Financial Crime World

Financial Intelligence Unit Roles in St. Kitts and Nevis Shine Light on Money Laundering and Terrorist Financing

The Financial Services Regulatory Commission (FSRC) has been at the forefront of regulating and supervising businesses in St. Kitts and Nevis to combat financial crimes, ensuring compliance with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) legislation.

Regulatory Framework

Under the AML/CFT regime, all regulated businesses are required to:

  • Identify and verify their customers and beneficial owners
  • Obtain, maintain, and monitor customer information
  • Disclose this information to relevant authorities

The Financial Services Regulatory Body (FSRB) has implemented a risk-based supervision framework, which allows for:

  • More frequent monitoring of high-risk entities
  • Less frequent monitoring of low-risk ones

On-Site Examinations

During on-site examinations, examiners from the FSRB assess whether regulated entities have established adequate policies and procedures to ensure compliance with AML/CFT legislation and identify risks appropriately. The examinations also review customer files to ensure that:

  • Adequate Know Your Customer (KYC) and Customer Due Diligence (CDD) documents are obtained and kept up-to-date
  • Copies of passports or identity cards, letters of reference from recognized banking institutions and professional bodies, proof of address, and account opening files are available

Examiners also assess the effectiveness of a regulated entity’s policies, practices, procedures, and internal controls for compliance with AML/CFT legislation, including:

  • Ongoing monitoring programs
  • Training schedules
  • Suspicious transaction reporting
  • Record-keeping systems
  • Retention periods
  • Conditions of records

Results and Monitoring

The results of an on-site examination influence the intensity and frequency of monitoring. Entities that are operating in a satisfactory manner will require less frequent monitoring than those with weaknesses and deficiencies.

Impact on St. Kitts and Nevis’ Reputation

The FSRB’s efforts to strengthen AML/CFT compliance have been instrumental in maintaining St. Kitts and Nevis’ reputation as a stable financial center, attracting foreign investment and promoting economic growth.