OECD Urges Saint Kitts and Nevis to Improve Transparency in Business Ownership

The Organization for Economic Cooperation and Development (OECD) has released a peer review report highlighting concerns about the lack of transparency in business ownership in Saint Kitts and Nevis. The island nation, known for its financial services sector, was found to have inadequate measures in place to ensure that beneficial ownership information is accurately recorded and maintained.

Concerns about Limited Partnerships and Limited Liability Companies

The report noted that while Saint Kitts and Nevis has made progress in implementing anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations, there are still significant gaps in the way business ownership is recorded and disclosed. Specifically, the OECD identified concerns about the lack of transparency around limited partnerships and limited liability companies, which are commonly used in the financial services sector.

Recommendations

The report recommended that Saint Kitts and Nevis implement a system to require beneficial owners to be identified and recorded on company registers, as well as provide regular updates on changes to ownership structures. It also called for greater cooperation between regulatory bodies and law enforcement agencies to ensure that AML/CFT regulations are effectively enforced.

Transparency around Trust Structures

The OECD highlighted concerns about the lack of transparency around trust structures in Saint Kitts and Nevis, which are commonly used by high-net-worth individuals to manage their assets. The report recommended that the country establish a public register of trusts, as well as require trust administrators to maintain accurate records of beneficial ownership.

Government Response

The Saint Kitts and Nevis government has welcomed the OECD’s recommendations and pledged to work towards implementing them. In a statement, the Prime Minister said: “We recognize the importance of transparency and accountability in our financial services sector, and we are committed to ensuring that our regulations are robust and effective in preventing money laundering and terrorist financing.”

Global Context

The OECD’s report comes at a time when global attention is focused on improving transparency and tackling corruption. The organization has been working with countries around the world to develop standards for beneficial ownership transparency, and its recommendations are seen as an important step towards achieving greater accountability in the financial services sector.

In related news, the International Monetary Fund (IMF) recently praised Saint Kitts and Nevis for its progress in implementing AML/CFT regulations, but noted that there were still areas where improvement was needed. The IMF recommended that the country strengthen its regulatory framework and enhance cooperation between regulators and law enforcement agencies to prevent money laundering and terrorist financing.

Conclusion

The OECD’s report highlights the importance of transparency and accountability in Saint Kitts and Nevis’ financial services sector, and the need for the government to implement robust regulations to prevent money laundering and terrorist financing. The country must work towards implementing the recommended measures to ensure greater transparency and accountability in its financial system.