Antigua responds to FATF
Tuesday April 19 2011 | 02:08 AM

The director of the Office of National Drug and Money Laundering Control Policy has issued a response to the Financial Action Task Force (FATF)-issued notice in February about Antigua & Barbuda's susceptibility to money laundering because of inadequate progress in countering it.

In the following statement, Lt Col Edward Croft explains what the advisory means, and outlines what steps are being taken to address those issues. The release said as follows:

On 25 February 2011 the Financial Action Task Force (FATF) issued a money laundering advisory to protect the international financial system from the risk of money laundering and the financing of terrorism and to encourage compliance with international standards for countering money laundering and the financing of terrorism. A part of the advisory makes reference to Antigua and Barbuda.

To properly understand the reference to Antigua and Barbuda in the advisory it is important to understand that the FATF advisory is a three-tiered notification system:

•    Group 1 relates to jurisdictions subject to a call for member states to apply countermeasures to protect the international financing system from the ongoing and substantial money laundering and terrorist financing risks emanating from the jurisdictions with strategic AML/CFT deficiencies that have not committed to an action plan to address the key deficiencies.

•    Group 2 relates to jurisdiction that have committed to an action plan to address key deficiencies but which are not making sufficient progress on their action plans.

•    Group 3 relates to jurisdictions that have committed to an action plan to address key deficiencies and that are making progress but who have a few remaining deficiencies.

It is into Group 3 that Antigua and Barbuda have been placed by the FATF. This means that the FATF is satisfied that Antigua and Barbuda has made a high-level political commitment to addressing key deficiencies in its regime for countering money laundering and the financing of terrorism but that there remain a few issues that need to be dealt with in order for the jurisdiction to become fully compliant.

The major areas of concern to the FATF in Antigua and Barbuda’s system for countering money laundering and the financing of terrorism are:

1.    That the Banking Act should be amended to give the Eastern Caribbean Central Bank the power to approve changes in directors, management or significant shareholder of a licensed financial institution. However, Antigua and Barbuda has already explained to the FATF that the Banking Act is legislation that is part of a harmonized multilateral agreement between the OECS countries and that Antigua and Barbuda cannot unilaterally change the Act to bring about these amendments.

2.    That registered insurers should be required to obtain the approval of the Superintendent of Insurance for changes in shareholding, directorship or management. This amendment is presently before Parliament for debate.

3.    That the Supervisor of Cooperative Societies should be required to use fit and proper criteria in assessing Board members. Here also, the necessary amendments are before Parliament for their consideration.

4.    The Office of National Drug and Money Laundering Control Policy (ONDCP) should be given adequate resources to allow them to undertake appropriate AML/CFT supervisory examinations. In the 2011 budget, the government made financial provisions for additional resources for that purpose and the Cabinet is now considering the implementation of the requirement.

5.    That there should be implementation of the consultant’s report for streamlining the organizational structure of the Financial Services Regulatory Commission. Implementation by the government of the report has already commenced and the restructuring of the organization is an ongoing work in progress.

These are the outstanding issues relating to key deficiencies with which the FATF has concerns. Action is being taken by the government and relevant authorities to dispose of these concerns in the near future.