Financial Crime World

Anti-Money Laundering Regulations in St. Christopher and Nevis

Section 5: Foreign Branches or Subsidiaries

This section applies to relevant persons with branches or subsidiaries outside of St. Christopher and Nevis.

Requirements for Foreign Branches or Subsidiaries

  • If a foreign branch or subsidiary is unable to observe anti-money laundering measures due to prohibitive laws in the host country, the relevant person must inform the Commission.
  • The relevant person must apply the higher standard of anti-money laundering requirements if they differ from those in St. Christopher and Nevis with the consent of the Commission.

Section 6: Reduced Customer Due Diligence for Low-Risk Situations

This section describes situations where reduced customer due diligence (CDD) is not required:

Exemptions to CDD Requirements

  • Case A: Public authorities acting in that capacity.
  • Case B: Pension, superannuation, or similar schemes with contributions made through deductions from wages and no assignment of interests allowed.
  • Case C: Insurance business with a policy taken out by virtue of a person’s contract of employment or occupation, with certain conditions (no surrender clause and cannot be used as collateral security for a loan).
  • Case D: Insurance premiums payable in one installment not exceeding EC$5000.00.
  • Case E: Periodic insurance premiums payable.

In these cases, identification procedures under Section 4 are not required.

Section 7: Politically Exposed Persons

A “politically exposed person” (PEP) is defined as:

Definition of a PEP

  • An individual who is or has been entrusted with a prominent public function in a country or territory outside St. Christopher and Nevis or by an international organization outside St. Christopher and Nevis.
  • Immediate family members of the above individuals, including spouses, partners, children, parents, grandparents, and grandchildren.
  • Close associates of the above individuals, including those who maintain a close business relationship or conduct substantial financial transactions on their behalf.

Section 9: Ongoing Monitoring

Relevant persons are required to:

Enhanced Ongoing Monitoring

  • Obtain senior management approval for establishing business relationships with PEPs.
  • Take reasonable measures to establish the source of wealth and funds.
  • Obtain senior management approval to continue a business relationship once a customer or beneficial owner has been found to be or subsequently becomes a PEP.
  • Conduct enhanced ongoing monitoring of the business relationship.

These regulations aim to prevent money laundering and terrorist financing by ensuring that relevant persons in St. Christopher and Nevis conduct adequate CDD and monitor their relationships with customers, particularly those who may pose a higher risk due to their status as PEPs.