Saint Lucia to Assess Money Laundering, Terrorism Financing Risks

Saint Lucia will undertake a National Risk Assessment (NRA) this year to evaluate its frameworks for Anti-Money Laundering (AML), Counter-Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF). This comprehensive review will assess the country’s financial security landscape and track progress since the last assessment.

Simultaneously, the National Anti-Money Laundering Oversight Committee (NAMLOC) is preparing for the Caribbean Financial Action Task Force (CFATF) 5th Round Mutual Evaluations, which will measure the effectiveness of Saint Lucia’s financial regulations.

NAMLOC Chair Juliana Alfred explained the ongoing efforts.

“We have been meeting with stakeholders just to get a sense of where the agencies are because we had ensured that agencies were aware of their deficiencies. We worked with them to develop action plans. And so we want to know, what is their progress,” she said.

At the conclusion of the NRA, a sector-specific risk profile will be created to guide NAMLOC’s efforts in the 5th Round Mutual Evaluation, with a strong focus on implementation.

“Yes, Saint Lucia passed a lot of laws over the last few years in relation to NAMLOC,” Alfred noted. “But how effective is the country in terms of our implementation mechanisms? What systems have we put in place after having passed the laws to ensure that we have addressed the deficiencies that were found in the 4th Round? So we are also doing that simultaneously. Because the period for assessment for the 5th Round is actually going to be between 2023 to 2028.”

An addition to this year’s assessment is a proliferation financing risk review, aligning with updated Financial Action Task Force (FATF) recommendations.

“There is a greater focus now on legal persons and legal arrangements and also beneficial ownership,” Alfred explained. “There is a big interest now by the assessors on beneficial ownership information and that being available. There is also a greater focus this time around in terms of our Non-Profit Organisation (NPO) sector and the arrangements that are in place to monitor and regulate that sector. So the work continues for NAMLOC and it’s pretty intensive.”

In preparation for the NRA, NAMLOC has initiated a stock-taking exercise. This involves a review of the National AML/CFT/CPF Action Plan and consultations with public-sector stakeholders to evaluate progress in addressing the deficiencies raised in Saint Lucia’s 2022 NRA, as well as to sensitise departments on the upcoming NRA.

Competent authorities will also be conducting desk-based reviews of the sectors using the World Bank Risk Assessment Methodology. Working groups will also be established later in the process to review the NRA findings.