St. Kitts and Nevis Faces Challenges in Combating Money Laundering and Terrorist Financing
A Recent Evaluation Report Highlights Vulnerabilities
A recent evaluation report by the Caribbean Financial Action Task Force (CFATF) has identified several weaknesses in St. Kitts and Nevis’s anti-money laundering and combating terrorist financing (AML/CFT) regime.
Coordination among Financial Intelligence Units Lacking
The report highlights that the country lacks coordination among its financial intelligence units (FIUs), which hinders the sharing of information and best practices. The FIU is only accessing and utilizing financial intelligence and relevant information to conduct its functions, while other agencies such as the Customs and Excise Department (CED) and the Competent Authority for Tax Matters (CATM) are not doing so.
Limited Understanding among Financial Institutions
The report notes that there is a lack of understanding among financial institutions and designated non-financial businesses and professions (DNFBPs) about their reporting obligations. As a result, the number of suspicious transaction reports (STRs) submitted to the FIU is low and not commensurate with the country’s vulnerability assessment.
Insufficient Investigations and Confiscation Proceedings
The CFATF report further highlights that St. Kitts and Nevis has a small international financial centre with a foreign clientele and a substantial number of corporate entities, but there have been no money laundering investigations for foreign predicates or corporate entities. Additionally, the country did not have a national policy objective for the confiscation of criminal proceeds until March 2021.
Recommendations to Strengthen AML/CFT Regime
To effectively combat money laundering and terrorist financing, St. Kitts and Nevis must address these vulnerabilities by:
- Strengthening the Financial Intelligence Unit (FIU): Providing it with sufficient resources and authority to carry out its functions effectively.
- Improving Coordination: Among financial intelligence units, customs and excise departments, and other agencies involved in AML/CFT efforts.
- Enhancing Capacity: Of the FIU and other agencies to investigate and prosecute money laundering and terrorist financing cases.
- Strengthening Laws and Regulations: Anti-money laundering and combating terrorist financing laws and regulations need to be strengthened.
- Improving Public Awareness: The importance of reporting suspicious transactions needs to be improved through public awareness campaigns.
Contact Information
For more information on this report, please contact the Caribbean Financial Action Task Force (CFATF) at [insert contact information].