Saint Lucia’s Efforts to Combat Money Laundering Under Scrutiny

International experts have evaluated Saint Lucia’s efforts to combat money laundering, revealing a mixed bag of compliance with global standards. According to the latest Mutual Report 2021, the island nation has made progress in some areas but still faces challenges.

Areas of Improvement

• Risk Assessment: Saint Lucia has shown improvement in assessing risk and applying a risk-based approach, earning it a “partially compliant” rating.
• Targeted Financial Sanctions: The country has also made strides in implementing targeted financial sanctions related to terrorism and terrorist financing, earning an “non-compliant” rating.

Areas of Concern

• Money Laundering Offence Laws and Regulations: Saint Lucia’s implementation of money laundering offence laws and regulations remains a concern, with the country rated as “largely compliant”.
• Confiscation and Provisional Measures: The country has fallen short in implementing confiscation and provisional measures, earning a “partially compliant” rating.
• Customer Due Diligence Requirements: Saint Lucia’s implementation of customer due diligence requirements has been rated as “partially compliant”.

Challenges Ahead

• Correspondent Banking and Money or Value Transfer Services: The country’s laws and regulations regarding correspondent banking and money or value transfer services remain a concern, earning an “non-compliant” rating.
• Beneficial Ownership Transparency: Saint Lucia lacks transparency in beneficial ownership of legal persons and arrangements, which has been identified as an area that requires improvement.

Way Forward

Despite the challenges, the report highlights the importance of continued cooperation and reform to ensure Saint Lucia’s financial system remains secure and transparent. Specifically:

• Greater Cooperation: The need for greater cooperation between law enforcement agencies and other stakeholders to effectively combat money laundering is emphasized.
• Reform Efforts: The report serves as a reminder of the importance of continued reform efforts to improve anti-money laundering measures.

Overall, while Saint Lucia has made progress in some areas, it still faces significant challenges in implementing effective anti-money laundering measures. The report underscores the need for sustained effort and cooperation to ensure the island nation’s financial system remains secure and transparent.