Saint Lucia’s Financial Institutions Urged to Conduct Regular Risk Assessments
Combating Money Laundering, Terrorist Financing, and Proliferation Financing
As part of its efforts to combat money laundering, terrorist financing, and proliferation financing, Saint Lucia’s financial institutions are being mandated to conduct regular risk assessments to identify potential threats.
What is the Risk Assessment?
The risk assessment is aimed at identifying, assessing, and understanding the risks posed by:
- Existing or potential customers
- Countries
- Geographic areas
- Products
- Services
- Transactions
- Delivery channels
New Regulations for Licensed Financial Institutions
According to new regulations, licensed financial institutions in Saint Lucia must:
- Document their risk assessment
- Consider relevant risk factors, including those identified by the country’s national risk assessment
- Determine the level of overall risk and the appropriate level and type of mitigation measures
- Keep their risk assessments up-to-date
- Develop mechanisms to provide information on the assessments to the Central Bank
Why is this Important?
The new regulations aim to strengthen Saint Lucia’s financial system by ensuring that licensed financial institutions have a robust approach to managing risks related to:
- Money laundering
- Terrorist financing
- Proliferation financing
By conducting regular risk assessments, these institutions can better identify potential threats and take proactive steps to mitigate them, ultimately protecting the integrity of the financial system.