Financial Crime World

Saint Lucia Updates Financial Crime Legislation: New Requirements and Enhanced Measures to Combat Money Laundering

In a bid to strengthen its anti-money laundering regime, Saint Lucia has enacted new legislation aimed at curbing financial crimes. The Registration of Supervised Entities Act No. 12 of 2023 requires all persons engaged in other business activities to register with the Financial Intelligence Authority (FIA).

Strengthening Anti-Money Laundering Regime

This development comes as part of efforts to comply with international standards and best practices in combating money laundering and terrorist financing. The FIA will now be responsible for maintaining a register of supervised entities, which will help to enhance transparency and accountability in the financial sector.

Regional Cooperation

Saint Lucia has also joined forces with other Caribbean nations to fight against money laundering through the Caribbean Financial Action Task Force (CFATF), a regional body that aims to prevent and combat money laundering and terrorist financing. The CFATF is modeled after the global Financial Action Task Force (FATF) and brings together 25 Caribbean and South American countries.

Know Your Customer

In addition, Saint Lucia has also emphasized the importance of “knowing your customer” as part of its efforts to prevent money laundering. This involves conducting thorough background checks on customers to ensure that they are not involved in illicit activities. Financial institutions and other businesses will now be required to conduct these checks as a matter of course.

Expected Outcomes

The new legislation and enhanced measures are expected to significantly improve Saint Lucia’s ability to detect, prevent, and prosecute financial crimes, while also protecting the integrity of its financial system.

Key Takeaways

  • The Registration of Supervised Entities Act No. 12 of 2023 requires all persons engaged in other business activities to register with the Financial Intelligence Authority (FIA).
  • The FIA will maintain a register of supervised entities to enhance transparency and accountability in the financial sector.
  • Saint Lucia has joined the Caribbean Financial Action Task Force (CFATF) to combat money laundering and terrorist financing.
  • “Know your customer” is an essential requirement to prevent money laundering, involving thorough background checks on customers.