_________________________________________________________
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 St. Vincent and the Grenadines is drafting a
National Drug Plan with assistance from the Organization of American
States. The government has set up a new Forensic Drug Laboratory in
Kingstown. The Financial Intelligence Unit works closely with the
narcotics unit in the police department. Recently, the police established
a Rapid Response Unit (RRU) to target drug and firearms offenses.
A narcotics unit targets major traffickers. Significant developments
during 2011 included the arrest of a trafficker with four kg of cocaine and
money laundering charges against a previously identified target. The
narcotics unit, the RRU and Coast Guard jointly perform maritime
interdiction operations with new domain awareness gained from the use
of two radar sites installed in 2010. The radar system has improved
operational effectiveness, according to government officials.
No new drug enforcement-related legislation passed or was pending in
2011. No laws require specific record keeping on the importation of
pseudoephredrine, ephedrine and pharmaceutical products containing
those two chemicals.
The Government of St. Vincent and the Grenadines is a party to the
three UN Drug Conventions. On October 29, 2010, it became a party to
the UN Convention against Transnational Organized Crime and its three
Protocols. It is a party to the Inter-American Convention Against
Corruption, and has signed but not ratified the Inter-American Firearms
Convention, the Inter-American Convention Against Terrorism, and the
Inter-American Convention Against Transnational Organized Crime.
Lastly, the Government of St. Vincent and the Grenadines has a limited
maritime counterdrug bilateral agreement, an extradition treaty and a
Mutual Legal Assistance Treaty in force with the U.S.
The archipelagic nation continues to be the source for the majority of
cannabis in the region. According to officials, marijuana producers have
recently started labeling their product for export. Police have also
observed a trend of younger nationals entering the trade.
Regional trade has also increased with Trinidad and Tobago sending
drugs and guns in exchange for cannabis. Officials describe a “marked
increase” in remittance flows. According to local officials, St. Vincent has
over 300 acres under marijuana cultivation. During 2011, government
officials encountered no drug laboratories, yet eradicated 70 acres of
marijuana, destroyed 1,696,021 plants and seized 10.2 MT of cannabis,
39 kg of cocaine and 180 cocaine rocks.
During 2011, Government of St. Vincent and the Grenadines authorities
reported 522 drug related prosecutions, 322 convictions, and 432
persons arrested for drug offenses. Police officials say they need more
vehicles, equipment, training and logistical support for their operations to
be effective. Narcotics play a major role in the economy, causing a
dependence on cannabis in large population segments. The government
officials have stated they cannot combat the long terms effects of the
drug trade solely through enforcement.
DARE programs are employed in schools, but does not have
rehabilitation clinics. Officials estimate 30% of domestic drug abusers
use cannabis while 2% use cocaine.
For Full report, click here
_________________________________________________________
US State Dept Trafficking in Persons Report 2011 (introduction):
(Tier 2 Watch List)
St. Vincent and the Grenadines is a likely source, transit, and destination
country for some children and adults subjected to forced labor and sex
trafficking. Sufficient information on human trafficking in St. Vincent and
the Grenadines is lacking, as there are no formal government structures
to identify it or NGOs to address human trafficking specifically. According
to NGOs and officials, there exists a social taboo of discussing the
matter openly. Nevertheless, a consensus has developed between
officials and NGOs that a population of persons at high risk of trafficking
exists, notably children and adults working in agriculture including
marijuana fields, women in prostitution, and children engaging in sex with
men for basics such as food, transportation, or material goods.
Vincentian officials have raised concerns regarding foreign women in
prostitution transiting through the country without possession of their
passports. One local observer expressed concern regarding harsh
working conditions endured by some foreign workers, including one
group from Nepal, in the past.
The Government of St. Vincent and the Grenadines does not fully
comply with the minimum standards for the elimination of trafficking;
however, it is making significant efforts to do so. While capacity to
address human trafficking is limited due to the country’s small size, the
government demonstrated hardly any evidence of efforts to investigate
and prosecute trafficking crimes and to ensure that victims of trafficking
receive access to protective services; therefore, St. Vincent and the
Grenadines is placed on Tier 2 Watch list for a third consecutive year.
St. Vincent and the Grenadines was not placed on Tier 3 per Section
107 of the 2008 Trafficking Victims Protection Reauthorization Act,
however, as the government has a written plan that, if implemented,
would constitute making significant efforts to bring itself into compliance
with the minimum standards for the elimination of trafficking and is
devoting sufficient resources to implement that plan.
For full report click here
_________________________________________________________
US State Dept Terrorism Report 2009
No report available
_________________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
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 St. Vincent and the Grenadines is drafting a
National Drug Plan with assistance from the Organization of American
States. The government has set up a new Forensic Drug Laboratory in
Kingstown. The Financial Intelligence Unit works closely with the
narcotics unit in the police department. Recently, the police established
a Rapid Response Unit (RRU) to target drug and firearms offenses.
A narcotics unit targets major traffickers. Significant developments
during 2011 included the arrest of a trafficker with four kg of cocaine and
money laundering charges against a previously identified target. The
narcotics unit, the RRU and Coast Guard jointly perform maritime
interdiction operations with new domain awareness gained from the use
of two radar sites installed in 2010. The radar system has improved
operational effectiveness, according to government officials.
No new drug enforcement-related legislation passed or was pending in
2011. No laws require specific record keeping on the importation of
pseudoephredrine, ephedrine and pharmaceutical products containing
those two chemicals.
The Government of St. Vincent and the Grenadines is a party to the
three UN Drug Conventions. On October 29, 2010, it became a party to
the UN Convention against Transnational Organized Crime and its three
Protocols. It is a party to the Inter-American Convention Against
Corruption, and has signed but not ratified the Inter-American Firearms
Convention, the Inter-American Convention Against Terrorism, and the
Inter-American Convention Against Transnational Organized Crime.
Lastly, the Government of St. Vincent and the Grenadines has a limited
maritime counterdrug bilateral agreement, an extradition treaty and a
Mutual Legal Assistance Treaty in force with the U.S.
The archipelagic nation continues to be the source for the majority of
cannabis in the region. According to officials, marijuana producers have
recently started labeling their product for export. Police have also
observed a trend of younger nationals entering the trade.
Regional trade has also increased with Trinidad and Tobago sending
drugs and guns in exchange for cannabis. Officials describe a “marked
increase” in remittance flows. According to local officials, St. Vincent has
over 300 acres under marijuana cultivation. During 2011, government
officials encountered no drug laboratories, yet eradicated 70 acres of
marijuana, destroyed 1,696,021 plants and seized 10.2 MT of cannabis,
39 kg of cocaine and 180 cocaine rocks.
During 2011, Government of St. Vincent and the Grenadines authorities
reported 522 drug related prosecutions, 322 convictions, and 432
persons arrested for drug offenses. Police officials say they need more
vehicles, equipment, training and logistical support for their operations to
be effective. Narcotics play a major role in the economy, causing a
dependence on cannabis in large population segments. The government
officials have stated they cannot combat the long terms effects of the
drug trade solely through enforcement.
DARE programs are employed in schools, but does not have
rehabilitation clinics. Officials estimate 30% of domestic drug abusers
use cannabis while 2% use cocaine.
For Full report, click here
_________________________________________________________
US State Dept Trafficking in Persons Report 2011 (introduction):
(Tier 2 Watch List)
St. Vincent and the Grenadines is a likely source, transit, and destination
country for some children and adults subjected to forced labor and sex
trafficking. Sufficient information on human trafficking in St. Vincent and
the Grenadines is lacking, as there are no formal government structures
to identify it or NGOs to address human trafficking specifically. According
to NGOs and officials, there exists a social taboo of discussing the
matter openly. Nevertheless, a consensus has developed between
officials and NGOs that a population of persons at high risk of trafficking
exists, notably children and adults working in agriculture including
marijuana fields, women in prostitution, and children engaging in sex with
men for basics such as food, transportation, or material goods.
Vincentian officials have raised concerns regarding foreign women in
prostitution transiting through the country without possession of their
passports. One local observer expressed concern regarding harsh
working conditions endured by some foreign workers, including one
group from Nepal, in the past.
The Government of St. Vincent and the Grenadines does not fully
comply with the minimum standards for the elimination of trafficking;
however, it is making significant efforts to do so. While capacity to
address human trafficking is limited due to the country’s small size, the
government demonstrated hardly any evidence of efforts to investigate
and prosecute trafficking crimes and to ensure that victims of trafficking
receive access to protective services; therefore, St. Vincent and the
Grenadines is placed on Tier 2 Watch list for a third consecutive year.
St. Vincent and the Grenadines was not placed on Tier 3 per Section
107 of the 2008 Trafficking Victims Protection Reauthorization Act,
however, as the government has a written plan that, if implemented,
would constitute making significant efforts to bring itself into compliance
with the minimum standards for the elimination of trafficking and is
devoting sufficient resources to implement that plan.
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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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. Vincent and the Grenadines (SVG) is a small but active
offshore financial center with a relatively large number of
international business companies (IBCs). The country remains
vulnerable to money laundering and other financial crimes as a
result of drug trafficking and its offshore financial sector. Money
laundering is principally affiliated with the production and
trafficking of marijuana in SVG, as well as the trafficking of other
narcotics from South America. Money laundering occurs in
various financial institutions such as domestic and offshore banks
and money remitters. There has been a slight increase in fraud
and the use of counterfeit instruments over the last year, such as
tendering counterfeit checks or cash.
St. Vincent and the Grenadines 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 Lucia, and St Kitts and Nevis. 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.
The offshore sector includes four offshore banks, 9,601 IBCs,
eight offshore insurance companies, 103 mutual funds, 23
registered agents, and 119 international trusts. There are no
offshore casinos, and no Internet gaming licenses have been
issued. No physical presence is required for offshore sector
entities and businesses, with the exception of offshore banks.
Nominee directors are not mandatory except when an IBC is
formed to carry on banking business. Bearer shares are permitted
for IBCs but not for banks. The Government of St. Vincent and the
Grenadines (GOSVG) requires registration and custody of bearer
share certificates by a registered agent who must also keep a
record of each bearer certificate issued or deposited in its
custody. The Offshore Finance Inspector has the ability to access
the name or title of a customer account and confidential
information about a customer that is in possession of a license.
There are no free trade zones in SVG.
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 institution: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, agricultural credit institutions, money
exchangers, gaming centers, securities dealers, lawyers, notaries,
accountants, company and trust services providers (registered
agents and trustees), real estate agents, jewelers, lottery agents
and car dealers
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Domestic and offshore banks, money remitters,
insurance companies, credit unions, trust service providers,
customs and notaries, gaming centers, securities dealers,
lawyers, notaries, accountants, company and trust services
providers (registered agents and trustees), real estate agents,
jewelers, lottery agents and car dealers
Number of STRs received and time frame: 412, January to
October 2010
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Three
Convictions: None
Assets forfeited: criminally: None civilly: Not applicable
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
St. Vincent and the Grenadines 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_Vincent_&_the_Grenadines_3rd_Ro
und_MER_(Final)_English.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Government of St. Vincent and the Grenadines (GOSVG)
has been cooperative with regard to international investigations,
including a recent high-profile case involving an American
financier.
The GOSVG should strengthen its AML/CFT regime by ensuring
the FIU has access to all necessary information. It should also
pursue proper reporting from designated non-financial
businesses and professions (DNFBPs) and increased SARs from
entities that seem to be under-reporting, including offshore banks,
mutual funds, insurance companies and lawyers. Additional due
diligence should be required for politically exposed persons
(PEPs) and correspondent banking relationships. The GOSVG
should insist the beneficial owners of IBCs are known and listed in
a registry available to law enforcement, immobilize all bearer
shares, and properly supervise and regulate all aspects of its
offshore sector. The GOSVG should continue to provide training
and devote resources to increase the cooperation among its
regulatory, law enforcement, and FIU personnel in AML/CFT
operations and investigations. Passage of civil forfeiture
legislation and broader use of special investigative techniques
should be pursued to strengthen the government’s AML efforts.
St. Vincent and the Grenadines should also become a party to the
UN Convention against Transnational Organized Crime and the
UN Convention against Corruption.
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. Vincent and the Grenadines (SVG) is a small but active
offshore financial center with a relatively large number of
international business companies (IBCs). The country remains
vulnerable to money laundering and other financial crimes as a
result of drug trafficking and its offshore financial sector. Money
laundering is principally affiliated with the production and
trafficking of marijuana in SVG, as well as the trafficking of other
narcotics from South America. Money laundering occurs in
various financial institutions such as domestic and offshore banks
and money remitters. There has been a slight increase in fraud
and the use of counterfeit instruments over the last year, such as
tendering counterfeit checks or cash.
St. Vincent and the Grenadines 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 Lucia, and St Kitts and Nevis. 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.
The offshore sector includes four offshore banks, 9,601 IBCs,
eight offshore insurance companies, 103 mutual funds, 23
registered agents, and 119 international trusts. There are no
offshore casinos, and no Internet gaming licenses have been
issued. No physical presence is required for offshore sector
entities and businesses, with the exception of offshore banks.
Nominee directors are not mandatory except when an IBC is
formed to carry on banking business. Bearer shares are permitted
for IBCs but not for banks. The Government of St. Vincent and the
Grenadines (GOSVG) requires registration and custody of bearer
share certificates by a registered agent who must also keep a
record of each bearer certificate issued or deposited in its
custody. The Offshore Finance Inspector has the ability to access
the name or title of a customer account and confidential
information about a customer that is in possession of a license.
There are no free trade zones in SVG.
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 institution: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, agricultural credit institutions, money
exchangers, gaming centers, securities dealers, lawyers, notaries,
accountants, company and trust services providers (registered
agents and trustees), real estate agents, jewelers, lottery agents
and car dealers
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Domestic and offshore banks, money remitters,
insurance companies, credit unions, trust service providers,
customs and notaries, gaming centers, securities dealers,
lawyers, notaries, accountants, company and trust services
providers (registered agents and trustees), real estate agents,
jewelers, lottery agents and car dealers
Number of STRs received and time frame: 412, January to
October 2010
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Three
Convictions: None
Assets forfeited: criminally: None civilly: Not applicable
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
St. Vincent and the Grenadines 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_Vincent_&_the_Grenadines_3rd_Ro
und_MER_(Final)_English.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Government of St. Vincent and the Grenadines (GOSVG)
has been cooperative with regard to international investigations,
including a recent high-profile case involving an American
financier.
The GOSVG should strengthen its AML/CFT regime by ensuring
the FIU has access to all necessary information. It should also
pursue proper reporting from designated non-financial
businesses and professions (DNFBPs) and increased SARs from
entities that seem to be under-reporting, including offshore banks,
mutual funds, insurance companies and lawyers. Additional due
diligence should be required for politically exposed persons
(PEPs) and correspondent banking relationships. The GOSVG
should insist the beneficial owners of IBCs are known and listed in
a registry available to law enforcement, immobilize all bearer
shares, and properly supervise and regulate all aspects of its
offshore sector. The GOSVG should continue to provide training
and devote resources to increase the cooperation among its
regulatory, law enforcement, and FIU personnel in AML/CFT
operations and investigations. Passage of civil forfeiture
legislation and broader use of special investigative techniques
should be pursued to strengthen the government’s AML efforts.
St. Vincent and the Grenadines should also become a party to the
UN Convention against Transnational Organized Crime and the
UN Convention against Corruption.
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| ST VINCENT & GRENADINES |
| KnowYourCountry |
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| Last Updated: 16 April 2012 |