Financial Crime World

Saint Lucia Tightens Financial Regulations with New CFT Laws

A Major Overhaul of Financial Regulations

The Financial Intelligence Authority (FIA) has announced a significant overhaul of financial regulations in Saint Lucia, aimed at combating money laundering and terrorist financing. The new laws came into effect on January 1st, 2023, and require all persons engaged in other business activities to register with the FIA.

Registration of Supervised Entities Act No. 12 of 2023

Under this act, specified entities must provide detailed information about their operations, including:

  • Ownership structure
  • Financial transactions

This move is designed to increase transparency and accountability in the financial sector, preventing illegal activities such as money laundering and terrorist financing.

CFATF’s Influence on Saint Lucia’s Anti-Money Laundering Regulations

As a member of the Caribbean Financial Action Task Force (CFATF), Saint Lucia is committed to implementing international standards for combating money laundering and terrorist financing. The CFATF is a regional body that brings together 25 Caribbean and South American countries to share best practices and coordinate efforts to combat financial crime.

Emphasis on “Knowing Your Customer”

Another key aspect of Saint Lucia’s new regulations is the emphasis on “knowing your customer,” or conducting thorough background checks on clients. This requires:

  • Financial institutions and other businesses to gather detailed information about their customers, including:
    • Identity
    • Business activities
    • Financial transactions

The goal is to prevent criminals from using the financial system for illegal purposes.

Compliance and Penalties

The Financial Intelligence Authority has stressed that compliance with these new regulations will be strictly enforced, and any non-compliance will be met with severe penalties. This move is seen as a major step forward in Saint Lucia’s efforts to combat financial crime and maintain its reputation as a stable and secure financial hub.

By implementing these new regulations, Saint Lucia demonstrates its commitment to ensuring the integrity of its financial system and protecting its citizens from financial crime.