Financial Crime World

Saint Kitts and Nevis Tightens Regulations on Financial Institutions

Stricter Rules for Money Services Businesses

The Financial Services Regulatory Commission (FSRC) has introduced new regulations aimed at ensuring compliance with anti-money laundering laws and maintaining the integrity of the financial sector in Saint Christopher and Nevis.

Key Changes to Licence Requirements

  • A licence to operate a money services business is valid for one year from the date of issue and must be renewed annually by paying a prescribed fee.
  • The FSRC has the power to revoke a licence if the holder fails to comply with the conditions or restrictions of their licence, breaches anti-money laundering laws, or conducts business in a way that is detrimental to the public interest.

Enhanced Auditing Requirements

  • Money services businesses must appoint an auditor who must be a Chartered Accountant, Certified Public Accountant, or member of the Institute of Chartered Accountants of the Eastern Caribbean.
  • The auditor’s duties include preparing reports on the annual financial statements and financial position of the business.

Quarterly and Annual Returns

  • Money services businesses are required to file quarterly returns with the FSRC within 15 days of the end of each quarter, along with a written declaration that the information set out in their application remains correct.
  • Annual returns must be filed by Class C, D, and E licence holders within 15 days of the end of the financial year.

Procedures for Revoking or Terminating a Licence

  • The FSRC has introduced procedures for revoking or terminating a licence, which includes publishing a notice of revocation in the Gazette and a local newspaper circulating in Saint Christopher and Nevis.
  • A licence may be revoked if the holder fails to commence operations within three months following the granting of the licence, breaches anti-money laundering laws, or conducts business in a way that is detrimental to the public interest.

Strengthening Regulatory Framework

The new regulations are aimed at strengthening the regulatory framework for money services businesses in Saint Christopher and Nevis, promoting transparency and accountability, and protecting the integrity of the financial sector.