FATF AML Deficiency List
US Dept of State Money Laundering assessment
Non - Compliance with FATF MER Recommendations
Offshore Finance Center
Weakness in Government Legislation to combat Money Laundering
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 Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in St Lucia was undertaken in 2021. According to that Evaluation, St Lucia was deemed Compliant for 1 and Largely Compliant for 9 of the FATF 40 Recommendations. It was deemed 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.
St. Lucia’s main sources of revenue are tourism and the offshore banking sector. St. Lucia is progressing with its AML regime
EU Tax Blacklist
Saint Lucia was removed from the EU Tax Blacklist and placed on the Grey List on 13 March 2018..
There are no international sanctions currently in force against this country.
BRIBERY & CORRUPTION
Rating (100-Good / 0-Bad)
Transparency International Corruption Index 56
World Governance Indicator – Control of Corruption 69
The island nation has been able to attract foreign business and investment, especially in its offshore banking and tourism industries. Tourism is Saint Lucia's main source of jobs and income - accounting for 65% of GDP - and the island's main source of foreign exchange earnings. The manufacturing sector is the most diverse in the Eastern Caribbean area. Crops such as bananas, mangos, and avocados continue to be grown for export, but St. Lucia's once solid banana industry has been devastated by strong competition.
Saint Lucia is vulnerable to a variety of external shocks, including volatile tourism receipts, natural disasters, and dependence on foreign oil. Furthermore, high public debt - 77% of GDP in 2012 - and high debt servicing obligations constrain the ANTHONY administration's ability to respond to adverse external shocks.
St. Lucia has experienced anaemic growth since the onset of the global financial crisis in 2008, largely because of a slowdown in tourism - airlines cut back on their routes to St. Lucia in 2012. Also, St. Lucia introduced a value added tax in 2012 of 15%, becoming the last country in the Eastern Caribbean to do so. In 2013, the government introduced a National Competitiveness and Productivity Council to address St. Lucia's high public wages and lack of productivity.
Agriculture - products:
bananas, coconuts, vegetables, citrus, root crops, cocoa
tourism; clothing, assembly of electronic components, beverages, corrugated cardboard boxes, lime processing, coconut processing
Exports - commodities:
bananas 41%, clothing, cocoa, avocados, mangoes, coconut oil (2010 est.)
Exports - partners:
Dominican Republic 25.1%, US 15.9%, Suriname 9.1%, Antigua and Barbuda 7%, Dominica 6.8%, Trinidad and Tobago 6.3%, Barbados 6.1%, UK 4.8%, Grenada 4.6% (2015)
Imports - commodities:
food, manufactured goods, machinery and transportation equipment, chemicals, fuels
Imports - partners:
Brazil 34.9%, US 25.7%, Trinidad and Tobago 14.4%, Colombia 10.9% (2015)
Investment Climate - US State Department
Saint Lucia is a member of the Organization of Eastern Caribbean States (OECS), the Eastern Caribbean Currency Union (ECCU) and the Eastern Caribbean Central Bank (ECCB). Saint Lucia is seen as one of the more developed economies in the Eastern Caribbean with an estimated Gross Domestic Product (GDP) of USD $1.13 billion. According to ECCB, Saint Lucia’s economy is projected to grow by 2.35% in 2016. The island nation attracts foreign business and investment, especially in its offshore banking and tourism industries. Tourism is the main economic sector; accounting for about 20% of jobs in the workforce. Saint Lucia is ranked 77th in the World Bank’s Doing Business Report for 2016.
The Government of Saint Lucia strongly encourages foreign direct investment, particularly tourism and hotel development, information and communication technology (ICT), manufacturing, international financial services, agro business and creative industries.
Companies registered in Saint Lucia have the right to repatriate all capital, royalties, dividends and profits free of all government taxes or any other charges on foreign exchange transactions. There are no exchange controls, capital gains and bank interest taxes in Saint Lucia and the invoicing of foreign trade transactions may be made in any currency.
Saint Lucia is a member of to the World Trade Organization (WTO). The WTO Dispute Settlement Panel and Appellate Body resolve disputes over WTO agreements, while courts of appropriate jurisdiction resolve private disputes.
Local enterprises generally welcome joint ventures with foreign investors in order to access technology, expertise, markets, and capital.
There are no laws mandating local ownership in specified sectors. There is one ongoing dispute regarding expropriation of an American-owned property.
Saint Lucia has no bilateral investment treaty with the United States. Saint Lucia has a bilateral investment treaty with the United Kingdom and with Germany.
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