Antigua and Barbuda Strengthens Financial Compliance Laws Against Money Laundering and Terrorism Financing
In an effort to safeguard its financial system from illicit transactions, Antigua and Barbuda has established a Financial Compliance Unit (FCU) to enforce Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regulations.
The Role of the Financial Compliance Unit
The FCU’s primary responsibility is to conduct on-site and off-site examinations of financial institutions to assess their AML/CFT programs. The unit provides corrective feedback and assistance to institutions that fail to meet regulatory requirements, ensuring they are in compliance with relevant laws and regulations.
Key Responsibilities of the FCU
- Conducting on-site and off-site examinations to evaluate institutions’ AML/CFT programs
- Providing remedial feedback and assistance to institutions that fail to meet regulatory requirements
- Monitoring institutions to ensure timely submission of mandatory reports
- Assisting with AML/CFT training workshops
Regulatory Requirements for Financial Institutions
Under Regulation 15 of the Money Laundering (Prevention) Regulations, all financial institutions listed in Schedule 1 of the Money Laundering (Prevention) Act are required to conduct an annual assessment of their AML/CFT policies and procedures. These institutions must also submit Terrorist Property reports on a quarterly basis.
Institutions categorized in Schedule 2 of the Money Laundering (Prevention) Regulations, including:
- Banking and financial businesses
- International offshore banks
- Insurance companies
- Internet gambling companies
- Sports betting companies
- Casinos
- Money service businesses
are required to submit an additional annual Audit Review Report. This report serves as a gauge of the institution’s effectiveness in implementing AML/CFT requirements.
The Importance of Effective AML/CFT Regulations
The establishment of the FCU is a significant step in protecting Antigua and Barbuda’s financial system against illicit transactions, demonstrating the government’s commitment to implementing effective AML/CFT regulations. By strengthening its financial compliance laws, the country can ensure a safer and more secure environment for its citizens and international partners alike.