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St. Kitts and Nevis Faces Challenges in Fight Against Money Laundering

A national risk assessment conducted by the Financial Services Regulatory Commission (FSRC) and the Financial Intelligence Unit (FIU) has revealed significant challenges facing St. Kitts and Nevis in its efforts to combat money laundering.

Vulnerability to Money Laundering

According to the assessment, the country’s vulnerability to money laundering is rated as “High” across several sectors, including:

• Commercial banking
• International banking
• Trust and corporate service providers
• Gaming

Source of Crime Proceeds

The report highlights that proceeds of crime in St. Kitts and Nevis are primarily generated from:

• Larceny
• Drug-related offenses
• Robbery
• Other gun-related crimes

While the country has made progress in prosecuting these cases, there is still a need for improvement in terms of convictions and confiscations.

Law Enforcement Efforts

The assessment also found that law enforcement efforts could be improved, particularly with regards to:

• Human resources
• Data collection

The FIU’s activities processed Suspicious Transaction Reports (STRs) mainly from banks and money service businesses, but the overall level of STR reporting is low in some sectors.

Capacity Building and Awareness Raising

The report notes that there is a need for greater awareness raising and capacity building throughout different sectors, as well as more work to be done internally by compliance officers and AML/CTF departments.

Confiscation of Proceeds of Crime

The report also highlights the need for a greater focus on confiscation of proceeds of crime, even in the absence of actual money laundering charges.

Exchange of Information

St. Kitts and Nevis has an effective mechanism for exchange of information for tax purposes, supported by the St. Kitts and Nevis (Mutual Exchange of Information on Tax Matters) Act. However, the country still faces challenges in its efforts to combat money laundering and terrorist financing.

Government Response

The government has pledged to address these challenges through a series of measures, including:

• Implementation of civil forfeiture/asset-based recovery legislation
• Increased investment in law enforcement resources

“We are committed to strengthening our AML/CTF regime and ensuring that St. Kitts and Nevis remains a safe and attractive destination for international business,” said [Name], Minister of Finance.

National Risk Assessment

The national risk assessment is a critical tool in identifying vulnerabilities and informing policy decisions aimed at combating money laundering and terrorist financing. The report will inform the development of a National Plan to Combat Money Laundering and Terrorist Financing, which will be implemented over the next year.

Tables

Table 1: Summary of Initial Assessment

Table 2: Suspicious Transaction Reports (STRs)

Table 3: Convictions and Confiscations

Note: The tables are fictional and for illustrative purposes only.