Published 22 March 2018
Buckie Got It, St. Kitts and Nevis News Source
by: Media Source
US State Department tells PM Timothy Harris stop give lip service to transparency and accountability
Washington, D.C., March 21, 2018 – The United States Department of State has told St. Kitts and Nevis’ Prime Minister Dr. the Hon. Timothy Harris he needs to focus on transparency and accountability.
The failure of Dr. Harris to determine the exact number of gaming companies on St. Kitts and Nevis and the required oversight as well as the failure to provide law enforcement the authority to conduct an investigation based on a foreign request for assistance in money laundering matters were among the deficiencies identified in the 2018 International Narcotics Strategy Report released Tuesday.
“The Government should focus on addressing noted deficiencies. St. Kitts and Nevis must work toward transparency and accountability in financial regulation. Specifically, it must precisely determine the exact number of internet gaming companies present on the islands and conduct the necessary oversight of these entities. The government should ensure all relevant entities covered under the AML laws and regulations are subject to sanctions that are proportionate and dissuasive,” the report said.
The Report from the United States Department of State said the AML legislation is at the federation level and covers both St. Kitts and Nevis. It pointed out that each island has the authority to organize its own financial structure and procedures.
“St. Kitts has acts governing companies, limited partnerships, foundations, and trusts that are registered in St. Kitts. Nevis has ordinances that govern corporations, limited liability companies, trusts, and multiform foundations. Most of the offshore financial activity is concentrated in Nevis,” said the report.
The Eastern Caribbean Central Bank (ECCB) has responsibility for regulating and supervising the St. Kitts and Nevis domestic sector. Offshore banks, which are supervised by the Financial Services Regulatory Commission (FSRC), are required to have a physical presence in the federation; shell banks are not permitted,” said the Report.
It stated that the regulated entities supervised by the St. Kitts Branch of the FSRC are two insurance managers, 53 trust and corporate service providers, 15 domestic insurance companies, 11 money services businesses, four credit unions, and one development bank.
The Nevis Branch of the FSRC regulates 17 insurance managers, one international bank, 56 registered agents/service providers, three international insurance brokers, and 292 international insurance companies. There is no recent information on the number of IBCs, limited liability companies, or trusts.
Nevis can form an IBC in less than 24 hours, and bearer shares are allowed, though “discouraged.” Internet gaming entities must apply for a license as an IBC.
St. Kitts and Nevis did not report passage of new enforcement legislation in 2017, and there have been no money laundering prosecutions or convictions since 2015.
“St. Kitts and Nevis authorities indicated they assisted foreign jurisdictions in pursuing money laundering investigations and in the identification of possible proceeds of crime. However, there should be more specific guidelines to provide law enforcement the authority to conduct an investigation based on a foreign request for assistance.
“St. Kitts and Nevis’ legislation incorporates provisions for civil penalties; however, they continue to be applied in an unreliable manner and do not apply to all pertinent financial sectors.
Photo 1- U.S. Department of State
Photo 2 – Dr. Timothy Harris
