Financial Crime World

Saint Kitts and Nevis Toughens Up Against Money Laundering with Strict AML Regulations

The Caribbean islands of Saint Kitts and Nevis have taken significant strides in their attempts to combat money laundering, terrorism financing, and the financing of weapons mass destruction. As a member of the Financial Action Task Force (FATF), the island nation has imposed stringent Anti-Money Laundering (AML) regulations to align with international standards.

Strengthening AML/CFT Regime

According to the latest assessment report by the Caribbean Financial Action Task Force (CFATF), Saint Kitts and Nevis have made substantial progress in their AML/CFT regime, notably:

  1. Improvement of legal frameworks
  2. Enhancement of risk-based customer due diligence
  3. Strengthening of international cooperation

The report indicates that Saint Kitts and Nevis have generally strengthened their AML/CFT regime.

Role of Financial Intelligence Unit (FIU)

The Financial Intelligence Unit (FIU) of Saint Kitts and Nevis plays a crucial role in the country’s AML/CFT efforts. The FIU:

  1. Collects and analyses suspicious transaction reports
  2. Disseminates relevant information to competent authorities
  3. Has witnessed a significant increase in the number of suspicious transaction reports received and analysed

New Regulations and International Commitments

To bolster its AML/CFT framework, Saint Kitts and Nevis has introduced new regulations, including the Financial Services Regulations 2021. The new regulations:

  1. Impose enhanced due diligence requirements on designated non-financial businesses and professions
  2. Cover real estate agents, dealers in precious metals, and virtual asset service providers

Earlier this year, the government ratified the following international conventions to address money laundering and related financial crimes on a global scale:

  1. The United Nations Convention against Transnational Organized Crime
  2. The Protocol against the Smuggling of Migrants by Land, Sea, and Air

Ongoing Efforts

The CFATF is expected to conduct another assessment of Saint Kitts and Nevis’ AML/CFT framework in 2024. Until then, the island nation will continue to strengthen its defenses against money laundering, terrorism financing, and the financing of weapons mass destruction to maintain its position as a responsible and compliant member of the international community.