potential sanctions.

Response from Officials

In response to the report, officials from Saint Kitts and Nevis have promised to take steps to improve their anti-money laundering regime. However, it remains to be seen whether the country will be able to make sufficient progress to meet the FATF’s expectations.