Federation Works To Demonstrate Compliance With International Standards
By Floyd French
Observer Reporter
(Basseterre, St. Kitts) – Lawmakers in St. Kitts-Nevis met on June 4 to approve legislation to ensure that the Federation’s legal, law enforcement, financial and regulatory regimes conform to international standards for financial transparency and fighting terrorism.
Minister of State in the Ministry of Finance, Hon. Nigel Carty, introduced four bills that would strengthen existing laws pertaining to the financial sector. Both the Financial Service Commission (Amendment) Bill and the Financial Intelligence Unit (Amendment) Bill were passed, while the Payment System Bill and Bills of Exchange (Amendment) Bill received their first reading.
The Financial Service Commission Amendment increases the efficiency of the Financial Service Commission by giving the Commission powers to impose sanctions on financial institutions that contravene safe prudential practices as set out in the Proceeds of Crime Act, the Anti-money Laundering Regulations, the Anti-Terrorism Act or similar legislation.
The Bill also provides the necessary link between the Ministry of Finance and the Commission so sanctions are more effective.
The amendment to the Financial Service Intelligence Act expands the jurisdiction of the unit to encompass the financing of terrorist activities and enables the unit to liaise with authorities and agencies in combating the financing of terrorism. These aims are in conjunction with collaboration being done with money laundering intelligence agencies.
The Anti-Terrorism Act Amendment bolsters the existing law by adding specificity to the mental element of engaging in money laundering for terrorist purposes. It specifies the particular knowledge that an accused would have needed to posses in order to be found criminally liable.
The three enacted bills and the two bills which received their first reading are essential pieces of legislation to demonstrate that the Federation is in compliance with international standards. The Caribbean Financial Task Force (CFTF) will evaluate St. Kitts and Nevis in September to determine the Federation’s compliance with international efforts against money laundering and terrorism.
