Financial Crime World

Financial Crime Prevention Tips in Antigua and Barbuda: Understanding the Risks and Responsibilities

As businesses operate in Antigua and Barbuda, it’s crucial to understand the key financial crime prevention tips and challenges in the region. Money laundering, drug trafficking, fraud, tax evasion, human trafficking, and cybercrime are just a few of the significant risks that organizations must contend with.

The Risks of Financial Crime in Antigua and Barbuda

According to estimates, between $34 million to $86 million of criminal proceeds is laundered every year in Antigua and Barbuda. This makes it essential for businesses to take proactive steps to prevent financial crimes. The country’s AML framework has undergone reforms since its 2008 mutual evaluation, focusing on training reporting entities and strengthening enforcement.

The legal landscape in Antigua and Barbuda includes:

  • Misuse of Drugs Act 1974
  • Proceeds of Crime Act 1993
  • Money Laundering Prevention Act of 1996
  • Prevention of Terrorism Act of 2005

Banks have implemented a risk-based approach to AML, but professional services such as lawyers, accountants, real estate agents, and money services businesses remain key conduits for financial crime.

High-Risk Areas

Car dealerships, international banks, and the used car industry are also considered high-risk areas due to lack of regulation and supervision. The Royal Police Force of Antigua and Barbuda’s narrow focus on drug trafficking means that financial crimes often go undetected unless they have a connection to drugs.

Assessing Risk

To combat these challenges, VinciWorks recommends that organizations assess customer, geographic, or matter risk by considering the following factors:

  • Corruption risks within the Citizenship by Investment (CBI) program
  • Drug trafficking and related activities
  • Fraud and tax evasion, particularly in the entertainment industry
  • Human trafficking and exploitation
  • Cybercrime, including:
    • Phishing
    • Account takeover scams
    • Payment redirection to illegitimate sites
    • “Mystery shopper” scams

Implementing AML Controls

Additionally, businesses should focus on implementing robust AML controls, training employees, and reporting suspicious transactions. It’s also essential for organizations to stay informed about the latest AML laws and regulations in Antigua and Barbuda.

Staying Informed

For more information on financial crime prevention tips in Antigua and Barbuda, download VinciWorks’ free guide to compliance. The comprehensive guide provides an overview of key AML challenges and issues, as well as a country-by-country assessment of AML risks and laws.

Download your free copy today and stay ahead of the curve in preventing financial crimes in Antigua and Barbuda.