|
| ANTIGUA AND BARBUDA |
FATF Statement re AML Strategic Deficiencies:
Date: 22 February 2013
In February 2010, Antigua and Barbuda made a high-level
political commitment to work with the FATF and CFATF to address
its strategic AML/CFT deficiencies. However, the FATF has
determined that certain strategic AML/CFT deficiencies remain.
Antigua and Barbuda should continue to work on implementing its
action plan to address these deficiencies, including by continuing
to improve the overall supervisory framework. The FATF
encourages Antigua and Barbuda to address its remaining
deficiencies and continue the process of implementing its action
plan.
____________________________________________________
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2013:
Antigua and Barbuda is a significant offshore center that, despite
recent improvements, remains susceptible to money laundering
due to its offshore financial sector and Internet gaming industry.
Illicit proceeds from the transhipment of narcotics and from
financial crimes occurring in the United States are laundered in
Antigua and Barbuda. During the past year, the Government of
Antigua and Barbuda’s Office of National Drug Control and Money
Laundering Policy (ONDCP) compiled evidence that money
laundering related to drug trafficking takes place through local
financial institutions. The ONDCP’s analysis shows both that
criminals abuse the system and financial institutions, in some
instances, fail to apply sufficiently rigorous due diligence in
relation to transactions that should be seen as questionable. The
funds involved include Eastern Caribbean dollars traced to the
sale of local property by at least one person U.S authorities
identified as trafficking drugs through Antigua and Barbuda to U.
S. territory. Funds also include significant quantities of U.S.
currency found in bank safety deposit boxes.
Domestic casinos are required to incorporate as domestic
corporations. Internet gaming companies are required to
incorporate as international business corporations (IBCs), and as
such are required to have a physical presence. Internet gaming
sites are considered to have a physical presence when the
primary servers and the key person are resident in Antigua and
Barbuda. The Government of Antigua and Barbuda (GOAB)
receives approximately $2,800,000 per year from license fees and
other charges related to the Internet gaming industry. A nominal
free trade zone in the country seeks to attract investment in areas
the GOAB deems priority. Casinos and sports book-wagering
operations in Antigua and Barbuda’s free trade zone are
supervised by the ONDCP and the Directorate of Offshore
Gaming.
Bearer shares are permitted for international companies.
However, the license application requires disclosure of the names
and addresses of directors (who must be natural persons), the
activities the corporation intends to conduct, the names of
shareholders and number of shares they will hold. Registered
agents or service providers are required by law to know the
names of beneficial owners. Failure to provide information or
giving false information is punishable by a fine of $50,000.
Offshore financial institutions are exempt from corporate income
tax. All licensed institutions are required to have a physical
presence, which means presence of at least a full-time senior
officer and availability of all files and records. Shell companies are
not permitted.
Currently, the Eastern Caribbean Central Bank (ECCB) supervises
Antigua and Barbuda’s domestic banking sector, along with the
domestic sectors of seven other Caribbean jurisdictions.
For additional information focusing on terrorist financing, please
refer to the Department of State’s Country Reports on Terrorism,
which can be found here: http://www.state.gov/j/ct/rls/crt/
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: YES
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Are legal persons covered: criminally: YES civilly: YES
KNOW-YOUR-CUSTOMER (KYC) RULES:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
KYC covered entities: Banks, agricultural credit institutions, money
exchangers, accountants, notaries, gaming centers, auto dealers
and securities dealers
REPORTING REQUIREMENTS:
Number of STRs received and time frame: 102: January 1 –
November 7, 2012
Number of CTRs received and time frame: 591: January 1 –
November 7, 2012
STR covered entities: Banks, agricultural credit institutions,
money exchangers, notaries, gaming centers, and securities
dealers
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 3 in 2012
Convictions: 3 in 2012
RECORDS EXCHANGE MECHANISM:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Antigua and Barbuda is a member of Caribbean Financial Action
Task Force (CFATF), a Financial Action Task Force (FATF)-style
regional body. Its most recent mutual evaluation can be found
here: https://www.cfatf-gafic.org/index.php?
option=com_docman&task=cat_view&gid=355&Itemid=418&lang=e
n
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS
The Money Laundering Prevention Act of 1996 (MLPA), as
amended, covers banks, offshore banks, IBCs, money
transmitters, credit unions, building societies, trust businesses,
casinos, Internet gaming companies, and sports betting
companies. Intermediaries such as lawyers and accountants are
not included in the MLPA.
The Banking (Amendment) Act 2012 requires the ECCB to
approve the appointment of bank directors, senior management
and significant shareholders. The Financial Services Regulatory
Commission is responsible for the regulation and supervision of all
institutions licensed under the International Business Corporations
Act of 1982, including offshore banks and all aspects of offshore
gaming. This includes issuing licenses for IBCs, maintaining the
register of all corporations, and conducting examinations and
reviews of offshore financial institutions as well as some domestic
financial entities, such as insurance companies and trusts.
The GOAB adopted regulations for the licensing of interactive
gaming and wagering entities to address possible money
laundering through client accounts of Internet gaming operations.
Internet gaming companies are required by the Interactive
Gaming and Interactive Wagering Regulations to report to the
ONDCP all payouts over $25,000. The Interactive Gaming and
Interactive Wagering (Amendment) Regulations 2012 removes the
provision that previously allowed the duplicate reporting of STRs
to authorities other than the ONDCP. Internet gaming companies
are required to submit quarterly and annual audited financial
statements, enforce KYC verification procedures, and maintain
records relating to all gaming and financial transactions of each
customer for six years.
The GOAB should continue to work on strengthening all
provisions of its AML/CFT legislation and enforcement.
____________________________________________________
US State Dept Narcotics Report 2013 (introduction):
The seven independent countries of Antigua and Barbuda,
Barbados, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and
St. Vincent and the Grenadines are collectively referred to as the
Eastern Caribbean (EC) in this report.
The region hosts abundant transshipment points for illicit
narcotics primarily from Colombia and Venezuela destined for
North American, European and domestic Caribbean markets.
Traffickers are increasingly using yachts for drug transit, though
“go-fast” boats, fishing trawlers, and freighters continue to serve
as transit vessels. Drug-related crime rates remain elevated as
more drugs remain in the region for local consumption and
organized gangs have formed to control drug distribution.
Marijuana remains a staple crop, primarily for local use.
Three years of declining macroeconomic growth has left EC law
enforcement capacity further under-resourced than during
previous reporting periods, a condition exacerbated by antiquated
criminal codes and public perception of corruption in the ranks.
The EC struggles with communication and cooperation between
states. The lack of regional or national law enforcement strategic
plans, including comprehensive vetting programs, creates a
vulnerability to narcotics-related corruption.
Institutional Development
All EC countries are a party to the Inter-American Convention
Against the Illicit Manufacturing of and Trafficking in Firearms,
Ammunition, Explosives and Other Related Materials. In addition,
all have an extradition treaty and a mutual legal assistance treaty
in force with the United States. Several countries have also
become signatories to a number of Inter-American Conventions
such as the Convention Against Corruption, the Convention on
Extradition, the Convention on Mutual Assistance in Criminal
Matters, the Convention Against Corruption, and the Convention
Against Terrorism. Barbados recently entered into an asset-
sharing agreement with Canada.
All EC countries except St. Vincent and the Grenadines have laws
requiring record keeping and reporting on the use of precursor
chemicals, and importation of pseudoephedrine, ephedrine and
pharmaceutical products containing those two chemicals.
The Eastern Caribbean continues to struggle with a lack of
adequate infrastructure for counternarcotics maritime patrols.
Each EC police force has a mandate to interdict drugs and share
information and intelligence with regional and international
counterparts. However, law enforcement authorities lack the
capacity and resources to undertake systematic counternarcotics
operations. The recent United States Government donation under
the Caribbean Basin Security Initiative (CBSI) of two interceptor
vessels to each of the six EC partner nations has boosted
regional operational capacity.
In Antigua and Barbuda, the legislature amended the Misuse of
Drugs Act to require that persons charged with possessing more
than two kilograms (kg) of drugs be subject to a judge and jury
trial, removing the requirement for trial by magistrate, who do not
have the authority to impose the strongest sentences. On July 17,
the government secured its first money laundering conviction, with
a second following on September 24.
Full Report
____________________________________________________
US State Dept Trafficking in Persons Report 2012
(introduction):
(Tier 2)
Antigua and Barbuda is a destination and transit country for men,
women, and children subjected to sex trafficking and forced labor.
Legal and undocumented immigrants from the Caribbean region
and Southeast Asia reportedly comprise the population most
vulnerable to trafficking. According to some sources, forced
prostitution occurs in bars and brothels. Incidences of forced
labor have occurred in domestic service, on farm lands, and in the
retail sector.
The Government of Antigua and Barbuda does not fully comply
with the minimum standards for the elimination of trafficking;
however, it is making significant efforts to do so. Despite limited
human and financial resources, the government made substantial
progress during the reporting period in its efforts to proactively
identify human trafficking, protect victims, and raise awareness
about the issue. The government initiated new trafficking
investigations and began two prosecutions, but it did not report
any convictions or punishments of trafficking offenders over the
past year.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
No report available
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
Date: 22 February 2013
In February 2010, Antigua and Barbuda made a high-level
political commitment to work with the FATF and CFATF to address
its strategic AML/CFT deficiencies. However, the FATF has
determined that certain strategic AML/CFT deficiencies remain.
Antigua and Barbuda should continue to work on implementing its
action plan to address these deficiencies, including by continuing
to improve the overall supervisory framework. The FATF
encourages Antigua and Barbuda to address its remaining
deficiencies and continue the process of implementing its action
plan.
____________________________________________________
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2013:
Antigua and Barbuda is a significant offshore center that, despite
recent improvements, remains susceptible to money laundering
due to its offshore financial sector and Internet gaming industry.
Illicit proceeds from the transhipment of narcotics and from
financial crimes occurring in the United States are laundered in
Antigua and Barbuda. During the past year, the Government of
Antigua and Barbuda’s Office of National Drug Control and Money
Laundering Policy (ONDCP) compiled evidence that money
laundering related to drug trafficking takes place through local
financial institutions. The ONDCP’s analysis shows both that
criminals abuse the system and financial institutions, in some
instances, fail to apply sufficiently rigorous due diligence in
relation to transactions that should be seen as questionable. The
funds involved include Eastern Caribbean dollars traced to the
sale of local property by at least one person U.S authorities
identified as trafficking drugs through Antigua and Barbuda to U.
S. territory. Funds also include significant quantities of U.S.
currency found in bank safety deposit boxes.
Domestic casinos are required to incorporate as domestic
corporations. Internet gaming companies are required to
incorporate as international business corporations (IBCs), and as
such are required to have a physical presence. Internet gaming
sites are considered to have a physical presence when the
primary servers and the key person are resident in Antigua and
Barbuda. The Government of Antigua and Barbuda (GOAB)
receives approximately $2,800,000 per year from license fees and
other charges related to the Internet gaming industry. A nominal
free trade zone in the country seeks to attract investment in areas
the GOAB deems priority. Casinos and sports book-wagering
operations in Antigua and Barbuda’s free trade zone are
supervised by the ONDCP and the Directorate of Offshore
Gaming.
Bearer shares are permitted for international companies.
However, the license application requires disclosure of the names
and addresses of directors (who must be natural persons), the
activities the corporation intends to conduct, the names of
shareholders and number of shares they will hold. Registered
agents or service providers are required by law to know the
names of beneficial owners. Failure to provide information or
giving false information is punishable by a fine of $50,000.
Offshore financial institutions are exempt from corporate income
tax. All licensed institutions are required to have a physical
presence, which means presence of at least a full-time senior
officer and availability of all files and records. Shell companies are
not permitted.
Currently, the Eastern Caribbean Central Bank (ECCB) supervises
Antigua and Barbuda’s domestic banking sector, along with the
domestic sectors of seven other Caribbean jurisdictions.
For additional information focusing on terrorist financing, please
refer to the Department of State’s Country Reports on Terrorism,
which can be found here: http://www.state.gov/j/ct/rls/crt/
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: YES
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Are legal persons covered: criminally: YES civilly: YES
KNOW-YOUR-CUSTOMER (KYC) RULES:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
KYC covered entities: Banks, agricultural credit institutions, money
exchangers, accountants, notaries, gaming centers, auto dealers
and securities dealers
REPORTING REQUIREMENTS:
Number of STRs received and time frame: 102: January 1 –
November 7, 2012
Number of CTRs received and time frame: 591: January 1 –
November 7, 2012
STR covered entities: Banks, agricultural credit institutions,
money exchangers, notaries, gaming centers, and securities
dealers
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 3 in 2012
Convictions: 3 in 2012
RECORDS EXCHANGE MECHANISM:
With U.S.: MLAT: YES Other mechanism: YES
With other governments/jurisdictions: YES
Antigua and Barbuda is a member of Caribbean Financial Action
Task Force (CFATF), a Financial Action Task Force (FATF)-style
regional body. Its most recent mutual evaluation can be found
here: https://www.cfatf-gafic.org/index.php?
option=com_docman&task=cat_view&gid=355&Itemid=418&lang=e
n
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS
The Money Laundering Prevention Act of 1996 (MLPA), as
amended, covers banks, offshore banks, IBCs, money
transmitters, credit unions, building societies, trust businesses,
casinos, Internet gaming companies, and sports betting
companies. Intermediaries such as lawyers and accountants are
not included in the MLPA.
The Banking (Amendment) Act 2012 requires the ECCB to
approve the appointment of bank directors, senior management
and significant shareholders. The Financial Services Regulatory
Commission is responsible for the regulation and supervision of all
institutions licensed under the International Business Corporations
Act of 1982, including offshore banks and all aspects of offshore
gaming. This includes issuing licenses for IBCs, maintaining the
register of all corporations, and conducting examinations and
reviews of offshore financial institutions as well as some domestic
financial entities, such as insurance companies and trusts.
The GOAB adopted regulations for the licensing of interactive
gaming and wagering entities to address possible money
laundering through client accounts of Internet gaming operations.
Internet gaming companies are required by the Interactive
Gaming and Interactive Wagering Regulations to report to the
ONDCP all payouts over $25,000. The Interactive Gaming and
Interactive Wagering (Amendment) Regulations 2012 removes the
provision that previously allowed the duplicate reporting of STRs
to authorities other than the ONDCP. Internet gaming companies
are required to submit quarterly and annual audited financial
statements, enforce KYC verification procedures, and maintain
records relating to all gaming and financial transactions of each
customer for six years.
The GOAB should continue to work on strengthening all
provisions of its AML/CFT legislation and enforcement.
____________________________________________________
US State Dept Narcotics Report 2013 (introduction):
The seven independent countries of Antigua and Barbuda,
Barbados, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and
St. Vincent and the Grenadines are collectively referred to as the
Eastern Caribbean (EC) in this report.
The region hosts abundant transshipment points for illicit
narcotics primarily from Colombia and Venezuela destined for
North American, European and domestic Caribbean markets.
Traffickers are increasingly using yachts for drug transit, though
“go-fast” boats, fishing trawlers, and freighters continue to serve
as transit vessels. Drug-related crime rates remain elevated as
more drugs remain in the region for local consumption and
organized gangs have formed to control drug distribution.
Marijuana remains a staple crop, primarily for local use.
Three years of declining macroeconomic growth has left EC law
enforcement capacity further under-resourced than during
previous reporting periods, a condition exacerbated by antiquated
criminal codes and public perception of corruption in the ranks.
The EC struggles with communication and cooperation between
states. The lack of regional or national law enforcement strategic
plans, including comprehensive vetting programs, creates a
vulnerability to narcotics-related corruption.
Institutional Development
All EC countries are a party to the Inter-American Convention
Against the Illicit Manufacturing of and Trafficking in Firearms,
Ammunition, Explosives and Other Related Materials. In addition,
all have an extradition treaty and a mutual legal assistance treaty
in force with the United States. Several countries have also
become signatories to a number of Inter-American Conventions
such as the Convention Against Corruption, the Convention on
Extradition, the Convention on Mutual Assistance in Criminal
Matters, the Convention Against Corruption, and the Convention
Against Terrorism. Barbados recently entered into an asset-
sharing agreement with Canada.
All EC countries except St. Vincent and the Grenadines have laws
requiring record keeping and reporting on the use of precursor
chemicals, and importation of pseudoephedrine, ephedrine and
pharmaceutical products containing those two chemicals.
The Eastern Caribbean continues to struggle with a lack of
adequate infrastructure for counternarcotics maritime patrols.
Each EC police force has a mandate to interdict drugs and share
information and intelligence with regional and international
counterparts. However, law enforcement authorities lack the
capacity and resources to undertake systematic counternarcotics
operations. The recent United States Government donation under
the Caribbean Basin Security Initiative (CBSI) of two interceptor
vessels to each of the six EC partner nations has boosted
regional operational capacity.
In Antigua and Barbuda, the legislature amended the Misuse of
Drugs Act to require that persons charged with possessing more
than two kilograms (kg) of drugs be subject to a judge and jury
trial, removing the requirement for trial by magistrate, who do not
have the authority to impose the strongest sentences. On July 17,
the government secured its first money laundering conviction, with
a second following on September 24.
Full Report
____________________________________________________
US State Dept Trafficking in Persons Report 2012
(introduction):
(Tier 2)
Antigua and Barbuda is a destination and transit country for men,
women, and children subjected to sex trafficking and forced labor.
Legal and undocumented immigrants from the Caribbean region
and Southeast Asia reportedly comprise the population most
vulnerable to trafficking. According to some sources, forced
prostitution occurs in bars and brothels. Incidences of forced
labor have occurred in domestic service, on farm lands, and in the
retail sector.
The Government of Antigua and Barbuda does not fully comply
with the minimum standards for the elimination of trafficking;
however, it is making significant efforts to do so. Despite limited
human and financial resources, the government made substantial
progress during the reporting period in its efforts to proactively
identify human trafficking, protect victims, and raise awareness
about the issue. The government initiated new trafficking
investigations and began two prosecutions, but it did not report
any convictions or punishments of trafficking offenders over the
past year.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
No report available
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
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*Please note that FATF deems that a country has significant aml deficiencies if
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
any of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated
either Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
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| Last Updated: 25 March 2013 |