St Maarten Country Summary

FATF Status

Sint Maarten is not on the FATF List of Countries that have been identified as having strategic AML deficiencies however, in November 2019, the CFATF made the following Public Statement on Sint Maarten: -

In December 2020, the CFATF LI Plenary recognised that Sint Maarten has made significant progress in addressing the deficiencies identified in its 2013 Mutual Evaluation Report; therefore, Sint Maarten has exited the 3rd Round Follow-Up Process.

Sint Maarten’s 12th Follow-Up Report, which was presented at the November-December 2020 Virtual Plenary contains a detailed description and analysis of the actions taken by Sint Maarten to rectify the deficiencies identified in respect of the Core and Key Recommendations rated PC or NC, as was well as a summary of progress in other recommendations that received low ratings in the 2013 Mutual Evaluation Report.

The CFATF encourages Sint Maarten to continue its progress towards strengthening its AML/CFT framework and ensuring that it is fully prepared for the 4th Round of Mutual Evaluations.

Compliance with FATF Recommendations

It should be noted that the new style FATF Mutual Evaluation has not yet been undertaken.

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Sint Maarten was undertaken in 2016. According to that Evaluation, Sint Maarten was deemed Compliant for 7 and Largely Compliant for 9 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for 5 of the 6 Core Recommendations.

The state of crime and corruption in St. Maarten presents significant challenges, with concerns about the effectiveness of law enforcement and the judicial system. Despite these issues, the community demonstrates resilience, actively engaging in efforts to combat crime and promote transparency within local governance.

Sint Maarten's economy is predominantly driven by tourism, which accounts for approximately 80% of employment and plays a crucial role in the island's GDP. Despite facing significant challenges from natural disasters like hurricanes and the impacts of the COVID-19 pandemic, the economy has shown resilience, with a balanced trade scenario reflected in 2023 export estimates of $1.504 billion against imports of $1.489 billion. The investment climate remains attractive for sectors related to hospitality, bolstered by the absence of property taxation, although investor caution persists due to the potential risks associated with natural disasters.