St Kitts & Nevis Country Summary

FATF Status

Saint Kitts & Nevis 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 St Kitts and Nevis was undertaken in 2022. According to that Evaluation, St Kitts and Nevis was deemed Compliant for 11 and Largely Compliant for 15 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratin

St. Kitts and Nevis faces challenges related to crime and corruption, despite recent legislative efforts aimed at improving governance and accountability. The country serves as a transit point for various criminal activities, including drug trafficking and human trafficking, while its financial sector is susceptible to tax evasion and money laundering due to strong bank-secrecy laws and limited transparency.

The economy of Saint Kitts and Nevis, a member of the OECS and ECCU, is projected to grow positively in 2024, with an estimated GDP of $1.13 billion and a growth rate of 4.7%, largely driven by the tourism sector and renewable energy initiatives. The government actively promotes foreign direct investment (FDI) across various sectors, including agriculture, tourism, and renewable energy, offering incentives such as tax holidays and profit repatriation to attract investors. Despite external vulnerabilities, the country maintains a stable economic environment supported by a transparent legal framework and a commitment to fostering a conducive business climate, although challenges remain in areas such as environmental sustainability and regulatory enforcement.