Financial Crime World

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Saint Kitts and Nevis Tightens Banking Regulations to Combat Money Laundering and Terrorism Financing

The Financial Services Regulatory Commission (FSRC) has intensified its efforts to ensure compliance with anti-money laundering and countering the financing of terrorism (AML/CFT) regulations in Saint Kitts and Nevis. This is achieved through a Risk-Based Supervision Framework, which was adopted in May 2015 and revised in June 2017.

The Framework’s Key Components

  • Regular on-site examinations of regulated entities to verify their adherence to AML/CFT laws
  • Assessment of an entity’s compliance with AML/CFT regulations by reviewing customer files and citizenship by investment applications
  • Verification of policies and procedures to identify and manage risks

Requirements for Regulated Entities

To ensure transparency, the AML/CFT legislation requires regulated entities to maintain accurate records of customers’ and beneficial owners’ (BOs) information, including:

  • Passports
  • Identification cards
  • Proof of address
  • Other relevant documents

The FSR also reviews entities’ risk assessments, source of funds declarations, accounting records, and internal controls.

Examination Process

The examinations are designed to ensure that regulated entities are operating in a sound financial position and managing their businesses prudently. The results of the examinations influence the frequency and intensity of monitoring:

  • Entities demonstrating satisfactory compliance require less frequent monitoring than those with weaknesses or deficiencies

Promoting Transparency and Accountability

In addition to verifying compliance with AML/CFT regulations, the FSR is working to promote transparency and accountability within the financial sector. By increasing oversight and enforcement, the agency aims to protect Saint Kitts and Nevis’ financial system from money laundering and terrorism financing risks.

By taking these measures, the FSR ensures that the financial sector in Saint Kitts and Nevis operates in a safe and secure environment, protecting the country’s reputation and assets.