Money Laundering Charges on the Rise in St. Kitts and Nevis
Notable Increase in Money Laundering Charges from 2016 to 2020
The Royal St. Christopher and Nevis Police Force has reported a significant increase in money laundering charges during the period of 2016 to 2020, with nine instances filed compared to previous years.
Banking Sector Leads in Suspicious Transaction Reporting
- The Banking Sector continues to lead in terms of the highest volume of suspicious transaction reporting.
- There has been some improvement in suspicious transaction reporting in the Gaming Sector, attributed to increased training and guidance provided to representatives of the sector.
Upgrades and Improvements
- The Financial Intelligence Unit (FIU) is currently upgrading its database, which will aid in improved data retention, search, and analysis.
- The FIU’s upgraded database will also allow for improved trend analysis and strategic inference generation.
- The Crime Management System (CMS) introduced by the RSCNPF has improved crime analysis and information sharing with other agencies.
Tax Administration and Compliance
- The Comptroller of Inland Revenue has been empowered to bring charges for any criminal offence committed under the Tax Administration and Procedures Act (TAPA).
- Targeted training has been provided to relevant staff to improve compliance functions in respect of tax crimes.
- An International Taxation Unit has been established at the IRD to specialize in handling requests and sharing information with counterparts and relevant stakeholder agencies.
Statistics
Suspicious Transaction Filings by Sector for 2014-2020
| Sector | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|---|---|
| Banks | 75 | 68 | 84 | 44 | 32 | 39 | 78 |
| Insurance | 12 | 15 | 18 | 10 | 8 | 6 | 9 |
| Gaming | 5 | 7 | 11 | 3 | 2 | 1 | 4 |
| Non-Bank Financial Institutions | 8 | 5 | 6 | 4 | 3 | 2 | 6 |
| Other | 15 | 12 | 10 | 8 | 7 | 5 | 13 |
Filing Compliance Levels for Core Taxes Collected by the Inland Revenue Department for the Period 2014-2020
| Tax Type | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|---|---|
| Unincorporated Business Tax | 57% | 58% | 62% | 64% | 63% | 67% | 57% |
| Value Added Tax | 94% | 93% | 94% | 92% | 88% | 92% | 85% |
| Withholding Tax | 65% | 61% | 62% | 66% | 61% | 62% | 54% |
| Corporate Income Tax | 66% | 77% | 75% | 77% | 65% | 58% | 34% |
National Risk Assessment
The National Risk Assessment (NRA) has revealed some areas of concern, including the need for further improvement in tax compliance and strengthening of financial reporting mechanisms. The Government is committed to addressing these concerns and will continue to work towards a more robust financial system.