Financial Crime World

ST KITTS AND NEVIS EYES UP COMPLIANCE WITH AML/CFT LEGISLATION

Strengthening Regulatory Oversight

The Financial Services Regulatory Commission (FSRC) of Nevis has been proactive in ensuring that all regulated businesses in Saint Kitts and Nevis comply with Anti-Money Laundering and Countering the Financing of Terrorism legislation. In a bid to strengthen regulatory oversight, the FSRC-Nevis Branch has adopted a Risk-Based Supervision framework which is applicable to both off-site and on-site examination of regulated entities.

Regular Examinations for Compliance

Regulated entities in Nevis undergo comprehensive and regular on-site examinations to ensure compliance with AML/CFT legislation and other regulatory requirements. Examiners from the FSRC-Nevis Branch scrutinize customer files, citizenship by investment applications, and business operations to verify that Know Your Customer (KYC) and Customer Due Diligence (CDD) documents for beneficial owners are up-to-date.

Examination Scope

The examinations also cover policies, practices, procedures, and internal controls in place for AML/CFT compliance. This includes ongoing monitoring programs, training schedules, suspicious transaction reporting, record-keeping systems, retention periods, and the condition of records.

Compliance Framework

Entities that operate satisfactorily require less frequent monitoring than those with weaknesses or deficiencies. The FSRC aims to maintain a robust regulatory framework that promotes transparency and accountability in the financial sector.

KEY REQUIREMENTS FOR COMPLIANCE

To ensure compliance with AML/CFT legislation, regulated entities must:

  • Identify, Verify, Obtain, Maintain, and Monitor Customers: Ensure accurate identification and verification of customers, including beneficial owners (BOs) of legal persons (companies) and legal arrangements (trusts).
  • Obtain Adequate KYC and CDD Documents: Obtain and maintain up-to-date Know Your Customer (KYC) and Customer Due Diligence (CDD) documents for BOs.
  • Maintain Customer Information Records: Keep accurate records of customer information, including copies of identification documents, letters of reference, and proof of address.
  • Conduct Ongoing Monitoring Programs: Detect suspicious transactions and report them to the relevant authorities as part of ongoing monitoring programs.
  • Retain Records in Accordance with Regulatory Requirements: Maintain retention periods for records as per regulatory requirements.

By enforcing AML/CFT legislation and conducting regular examinations, the FSRC aims to maintain a secure and transparent financial environment in Saint Kitts and Nevis.