St. Kitts and Nevis Seeks to Improve Compliance with National Risk Assessment

Government Launches National Risk Assessment to Strengthen Financial Regulatory Framework

The government of St. Kitts and Nevis has launched a national risk assessment aimed at strengthening the country’s financial regulatory framework and improving compliance with international standards. The assessment, conducted by the Financial Services Regulatory Commission (FSRC), revealed several areas where improvements are needed to address money laundering and terrorist financing risks.

Key Findings and Recommendations

• The country’s financial sector is vulnerable to money laundering and terrorist financing risks due to inadequate suspicious transaction reporting mechanisms and insufficient collaboration between regulatory agencies.
• Credit unions need to improve their risk management practices, including stricter customer due diligence procedures and regular reviews of their transaction monitoring systems.
• Non-governmental organizations (NGOs) need to implement stricter reporting procedures and conduct regular reviews of their financial transactions.

Measures to Improve Compliance

To address these concerns, the government has implemented a range of measures aimed at improving compliance with anti-money laundering and counter-terrorist financing regulations. These measures include:

• Establishment of an International Taxation Unit within the Inland Revenue Department
• Targeted training for tax officials to improve their compliance function
• Development of formal internal procedures for suspicious transaction reporting
• Recommendation that credit unions implement stricter customer due diligence procedures and conduct regular reviews of their transaction monitoring systems

Establishment of New Financial Intelligence Unit and Agency

The government has also announced plans to establish a new financial intelligence unit, which will be responsible for analyzing suspicious transactions and providing intelligence to regulatory agencies. Additionally, the establishment of a new anti-money laundering and counter-terrorist financing agency is seen as a major step forward in the country’s efforts to combat money laundering and terrorist financing.

Collaboration with Financial Action Task Force (FATF)

The national risk assessment was conducted in collaboration with the Financial Action Task Force (FATF), an inter-governmental organization that sets global standards for anti-money laundering and counter-terrorist financing.

Commitment to Improving Financial Regulatory Framework

In a statement, the Minister of Finance said, “We are committed to improving our financial regulatory framework and ensuring that we meet international standards. The national risk assessment has identified areas where we need to improve, and we are taking concrete steps to address these concerns.”

Overall, the national risk assessment is seen as a major step forward in the country’s efforts to improve its financial regulatory framework and combat money laundering and terrorist financing.