FATF Status

St Lucia 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. Lucia in improving its AML/CFT regime and notes that St. Lucia 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. Lucia is therefore no longer subject to the CFATF ICRG monitoring process.

Additionally, it is noted that under the CFATF follow-up process, since the adoption of its 2008 Mutual Evaluation Report, St. Lucia has developed and executed a reform agenda that has resulted in the great majority of Recommendations being fully resolved. Therefore, St. Lucia was removed from the CFATF follow-up process at the May 2013 Plenary in Managua, Nicaragua.

The May 2013 follow-up report (7th Follow-Up Report) for St. Lucia contains a detailed description and analysis of the actions taken by St. Lucia to rectify the deficiencies identified in respect of the Core and Key Recommendations rated PC or NC in their 2008 mutual evaluation report.”

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in St Lucia was undertaken in 2023. According to that Evaluation, St Lucia was deemed Compliant for 14 and Largely Compliant for 16 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. Lucia is categorised by the US State Department as a Country/Jurisdiction of Primary Concern in respect of Money Laundering and Financial Crimes.

Overview

Saint Lucia’s main source of revenue is tourism.  Its location in the Eastern Caribbean, proximate to other Caribbean nations and South America, make it a transshipment point for illegal drugs and cash.  Saint Lucia has made some progress on its anti-money laundering/combating the financing of terrorism (AML/CFT) regime.   

Saint Lucia’s Financial Services Regulatory Authority (FSRA) lists the following regulated entities on its website:  26 insurance companies, 17 credit unions, 11 international banks, 33 international insurance companies, 30 pension plans, and 14 money service businesses.  As of September 2019, there were 11 mutual funds operated by three funds managers with total assets of $267.4 million, 3,762 active international business companies (IBCs), and 50 active international trusts incorporated on Saint Lucia.  

The Eastern Caribbean Central Bank (ECCB) regulates onshore commercial banks in Saint Lucia.  As of April 2021, the ECCB began a yearlong pilot program developing “DCash,” the first such blockchain-based currency introduced by any of the world’s currency unions.  Saint Lucia is one of the four pilot jurisdictions.

EU Tax Blacklist

Saint Lucia was removed from the EU Tax Blacklist and placed on the Grey List on 13 March 2018..

Rating                                                                           (100-Good / 0-Bad)

Transparency International Corruption Index                           55

World Governance Indicator – Control of Corruption             71

Saint Lucia is a member of the Organization of Eastern Caribbean States (OECS) and the Eastern Caribbean Currency Union (ECCU). Saint Lucia had an estimated Gross Domestic Product (GDP) of $1.69 billion in 2021 according to the latest figures obtained from the World Bank. The Eastern Caribbean Central Bank (ECCB) did not produce any figures for Saint Lucia in the reporting period. Tourism is Saint Lucia’s main economic sector, while real estate and call centers are other leading sectors. Like most of the Eastern Caribbean, the country continues to grapple with supply-chain delays and surging consumer food and fuel prices exacerbated by Russia’s war on Ukraine. As of May 2023, the International Monetary Fund (IMF) forecast the Saint Lucian economy to grow by 3.0% by the end of 2023.

The government remains committed to creating a welcoming and open business climate to attract more foreign investment in all sectors to the country. The government is prioritizing investment in key areas of tourism, real estate development, manufacturing and agro-processing, and
global business outsourcing.

The Government of Saint Lucia provides several incentives to encourage domestic and foreign private investment. For example, foreign investors in Saint Lucia can repatriate all profits, dividends, and import capital.

The Saint Lucia legal system is based on the British common law system, but its civil code and property law are greatly influenced by French law. Saint Lucia does not have a bilateral investment treaty with the United States but has bilateral investment treaties with Germany and the UK. Saint Lucia recently became the sixth member of the Caribbean Community (CARICOM) to become a full member of the Caribbean Court of Justice (CCJ), making the CCJ its final court of appeal.

In 2014, the Government of Saint Lucia signed an Intergovernmental Agreement in observance of the U.S. Foreign Account Tax Compliance Act (FATCA), making it mandatory for banks in Saint Lucia to report the banking information of U.S. citizens.

Country Links

Financial Intelligence Authority (FIA-St. Lucia)

Eastern Caribbean Central Bank