FATF Status

Saint Kitts & Nevis is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

In May 2014, The CFATF acknowledged “the significant progress made by St. Kitts and Nevis in improving its AML/CFT regime and notes that St. Kitts and Nevis has established the legal and regulatory framework to meet its commitments in its agreed Action Plan regarding the strategic deficiencies that the CFATF had identified. St. Kitts and Nevis is therefore no longer subject to the CFATF ICRG monitoring process.”

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in St. Kitts and Nevis was undertaken in December 2021. According to that Evaluation, St. Kitts and Nevis was deemed Compliant for 11 and Largely Compliant for 15 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 0 of the Effectiveness  & Technical Compliance ratings.

US Department of State Money Laundering assessment (INCSR)

St. Kitts and Nevis is categorised by the US State Department as a Country/Jurisdiction of Primary Concern in respect of Money Laundering and Financial Crimes.

Overview

Saint Kitts and Nevis is a federation composed of two islands in the Eastern Caribbean.  Its economy is reliant on tourism, a citizenship by investment (CBI) program, and offshore banking.  Saint Kitts and Nevis continues to strengthen its anti-money laundering/combating the financing of terrorism (AML/CFT) regime.  It is a member of the Eastern Caribbean Central Bank (ECCB), which serves as the country’s central bank and monetary authority.

The Financial Services Regulatory Commission (FSRC) licenses and supervises entities that provide fiduciary and business services in the areas of international company registration, formation of trusts, establishment of multiform foundations, international insurance, money services, and international banking.       

The Customs and Excise Department (CED) is responsible for regulating the entry of vessels, aircraft, and goods including currency, bearer negotiable instruments, and precious metals.   

EU Tax Blacklist

St Kitts & Nevis was removed from the EU Tax Blacklist on 25 May 2018

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           N/A

World Governance Indicator – Control of Corruption              65

The Federation of Saint Christopher and Nevis (Saint Kitts and Nevis) is a member of the Organization of Eastern Caribbean States (OECS) and the Eastern Caribbean Currency Union (ECCU). The government seeks to facilitate a conducive business climate to attract more foreign investment. Saint Kitts and Nevis remains vulnerable to external shocks such as climate change impacts, natural disasters, and global economic downturns.

According to Eastern Caribbean Central Bank (ECCB) figures, the economy of Saint Kitts and Nevis had an estimated GDP of $979.2 million (2.64 billion Eastern Caribbean dollars) in 2022, showing signs of post-Covid economic recovery. Like most of the Eastern Caribbean, the country continues to grapple with recovery from COVID-19, supply-chain issues, and rising food and fuel prices associated with Russia’s war on Ukraine. As of May 2023, the International Monetary Fund (IMF) forecast that the economy will grow by 4.5% in 2023.

The tourism sector is showing signs of recovery from the COVID-19 pandemic. The impact of the pandemic on tourism, a mainstay of Saint Kitts and Nevis’s economy that generates over 60 percent of GDP, has had ripple effects across the economy.

Saint Kitts and Nevis has identified priority sectors for investment. These include food security, green energy transition, economic diversification, sustainable industries, creative economy, COVID-19 recovery, social protection, financial services, tourism, real estate, agriculture, information technology, education services, renewable energy, and limited light manufacturing.

The government provides some investment incentives for businesses that are considering establishing operations in Saint Kitts or Nevis, encouraging both domestic and foreign private investment. Foreign investors can repatriate all profits, dividends, and import capital.

The country’s legal system is based on British common law. It does not have a bilateral investment treaty with the United States. It has a Double Taxation Agreement with the United States, although the agreement only addresses social security benefits.

In 2016, Saint Kitts and Nevis signed an Intergovernmental Agreement in observance of the U.S. Foreign Account Tax Compliance Act (FATCA), making it mandatory for banks in Saint and Nevis to report banking information of U.S. citizens.

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Country Links

Financial Intelligence Unit St. Kitts and Nevis (FIU-SKN)​

Eastern Caribbean Central Bank