FATF AML Deficiency List
Offshore Finance Center
Non - Compliance with FATF MER Recommendations
Weakness in Government Legislation to combat Money Laundering
Montserrat is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Montserrat was undertaken by the Financial Action Task Force (FATF) in 2011. According to that Evaluation, Montserrat was deemed Compliant for 3 and Largely Compliant for 25 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for 2 of the 6 Core Recommendations.
US Department of State Money Laundering assessment (INCSR)
Montserrat was deemed a “Monitored” Jurisdiction of Concern by the US Department of State 2016 International Narcotics Control Strategy Report (INCSR). Key Findings from the report are as follows: -
Montserrat has one of the smallest financial sectors of the UK’s Caribbean Overseas Territories. Less than 5,000 people are resident on the island. Montserrat’s operating budget is largely funded by the British government and administered through the Department for International Development. Montserrat has four international banks, two domestic banks, three life insurance companies, and two institutions providing other forms of credit.
There are few offenses committed in Montserrat that generate substantial illicit profits, although there is some marijuana cultivation on the island. The low number of transactions generated in the financial sector suggests that criminal monies are not entering the mainstream economy through financial institutions.
Montserrat’s international business companies (IBCs) are required to have a locally licensed company manager as registered agent, or in the case of trusts, a locally licensed trust company with responsibility for undertaking customer due diligence procedures and monitoring AML compliance.
There are no international sanctions currently in force against this country.
BRIBERY & CORRUPTION
Rating (100-Good / 0-Bad)
Transparency International Corruption Index N/A
World Governance Indicator – Control of Corruption N/A
Severe volcanic activity, which began in July 1995, has put a damper on this small, open economy. A catastrophic eruption in June 1997 closed the airport and seaports, causing further economic and social dislocation. Two-thirds of the 12,000 inhabitants fled the island. Some began to return in 1998 but lack of housing limited the number. The agriculture sector continued to be affected by the lack of suitable land for farming and the destruction of crops.
Prospects for the economy depend largely on developments in relation to the volcanic activity and on public sector construction activity. Half of the island remains uninhabitable. In January 2013, the EU announced the disbursement of a $55.2 million aid package to Montserrat in order to boost the country's economic recovery, with a specific focus on public finance management, public sector reform, and prudent economic management.
Agriculture - products:
cabbages, carrots, cucumbers, tomatoes, onions, peppers; livestock products
tourism, rum, textiles, electronic appliances
Exports - commodities:
electronic components, plastic bags, apparel; hot peppers, limes, live plants; cattle
Imports - commodities:
machinery and transportation equipment, foodstuffs, manufactured goods, fuels, lubricants
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