Financial Crime World

Compliance Reporting Requirements in St. Kitts and Nevis Tightened

The Financial Services Regulatory Commission (FSRC) has taken significant steps to ensure strict compliance with Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) legislation in St. Kitts and Nevis.

Risk-Based Supervision Framework

The FSRCS’ Risk-Based Supervision Framework, adopted in May 2015 and revised in June 2017, applies equally to off-site and on-site examinations of regulated entities. This framework ensures comprehensive and regular on-site examinations are conducted to verify compliance with relevant laws and regulations.

Examination Process

During these examinations, FSRC examiners assess the policies and procedures of regulated entities to ensure they are adequately:

  • Identifying and verifying customers and beneficial owners
  • Reviewing customer files and citizenship-by-investment applications to verify Know Your Customer (KYC) and Customer Due Diligence (CDD) documents for beneficial owners of legal persons and legal arrangements

Examiners also review documentation, including:

  • Government-issued identification
  • Reference letters from recognized institutions or professional bodies
  • Proof of address
  • Records of customer risk assessments, source of funds, and wealth declarations

Internal Controls and Ongoing Monitoring

Examiners assess the internal controls and ongoing monitoring programs of regulated entities to ensure compliance with AML/CFT requirements. This includes:

  • Ensuring adequate policies and procedures are in place
  • Verifying the effectiveness of internal controls and ongoing monitoring
  • Identifying and addressing weaknesses or deficiencies

Results of Examinations

The results of these examinations influence the intensity and frequency of subsequent monitoring. Regulated entities operating satisfactorily may require less frequent monitoring than those with weaknesses or deficiencies.

Conclusion

The FSRCS’ rigorous oversight ensures that St. Kitts and Nevis remains a reputable financial hub, committed to combating money laundering and terrorist financing. The strict compliance reporting requirements in place help to maintain the integrity of the financial system and protect the interests of citizens and businesses alike.