Issue 30 | 17 Aug, 2019
Money Laundering and Terrorist Financing: Saint Lucia’s 4th Round Mutural Evaluation
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The Fight Against
Money 05 Laundering
Combating Money Laundering and Terrorist Financing
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n this issue of “Our Saint Lucia” we take a look at money laundering and more specifically Saint Lucia’s National Anti-Money Laundering Oversight Committee (NAMLOC) under the direction of the Attorney General Chambers and its preparatory work for the on-site visit in September.
The Caribbean Financial Action Task Force
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Money Laundering Fact Sheet
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03. Message for the Attorney General on Money Laundering and Saint Lucia’s Compliance
04. Anti-Money Laundering/Counter Financing of Terrorism/Counter Proliferation Financing in Focus
05. Combating Money Laundering and Terrorist Financing
06. Saint Lucia to Dertmine Level of Compliance in the Fight Against Money Laundering
07. Working to Fight Money Laundering and Terrorist Financing!
08. The Caribbean Financial Action Task Force 10 Advancing Efforts to Stop Criminals from Laundering their Trillions
12. Money Laundering Fact Sheet 14. News Bites 2
No longer is money laundering simply fodder of a movie script or part of the tales of mobsters and gangsters. The truth is it is a reality of common criminality, which Saint Lucia is not immune to. Money laundering, so-called after gangster Al Capone’s practice of hiding criminal proceeds in cash-only laundromats in the 1920s, is a huge and growing problem “Dirty” money (or money obtained by illegal means) is “cleaned” by passing it through layers of and businesses and using it to buy properties, businesses, jewelry, expensive cars, yachts, works of art - anything that can be sold on for new cash. The NAMLOC has been working to ensure there is greater public awareness via the use of brochures and Public Service Announcements (PSAs), and so Our Saint Lucia is another avenue for awareness as we present to you our readers a comprehensive look at anti money laundering and countering the financing of terrorist (AML/CFT) regimes.
Message from the Attorney General on Money Laundering and Saint Lucia’s Compliance
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he Constitution of Saint Lucia provides that the Attorney General is the principal Legal Advisor to the Government. The Attorney General is the Chief appointee of the State and represents Saint Lucia in legal proceedings and is usually the person named when claims are filed against the Government. Saint Lucia’s current Attorney General who was appointed by the Governor General in 2016 is the Honourable Stephen Julien. AG Julien shares his thoughts on Money Laundering with “Our Saint Lucia.” Money laundering is a global phenomenon which accounts for up to 5% of global GDP - or $2tn (£1.5tn) – according to the United Nations Office. It is a very pervasive illegal activity which touches every strata of society and is often linked to other forms of illegal activity including drugs, human trafficking, prostitution, murder, trade in arms and ammunition and funding of terrorist activity among others. Saint Lucia like the rest of the Caribbean is not immune to this scourge. To this end, Saint Lucia has revised its Money Laundering (Prevention) Act as of 2014 and is also guided by the Recommendations of the Financial Action Task Force (FATF). Twenty-five States in the Caribbean Basin,
Central and South America are members of the Caribbean Financial Action Task Force (CFATF) and are mandated to implement common countermeasures to address money laundering, terrorist financing and the financing of the proliferation of weapons of mass destruction. From September 16-27 of this year (2019) Saint Lucia will undergo its on-site visit which forms part of the 4th Round Mutual Evaluation. The evaluation examines our compliance in the fight against money laundering, terrorist financing and the financing of the proliferation of weapons of mass destruction. This on-site visit will see public and private sector stakeholders being interviewed by assessors from the CFATF. The Mutual Evaluation commenced earlier this year, when Saint Lucia received the Technical Compliance Questionnaire from the CFATF. It is critical that Saint Lucia receives a good assessment as the health of our financial sector and wellbeing of our country relies upon this. The mutual evaluation process is critical to the strength of Saint Lucia’s economy. To date, the National Anti-Money Laundering Oversight Committee (NAMLOC) continues to work assiduously towards adequately preparing stakeholders and educating the country about this process though numerous meetings, publications, infomercials, brochures and other measures.
The grave ramifications of a negative mutual evaluation should give us cause for concern, and whilst the National Anti-Money Laundering Oversight Committee is working towards a favourable assessment, the members cannot undertake this herculean task by themselves, they need the help of the citizenry. Following the mutual evaluation a report is drafted and will ultimately be presented to the Plenary in May 2020. CFATF has given the assurance that they will continue to provide assistance throughout this critical period. Rest assured, that the Government of Saint Lucia remains resolute in its support in the fight against money laundering, terrorist financing and the financing of the proliferation of weapons of mass destruction. We recognize the tremendous significance of the mutual evaluation process and the impact to the country and stand ready to continue providing the requisite support. As Saint Lucians we are a proud people who always want what is absolutely best for our country. Together, this can be accomplished. It is now incumbent upon us all to ensure that we share the information and knowledge received by NAMLOC through various media including this publication. We must remember Our Helen of the West is our treasure to protect from Pigeon Island in the North to Vieux Fort in the South, from Soufriere in the West to Dennery in the East and crime in any form should concern us all therefore, we must do what we can to stamp out all forms of illegal activity.
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A One on One with Saint Lucia’s Solicitor General, Chairperson for the National Anti-Money Laundering Oversight Committee (NAMLOC) Q. What are the functions of the Solicitor General? A. The overall responsibility of the Solicitor General is to assist
the Honourable Attorney General in the performance of his role/ duties. Consequently, the Solicitor General is responsible to represent the interest of Saint Lucia and to have conduct, assign and supervise all matters undertaken at the Office of the Attorney General.
Q. Specific to NAMLOC what is the function of the office of the Attorney General? A. Under the Money Laundering (Prevention) Act, Cap. 12.20
of the Revised Laws of Saint Lucia, the Attorney General is the designated Minister. As a result, for the purposes of compliance with the FATF 40 Recommendations, it was prudent from a national level for the Attorney General to have the overall responsibility for the work and function of the NAMLOC and prudent too that such a Unit be housed at the Office of the Attorney General.
Q. What is the purpose of NAMLOC? A. The purpose continues to be the preparation of Saint Lucia
for the Caribbean Financial Action Task Force (CFATF) Mutual Evaluations against the Financial Action Task Force (FATF) 40 Recommendations, through the education of stakeholders, policy recommendations, liaising with the public and private sectors and providing requested information and or responses to the CFATF.
Q. How serious is the issue of Money Laundering in the Caribbean and Saint Lucia? A. The issue of Money Laundering is very serious for the
Caribbean and Saint Lucia. However, we must be reminded that it is not only money laundering that we as a region need to concern ourselves with. Terrorism and terrorism financing is also a concern, and therefore the Caribbean and Saint Lucia must ensure that there are appropriate measures in place to fight this scourge. Similarly, the introduction of proliferation of weapons of mass destruction is also another concern of equal importance.
Q. For the upcoming evaluation what is Saint Lucia’s prepartory process? A. The preperation is intense and involved. While we may say
up-coming, Saint Lucia is in the evaluation process. In December 2018, we were in receipt of a Technical Compliance Questionnaire
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with respect to the 40 Recommendations. That questionnaire is detailed specific as it concerns our technical compliance, and examination of our legislative framework. It should be noted that each stage of the process is scheduled with specific dates for delivery. Involved in the process is the private sector and a demonstration of effectiveness. Saint Lucia is required to demonstrate its level of effectiveness effectiveness of the laws, policies, processes procedures. The process also involved consultations with lawyers, accountants, real estate agents, casinos, financial institutions, Departments or Ministries responsible for Education, Commerce, National Security, Finance, Commerce, Equity, Justice to name a few.
Q. What are the repercussions for the island failing the evaluation or not meeting the recommendations? A. We are reminded that the result of an evaluation is
published in a mutual evaluation report on both the CFATF website and the FATF website. Therefore, whatever the outcome of the evaluation, it becomes notice to the world. The content of the mutual evaluation report is therefore taken cognizance by all member states and by international agencies. A poor evaluation would mean that a country does not have proper systems in place to fight the scourge of money laundering and terrorism financing and is a demonstration of identified weaknesses and gaps, which a country must forthwith address. Other identified repercussions include loss of correspondent banking, loss of international funding, loss of reputation in the international sphere.
Q. What is the role of citizens in the process? A. Citizens are encouraged to have an understanding
what constitutes money laundering, terrorism financing, proliferation financing and report any instances of same. We should be reminded that ultimately, the objective is to remove the profit out of crime. Therefore any attempt to disguise profit form criminal activity is capable of being traced and the proceeds eventually forfeited. The citizens role is therefore not to engage in criminal activity and understand and appreciate the negatives of money laundering.
Combating Money Laundering and Terrorist Financing Money Laundering, Terrorist Financing and the Proliferation of Weapons of Mass Destruction. What SHOULD You Know?
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WHAT IS MONEY LAUNDERING?
oney laundering is the process by which monies and other property obtained through illegal means such as drug trafficking, murder for hire, human trafficking, robbery, tax evasion and corruption are given the appearance of being acquired through legal means. These illegally obtained proceeds are considered dirty. The process to legitimize it and make it look clean is called “laundering”. Money laundering has three stages namely: placement, layering and integration. Placement refers to the act of introducing the money obtained through illegal means or ‘dirty money’ into the financial system in some way. Layering is the use of a series of complex transactions and creative bookkeeping tricks to conceal the actual source of the funds.
Lastly, Integration refers to the act of reintegrating that money which has now been ‘laundered’ into society through legitimate means.
Terrorist Financing On the other hand financing of terrorism can come from legitimate or illegitimate sources such as one’s salary, from company profits or from donations. Illegitimate sources can be drug trafficking.
Financing of WMD The financing of the proliferation of weapons of mass destruction (WMD) is also another area of great concern. It has been identified that traditionally financing of the proliferation of weapons of mass destruction is done by States seeking to increase their military capabilities. However, proliferation might also be a means of supporting terrorist activities.
Negative Impacts These three: money laundering, terrorist financing and the financing of the proliferation of weapons of mass destruction, can have the following negative effects on a country including:
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increase in violent and organized crime and corruption. From an international perspective it can result in (a) loss of reputation on the international market, loss of donor funding, loss of foreign direct investment and loss of credibility for financial sector.
In an effort to combat these three problematic areas: money laundering, terrorist financing and the proliferation of weapons of mass destruction The Financial Action Task Force (FATF) has issued guidelines called the Forty Recommendations. Saint Lucia is scheduled to be assessed in September 2019 by the Caribbean Financial Action Task Force (CFATF) through the Forty Recommendations. The National Anti-Money Laundering Oversight Committee is working with both private and public sector stakeholders to ensure that compliance is met. All Saint Lucians are encouraged to familiarize themselves on these matters. Information on the work of the Caribbean Financial Action Task (CFATF) can be garnered through its website at: https://www.cfatf-gafic.org.
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SAINT LUCIA TO DETERMINE LEVEL OF COMPLIANCE IN FIGHT AGAINST MONEY LAUNDERING.
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he 4th round of the mutual evaluation process has begun as CFATF seeks to determine whether Saint Lucia has done enough to achieve a favorable outcome in its compliance in the fight against money laundering, terrorist financing and the financing of the proliferation of weapons of mass destruction. Saint Lucia recently submitted to the Caribbean Financial Action Task Force (CFATF), the Technical Compliance Questionnaire, and effectiveness report. A Standards training workshop was held in Saint Lucia from April 8th-10th 2019, and was geared towards enhancing the capacity of the public sector in complying with the 40 recommendations of the CFATF. Saint Lucia’s Attorney General, Stephen Julien, said the standards which participants will be exposed to during the course of the training form the bedrock upon which the country will be assessed. “An in-depth understanding and grasp of the concepts will aid in the preparation and execution of functions, not only for this evaluation but for future evaluations as well,” he said. “Rest assured that the Government of Saint Lucia remains resolute in its support in the fight against money laundering, terrorist financing and countering the financing of weapons of mass destruction. We recognize the tremendous significance of the mutual evaluation process and the impact to the country and stand ready to continue providing the requisite support.” The latest round of evaluation will see an on-site visit by the FATF assessors from September 16th -27th 2019, after which the mutual evaluation report will be drafted. During the upcoming on-site visit in September, the focus of the assessment team will be on effective implementation, and assessing how well Saint Lucia will implement CFATF recommendations. The training was partially funded through the 11th EDF programme of the European Union.
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EU Assists CFATF in Combating Money Laundering
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he European Union (EU) and the Caribbean Financial Action Task Force (CFATF) in November of 2018, signed an agreement to enhance the region’s capacity to comply with standards relating to antimoney laundering and combating the financing of
This will be undertaken via the Implementation of a Mutual Evaluation Programme which will evaluate compliance in the financial and related sectors in CFATF member countries, to ensure that international standards are adhered to. One of the main specific actions will be assisting countries in improving their levels of compliance with the international Financial Action Task Force’s 40 recommendations, which provide a complete set of counter measures against money laundering covering the criminal justice system and law enforcement, the financial system and its regulation, and international co-operation. These recommendations have been recognised, endorsed or adopted by many international bodies. Barbados hosted the CFATF XLVIII Plenary and Working Group meetings from 19-23 November in preparation for Barbados taking over the chairmanship of CFATF from Guyana. During Barbados’ chairmanship the results and reviews of the Mutual Evaluation reports will continue to be reviewed and discussed. The project is also expected to undertake a series of workshops and seminars to build technical capacity, carry out public education and awareness activities, and develop an Information Communication Technology platform called ‘Vision 22’ which will allow CFATF members to access resource databases.
Working to Fight Money Laundering and Terrorist Financing! Saint Lucia’s National Anti Money Laundering Oversight Committee (NAMLOC)
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What is the Financial Action Task Force?
ormed in 1989 the mandate of Financial Action Task Force (FATF) is to control the scourge of money laundering, terrorist financing and financing of the proliferation of weapons of mass destruction is one of great importance to us in the Caribbean. Caribbean States are members of the Caribbean Financial Action Task Force (CFATF) – a regional-styled body bounded by the Forty Recommendations. Full compliance by member States requires a clear understanding of the Recommendations. Recommendation two calls for a collaborative approach between the stakeholders in the private and public sectors and demonstrates the gains that can be made when working together.
NAMLOC
One of five ratings can be received: Compliant, Largely Compliant, Partially Compliant, Non-Compliant or NotApplicable. It is the primary objective of the National AntiMoney Laundering Oversight Committee (NAMLOC) to prepare for this assessment. Every Saint Lucian is encouraged to learn more about combating money laundering, terrorist financing and financing of the proliferation of weapons of mass destruction and corporate with agencies in this fight. It is therefore incumbent upon Saint Lucia to take the appropriate measures to identify, assess and understand the risks that money laundering, terrorist financing and proliferation financing pose to her shores. On a macro level this can be achieved by conducting a National Risk Assessment (NRA). This assessment sees data being gathered and analyzed from both the public and private sectors and a report being produced. In this report areas of weakness, vulnerability and strength will be identified.
As a result on a micro level institutions such as banks, insurance agencies, remittances and designated non-financial businesses and professions (Realtors, Jewelers, and Accountants etc.) are encouraged to carry out internal assessments to identify and mitigate any areas of exploitation for money laundering, terrorist financing and financing of the proliferation of weapons of mass destruction within their organizations. The extent and nature of the assessment carried out by individual organizations will be directly dependent upon the nature of the business and the size of the organization. Having highlighted areas of vulnerabilities and weaknesses, a risk based approach is adopted. This approach calls for greater resources to be allotted to areas of higher risks and lower resource allocation in areas of lower risk. Through the information provided in the National Risk Assessment the Government is able to make informed policy decisions on security and other related issues. In the same vein, businesses in determining their overall risks, have a better understanding of the level of mitigation measures to be applied, for example enhanced customer due diligence can be conducted. In September 2019 Saint Lucia will have its onsite visit by a team assessors from the Caribbean Financial Action Task Force (CFATF) as we undergo the 4th Round Mutual Evaluation. An examination of Saint Lucia’s compliance with the Forty Recommendation will be conducted. The National Anti-Money Laundering Oversight Committee (NAMLOC) continues its work to prepare for this evaluation, with the assistance of six teams. Organizations which will be assessed and are encouraged to evaluate their risks and apply a risk-based approach to fight money laundering, terrorist financing and financing the proliferation of weapons of mass destruction.
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Combating Money Laundering and Terrorist Financing The Caribbean Financial Action Task Force
The CFATF Secretariat undertakes the following activities on behalf of the CFATF membership: • The Secretariat has been established as a mechanism to monitor and encourage progress to ensure full implementation of the Kingston Ministerial Declaration and is presently hosted by the Government of Trinidad and Tobago. The CFATF Membership includes the following:
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Chairman of CFATF: Hon. Dale Marshall, QC, MP, Attorney General and Minister of Legal Affairs, Barbados. he Caribbean Financial Action Task Force (CFATF) was established in 1990 and comprises of twenty-five member States within the Caribbean, Central and South America. The structure is similar to that of its umbrella international body the Financial Action Task Force (FATF), created by the G8 countries in 1989.
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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25.
Antigua and Barbuda Anguilla Aruba Bahamas, The Barbados Belize Bermuda British Virgin Islands, The Cayman Islands, The Curacao 11. Dominica El Salvador Grenada Guyana Republic of Haiti Jamaica Montserrat St. Kitts and Nevis St. Lucia St. Maarten St. Vincent and the Grenadines Suriname The Turks and Caicos Islands Trinidad and Tobago and Venezuela.
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An ongoing programme of the Mutual Evaluation of Members. Co-ordination of, and participation in, training and technical assistance programmes. Bi-annual plenary meetings for technical representatives. Annual Ministerial Meetings.
Additionally, since February 1996, the CFATF has been conducting a number of money laundering typology exercises in collaboration with the FATF and other FSRBs with a view to increasing awareness of the attendant risks to the region. These exercises allow for the sharing of information collated by various bodies involved in combating of money laundering and terrorist financing.
COMPLIANCE The CFATF ensures that member states, like Saint Lucia, comply with the FATF’s Forty Recommendations. These Recommendations are agreed international guidelines to combat money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction. The Forty Recommendations lay out best practices for a number of areas and entities in a country. Each Recommendation focuses on one specific
The Executive Director of the CFATF Ms. Dawne Spicer.
Recommendation 2: National cooperation and coordination Recommendation 3: Money laundering offence Recommendation 4: Confiscation and provisional measures Recommendation 5: Terrorist financing offence Recommendation 6: Targeted financial sanctions related to terrorism and terrorist financing Recommendation 7: Targeted financial sanctions related to proliferation Recommendation 8: Non-profit organisations Recommendation 9: Financial institution secrecy laws Recommendation 10: Customer due diligence Recommendation 11: Record-keeping Recommendation 12: Politically exposed persons Recommendation 13: Correspondent banking Recommendation 14: Money or value transfer services Recommendation 15: New technologies Recommendation 16: Wire transfers Recommendation 17: Reliance on third parties Recommendation 18: Internal controls and foreign branches and subsidiaries
area, some of these include: non-profit organizations, customer due diligence and the responsibilities of law enforcement officers and financial institutions. The CFATF conducts peer reviews of member countries called Mutual Evaluations. During these evaluations five assessors will visit a country over a two week period and interview stakeholders within the public and private sectors.
RATINGS Ratings will be assigned to each of the Recommendations based on the level of compliance. A country can receive one of five ratings for each Recommendation namely: Compliant, Largely Complaint, Partially Complaint, Non-Compliant or Non-Applicable. If a country receives a poor overall rating, several negative ramifications can occur. These include, but are not limited to, de-risking, loss of donor funding and loss of correspondent banking privileges.
EVALUATION Saint Lucia is currently undergoing its 4th Round Mutual Evaluation in September 2019. The Attorney General’s Chambers with the sanction of the Cabinet of Ministers has established an Oversight Committee which has responsibility for ensuring Saint Lucia’s readiness for the Mutual Evaluation. This Committee is currently undertaking several ventures to ensure that the general public and stakeholders are educated on the process. The 4th Round Mutual Evaluation is here, it is of national importance and impacts the strength of our financial sector. Let us join together as Saint Lucians to ensure the success of the evaluation. The CFATF Chairmanship for the period November 2018 – November 2019 is held by Barbados and represented by the Honourable Dale Marshall, QC, MP, Attorney General and Minister of Legal Affairs. The Executive Director of the CFATF is Ms. Dawne Spicer.
RECOMMENDATIONS Recommendation 1: Assessing risks and applying a risk-based approach
Recommendation 19: Higher-risk countries Recommendation 20: Reporting of suspicious transactions Recommendation 21: Tipping-off and confidentiality Recommendation 22: DNFBPs: customer due diligence Recommendation 23: DNFBPs: Other measures Recommendation 24: Transparency and beneficial ownership of legal persons Recommendation 25: Transparency and beneficial ownership of legal arrangements Recommendation 26: Regulation and supervision of financial institutions Recommendation 27: Powers of supervisors Recommendation 28: Regulation and supervision of DNFBPs Recommendation 29: Financial intelligence units Recommendation 30: Responsibilities of law enforcement and investigative authorities Recommendation 31: Powers of law enforcement and investigative authorities Recommendation 32: Cash couriers Recommendation 33: Statistics Recommendation 34: Guidance and feedback Recommendation 35: Sanctions Recommendation 36: International instruments Recommendation 37: Mutual legal assistance Recommendation 38: Mutual legal assistance: freezing and confiscation Recommendation 39: Extradition Recommendation 40: Other forms of international cooperation
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Cleaning Up: Countries are Advancing Efforts to Stop Criminals from Laundering Their Trillions By Rhoda Weeks-Brown
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RHODA WEEKS-BROWN is general counsel and director of the Legal Department of the IMF.
l Capone had a problem: he needed a way to disguise the enormous amounts of cash generated by his criminal empire as legitimate income. His solution was to buy all-cash laundromats, mix dirty money in with clean, and then claim that washing ordinary Americans’ shirts and socks, rather than gambling and bootlegging, was the source of his riches. Almost a century later, the basic concept of money laundering is the same, but its scale and complexity have grown considerably. Were Capone alive today, he would have to run his washers and dryers around the clock to keep pace with demand; the United Nations recently estimated that the criminal proceeds laundered annually amount to between 2 and 5 percent of global GDP, or $1.6 to $4 trillion a year.
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Threat to Stability Money laundering is what enables criminals to reap the benefits of their crimes, including corruption, tax evasion, theft, drug trafficking, and migrant smuggling. Many of these crimes pose a direct threat to economic stability. Corruption and tax evasion make it difficult for governments to deliver sustainable and inclusive growth by diminishing the resources available for productive purposes, such as building roads, schools, and hospitals. Criminal activity undermines state authority and the rule of law while squeezing out legitimate economic activity. And money laundering may create asset bubbles in markets like real estate, a common vehicle. A recent example illustrates the point. A Guinean minister helped a foreign company obtain important mining concessions in exchange for $8.5 million in bribes. Falsely reporting that money as
income from consulting work and private land sales, the minister transferred it to the United States and bought a luxury estate in New York. But his effort to turn ill-gotten gains into a seemingly legitimate asset was ultimately unsuccessful; last year, he was convicted of money laundering. In some ways, expensive homes are the modern mobster’s collection of laundromats. A public advisory issued by US authorities last year indicated that over 30 percent of high-value, all-cash real estate purchases in New York City and several other major metropolitan areas were conducted by individuals already suspected of involvement in questionable dealings. The governments of Australia, Austria, Canada, and other countries have concluded that their own real estate markets could also be used to invest and launder dirty money.
Terrorism Financing More worrying still, dirty money—along with clean—may be a source of funding for terrorism and the proliferation of weapons of mass destruction. Terrorist groups need money, lots of it, to compensate fighters and their families; buy weapons, food, and fuel; and bribe crooked officials. Similarly, proliferation does not come cheap. For example, North Korea has reportedly devoted a substantial portion of its scarce resources to developing nuclear weapons. Countries with weak anti–money laundering and combating the financing
stakeholders, almost every country has criminalized money laundering and terrorism financing and established a legal framework to freeze terrorist assets. But this work is far from finished.
should be to increase transparency—to know who is behind financial transactions, where, and for what purpose—without unduly increasing transaction costs or driving financial flows underground.
Whether because of lingering legal and institutional loopholes or innovation on the part of criminals (or both), there is no shortage of money laundering scandals in the news. As a case in point, investigators are currently probing the possibility that the better part of $233 billion in payments was laundered through the Estonian branch of Danske Bank from 2007 to 2015.
Second, they should remove legal and practical barriers to international cooperation. Detecting money laundering and terrorism financing requires both safeguarding and sharing financial intelligence, and deterring criminals requires following the trail of dirty money or money intended for nefarious purposes, wherever it leads. Finally, they should continue to strengthen the effectiveness of their efforts to mitigate identified risks. Whether national AML/CFT laws are perfect or not, beyond laws on the books, consistent (and persistent) implementation is critical to achieving durable results. Given its mandate to preserve economic stability and financial integrity, the IMF maintains an extensive AML/CFT program, which includes active participation in international efforts to raise awareness of the threat and generate effective responses, along with the provision of advice and know-how to over 100 of its members—and counting.
of terrorism (AML/CFT) regimes could be called out by the Financial Action Task Force (FATF), a global standard-setting organization. Once countries come to be viewed as vulnerable to illicit financial flows, their banks may face long-term reputational damage, costly demands for additional documentation on the part of international business partners, and the loss of correspondent banking relationships. This may marginalize already fragile economies, threaten remittance channels and foreign direct investment, and drive financial flows underground. So ignoring AML/CFT or delaying related reforms is no longer an option. Thankfully, this message is starting to resonate. Under the leadership of the FATF, and with the support of the IMF, United Nations, World Bank, and other
Financial Technology Rapidly developing financial technology has further complicated the picture. Mobile money transfers, distributed ledgers, and virtual currencies have legitimate and productive uses but can also be used to conceal or facilitate criminal activity. Put another way, nearly cost-free consumer payments and nearly untraceable ransom payments are two sides of the same (Bit)coin. So how should countries prioritize their response to this evolving and globalizing challenge? First, they should heed the FATF’s call to understand and address the threats that stem from changing technology, but should do so without stifling financial innovation and inclusion. The objective
What are some examples of these efforts? To name just a few, in Ukraine, we are working with national authorities to prevent banks from being misused by corrupt officials. As a result, regulatory sanctions for AML/CFT violations are increasing and the reporting of suspicious transactions is on the rise, yielding a significant number of corruption investigations and prosecutions of highlevel public officials. And in the Caribbean, where the withdrawal of correspondent banking relationships is a critical concern, we convened international banks and their local counterparts to foster bilateral cooperation in addressing information gaps and meeting regulatory expectations. One global bank that had left the region has now decided to reestablish ties with some local banks. The IMF is committed to helping its members identify today’s dirty money laundromats—and close them down. The stakes have never been higher. Reproduced from: www.imf.org
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MONEY LAUNDERING FACT SHEET What is Money Laundering? •
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Money laundering is the processing of criminal proceeds to disguise their illegal origin. This process is of critical importance, as it enables the criminal to enjoy these profits without jeopardizing their source. What are the avenues used by money launderers? Illegal arms sales, smuggling, and the activities of organised crime, including for example drug trafficking and prostitution rings, can generate huge amounts of proceeds. Embezzlement, insider trading, bribery and computer fraud schemes can also produce large profits and create the incentive to “legitimise” the ill-gotten gains through money laundering.
How is Money Laundered? 1.
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The initial - or placement - stage of money laundering, the launderer introduces his illegal profits into the financial system. This might be done by breaking up large amounts of cash into less conspicuous smaller sums that are then deposited directly into a bank account, or by purchasing a series of monetary instruments (cheques, money orders, etc.) that are then collected and deposited into accounts at another location. The second phase– or layering stage takes place whereby the launderer engages in a series of conversions or movements of the funds to distance them from their source. The funds might be channelled through the purchase and sales of investment instruments, or the launderer might simply wire the funds through a series of accounts at various banks
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across the globe. In some instances, the launderer might disguise the transfers as payments for goods or services, thus giving them a legitimate appearance. Having successfully processed his criminal profits through the first two phases the launderer then moves them to the third stage – integration – in which the funds re-enter the legitimate economy. The launderer might choose to invest the funds into real estate, luxury assets, or business ventures.
What is FATF? In response to mounting concerns over money laundering, the Financial Action Task Force (FATF) was established by the G-7 Summit in Paris in 1989 to develop a co-ordinated international response.
What is CFATF? The Caribbean Financial Action Task Force (CFATF) is an organisation of states and territories of the Caribbean basin which have agreed to implement common counter-measures against money laundering and terrorism financing.
What is NAMLOC? The Attorney General’s Chambers in Saint Lucia is the National Anti-Money Laundering Oversight Committee (NAMLOC) appointed by the cabinet of ministers, which has been seeking to educate Saint Lucians on the role of the The Caribbean Financial Action Task Force and Money Laundering matters.
How Much Money is Laundered Per Year? The United Nations Office on Drugs and Crime (UNODC) conducted a study to determine the magnitude of illicit funds generated by drug trafficking and organised crimes and to investigate to what extent these funds are laundered. The report estimates that in 2009, criminal proceeds amounted to 3.6% of global GDP, with 2.7% (or USD 1.6 trillion) being laundered.
How Does Money Laundering Affect Business? The integrity of the banking and financial services marketplace depends heavily on the perception that it functions within a framework of high legal, professional and ethical standards. A reputation for integrity is the one of the most valuable assets of a financial institution. If funds from criminal activity can be easily processed through a particular institution – the institution could be drawn into active complicity with criminals and become part of the criminal network itself. How does fighting money laundering help fight crime? Money laundering is a threat to the good functioning of a financial system; however, it can also be the Achilles heel of criminal activity. Targeting the money laundering aspect of criminal activity and depriving the criminal of his ill-gotten gains means hitting him where he is vulnerable. Without a usable profit, the criminal activity will not continue.
The Attorney General Chambers Recently Launched a Brand New Website.
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n commenting on the site Attorney General Stephen Julien noted; “it was a labour of love for all who worked towards its metamorphosis from the initial concept to the final product.”
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in the revision of the legislation of Saint Lucia. The Unit is tasked with collaborating with the various Government Ministries and other bodies on issues concerning the drafting of new laws and amendments to existing legislation, as well as implementing policy directives into law. Advice and Litigation is the primary source of legal advice to the Government of Saint Lucia and represents the State in civil litigation. The unit’s involvement and scope is wide as it relates to legal advice. It is also called upon to issue legal opinions to the various ministries. Its Crown Counsel sit on various boards and commissions as representatives of the Attorney General in an advisory capacity.
Although the Attorney General’s Chambers does not offer legal advice to or represent private individuals, through the functions of the various units, serves the citizens of Saint Lucia with humility and integrity.
He went on to state; “It is my fervent hope that the information contained therein will be of edification to you and that you will acquire a better understanding of the purpose and functions of the Attorney General’s Chambers.” Further, “although the Attorney General’s Chambers is a combination of four units, we operate as an integrated team with a common credo. This involves the provision of skilled legal advice and services to the Government of Saint Lucia and the General Public in a timely and efficient manner. The Attorney General’s Chambers endeavours to perform to its functions with integrity, always reflecting on ways in which we can improve our service through innovation and continuous education.” “I invite you to explore our website and learn more about the Department of the Attorney General. Please visit our comment section and make any suggestions as to how we can better serve you,” said the Attorney General. You can log on to the website at www.attorneygeneralchambers. com
About the Attorney General’s Chambers The Attorney General’s Chambers is a standalone division and does not fall under any Ministry. It comprises of three units; the Registry of Companies and Intellectual Properties, the Legislative Drafting Unit and Advice and Litigation. All three departments are overseen administratively by the Permanent Secretary and operates under the direction of the Attorney General. •
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The Registry of Companies is committed to performing its duties to the public with excellence and continues to explore innovative methods in achievingits mandate which includes the registering of companies, business names and partnerships, the administration of trademarks, patents and copyright. The Legislative Drafting Unit is primarily responsible for drafting principal and subsidiary legislation and participates
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News Bites Levern Strikes Gold Again
Levern Spencer is now Saint Lucia’s most decorated international athlete having successfully defended her high jump title at the Pan American Games in Lima, Peru. On August 8, 2019 Spencer cleared a height of 1.87m to capture the gold medal. “I am just thankful to God that I was able to win another gold medal for Saint Lucia,” Spencer who won ahead of Priscilla Frederick of Antigua and Barbuda, told reporters. In fourth place was Saint Lucia’s Jeanelle Scheper.
The Saint Lucia Under 14 girls team who participated in the second Group stage of the CFU U14 Girls Challenge in Cayman Islands placed second
Soufriere Town Square Project Unveiled The Soufriere Town Square project was unveiled at an opening ceremony on July 31. Located opposite the Catholic Church of the Assumption, the square features a water fountain, park benches, green spaces with exotic plants and a Freedom Monument sculpted by Ricky George that commemorates the courage and bravery of slaves who, in 1796, defeated British soldiers.
Two days following Spencer’s gold medal victory, Saint Lucian javelin thrower Albert Reynolds won a bronze medal at the Pan American Games. Reynolds, threw a national record 82.19m on his final attempt to secure bronze in men’s javelin. These victories followed Saint Lucia attaining the championship at the Windward Island School games in Dominica.
Football Champions Saint Lucia has come out on top at the Under 15 CONCACAF Boys Division 2 Football Championship. The team defeated Puerto Rico 3-1 in the final and decisive game in Miami last week.
Saint Lucia Under 15 Football Champs
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Shantel Moise, a cooking class participant, said the initiative provided the opportunity of a lifetime to glean versatile skills. She also expressed gratitude for diplomatic allies who help enhance human resources in the country. The Saint Lucia Team will join other culinary professionals from regional countries with diplomatic relations with Taiwan.
First Phase Of Market Redevelopment Progressing Smoothly.
Soufriere Square the pride of the town
Levern Spencer bags gold at Panam Games Football Champions
The Minister with responsibility for External Affairs, Hon. Sarah FloodBeaubrun expressed gratitude to the Government of the Republic of China (Taiwan) for the opportunity. She said such programs are able to reach those who have not been afforded the opportunity to develop practical skills. Anyone interested in developing a particular skill can apply for the vocational programs, she added.
In his address at the opening ceremony MP Hon. Herod Stanislas thanked residents for their patience and understanding during the square’s construction phase. “This facility is not owned by any single person. It is not owned by any Government. It is not owned by any political party. It is not owned by any district representative. It is owned by you. It belongs to you, the people of SoufriereFond St. Jacques,” Stanislas said.
Six Saint Lucians To Attend Taiwanese Cooking Course The Government of the Republic of China (Taiwan) in collaboration with the Government of Saint Lucia has selected six trainees from Saint Lucia who will attend a cooking program in Taiwan. The three-month program is geared toward teaching primarily Chinese cuisine. The Ambassador of the Republic of China (Taiwan) to Saint Lucia, Douglas Shen, highlighted the importance of building capacity. He said useful skills, such as these, stand the test of time.
Construction work on the first phase of the Castries Market Redevelopment Project is progressing as scheduled. The first phase will include a sheltered area for provisions market vendors, along with upgraded amenities and surface covering. Speaking to the progress, Mayor Peterson D. Francis says the provisions market vendors will no longer be exposed to the elements.
Construction of new market progressing smoothly.
“This first phase will provide comfort and cater to all provisions market vendors in a uniformed and structured manner. No longer will the vendors require umbrellas or tents, as the entire provisions market facility will be covered. The facility will be upgraded along with the amenities. What we wish for is that when vendors return to this new environment, they adhere to the regulations and keep the facility clean. A new level of pride needs to be portrayed as the Castries Market Redevelopment Project, which is part of Castries Vision 2030, aims to positively transform the image and business of vending in the City, “said Mayor Francis.
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Allen Chastanet
www.facebook.com/allenmchastanet www.twitter.com/allenmchastanet August 13: On Sunday evening I had the wonderful experience of witnessing the play “A Little Folk Tale” which is Saint Lucia’s entry into this year’s CARIFESTA. I was extremely impressed with every aspect of the production and have no doubt that this group will leave a great impression of the amazing talent which exists in Saint Lucia. This was certainly one of the best plays that I have ever seen
Herod Stanislas
www.facebook.com/herodstanislas July 29: Another Promise Delivered. Today was indeed a remarkable occasion. The Old Trafford Complex was commissioned. This First Phase of the project comprises of a Farmers Market for provision and fruit vendors and a Bus Terminal to accommodate the Mini Buses doing transfers for the Soufriere/Castries Route, Soufriere/Vieux Fort Route and the Soufriere/Fond St. Jacques.
Dr. Gale T C Rigobert
www.facebook.com/galerigobert758 August 14: Are you interested in learning how to make the pastries you see in these pictures? Please register at the Micoud Parliamentary Office for the bakers course.... Coming soon!
Stephenson King
www.facebook.com/stephensonking August 10: “A Government at Work” I am pleased to inform the nation, the Sandals Halcyon to Choc Roundabout Road Widening Project begins on Monday August 12, 2019. We aren’t just building a “vital” fourth lane along the highway, this is part of ongoing deliverables in the mission to “Build A New Saint Lucia.”
Lenard “Spider” Montoute
Mary Isaac
Sarah Flood Beaubrun
Edmund Estephane
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Fortuna Belrose
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