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St. Kitts and Nevis See Notable Increase in Money Laundering Charges
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Basseterre, St. Kitts - The Royal St. Christopher and Nevis Police Force has recorded a significant increase in money laundering charges during the period of 2016 to 2020.
National Risk Assessment
The National Risk Assessment for St. Kitts and Nevis highlights the importance of strengthening tax compliance frameworks to combat financial crimes.
Tax Crimes
Designation of Comptroller as Competent Authority
- The Comptroller of Inland Revenue is empowered to bring charges for any criminal offence committed under the Tax Administration and Procedures Act (TAPA).
- The designation of the Comptroller as the Competent Authority for Tax Crimes has been formalized through a letter from the Financial Secretary.
Targeted Training
Improving Compliance Function
- Targeted training has been provided to IRD staff to improve its existing compliance function in respect of tax crimes.
- A Memorandum of Understanding (MOU) between the IRD and the Financial Services Regulatory Commission (FSRC) has been signed to formalize information sharing arrangements.
International Taxation Unit
Specialized Handling of Requests
- An International Taxation Unit has been established at the IRD to specialize in handling requests and sharing of information with counterparts and relevant stakeholder agencies.
Inland Revenue Department Improves Compliance Capacity
The Inland Revenue Department (IRD) has worked diligently to enhance its compliance capacity, resulting in a more coherent suspicious transaction reporting mechanism. Formal internal procedures for suspicious transaction reporting have been established, along with a suspicious transaction form and training regimen targeted at identifying suspicious activity by staff.
Measures for Inter-Agency Collaboration
Technical Assistance Provided
- The IRD has taken steps to improve its measures for inter-agency collaboration and meaningful cooperation.
- Technical assistance is being provided to the WCCU in the form of forensic accounting services.
Filing Compliance Levels
Table 4: Filing Compliance Levels for Core Taxes
| Year | Corporate Income Tax | Value-Added Tax |
|---|---|---|
| 2014 | 85% | 92% |
| 2015 | 88% | 90% |
| 2016 | 86% | 91% |
| 2017 | 89% | 93% |
| 2018 | 87% | 92% |
| 2019 | 90% | 94% |
| 2020 | 88% | 95% |
NGOs and Financial Crimes
The National Risk Assessment also highlights the importance of strengthening regulations and oversight mechanisms for Non-Government Organizations (NGOs) to prevent their involvement in financial crimes.
Conclusion
Overall, the National Risk Assessment emphasizes the need for a multi-faceted approach to combating financial crimes in St. Kitts and Nevis. Strengthening tax compliance frameworks, improving inter-agency collaboration, and enhancing data collection and reporting mechanisms are key components of this approach.
Full Tables 4 and 5 Available Upon Request