Financial Crime World

St. Kitts and Nevis National Risk Assessment Reveals Improvement in Banking Sector, Trust and Corporate Service Providers

Introduction

The St. Kitts and Nevis government has released its latest National Risk Assessment (NRA), highlighting improvements in the banking sector and trust and corporate service providers.

Banking Sector Improvements

The NRA, conducted by the Financial Services Regulatory Commission (FSRC) and other relevant agencies, assesses the risks associated with money laundering and terrorist financing in the country’s financial system. According to the report, the banking sector has shown significant improvement in its anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.

  • The FSRC attributed this improvement to increased regulatory oversight, enhanced reporting requirements, and targeted training for banking staff.
  • Several banks have implemented robust AML/CFT programs, which have contributed to a decrease in suspicious transaction reports.

Trust and Corporate Service Providers

The NRA also highlighted the efforts of trust and corporate service providers to improve their AML/CFT compliance. The FSRC has worked closely with these entities to ensure they meet international standards and best practices.

  • The report noted that several trust and corporate service providers have implemented robust AML/CFT programs, demonstrating a commitment to reducing the risk of money laundering and terrorist financing.
  • The FSRC will continue to work closely with these entities to monitor their progress and provide guidance as needed.

Tax Compliance Framework

The government has strengthened its tax compliance framework through targeted training for staff at the Inland Revenue Department (IRD) and improved data collection and reporting mechanisms. The IRD has established an International Taxation Unit to handle requests and share information with counterparts and relevant stakeholder agencies.

  • The unit will focus on international taxation, including exchange of information and cooperation with other jurisdictions.
  • The IRD is committed to ensuring that all taxpayers are aware of their obligations and are able to meet them in a timely and accurate manner.

Non-Governmental Organizations (NGOs)

Non-governmental organizations were also assessed as part of the NRA, with some areas identified for improvement in their AML/CFT practices. The government encourages NGOs to continue working towards improving their compliance with international standards and best practices.

  • The FSRC will provide guidance and support to NGOs to help them improve their AML/CFT programs.
  • The government is committed to ensuring that all sectors of society are aware of the risks associated with money laundering and terrorist financing, and are taking steps to mitigate these risks.

Conclusion

The St. Kitts and Nevis government remains committed to maintaining a robust financial system that is resilient to money laundering and terrorist financing threats. The FSRC will continue to work closely with all stakeholders to ensure compliance with international standards and best practices.

  • The government has announced plans to enhance its regulatory framework for credit unions, which are an important part of the country’s financial infrastructure.
  • The move aims to strengthen the sector’s AML/CFT capabilities and promote financial stability.

The full report can be accessed on the FSRC website.