Financial Crime World

Title: St. Kitts and Nevis Cracks Down on Financial Crimes: AML/CFT Legislation and Regulatory Compliance

Overview

Saint Kitts and Nevis has enacted strict laws and regulations to combat financial crimes and prevent the twin-island nation from being a safe haven for ill-gotten gains.

Two Main Legislations

  • Proceeds of Crime Act, Cap 4.28: covers serious offenses, money laundering, and terrorism financing.
  • Anti-Terrorism Act Cap.4.02: applies to money laundering and terrorist financing.

Money Laundering Definition

Engaging directly or indirectly in a transaction involving proceeds of crime or knowingly receiving, possessing, concealing, disposing, or transferring such proceeds within the jurisdiction.

AML/CFT Legislation

  • Applies to all Regulated Businesses in St. Kitts and Nevis.
  • Supervised by the Financial Services Regulatory Commission (FSRC).

Risk-based Supervision Framework (RBS)

Adopted in May 2015 to ensure compliance with AML/CFT requirements.

Customer Due Diligence (CDD) Requirements

  • Regulated entities must identify, verify, obtain, maintain, and monitor their customers.
  • Share customer information with competent authorities and due diligence conductors.
  • Review customer files and citizenship by investment applications during on-site examinations.

Appropriate Documentation

  • Proof of identity (passport or identity card)
  • Letters of reference
  • Proof of address
  • Proof of funds
  • Accounting records

Role of the Financial Intelligence Unit (FIU)

  • Detects and prevents money laundering and terrorist financing.
  • Receives, collects, analyzes, and acts upon reports of suspicious transactions.
  • Maintains a database for detecting money laundering and shares information with competent authorities and international agencies.

Regulated Businesses’ Obligations

  • Report any suspicions of money laundering or terrorist financing to the FIU.
  • Comply with enforcable guidelines, including:
    • Anti-Money Laundering Regulations 2011
    • Anti-Terrorism (Prevention of Terrorist Financing) Regulations 2011
    • Financial Services (Implementation of Industry Standards) Regulations, 2011
    • Anti-Terrorism De-Listing Procedures Regulations, 2011

Penalty for Failure to Report

Considered an offense under the Proceeds of Crime Act Cap 4.28.