Anti-Money Laundering and Combating the Financing of Terrorism Regulations in St. Christopher and Nevis

Introduction

The regulations outlined below aim to prevent and detect money laundering and the financing of terrorism by ensuring that financial institutions conduct thorough customer due diligence and monitor transactions carefully.

Key Requirements for Financial Institutions

Customer Due Diligence

• Verification of Identity: Financial institutions must verify the identity of all customers.
• Business or Occupation Information: Obtain information about a customer’s business or occupation.
• Assessment of Money Laundering Risk: Assess the risk of money laundering for each customer.

Enhanced Customer Due Diligence

• High-Risk Situations: Take enhanced measures when dealing with customers from countries that do not apply anti-money laundering regulations.
• Country Risk Assessment: Conduct a country risk assessment to identify high-risk countries.

Politically Exposed Persons (PEPs)

• Extra Precautions: Take extra precautions when dealing with PEPs, including obtaining senior management approval and conducting enhanced ongoing monitoring.
• Definition of PEPs: Define who is considered a PEP and the types of relationships that require additional scrutiny.

Low-Risk Situations

• Reduced or Waived Identification Procedures: Reduce or waive identification procedures for certain low-risk situations, such as dealing with public authorities, pension schemes, or insurance policies with no surrender clause.
• Low-Risk Categories: Identify categories of customers who are considered low risk.

Reporting Suspicious Activities

• Suspicious Transaction Reporting: Report any suspicious activities to the relevant authorities.
• Timely Reporting: Ensure that reports are made in a timely manner.

By following these regulations, financial institutions can help prevent and detect money laundering and the financing of terrorism.