Financial Crime World

Terrorist Financing Threats and Vulnerabilities Exposed in St. Kitts and Nevis

A recent report by the National Risk Assessment (NRA) has shed light on the significant threats and vulnerabilities facing St. Kitts and Nevis in terms of terrorist financing.

Threats and Vulnerabilities

According to the report, the Federation is vulnerable to a range of terrorist financing threats, including:

  • Money laundering
  • Terrorism financing
  • Other illicit activities

The report identified several sectors as being particularly vulnerable, including:

  • Commercial banking
  • International banking
  • Development banks
  • Domestic insurance
  • Securities

Predicate Offenses

The NRA assessment also revealed that the majority of predicate offenses in St. Kitts and Nevis are related to:

  • Larceny (41%)
  • Drug trafficking with intent to supply drugs (32%)
  • Robbery
  • Burglary

Additionally, the report found that a significant portion of these crimes involve firearms, with the majority involving locally grown marijuana.

Recommendations

To combat money laundering and terrorist financing, the report recommends:

  • Strengthening AML/CFT controls in certain sectors
  • Improving data collection and record-keeping practices
  • Enhancing law enforcement efforts through additional resources and training
  • Increasing awareness and capacity building among compliance officers and AML/CFT departments
  • Enhancing cooperation between the FIU, WCCU, and other stakeholders

Key Findings

  • The top 5 predicate offenses in St. Kitts and Nevis between 2014-2017 were larceny, house breaking, drug trafficking with intent to supply drugs, robbery, and burglary.
  • Larceny accounted for the largest proportion of predicate offenses (41%), followed by drug-related offenses (32%).
  • The majority of gun-related offenses involved locally grown marijuana.
  • There have been no convictions to date for money laundering or terrorist financing.

Conclusion

The NRA report highlights the significant threats and vulnerabilities facing St. Kitts and Nevis in terms of terrorist financing. It is essential that these recommendations are implemented to ensure the safety and security of the Federation.