|
|
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:
St. Kitts and Nevis is a federation composed of two islands in the
Eastern Caribbean. The federation is at major risk for corruption
and money laundering due to the high volume of narcotics
trafficking activity through and around the island, and the
presence of known traffickers on the islands. The growth of its
offshore sector and an inadequately regulated economic
citizenship program further contribute to the federation’s money
laundering vulnerabilities.
St. Kitts uses the East Caribbean dollar and its monetary authority
is the Eastern Caribbean Central Bank (ECCB). The ECCB has
direct responsibility for regulating and supervising the offshore
banks in Nevis, as it does for the entire domestic sector of St.
Kitts and Nevis, and for making recommendations regarding
approval of offshore banking licenses. By law, all offshore banking
licensees are required to have a physical presence in the
federation; shell banks are not permitted. Seven other island
economies are also members of the ECCB: Anguilla, Antigua and
Barbuda, Dominica, Grenada, Montserrat, 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 a federation, there is anti-money laundering (AML), counter-
terrorist financing (CFT), and offshore legislation governing both
St. Kitts and Nevis. However, each island has the authority to
organize its own financial structure. With most of the offshore
financial activity concentrated in Nevis, it has independently
developed its own offshore legislation. St. Kitts had licensed
approximately 36 corporate service providers, three trust
providers, 116 captive insurance companies and over 2100
companies and foundations. By contrast, Nevis had over 11,000
international business companies, 4,200 limited liability
companies, over 1,000 trusts and over 110 insurance companies.
The Ministry of Finance oversees St. Kitts and Nevis’ Citizenship
by Investment Program. An individual may qualify for citizenship
with a $350,000 minimum investment in real estate. In addition,
the Government of St. Kitts and Nevis (GOSKN) created the
Sugar Industry Diversification Foundation (SIDF), after the closure
of the federation’s sugar industry, as a special approved project
for the purposes of citizenship by investment. To be eligible, an
applicant must make a contribution ranging from $200,000 to
$400,000 (based on the number of the applicant’s dependents).
The GOSKN requires applicants to make a source of funds
declaration and provide evidence supporting the declaration.
According to the GOSKN, the Ministry of Finance has established
a Citizenship Processing Unit to manage the screening and
application process.
Bearer shares are permitted provided that bearer share
certificates are retained in the safe custody of authorized persons
or financial institutions authorized by the Minister of Finance.
Legislation requires certain identifying information to be
maintained about bearer certificates, including the name and
address of the bearer as well as the certificate’s beneficial owner.
All authorized custodians are required by law to obtain proper
documents on shareholders or beneficial owners before
incorporating exempt or other offshore companies. This
information is not publicly available but is available to the
regulator and other authorized persons.
The St. Kitts and Nevis Gaming Board is responsible for ensuring
compliance by casinos. Internet gaming entities must apply for a
license as an IBC.
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, agricultural credit institutions, money
exchangers, insurance companies, auditors, accountants,
notaries, gaming centers, pawn shops, issuers of payment cards
and traveler’s checks, auto dealers, real estate brokers/agents,
trustees, dealers of precious metals and stones, non-profit
organizations, and securities dealers
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, agricultural credit institutions, money
exchangers, insurance companies, auditors, accountants,
notaries, gaming centers, pawn shops, issuers of payment cards
and traveler’s checks, auto dealers, real estate brokers/agents,
trustees, dealers of precious metals and stones, non-profit
organizations, and securities dealers
Number of STRs received and time frame: 217, January to
September 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: None
Convictions: None
Assets forfeited: criminally: None civilly: Not applicable
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
St. Kitts and Nevis is a member of the 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/St.
Kitts_Nevis_3rd_Round_MER_(Final)_English.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The government has been slow to respond to requests for mutual
legal assistance due to a lack of staff.
Bank secrecy laws, the allowance of anonymous accounts, the
lack of transparency of beneficial ownership of legal entities, and
weak regulatory framework concerning customer due diligence
and cases of cross border seizures of cash and bearer
instruments, make Nevis, in particular, a haven for criminals to
conceal their proceeds. To address remaining vulnerabilities, the
GOSKN should devote sufficient resources to effectively
implement its AML/CFT regime, giving particular attention to its
offshore financial sector and more rigorous customer due
diligence and reporting requirements.
St. Kitts and Nevis should more precisely determine the exact
number of Internet gaming companies present on the islands and
provide the necessary oversight of these entities. The GOSKN
needs to provide adequate resources and capacity to law
enforcement agencies to effectively investigate money laundering
cases. The government should consider implementing legislation
to allow law enforcement authorities to postpone or waive the
arrest of a suspected person and/or the seizure of cash so as to
identify other persons involved in the offense. Additionally, the
GOSKN should adopt or amend legislation, as necessary, to
ensure its ability to freeze terrorist assets without delay is in
accord with international standards and UN mandates.
The GOSKN should provide for close supervision of its economic
citizenship programs or else consider their discontinuance.
Additionally, Nevis should expand its supervision program to
credit unions, local insurance companies, money service
businesses and money transfer agencies. To strengthen its legal
framework against money laundering, St. Kitts and Nevis should
move expeditiously to become a party to the UN Convention
against Corruption.
____________________________________________________
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.
A dedicated drug unit operates on St. Kitts and a smaller unit
operates on Nevis. All programs are coordinated in St. Kitts.
According to their officials, the drug unit manpower and budget
are inadequate. The Government of St. Kitts and Nevis Defense
Force also work with the drug unit. Currently, the Government of
St. Kitts and Nevis has only a limited ability to patrol its maritime
borders.
There were no significant changes in the structure,
responsibilities, budget, or manpower from 2010. Legislation
requires record keeping and reporting on the use of precursor
chemicals, as well as importation of pseudoephredrine, ephedrine
and pharmaceutical products containing those two chemicals.
The Government of St. Kitts and Nevis has proposed new
legislation to provide law enforcement with wire intercept authority.
This proposed legislation was under consideration in Parliament
as of November.
St. Kitts and Nevis is a party to the three UN Drug Conventions as
well as the Inter-American Convention Against Corruption, the
Inter-American Firearms Convention, and the UN Convention
against Transnational Organized Crime and its three Protocols.
Lastly, St. Kitts and Nevis has a comprehensive maritime
counterdrug bilateral agreement, an extradition treaty and a
Mutual Legal Assistance Treaty in force with the United States.
Government officials say global economic problems have caused
decreased drug imports and increased local cannabis production,
leading them to predict a rise in exports. Cannabis is cultivated
predominantly in the mountainous regions. A lesser but significant
amount is also grown in areas previously used for sugar
production. Government officials have no estimate for cannabis
acreage under cultivation. In 2011, officials eradicated 37 acres
and destroyed 105,730 plants.
Seizures in St. Kitts and Nevis for 2011 were: 5 kg of cocaine, 443
kg of cannabis and, 525 grams of crack cocaine. There were 178
drug related arrests, over 100 prosecutions, and 97 convictions.
A number of cases are still before the court. The Government of
St. Kitts and Nevis prosecuted no major traffickers during 2011,
however law enforcement officials report two major traffickers
were murdered and one died of natural causes. They
encountered no drug laboratories.
The DARE program is dormant, despite the availability of trained
officers. The National Drug Council conducts a similar program,
Operation Future. Government officials estimate 90% of domestic
drug abusers use cannabis while 10% use cocaine. St. Kitts and
Nevis does not have any rehabilitation clinics. Citizens in need are
sent to St. Lucia.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
No report available
For full report click here
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:
St. Kitts and Nevis is a federation composed of two islands in the
Eastern Caribbean. The federation is at major risk for corruption
and money laundering due to the high volume of narcotics
trafficking activity through and around the island, and the
presence of known traffickers on the islands. The growth of its
offshore sector and an inadequately regulated economic
citizenship program further contribute to the federation’s money
laundering vulnerabilities.
St. Kitts uses the East Caribbean dollar and its monetary authority
is the Eastern Caribbean Central Bank (ECCB). The ECCB has
direct responsibility for regulating and supervising the offshore
banks in Nevis, as it does for the entire domestic sector of St.
Kitts and Nevis, and for making recommendations regarding
approval of offshore banking licenses. By law, all offshore banking
licensees are required to have a physical presence in the
federation; shell banks are not permitted. Seven other island
economies are also members of the ECCB: Anguilla, Antigua and
Barbuda, Dominica, Grenada, Montserrat, 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 a federation, there is anti-money laundering (AML), counter-
terrorist financing (CFT), and offshore legislation governing both
St. Kitts and Nevis. However, each island has the authority to
organize its own financial structure. With most of the offshore
financial activity concentrated in Nevis, it has independently
developed its own offshore legislation. St. Kitts had licensed
approximately 36 corporate service providers, three trust
providers, 116 captive insurance companies and over 2100
companies and foundations. By contrast, Nevis had over 11,000
international business companies, 4,200 limited liability
companies, over 1,000 trusts and over 110 insurance companies.
The Ministry of Finance oversees St. Kitts and Nevis’ Citizenship
by Investment Program. An individual may qualify for citizenship
with a $350,000 minimum investment in real estate. In addition,
the Government of St. Kitts and Nevis (GOSKN) created the
Sugar Industry Diversification Foundation (SIDF), after the closure
of the federation’s sugar industry, as a special approved project
for the purposes of citizenship by investment. To be eligible, an
applicant must make a contribution ranging from $200,000 to
$400,000 (based on the number of the applicant’s dependents).
The GOSKN requires applicants to make a source of funds
declaration and provide evidence supporting the declaration.
According to the GOSKN, the Ministry of Finance has established
a Citizenship Processing Unit to manage the screening and
application process.
Bearer shares are permitted provided that bearer share
certificates are retained in the safe custody of authorized persons
or financial institutions authorized by the Minister of Finance.
Legislation requires certain identifying information to be
maintained about bearer certificates, including the name and
address of the bearer as well as the certificate’s beneficial owner.
All authorized custodians are required by law to obtain proper
documents on shareholders or beneficial owners before
incorporating exempt or other offshore companies. This
information is not publicly available but is available to the
regulator and other authorized persons.
The St. Kitts and Nevis Gaming Board is responsible for ensuring
compliance by casinos. Internet gaming entities must apply for a
license as an IBC.
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, agricultural credit institutions, money
exchangers, insurance companies, auditors, accountants,
notaries, gaming centers, pawn shops, issuers of payment cards
and traveler’s checks, auto dealers, real estate brokers/agents,
trustees, dealers of precious metals and stones, non-profit
organizations, and securities dealers
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, agricultural credit institutions, money
exchangers, insurance companies, auditors, accountants,
notaries, gaming centers, pawn shops, issuers of payment cards
and traveler’s checks, auto dealers, real estate brokers/agents,
trustees, dealers of precious metals and stones, non-profit
organizations, and securities dealers
Number of STRs received and time frame: 217, January to
September 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: None
Convictions: None
Assets forfeited: criminally: None civilly: Not applicable
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
St. Kitts and Nevis is a member of the 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/St.
Kitts_Nevis_3rd_Round_MER_(Final)_English.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The government has been slow to respond to requests for mutual
legal assistance due to a lack of staff.
Bank secrecy laws, the allowance of anonymous accounts, the
lack of transparency of beneficial ownership of legal entities, and
weak regulatory framework concerning customer due diligence
and cases of cross border seizures of cash and bearer
instruments, make Nevis, in particular, a haven for criminals to
conceal their proceeds. To address remaining vulnerabilities, the
GOSKN should devote sufficient resources to effectively
implement its AML/CFT regime, giving particular attention to its
offshore financial sector and more rigorous customer due
diligence and reporting requirements.
St. Kitts and Nevis should more precisely determine the exact
number of Internet gaming companies present on the islands and
provide the necessary oversight of these entities. The GOSKN
needs to provide adequate resources and capacity to law
enforcement agencies to effectively investigate money laundering
cases. The government should consider implementing legislation
to allow law enforcement authorities to postpone or waive the
arrest of a suspected person and/or the seizure of cash so as to
identify other persons involved in the offense. Additionally, the
GOSKN should adopt or amend legislation, as necessary, to
ensure its ability to freeze terrorist assets without delay is in
accord with international standards and UN mandates.
The GOSKN should provide for close supervision of its economic
citizenship programs or else consider their discontinuance.
Additionally, Nevis should expand its supervision program to
credit unions, local insurance companies, money service
businesses and money transfer agencies. To strengthen its legal
framework against money laundering, St. Kitts and Nevis should
move expeditiously to become a party to the UN Convention
against Corruption.
____________________________________________________
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.
A dedicated drug unit operates on St. Kitts and a smaller unit
operates on Nevis. All programs are coordinated in St. Kitts.
According to their officials, the drug unit manpower and budget
are inadequate. The Government of St. Kitts and Nevis Defense
Force also work with the drug unit. Currently, the Government of
St. Kitts and Nevis has only a limited ability to patrol its maritime
borders.
There were no significant changes in the structure,
responsibilities, budget, or manpower from 2010. Legislation
requires record keeping and reporting on the use of precursor
chemicals, as well as importation of pseudoephredrine, ephedrine
and pharmaceutical products containing those two chemicals.
The Government of St. Kitts and Nevis has proposed new
legislation to provide law enforcement with wire intercept authority.
This proposed legislation was under consideration in Parliament
as of November.
St. Kitts and Nevis is a party to the three UN Drug Conventions as
well as the Inter-American Convention Against Corruption, the
Inter-American Firearms Convention, and the UN Convention
against Transnational Organized Crime and its three Protocols.
Lastly, St. Kitts and Nevis has a comprehensive maritime
counterdrug bilateral agreement, an extradition treaty and a
Mutual Legal Assistance Treaty in force with the United States.
Government officials say global economic problems have caused
decreased drug imports and increased local cannabis production,
leading them to predict a rise in exports. Cannabis is cultivated
predominantly in the mountainous regions. A lesser but significant
amount is also grown in areas previously used for sugar
production. Government officials have no estimate for cannabis
acreage under cultivation. In 2011, officials eradicated 37 acres
and destroyed 105,730 plants.
Seizures in St. Kitts and Nevis for 2011 were: 5 kg of cocaine, 443
kg of cannabis and, 525 grams of crack cocaine. There were 178
drug related arrests, over 100 prosecutions, and 97 convictions.
A number of cases are still before the court. The Government of
St. Kitts and Nevis prosecuted no major traffickers during 2011,
however law enforcement officials report two major traffickers
were murdered and one died of natural causes. They
encountered no drug laboratories.
The DARE program is dormant, despite the availability of trained
officers. The National Drug Council conducts a similar program,
Operation Future. Government officials estimate 90% of domestic
drug abusers use cannabis while 10% use cocaine. St. Kitts and
Nevis does not have any rehabilitation clinics. Citizens in need are
sent to St. Lucia.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
No report available
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.
| ST KITTS & NEVIS |
| KnowYourCountry |
|
|
| Last Updated: 16 April 2012 |