Title:Saint Lucia Makes Progress in Fight Against Financial Crimes: FATF Report

The Financial Action Task Force (FATF) has released its Mutual Evaluation Report for Saint Lucia, revealing the Caribbean nation’s advancements in implementing Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures. The report, published in 2021, evaluates the extent to which Saint Lucia has addressed the FATF Recommendations.

Key areas of improvement

1. Risk assessment and risk-based approach (Partially Compliant) St. Lucia has bolstered its efforts to comprehend money laundering and terrorist financing risks, enhancing its risk assessment framework. Key strides include strengthening the Financial Intelligence Unit (FIU), implementing various measures to assess ML/TF risks, and integrating the risk-based approach.
2. National cooperation and coordination (Partially Compliant) St. Lucia has made strides in enhancing inter-agency cooperation and coordination, with the objective of creating a more effective framework to combat financial crimes. Significant steps include establishing a FIU and a National Task Force to facilitate cooperation and coordination.
3. Money laundering offenses (Compliant) Saint Lucia’s legal framework addressing money laundering offenses is considered compliant. The country has established criminal offenses under its revised Proceeds of Crime Act (2000) and Money Laundering Control Act (2001), effectively addressing money laundering activities.
4. Confiscation and provisional measures (Largely Compliant) Although improvements are needed in implementing confiscation orders, St. Lucia has largely complied with FATF Recommendations regarding confiscation and provisional measures. The country has adopted legislation and set up mechanisms to facilitate the implementation process.

Areas needing further work

1. Terrorist financing offenses (Partially Compliant) St. Lucia can improve its legal framework for addressing terrorist financing offenses. While the country has established offenses regarding terrorist financing under its Criminal Code, significant strides are needed in its risk assessment framework, and the capacity of law enforcement and prosecutorial agencies to effectively address terrorist financing risks.
2. Reliance on third parties (Partially Compliant) St. Lucia has partially complied in addressing and managing risks associated with relying on third parties. Notable progress has been made, but more needs to be done to bolster risk assessment and supervisory frameworks.
3. Tipping-off and confidentiality (Non-compliant) St. Lucia is yet to meet the FATF Recommendations regarding tipping-off and confidentiality measures. The country must adopt laws or regulations encompassing adequate tipping-off and confidentiality provisions to encourage robust reporting and mitigate risks of retaliation against those disclosing suspicious transactions.

In summary, the FATF Mutual Evaluation Report indicates Saint Lucia’s advancements in implementing various AML/CTF measures. The country has made considerable strides in areas like risk assessment, legal frameworks, and cooperation, yet there is more work required to effectively tackle challenges in areas like terrorist financing and tipping-off confidentiality. Saint Lucia’s ongoing dedication to enhancing its AML/CTF framework underscores the government’s commitment to maintaining the integrity of its financial sector and combatting financial crimes effectively.