|
|
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. Lucia has developed an offshore financial service center that
is vulnerable to money laundering. Transshipment of narcotics
(cocaine and marijuana), unregulated money remittance
businesses, cash smuggling, and bank fraud, such as counterfeit
U.S. checks and identity theft, are among the primary sources for
laundered funds in St. Lucia. Trade and customs-based fraud and
corruption also pose significant money laundering risks. The trade
in gems and jewelry has also been used to launder funds and
poses a considerable money laundering risk.
St. Lucia uses the East Caribbean dollar and its monetary
authority is the Eastern Caribbean Central Bank (ECCB). Seven
other island economies are also members of the ECCB: Anguilla,
Antigua and Barbuda, Dominica, Grenada, Montserrat, St Kitts
and Nevis, 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.
Currently, St. Lucia has seven offshore banks, two investment
banks, 2,851 international business companies, 26 international
insurance companies, four trust companies, three mutual fund
administrators, and 15 registered agents. Shell companies are not
permitted. The offshore sector is regulated by the Financial
Sector Supervision Unit. The Government of St. Lucia (GOSL)
also has one free trade zone (FTZ), managed by the St. Lucia Air
and Sea Ports Authority (SLASPA) and located in the seaport of
Vieux Fort, where investors may establish businesses and
conduct trade and commerce within the FTZ or between the FTZ
and foreign countries. Identification of companies and individuals
who use the zone is required. There are no casinos or Internet
gaming sites in St. Lucia.
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: Domestic and offshore banks, building societies,
financial services providers, credit unions, trust companies,
insurance companies, agricultural credit institutions, money
exchangers, accountants, notaries, gaming centers, auto dealers
and securities dealers
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Domestic and offshore banks, building societies,
financial services providers, credit unions, trust companies,
insurance companies, agricultural credit institutions, money
exchangers, notaries, gaming centers, auto dealers and securities
dealers
Number of STRs received and time frame: 83, January to
November 2010
Number of CTRs received and time frame: Not available
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. Lucia 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/Saint_Lucia_3rd_Round_MER_(Final)
_English.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The failure to criminalize important elements of terrorist financing
poses a potentially significant risk. In order to lessen its risks, St.
Lucia should examine the list of predicate offenses for money
laundering, and criminalize self-laundering and terrorist financing.
Additionally, the GOSL should amend its legislation, as
necessary, to explicitly prohibit “tipping off” and to provide safe
harbor coverage against both civil and criminal liability for
individuals and financial institutions who file STRs.
Money remitters should be brought under the regulatory
framework, and St. Lucia should implement risk-based
assessment procedures, implement enhanced due diligence for
PEPs and consider requirements for reporting large monetary
transactions to the FIU.
The GOSL should intensify its efforts to investigate, prosecute,
and sentence money launderers and those involved in other
financial crimes, and should permit extradition in cases of money
laundering and terrorist financing. The lack of money laundering
prosecutions or convictions suggests that the FIU is under-
resourced. There also is a need for increased resources in the
Customs Department to address the lax customs regime.
____________________________________________________
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.
Organized crime linked drug violence continues to plague St
Lucia. The Royal St. Lucia Police Force (RSLPF) announced a
reorganization to improve its intelligence capabilities. USG law
enforcement agencies have expressed serious concerns over
RSLPF personnel changes associated with the reorganization,
which have disrupted and, in certain instances, undermined drug
enforcement. U.S. agencies are closely scrutinizing the full effect
of these changes. The RSLPF also wants to augment the drug
squad and reprioritize its focus. Other than the personnel
changes and reorganization of the police department, there were
no significant changes in structure, centralization responsibilities,
or budget from the previous year’s reporting. In collaboration with
the Financial Investigations Authority, St. Lucian authorities report
it is in the process of preparing for trial with its first financial
investigations case against a major cocaine and cannabis dealer
in 2011.
Government officials did not report whether there is any
legislation in place that imposes record keeping and reporting on
the use of precursor chemicals, and importation of
pseudoephedrine, ephedrine and pharmaceutical products
containing those two chemicals. Parliament passed an
amendment to the Money Laundering Act that makes it mandatory
for financial institutions to report to the FIA deposits of ECD
25,000 (US$ 9,259) and to the Proceeds of Crime Act that allows
for civil forfeiture.
St. Lucia is a party to the three UN Drugs Conventions as well as
the Inter-American Convention Against Corruption, the Inter-
American Firearms Convention, the Inter-American Convention on
Extradition, and the Inter-American Convention Against Terrorism.
It has signed but not yet ratified the UN Convention against
Transnational Organized Crime. Lastly, St. Lucia has a
comprehensive maritime counterdrug bilateral agreement, an
extradition treaty and a Mutual Legal Assistance Treaty in force
with the United States.
St. Lucian officials reported they had eradicated 23 of an
estimated 25 acres of marijuana, destroying approximately
400,000 grown plants. St. Lucia reported total seizures in 2011
that included 438 kg of cannabis, 199 kg of cocaine, with three
seizures made at sea. St. Lucia reported that more than 80
percent of all arrests made on the island were drug related; to
date 228 persons have been arrested for drug offenses out of
which 62 percent have been prosecuted with 65 percent
convicted. A prominent businessman and suspected trafficker and
money launderer and his wife were arrested for possession and
intent to distribute narcotics.
St. Lucian police fatally shot twelve people in 2011. Opposition
contacts and civil society leaders allege some of these killings
may be extrajudicial executions of known criminals. At year's end,
the Director of Public Prosecutions (DPP) reported the cases
were in various stages of internal review and investigation.
St. Lucia has several government sponsored demand reduction
programs. However, police officials believe these programs are
too small in scale and lack coordination to be effective. St. Lucia
has one official drug rehabilitation clinic, Turning Point.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
St. Lucia is a destination country for persons subjected to forced
prostitution and forced labor. In a welcomed move, government
officials acknowledge the existence of forced prostitution and
forced labor, including domestic servitude, in St. Lucia. Legal and
illegal immigrants from Haiti, Jamaica, the Dominican Republic,
and Guyana reportedly are the groups most vulnerable to human
trafficking. Foreign women in prostitution are at particularly high
risk. According to the police and NGOs, the most likely traffickers
in the country are pimps, strip club operators, and brothel owners;
during the past years there were allegations that some
underground strip clubs were fronts for prostitution and reportedly
were owned or protected by complicit former police officers. Crime
and gang violence present a significant risk to children in St.
Lucia, and children involved in the drug trade or engaging in sex
with men for basics such as food, transportation, or material
goods are vulnerable to human trafficking.
The Government of St. Lucia 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
progress in its anti-trafficking efforts over the past year by
passing legislation prohibiting human trafficking and providing
victim protection provisions. The government helped at least one
victim during the reporting period, but it did not report any
prosecutions of trafficking offenders or officials complicit in human
trafficking.
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. Lucia has developed an offshore financial service center that
is vulnerable to money laundering. Transshipment of narcotics
(cocaine and marijuana), unregulated money remittance
businesses, cash smuggling, and bank fraud, such as counterfeit
U.S. checks and identity theft, are among the primary sources for
laundered funds in St. Lucia. Trade and customs-based fraud and
corruption also pose significant money laundering risks. The trade
in gems and jewelry has also been used to launder funds and
poses a considerable money laundering risk.
St. Lucia uses the East Caribbean dollar and its monetary
authority is the Eastern Caribbean Central Bank (ECCB). Seven
other island economies are also members of the ECCB: Anguilla,
Antigua and Barbuda, Dominica, Grenada, Montserrat, St Kitts
and Nevis, 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.
Currently, St. Lucia has seven offshore banks, two investment
banks, 2,851 international business companies, 26 international
insurance companies, four trust companies, three mutual fund
administrators, and 15 registered agents. Shell companies are not
permitted. The offshore sector is regulated by the Financial
Sector Supervision Unit. The Government of St. Lucia (GOSL)
also has one free trade zone (FTZ), managed by the St. Lucia Air
and Sea Ports Authority (SLASPA) and located in the seaport of
Vieux Fort, where investors may establish businesses and
conduct trade and commerce within the FTZ or between the FTZ
and foreign countries. Identification of companies and individuals
who use the zone is required. There are no casinos or Internet
gaming sites in St. Lucia.
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: Domestic and offshore banks, building societies,
financial services providers, credit unions, trust companies,
insurance companies, agricultural credit institutions, money
exchangers, accountants, notaries, gaming centers, auto dealers
and securities dealers
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Domestic and offshore banks, building societies,
financial services providers, credit unions, trust companies,
insurance companies, agricultural credit institutions, money
exchangers, notaries, gaming centers, auto dealers and securities
dealers
Number of STRs received and time frame: 83, January to
November 2010
Number of CTRs received and time frame: Not available
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. Lucia 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/Saint_Lucia_3rd_Round_MER_(Final)
_English.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The failure to criminalize important elements of terrorist financing
poses a potentially significant risk. In order to lessen its risks, St.
Lucia should examine the list of predicate offenses for money
laundering, and criminalize self-laundering and terrorist financing.
Additionally, the GOSL should amend its legislation, as
necessary, to explicitly prohibit “tipping off” and to provide safe
harbor coverage against both civil and criminal liability for
individuals and financial institutions who file STRs.
Money remitters should be brought under the regulatory
framework, and St. Lucia should implement risk-based
assessment procedures, implement enhanced due diligence for
PEPs and consider requirements for reporting large monetary
transactions to the FIU.
The GOSL should intensify its efforts to investigate, prosecute,
and sentence money launderers and those involved in other
financial crimes, and should permit extradition in cases of money
laundering and terrorist financing. The lack of money laundering
prosecutions or convictions suggests that the FIU is under-
resourced. There also is a need for increased resources in the
Customs Department to address the lax customs regime.
____________________________________________________
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.
Organized crime linked drug violence continues to plague St
Lucia. The Royal St. Lucia Police Force (RSLPF) announced a
reorganization to improve its intelligence capabilities. USG law
enforcement agencies have expressed serious concerns over
RSLPF personnel changes associated with the reorganization,
which have disrupted and, in certain instances, undermined drug
enforcement. U.S. agencies are closely scrutinizing the full effect
of these changes. The RSLPF also wants to augment the drug
squad and reprioritize its focus. Other than the personnel
changes and reorganization of the police department, there were
no significant changes in structure, centralization responsibilities,
or budget from the previous year’s reporting. In collaboration with
the Financial Investigations Authority, St. Lucian authorities report
it is in the process of preparing for trial with its first financial
investigations case against a major cocaine and cannabis dealer
in 2011.
Government officials did not report whether there is any
legislation in place that imposes record keeping and reporting on
the use of precursor chemicals, and importation of
pseudoephedrine, ephedrine and pharmaceutical products
containing those two chemicals. Parliament passed an
amendment to the Money Laundering Act that makes it mandatory
for financial institutions to report to the FIA deposits of ECD
25,000 (US$ 9,259) and to the Proceeds of Crime Act that allows
for civil forfeiture.
St. Lucia is a party to the three UN Drugs Conventions as well as
the Inter-American Convention Against Corruption, the Inter-
American Firearms Convention, the Inter-American Convention on
Extradition, and the Inter-American Convention Against Terrorism.
It has signed but not yet ratified the UN Convention against
Transnational Organized Crime. Lastly, St. Lucia has a
comprehensive maritime counterdrug bilateral agreement, an
extradition treaty and a Mutual Legal Assistance Treaty in force
with the United States.
St. Lucian officials reported they had eradicated 23 of an
estimated 25 acres of marijuana, destroying approximately
400,000 grown plants. St. Lucia reported total seizures in 2011
that included 438 kg of cannabis, 199 kg of cocaine, with three
seizures made at sea. St. Lucia reported that more than 80
percent of all arrests made on the island were drug related; to
date 228 persons have been arrested for drug offenses out of
which 62 percent have been prosecuted with 65 percent
convicted. A prominent businessman and suspected trafficker and
money launderer and his wife were arrested for possession and
intent to distribute narcotics.
St. Lucian police fatally shot twelve people in 2011. Opposition
contacts and civil society leaders allege some of these killings
may be extrajudicial executions of known criminals. At year's end,
the Director of Public Prosecutions (DPP) reported the cases
were in various stages of internal review and investigation.
St. Lucia has several government sponsored demand reduction
programs. However, police officials believe these programs are
too small in scale and lack coordination to be effective. St. Lucia
has one official drug rehabilitation clinic, Turning Point.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2)
St. Lucia is a destination country for persons subjected to forced
prostitution and forced labor. In a welcomed move, government
officials acknowledge the existence of forced prostitution and
forced labor, including domestic servitude, in St. Lucia. Legal and
illegal immigrants from Haiti, Jamaica, the Dominican Republic,
and Guyana reportedly are the groups most vulnerable to human
trafficking. Foreign women in prostitution are at particularly high
risk. According to the police and NGOs, the most likely traffickers
in the country are pimps, strip club operators, and brothel owners;
during the past years there were allegations that some
underground strip clubs were fronts for prostitution and reportedly
were owned or protected by complicit former police officers. Crime
and gang violence present a significant risk to children in St.
Lucia, and children involved in the drug trade or engaging in sex
with men for basics such as food, transportation, or material
goods are vulnerable to human trafficking.
The Government of St. Lucia 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
progress in its anti-trafficking efforts over the past year by
passing legislation prohibiting human trafficking and providing
victim protection provisions. The government helped at least one
victim during the reporting period, but it did not report any
prosecutions of trafficking offenders or officials complicit in human
trafficking.
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.
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.
| SAINT LUCIA |
| KnowYourCountry |
|
|
| Last Updated: 16 April 2012 |