Financial Crime World

Montserrat Cabinet Moves to Establish Financial Intelligence Unit and Boost Social Security Fund

In a significant move aimed at combating money laundering and terrorist financing, Montserrat’s Cabinet has given the green light to establish a Financial Reporting Authority and implement reforms to bolster the financial stability of the island’s Social Security Fund. The decisions were made during a high-level meeting on November 4, 2021.

Establishing a Financial Intelligence Agency

At the heart of the plan is the creation of a statutory body known as the Financial Intelligence Agency (FIA). This agency will be tasked with:

  • Gathering information from financial institutions and designated non-financial businesses and professions
  • Analyzing and disseminating this information to help track suspicious transactions linked to money laundering and terrorist financing

The FIA will play a critical role in identifying and disrupting illicit activities that threaten the island’s financial system. This move comes in response to international obligations aimed at strengthening anti-money laundering and counter-terrorism measures.

Improving Financial Stability of Social Security Fund

Separately, Cabinet approved a package of reforms designed to improve the financial stability of Montserrat’s Social Security Fund over the short to medium term. The details of these measures will be released by relevant authorities at a later date.

Significance of the Decisions

The establishment of the FIA and the implementation of the Social Security Fund reforms are seen as crucial steps in maintaining the integrity and stability of Montserrat’s economy, ensuring that:

  • The island’s financial system remains robust and secure for years to come
  • The risk of money laundering and terrorist financing is minimized
  • The Social Security Fund is financially stable and able to provide benefits to its beneficiaries

By taking these measures, Montserrat’s government is demonstrating its commitment to maintaining a strong and resilient economy that benefits all citizens.