Saint Lucia is pleased to announce the completion of its 2022 Money Laundering (ML) and Terrorist Financing (TF) National Risk Assessment (NRA) utilizing the World Bank Tool in accordance with Financial Action Task Force (FATF) Recommendation 1 “Assessing Risks and Applying a Risk Based Approach”. The NRA forms a critical part of Saint Lucia’s effective application of its risk-based program in the fight against money laundering and terrorist financing risk. The risk assessment allows the country to identify, assess and understand the extent to which it is exposed to money laundering and terrorist financing risk and implement measures to treat with the risks identified. This is the second time in which Saint Lucia has conducted a NRA, having completed the first NRA in 2019. The country has taken a proactive approach towards the identification of money laundering and terrorist financing risks, given the dynamic risk environment that it continues to operate within.
The completion of the risk assessment was a collaborative one, with engagement from key stakeholders from both the public and private sectors, including the Financial Intelligence Authority (FIA), Customs and Excise Department, the Royal Saint Lucia Police Force, Office of the Director of Public Prosecutions, Inland Revenue Department, the Financial Services Regulatory Authority, the Eastern Caribbean Central Bank (ECCB), representatives from the Non-Profit Organizations (NPO) sector, the Bar Association of Saint Lucia and the Institute of Chartered Accountants (Saint Lucia). The coordination and execution of Saint Lucia’s AML/CFT program is led by the Attorney General’s Chambers through the National Anti-Money Laundering Oversight Committee (NAMLOC).
The overall money laundering risk to Saint Lucia was assessed as medium. The overall terrorist financing risk was assessed as medium low. Each sector was assigned a specific risk rating between high to low. This includes, to name a few, the commercial banks sector which was assessed as medium, and securities and NPOs which were assessed as low. Relevant stakeholders are invited to contact the Competent Authorities for more information about the assessment and the rating process for the different sectors.
Further to the completion of the NRA, NAMLOC developed an action plan to address any identified gaps in its framework and enhance controls to mitigate the risks. Accordingly, Saint Lucia instituted an aggressive legislative agenda, to ensure that our jurisdiction will not be utilized as a conduit to facilitate illicit activity and ensure a high level of compliance with the international standards as laid out by the Financial Action Task Force. The following are some notable legislative amendments:
Amendments to the Money Laundering Prevention Act (MLPA) and Regulations- Amendments to the Act were primarily to strengthen the powers of the ECCB and the FIA, and increase the sanctions for non-compliance with the provisions of the Act.
Amendments to the Anti-Terrorism Act (ATA)- Amendments to the ATA addressed the deficiencies highlighted under FATF Recommendation 6. The amendments addressed, inter alia, the financing of travel of individuals for engaging in matters related to TF and increase penalties for non-compliance with the Act’s provisions.
Amendments to the United Nations Sanctions (Counter-Proliferation Financing) Act- The amendments were made to the Act to satisfy FATF Recommendation 7. These amendments included the communication of de-listings and unfreezings to financial institutions and supervised entities, and monitor entities’ or person’s compliance with their relevant obligations under the Act.
Amendment to the Proceeds of Crime Act- The Act was amended to include expanded means through which proceeds of crime may be recovered, inclusive of Civil Recovery.
Amendment to the Mutual Assistance in Criminal Matters Act (MACMA) – Amendments were made to enhancing the scope of the MACMA to afford the broadest range of mutual legal assistance in criminal matters.
Enactment of the Credit Reporting Act- The Act enhances the ability of financial institutions to conduct more efficient due diligence.
Enactment of the Registration of Supervised Entities Act- The Act facilitates the registration of persons engaged in business activities which pose a risk to ML and other criminal conduct.
Enactment of the Virtual Assets Business Act- The Act provides of the regulation and supervision of virtual assets business which operate in Saint Lucia, and to prevent misuse of the sector for money-laundering and terrorist financing.
Saint Lucia has applied for re-rating of twenty-two FATF Recommendations which were partially compliant and non-compliant including Recommendation 2 “National cooperation and coordination”, Recommendation 11 “Customer due diligence”, Recommendation 12 “Politically exposed persons”, Recommendation 22 “Designated non-financial businesses and professions (DNFBPs): customer due diligence” and Recommendation 23 “DNFBPs: other measures”. This re-rating will be discussed at the upcoming November 2023 Caribbean Financial Action Task Force (CFATF) plenary.