Financial Crime World

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What is Money Laundering in Antigua and Barbuda?

Money laundering poses significant challenges for financial institutions and businesses operating in Antigua and Barbuda, with an estimated $34 million to $86 million of criminal proceeds laundered every year. The country’s focus on drug trafficking has been criticized as too narrow, leaving it vulnerable to other forms of money laundering.

Corruption Risks

The US has highlighted corruption risks within the Citizenship by Investment program, but these remain a sensitive topic for the government. Drug trafficking remains a major concern, with cocaine and cannabis being the most commonly trafficked drugs. Fraud and tax evasion are also significant issues, particularly in connection with the entertainment industry.

Other Concerns

Human trafficking is another growing concern, with victims often entering situations voluntarily before being forced into exploitation. Cybercrime is also on the rise, with phishing and account takeover scams, payment redirection to illegitimate sites, and “mystery shopper” scams posing a threat.

AML Policy Criticisms

The country’s AML policy has been criticized for its focus on drug trafficking, which leaves it weak in prevention and detection of money laundering crime. However, enforcement remains strong.

Reform Efforts

Antigua and Barbuda was one of the first countries in the Caribbean to reform its AML framework after its 2008 mutual evaluation. The focus since then has been on training reporting entities. Supervisory agencies are well-informed of AML requirements and risks.

Key Laws and Implementations

Banks in the country have implemented a risk-based approach and have a high degree of knowledge in the sector. Key laws include:

  • Misuse of Drugs Act 1974
  • Proceeds of Crime Act 1993
  • Money Laundering Prevention Act of 1996
  • Prevention of Terrorism Act of 2005

Weaknesses

However, weaknesses remain, particularly in coordination between authorities and the lack of quality SARs from financial institutions. The used car industry is unregulated and unsupervised, making it a conduit for financial crime.

Challenges and Collaborations

The country’s AML efforts are also hampered by its focus on drug trafficking, which makes it difficult to expand its focus to other areas of financial crime. Despite these challenges, Antigua and Barbuda has shown strong political will to tackle financial crime, with recent collaborations with Interpol and the Canadian government to combat human trafficking.

Learn More

For more information on AML risks and laws in Antigua and Barbuda, as well as guidance on how to assess customer, geographic, or matter risk, download VinciWorks’ free guide to compliance.