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Financial Intelligence Unit Crucial in St. Kitts and Nevis’ Fight Against Money Laundering and Terrorism
Basseterre, St. Kitts - As part of its efforts to combat money laundering and terrorism, the government of St. Kitts and Nevis has established a robust financial intelligence unit (FIU) to detect and prevent these illicit activities.
Role of the Financial Intelligence Unit
The FIU is responsible for:
- Receiving, collecting, analyzing, and acting upon reports of suspicious transactions from regulated businesses in the country
- Performing investigations
- Establishing a database for detecting money laundering
- Disseminating information on suspicious transactions to competent authorities and other anti-money laundering intelligence agencies
Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Framework
Under the Proceeds of Crime Act, Cap 4.28, all serious offenses are covered, including money laundering. The Financial Services Regulatory Commission (FSRC) has implemented a risk-based supervision framework for regulated businesses, which includes:
- Comprehensive on-site examinations to ensure compliance with AML/CFT requirements
- Reviewing customer files and citizenship by investment applications to verify that adequate Know-Your-Customer (KYC) and Customer Due Diligence documents are obtained and kept up-to-date
Key Requirements
Regulated businesses must provide:
- Proof of identity, address, and financial information
- Customer risk assessments and source of funds declarations
FIU Guidance and Training
The FIU provides guidance and training to regulated businesses on AML/CFT compliance and works closely with other international organizations and agencies to share intelligence and best practices in combating money laundering and terrorism.
Reporting Requirements
All regulated businesses are required to report suspicious transactions to the FIU, and failure to do so is an offense under the Proceeds of Crime Act. The FIU plays a crucial role in the country’s efforts to combat money laundering and terrorism.