Financial Crime World

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Saint Lucia Embarks on Risk-Based Approach to Compliance, Boosting Fight Against Money Laundering and Terrorist Financing

Saint Lucia has taken a significant step forward in its efforts to combat money laundering and terrorist financing by adopting a risk-based approach to compliance. The country’s 3rd Enhanced Follow-Up Report and Technical Compliance Re-Rating, released earlier this month, highlights Saint Lucia’s progress in strengthening its anti-money laundering and counter-terrorist financing (AML/CFT) framework.

Substantial Progress Since 2021

According to the report, Saint Lucia has made substantial strides since its 2021 Mutual Evaluation Report. The Caribbean Financial Action Task Force (CFATF) has re-rated the country on 22 out of the 40 FATF Recommendations, with notable improvements in areas such as:

  • Assessing risks: Saint Lucia’s risk assessment process is now considered compliant, allowing the country to better identify and mitigate threats.
  • National cooperation and coordination: Saint Lucia’s national authorities have improved their coordination and cooperation in implementing AML/CFT measures.
  • Money laundering offence: The country has strengthened its laws and regulations to combat money laundering.

Key Components of Risk-Based Approach

The risk-based approach to compliance is a critical component of Saint Lucia’s AML/CFT framework, enabling the country to focus its efforts on high-risk individuals and entities. This targeted approach enables Saint Lucia to allocate resources more effectively and reduce the burden on businesses and financial institutions.

Areas for Improvement

However, there are still areas where Saint Lucia needs to improve. The report notes that the country requires further work in areas such as:

  • New technologies: Implementing new technologies to enhance AML/CFT measures.
  • Customer due diligence for designated non-financial businesses and professions (DNFBPs): Improving customer due diligence for DNFBPs.
  • Reporting of suspicious transactions: Enhancing reporting of suspicious transactions.

Current Rating

Saint Lucia’s current rating stands at Compliant or Largely Compliant with 30 out of the 40 FATF Recommendations. The country is committed to continuing its efforts to strengthen its AML/CFT framework and remains a key player in the region’s fight against money laundering and terrorist financing.

Full Report Available

The full report is available on the CFATF website, providing further details on Saint Lucia’s progress and areas for improvement.