Financial Crime World

Saint Helena Introduces Single Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Rulebook

Enhancing Financial Transparency and Compliance

The island of Saint Helena has introduced a single AML/CFT rulebook to strengthen financial transparency and compliance, regulating financial transactions and combating money laundering and terrorist financing.

New Regulations Aim to Prevent Regulatory Divergence and Arbitrage

The new regulations expand the scope of firms required to follow certain anti-money laundering and combating the financing of terrorism (AML/CFT) regulations, aiming to prevent regulatory divergence and arbitrage. The rules prohibit firms in Saint Helena from conducting anonymous financial transactions and cash transactions exceeding SLL 200,000.

Key Requirements for Firms

  • Establish monitoring systems to detect atypical transactions
  • Apply a risk-based approach to outsourcing arrangements
  • Have training programs in place for AML/CFT compliance
  • Identify Politically Exposed Persons (PEPs) and third-country nationals

Transfer of Funds Regulation Introduced

The Saint Helena government has also introduced the Transfer of Funds Regulation (TFR), which requires certain information, including Legal Entity Identifiers (LEIs), to accompany wire transfers and crypto-asset transfers. Crypto-asset service providers must:

  • Identify and hold originator/payer and beneficiary/payee information
  • Provide it to law enforcement authorities upon request

Severe Penalties for Non-Compliance

Non-compliance with the AML/CFT regulations can lead to severe financial and criminal penalties. International firms have faced significant fines in recent years for failing to comply with anti-money laundering and combating the financing of terrorism regulations.

Tips for Firms to Ensure Compliance

  • Implement automated AML solutions that incorporate real-time screening, risk scoring, regulatory reporting, and transaction monitoring capabilities
  • Document internal processes and ensure regulators have access to necessary information
  • Stay ahead of the curve by implementing advanced AML/CFT solutions

By following these tips, firms in Saint Helena can significantly strengthen their ability to comply with the new regulations efficiently and stay proactive in the fight against financial crime.