|
|
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 - 2011:
Montserrat has one of the smallest financial sectors of the
Caribbean overseas territories of the United Kingdom. The
Montserratian economy has been effectively halted since the
volcanic eruption in 1995 that reduced the population and
business activity on the island. Less than 6,000 people remain
resident on the island. The island's operating budget is largely
supplied by the British government and administered through the
Department for International Development (DFID). Export
businesses currently based in Montserrat deal primarily in the
selling and shipping of aggregate for construction. Imports include
virtually everything available for sale on the island. An offshore
financial services sector may attract money launderers because
of a lack of regulatory resources. None of the offshore banks
appears to have a physical presence on the island, complicating
regulation.
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.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: NO
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, securities dealers, money transmission
services, company management services, and financial leasing
companies
Enhanced due diligence procedures for (PEPs): Foreign: YES
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, securities dealers, money transmission
services, company management services, and financial leasing
companies
Number of STRs received and time frame: 15 in 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 0 in 2010
Convictions: 0 in 2010
Assets forfeited: criminally: 0 in 2010 civilly: 0 in 2010
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Montserrat is a member of the Caribbean Financial Action Task
Force (CFATF), a Financial Action Task Force (FATF)-style
regional body. The most recent evaluation can be found here:
http://www.imf.org/external/pubs/ft/scr/2003/cr03371.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Montserrat’s offshore banks pose significant risks, especially in
the areas of know your customer rules and currency declarations.
The lack of resources and personnel may reduce the
effectiveness of those regulations that are in place. The
regulations do not explicitly address offshore banks, and it
remains unclear whether they are subject to the regulations’
requirements. Additionally, there are apparent deficiencies in the
application of many guidelines since they remain a code of
practice rather than mandatory legislation.
Montserrat is a United Kingdom (UK) Caribbean overseas territory
and cannot sign or ratify international conventions in its own right.
Rather, the UK is responsible for Montserrat’s international affairs
and may arrange for the ratification of any convention to be
extended to Montserrat. The 1988 Drug Convention was extended
to Montserrat in 1995. The UN Convention against Corruption, the
International Convention for the Suppression of the Financing of
Terrorism, and the UN Convention against Transnational
Organized Crime (UNTOC) have not yet been extended to
Montserrat.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
US State Dept Trafficking in Persons Report 2011
(introduction):
No report available
US State Dept Terrorism Report 2009
No report available
Links:
Worldwide AML Legislation (International Bar Association)
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 - 2011:
Montserrat has one of the smallest financial sectors of the
Caribbean overseas territories of the United Kingdom. The
Montserratian economy has been effectively halted since the
volcanic eruption in 1995 that reduced the population and
business activity on the island. Less than 6,000 people remain
resident on the island. The island's operating budget is largely
supplied by the British government and administered through the
Department for International Development (DFID). Export
businesses currently based in Montserrat deal primarily in the
selling and shipping of aggregate for construction. Imports include
virtually everything available for sale on the island. An offshore
financial services sector may attract money launderers because
of a lack of regulatory resources. None of the offshore banks
appears to have a physical presence on the island, complicating
regulation.
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.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: NO
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, securities dealers, money transmission
services, company management services, and financial leasing
companies
Enhanced due diligence procedures for (PEPs): Foreign: YES
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, securities dealers, money transmission
services, company management services, and financial leasing
companies
Number of STRs received and time frame: 15 in 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: 0 in 2010
Convictions: 0 in 2010
Assets forfeited: criminally: 0 in 2010 civilly: 0 in 2010
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Montserrat is a member of the Caribbean Financial Action Task
Force (CFATF), a Financial Action Task Force (FATF)-style
regional body. The most recent evaluation can be found here:
http://www.imf.org/external/pubs/ft/scr/2003/cr03371.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Montserrat’s offshore banks pose significant risks, especially in
the areas of know your customer rules and currency declarations.
The lack of resources and personnel may reduce the
effectiveness of those regulations that are in place. The
regulations do not explicitly address offshore banks, and it
remains unclear whether they are subject to the regulations’
requirements. Additionally, there are apparent deficiencies in the
application of many guidelines since they remain a code of
practice rather than mandatory legislation.
Montserrat is a United Kingdom (UK) Caribbean overseas territory
and cannot sign or ratify international conventions in its own right.
Rather, the UK is responsible for Montserrat’s international affairs
and may arrange for the ratification of any convention to be
extended to Montserrat. The 1988 Drug Convention was extended
to Montserrat in 1995. The UN Convention against Corruption, the
International Convention for the Suppression of the Financing of
Terrorism, and the UN Convention against Transnational
Organized Crime (UNTOC) have not yet been extended to
Montserrat.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
US State Dept Trafficking in Persons Report 2011
(introduction):
No report available
US State Dept Terrorism Report 2009
No report available
Links:
Worldwide AML Legislation (International Bar Association)
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| MONTSERRAT |
| KnowYourCountry |
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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.
| Further Tables |
| Last Updated: 16 April 2012 |