Financial Crime World

Saint Kitts and Nevis Takes a Tough Stance on Anti-Money Laundering and Countering Terrorism Financing

Saint Kitts and Nevis has implemented stringent anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations to combat financial crimes and ensure the integrity of its financial system. The Financial Services Regulatory Commission (FSRC), responsible for regulating and supervising regulated businesses, is tasked with ensuring compliance with these requirements.

Risk-Based Supervision Framework

The FSR-C’s Risk-Based Supervision Framework, adopted in May 2015 and revised in June 2017, allows for a more targeted approach to examinations of regulated entities. This framework ensures that both off-site and on-site examinations are conducted regularly to assess the effectiveness of AML/CFT controls and identify potential weaknesses.

Examinations

As part of these examinations, FSR-C examiners conduct thorough reviews of:

  • Customer files
  • Citizenship by investment applications
  • Other relevant documentation

to ensure that Know Your Customer (KYC) and Customer Due Diligence (CDD) requirements are being met. This includes:

  • Verifying the identity and beneficial ownership of customers
  • Monitoring for suspicious transactions

Regulated Entity Requirements

Regulated entities must maintain accurate and up-to-date records of their customers’ identities, addresses, and other relevant information, including:

  • Copies of government-issued identification
  • Proof of address
  • Other documentation

In addition, regulated entities are required to:

  • Conduct regular risk assessments
  • Monitor customer activity
  • Report any suspicious transactions

Ongoing Monitoring and Training

The FSR-C also assesses the policies, practices, and procedures in place at regulated entities to ensure compliance with AML/CFT legislation. This includes:

  • Ongoing monitoring programs
  • Training schedules
  • Record-keeping systems
  • Retention periods for records

Frequency of Monitoring

The results of these examinations influence the frequency and intensity of subsequent monitoring. Regulated entities that demonstrate a satisfactory level of compliance may require less frequent monitoring, while those with weaknesses or deficiencies will be subject to more frequent and intensive oversight.

Saint Kitts and Nevis’ Commitment to AML/CFT

The country’s commitment to AML/CFT is evident in its strict regulations and robust supervisory framework. The aim of these efforts is to:

  • Protect the integrity of its financial system
  • Prevent the misuse of its jurisdiction for illicit activities
  • Ensure that its economy remains stable and resilient