Financial Crime World

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Financial Sanctions Enforcement in Saint Kitts and Nevis Under Scrutiny

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Saint Kitts and Nevis has been rated “largely compliant” by the Financial Action Task Force (FATF) in its efforts to implement technical requirements for financial sanctions enforcement. The country’s progress was assessed against global standards aimed at preventing money laundering, terrorist financing, and other financial crimes.

Areas of Strength

The report highlighted several areas where Saint Kitts and Nevis excelled:

  • Risk-based approach: The country’s risk-based approach to assessing money laundering and terrorist financing risks was commended.
  • National cooperation and coordination: Saint Kitts and Nevis’ efforts to coordinate with national authorities were recognized as a strength.
  • Laws and regulations: The country’s laws and regulations governing the confiscation of assets related to terrorism and proliferation were praised.

Areas for Improvement

However, the report identified some areas where improvement is needed:

  • Preventing terrorist financing: Saint Kitts and Nevis was found to be “partially compliant” in implementing measures to prevent terrorist financing.
  • Record-keeping and customer due diligence: The country was criticized for not requiring financial institutions to maintain records and customer due diligence information.
  • Transparency and beneficial ownership: Saint Kitts and Nevis’ lack of transparency and beneficial ownership information for legal persons and arrangements was identified as an area for improvement.

Recommendations

The FATF report emphasized the importance of:

  • Strengthening internal controls
  • Reporting suspicious transactions
  • Regulating and supervising financial institutions and designated non-financial businesses and professions (DNFBPs)
  • Effective powers of supervisors, law enforcement authorities, and investigative agencies

Commitment to Reform

Saint Kitts and Nevis has committed to implementing the necessary reforms and measures to address the deficiencies identified in the report. The country’s progress will be closely monitored by the FATF and other international partners to ensure that it is taking concrete steps to strengthen its financial sanctions regime.