Overview

Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation Financing

On 22 July 2016, the Monetary Council, at its 85th meeting took the decision to recommend to Member Governments that the legal responsibility for anti-money laundering and combating the financing of terrorism (AML/CFT) supervision and regulation of financial institutions licensed under the Banking Act (LFIs) be transferred to the Eastern Caribbean Central Bank (ECCB). The recommendation to designate the ECCB as the regulatory authority for AML/CFT for its licensees was necessary to address deficiencies relating to AML/CFT supervision that were cited in the Caribbean Financial Action Task Force Mutual Evaluation Reports.

The ECCB is the named AML/CFT/CPF supervisor for LFIs in Antigua and Barbuda, the Commonwealth of Dominica, Grenada, Saint Lucia and St Vincent and the Grenadines, as such all LFIs in the named jurisdictions are subject to the ECCB’s AML/CFT/CPF Risk Based framework. The ECCB’s supervisory approach to AML/CFT/CPF is risk based and is premised on the concepts and principles considered by the Financial Action Task Force and the Basel Core Principles.

The revised anti-money laundering and combating terrorism and proliferation financing (AML/CFT/CPF) Supervision Framework includes:

• The AML/CFT legislation in Eastern Caribbean Currency Union (ECCU) member countries that transferred the regulatory and supervisory authority of AML/CFT for LFIs to the ECCB;
• The Multi-lateral Memorandum of Understanding (MMoU) between AML/CFT supervisory authorities in the ECCU for the purpose of providing a framework for cooperation in the supervision of LFIs and to implement an effective AML/CFT system for the financial institutions for which the Central Bank has regulatory responsibility;
• The implementation of the AML/CFT/CPF Risk-Based Onsite Examination Manual;
• Implementation of the money laundering, terrorist and proliferation financing (ML/TF/PF) Prudential Return;
• Implementation of the ML/TF/PF Risk Assessment Tool; and
• Partnership with key stakeholders to ensure ongoing training on AML/CFT/CPF emerging issues.