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| ANTIGUA AND BARBUDA |
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FATF Statement re AML Strategic Deficiencies:
Date: 16 February 2012
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. Since October 2011, Antigua
and Barbuda has taken steps towards improving its AML/CFT
regime, including by finalising the methodology for its supervisory
programme and making progress in the registration and
regulation of Co-operative Societies. 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 (Recommendation
23). 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 - 2012:
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 transshipment of narcotics and from
financial crimes occurring in the U.S. also are laundered in
Antigua and Barbuda.
Antigua and Barbuda uses the Eastern Caribbean (EC) dollar and
its monetary authority is the Eastern Caribbean Central Bank
(ECCB). Seven other island economies are also members of the
ECCB: Anguilla, Dominica, Grenada, Montserrat, St Kitts and
Nevis, St. Lucia, and St Vincent and the Grenadines. The
existence of this common currency may raise the risk of money
laundering, but there is little evidence that the EC dollar is a
primary vehicle for money laundering.
As of 2011, Antigua and Barbuda has 15 international banks, two
international trusts, 27 offshore insurance companies, 3,497
international business corporations (IBCs), ten interactive gaming
companies, six interactive wagering companies, six money
services businesses, and 22 corporate management and trust
services providers. In addition, there are five casinos. Bearer
shares are permitted for international companies but the names
and addresses of directors (who must be natural persons), the
activities the corporation intends to conduct, the names of
shareholders, and the numbers of shares they will hold are
required to be disclosed. Registered agents or service providers
are required by law to know the names of beneficial owners. 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. Internet gaming companies are required to incorporate
as IBCs and to have a physical presence, meaning the primary
servers and the key person are resident in Antigua and Barbuda.
A nominal free trade zone (FTZ) in the country seeks to attract
investment in areas deemed as priority by the government.
Casinos and sports book-wagering operations in Antigua and
Barbuda’s FTZ are supervised by Antigua and Barbuda’s Office of
National Drug and Money Laundering Control Policy (ONDCP),
and the Directorate of Offshore Gaming.
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
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
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 93 in 2011
Number of CTRs received and time frame: 48 in 2011
STR covered entities: Banks, agricultural credit institutions,
money exchangers, notaries, gaming centers, and securities
dealers
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: Two in 2011
Convictions: None in 2011
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:
http://www.cfatf-gafic.
org/downloadables/mer/Antigua_and_Barbuda_3rd_Round_MER_
Final(Eng).pdf
Enforcement and implementation issues and comments
The Government of Antigua and Barbuda (GOAB) has taken
steps to combat money laundering and terrorist financing by
passing relevant legislation that applies to both domestic and
offshore financial institutions, and establishing a regulatory
regime. The GOAB also should implement and enforce all
provisions of its AML/CFT legislation, including the comprehensive
supervision of its offshore sector and gaming industry. Continued
efforts should be made to enhance the capacity of law
enforcement and customs authorities to recognize money
laundering typologies that fall outside the formal financial sector.
Continued international cooperation, particularly with regard to the
timely sharing of statistics and information related to offshore
institutions, and enforcement of foreign civil asset forfeiture
orders will likewise enhance Antigua and Barbuda’s ability to
combat money laundering.
Internet gaming companies are required to report all payouts over
$25,000 to the ONDCP. They also are required to submit
quarterly and annual audited financial statements and maintain
records relating to all gaming and financial transactions of each
customer for six years.
In 2011, the Supervisory Authority more vigorously exercised its
supervisory powers in relation to money remitters, having imposed
administrative sanctions for inadequate implementation of
AML/CFT due diligence measures, source of funds accountability
and failure to provide statutorily required reports. The
Supervisory Authority also initiated comprehensive onsite
examinations of financial institutions and designated non-financial
businesses and professions, including entities engaged in real
property business and car dealerships.
The GOAB says it has a “poor understanding” of certain foreign
cash transactions taking place within the jurisdiction that have
raised their concerns. The possibility exists that they could be an
indication of proceeds from human trafficking. Separately, the
police have instituted criminal charges for prostitution-related
human trafficking and have traced alleged proceeds to accounts
held in the domestic banking sector, and also suspect repatriation
of proceeds through money remitters.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
The Eastern Caribbean (EC), encompassing the seven
independent countries of Antigua and Barbuda, Barbados,
Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent
and the Grenadines, is situated directly in the corridor for illicit
narcotics transshipment primarily from Venezuela to North
America, Europe, and domestic Caribbean markets. A 2011 UN
report found violent crime, much of which is linked to the drug
trade, reaching epidemic proportions in the region. Marijuana is a
staple crop in the region and cultivated primarily for local use.
Police in the region do not have the equipment or training they
need to be effective. Outmoded criminal codes hinder a strong
response to organized crime groups. The Regional Security
System (RSS), a treaty-based international body to which all
seven nations belong, has begun a regional polygraph vetting
program, but corruption remains a stubborn problem in some
countries, undermining trust within and between EC law
enforcement organizations. Collectively, the EC nations
communicate and coordinate poorly in attacking transnational
crime. The EC islands and the RSS participate in the U.S. led
Caribbean Basin Security Initiative (CBSI). CBSI-funded law
enforcement training began in the first half of 2011. CBSI funded
equipment deliveries will begin in the first half of 2012. All EC
countries are signatories to the 1988 UN Convention against Illicit
Traffic in Narcotic Drugs and Psychotropic Substances.
The Government of Antigua and Barbuda has three drug
enforcement agencies, the Royal Antigua and Barbuda Police
Force (RABPF), the Coast Guard, and the Office of National Drug
and Money Laundering Control Policy (ONDCP). ONDCP works
with the police and the Coast Guard to interdict drugs and share
information regionally. The Royal Government of Antigua and
Barbuda Defense Force also has a mandate to interdict drug
smuggling. The Ministry of Health has specific record keeping
requirements on the importation of pseudoephredrine and
ephedrine chemicals. The Government of Antigua and Barbuda
has civil forfeiture legislation, but has yet to put it to practice.
The Government of Antigua and Barbuda is a party to the 1961
UN Single Convention as amended by the 1972 Protocol (the
1961 UN Convention), and the 1971 UN Convention on
Psychotropic Substances (the 1971 UN Convention) and the 1988
UN Convention (collectively, the three UN Drug Conventions). It is
a party to the Inter-American Convention Against Corruption the
Inter-American Convention on Extradition the Inter-American
Convention on Mutual Assistance in Criminal Matters the Inter-
American Convention Against the Illicit Manufacturing of and
Trafficking in Firearms, Ammunition, Explosives and Other Related
Materials (Inter-American Firearms Convention), the UN
Convention Against Transnational Organized Crime and its three
Protocols and the UN Convention against Corruption. Lastly, the
Government of Antigua and Barbuda has a comprehensive
maritime counterdrug bilateral agreement, an extradition treaty
and a Mutual Legal Assistance Treaty in force with the U.S.
Government officials estimate both cocaine shipments and
marijuana cultivation increased in 2011 compared to previous
calendar year. In 2011, law enforcement officials eradicated two
acres of cultivated marijuana in multiple locations, a similar result
compared to 2010. In 2011, the following drug totals were
reported as seized: 177 kilograms (kg) of cocaine, 99 kg of
marijuana, and 6,860 cannabis plants. Government of Antigua
and Barbuda authorities filed charges in 140 drug related cases,
33 of which went to trial. The government prosecuted no major
drug traffickers during 2011.
The Government of Antigua and Barbuda continues to struggle
with a lack of maritime patrol platforms. Irregular joint police-coast
guard patrols remain unable to deter traffickers. The
counternarcotics effectiveness continues to be hindered by a
legal system that does not reflect the needs of modern law
enforcement. Law enforcement lacks the capacity and the
resources to undertake systematic counternarcotics operations.
Antigua and Barbuda has a Drug Abuse and Resistance
Education (DARE) program in schools. The Cross Roads Centre,
a drug and alcohol addiction treatment center provides free
treatment. The Government of Antigua and Barbuda estimates
70% of locally grown marijuana is consumed domestically.
Full Report
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
Antigua and Barbuda is a destination and transit country for men,
women and children subjected to sex trafficking and forced labor.
Legal and illegal immigrants from Haiti, Jamaica, the Dominican
Republic, and Guyana are reported to represent the population
most vulnerable to trafficking. Reportedly forced prostitution
occurs in bars and brothels. There also have been incidences of
forced domestic service and persons forced to work on farm lands
or to sell clothing.
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. The government
made substantial progress during the reporting period by
enacting legislation that prohibits all forms of trafficking and
provides explicit and extensive victim protection measures. The
government also identified and assisted victims, and conducted
prevention activities. The government initiated some trafficking
investigations, including one into potential police complicity, but
did not report any prosecutions, convictions, or punishment 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: 16 February 2012
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. Since October 2011, Antigua
and Barbuda has taken steps towards improving its AML/CFT
regime, including by finalising the methodology for its supervisory
programme and making progress in the registration and
regulation of Co-operative Societies. 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 (Recommendation
23). 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 - 2012:
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 transshipment of narcotics and from
financial crimes occurring in the U.S. also are laundered in
Antigua and Barbuda.
Antigua and Barbuda uses the Eastern Caribbean (EC) dollar and
its monetary authority is the Eastern Caribbean Central Bank
(ECCB). Seven other island economies are also members of the
ECCB: Anguilla, Dominica, Grenada, Montserrat, St Kitts and
Nevis, St. Lucia, and St Vincent and the Grenadines. The
existence of this common currency may raise the risk of money
laundering, but there is little evidence that the EC dollar is a
primary vehicle for money laundering.
As of 2011, Antigua and Barbuda has 15 international banks, two
international trusts, 27 offshore insurance companies, 3,497
international business corporations (IBCs), ten interactive gaming
companies, six interactive wagering companies, six money
services businesses, and 22 corporate management and trust
services providers. In addition, there are five casinos. Bearer
shares are permitted for international companies but the names
and addresses of directors (who must be natural persons), the
activities the corporation intends to conduct, the names of
shareholders, and the numbers of shares they will hold are
required to be disclosed. Registered agents or service providers
are required by law to know the names of beneficial owners. 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. Internet gaming companies are required to incorporate
as IBCs and to have a physical presence, meaning the primary
servers and the key person are resident in Antigua and Barbuda.
A nominal free trade zone (FTZ) in the country seeks to attract
investment in areas deemed as priority by the government.
Casinos and sports book-wagering operations in Antigua and
Barbuda’s FTZ are supervised by Antigua and Barbuda’s Office of
National Drug and Money Laundering Control Policy (ONDCP),
and the Directorate of Offshore Gaming.
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
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
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 93 in 2011
Number of CTRs received and time frame: 48 in 2011
STR covered entities: Banks, agricultural credit institutions,
money exchangers, notaries, gaming centers, and securities
dealers
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: Two in 2011
Convictions: None in 2011
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:
http://www.cfatf-gafic.
org/downloadables/mer/Antigua_and_Barbuda_3rd_Round_MER_
Final(Eng).pdf
Enforcement and implementation issues and comments
The Government of Antigua and Barbuda (GOAB) has taken
steps to combat money laundering and terrorist financing by
passing relevant legislation that applies to both domestic and
offshore financial institutions, and establishing a regulatory
regime. The GOAB also should implement and enforce all
provisions of its AML/CFT legislation, including the comprehensive
supervision of its offshore sector and gaming industry. Continued
efforts should be made to enhance the capacity of law
enforcement and customs authorities to recognize money
laundering typologies that fall outside the formal financial sector.
Continued international cooperation, particularly with regard to the
timely sharing of statistics and information related to offshore
institutions, and enforcement of foreign civil asset forfeiture
orders will likewise enhance Antigua and Barbuda’s ability to
combat money laundering.
Internet gaming companies are required to report all payouts over
$25,000 to the ONDCP. They also are required to submit
quarterly and annual audited financial statements and maintain
records relating to all gaming and financial transactions of each
customer for six years.
In 2011, the Supervisory Authority more vigorously exercised its
supervisory powers in relation to money remitters, having imposed
administrative sanctions for inadequate implementation of
AML/CFT due diligence measures, source of funds accountability
and failure to provide statutorily required reports. The
Supervisory Authority also initiated comprehensive onsite
examinations of financial institutions and designated non-financial
businesses and professions, including entities engaged in real
property business and car dealerships.
The GOAB says it has a “poor understanding” of certain foreign
cash transactions taking place within the jurisdiction that have
raised their concerns. The possibility exists that they could be an
indication of proceeds from human trafficking. Separately, the
police have instituted criminal charges for prostitution-related
human trafficking and have traced alleged proceeds to accounts
held in the domestic banking sector, and also suspect repatriation
of proceeds through money remitters.
____________________________________________________
US State Dept Narcotics Report 2012 (introduction):
The Eastern Caribbean (EC), encompassing the seven
independent countries of Antigua and Barbuda, Barbados,
Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent
and the Grenadines, is situated directly in the corridor for illicit
narcotics transshipment primarily from Venezuela to North
America, Europe, and domestic Caribbean markets. A 2011 UN
report found violent crime, much of which is linked to the drug
trade, reaching epidemic proportions in the region. Marijuana is a
staple crop in the region and cultivated primarily for local use.
Police in the region do not have the equipment or training they
need to be effective. Outmoded criminal codes hinder a strong
response to organized crime groups. The Regional Security
System (RSS), a treaty-based international body to which all
seven nations belong, has begun a regional polygraph vetting
program, but corruption remains a stubborn problem in some
countries, undermining trust within and between EC law
enforcement organizations. Collectively, the EC nations
communicate and coordinate poorly in attacking transnational
crime. The EC islands and the RSS participate in the U.S. led
Caribbean Basin Security Initiative (CBSI). CBSI-funded law
enforcement training began in the first half of 2011. CBSI funded
equipment deliveries will begin in the first half of 2012. All EC
countries are signatories to the 1988 UN Convention against Illicit
Traffic in Narcotic Drugs and Psychotropic Substances.
The Government of Antigua and Barbuda has three drug
enforcement agencies, the Royal Antigua and Barbuda Police
Force (RABPF), the Coast Guard, and the Office of National Drug
and Money Laundering Control Policy (ONDCP). ONDCP works
with the police and the Coast Guard to interdict drugs and share
information regionally. The Royal Government of Antigua and
Barbuda Defense Force also has a mandate to interdict drug
smuggling. The Ministry of Health has specific record keeping
requirements on the importation of pseudoephredrine and
ephedrine chemicals. The Government of Antigua and Barbuda
has civil forfeiture legislation, but has yet to put it to practice.
The Government of Antigua and Barbuda is a party to the 1961
UN Single Convention as amended by the 1972 Protocol (the
1961 UN Convention), and the 1971 UN Convention on
Psychotropic Substances (the 1971 UN Convention) and the 1988
UN Convention (collectively, the three UN Drug Conventions). It is
a party to the Inter-American Convention Against Corruption the
Inter-American Convention on Extradition the Inter-American
Convention on Mutual Assistance in Criminal Matters the Inter-
American Convention Against the Illicit Manufacturing of and
Trafficking in Firearms, Ammunition, Explosives and Other Related
Materials (Inter-American Firearms Convention), the UN
Convention Against Transnational Organized Crime and its three
Protocols and the UN Convention against Corruption. Lastly, the
Government of Antigua and Barbuda has a comprehensive
maritime counterdrug bilateral agreement, an extradition treaty
and a Mutual Legal Assistance Treaty in force with the U.S.
Government officials estimate both cocaine shipments and
marijuana cultivation increased in 2011 compared to previous
calendar year. In 2011, law enforcement officials eradicated two
acres of cultivated marijuana in multiple locations, a similar result
compared to 2010. In 2011, the following drug totals were
reported as seized: 177 kilograms (kg) of cocaine, 99 kg of
marijuana, and 6,860 cannabis plants. Government of Antigua
and Barbuda authorities filed charges in 140 drug related cases,
33 of which went to trial. The government prosecuted no major
drug traffickers during 2011.
The Government of Antigua and Barbuda continues to struggle
with a lack of maritime patrol platforms. Irregular joint police-coast
guard patrols remain unable to deter traffickers. The
counternarcotics effectiveness continues to be hindered by a
legal system that does not reflect the needs of modern law
enforcement. Law enforcement lacks the capacity and the
resources to undertake systematic counternarcotics operations.
Antigua and Barbuda has a Drug Abuse and Resistance
Education (DARE) program in schools. The Cross Roads Centre,
a drug and alcohol addiction treatment center provides free
treatment. The Government of Antigua and Barbuda estimates
70% of locally grown marijuana is consumed domestically.
Full Report
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
Antigua and Barbuda is a destination and transit country for men,
women and children subjected to sex trafficking and forced labor.
Legal and illegal immigrants from Haiti, Jamaica, the Dominican
Republic, and Guyana are reported to represent the population
most vulnerable to trafficking. Reportedly forced prostitution
occurs in bars and brothels. There also have been incidences of
forced domestic service and persons forced to work on farm lands
or to sell clothing.
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. The government
made substantial progress during the reporting period by
enacting legislation that prohibits all forms of trafficking and
provides explicit and extensive victim protection measures. The
government also identified and assisted victims, and conducted
prevention activities. The government initiated some trafficking
investigations, including one into potential police complicity, but
did not report any prosecutions, convictions, or punishment 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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| Further Tables |
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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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| KnowYourCountry |
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| Last Updated: 16 April 2012 |