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St Kitts and Nevis Intensifies Efforts Against Money Laundering and Terrorist Financing

The government of St Kitts and Nevis has taken significant steps to combat money laundering and terrorist financing through a series of legislative and regulatory measures. The country’s efforts aim to strengthen its financial sector and ensure compliance with international standards.

Legislative Framework

St Kitts and Nevis has enacted several laws to combat money laundering and terrorist financing, including:

  • Proceeds of Crime Act (Cap 4.28): Covers all serious offenses and specifically criminalizes money laundering.
  • Anti-Terrorism Act (Cap.4.02): Aimed at suppressing and eliminating international terrorism.

Regulatory Measures

The country’s financial sector is subject to strict anti-money laundering and countering the financing of terrorism (AML/CFT) regulations, which apply to all regulated businesses. The Financial Services Regulatory Commission (FSRC) is responsible for regulating and supervising these entities’ compliance with AML/CFT requirements.

Compliance Requirements

Regulated entities are required to:

  • Identify, verify, obtain, maintain, and monitor their customers and beneficial owners of legal persons and legal arrangements.
  • Make this information available to the competent authorities and those conducting AML/CFT due diligence.
  • Obtain and keep up-to-date Know Your Customer (KYC) and Customer Due Diligence (CDD) documents.

Supervision Framework

The FSRB has adopted a risk-based supervision framework, applicable to both off-site and on-site examinations. This framework aims to:

  • Identify and mitigate risks associated with money laundering and terrorist financing.
  • Ensure that regulated entities have adequate policies, practices, procedures, and internal controls in place.

Financial Intelligence Unit (FIU)

The FIU plays a crucial role in:

  • Receiving, analyzing, and acting upon reports of suspicious transactions from regulated businesses.
  • Performing investigations and establishing a database for detecting money laundering.
  • Disseminating information on suspicious transactions to competent authorities and other anti-money laundering agencies.

Consequences of Non-Compliance

Failure to report suspicion of money laundering is an offence under the Proceeds of Crime Act (Cap 4.28), highlighting the importance of compliance with AML/CFT regulations in St Kitts and Nevis.