BRIDGETOWN, March 03, 2008 - The United States State Department has released a report indicating that it's keeping a close eye on a number of Caribbean states where large amounts of money are being laundered.
The 2008 International Narcotics Control Strategy Report just released
by the Department pointed to a number of countries that are
'jurisdictions of primary concern' -that is, those that are major money
laundering counties.
The report identified Antigua and Barbuda, the Bahamas, Belize, Haiti
and Venezuela as among those jurisdictions of primary concern, but made
it clear that this classification did not speak to how these countries
have been trying to stamp out the crime.
"The focus of analysis...is on the significance of the amount of
proceeds laundered, not of the anti-money laundering measures taken,"
the report explained.
"It is not based on an assessment of the country or jurisdiction's
legal framework to combat money laundering; its role in the terrorist
financing problem; or the degree of its cooperation in the
international fight against money laundering, including terrorist
financing."
In the case of Antigua, the document noted that although it has
comprehensive legislation in place to regulate its financial sector, it
remains susceptible to money laundering because of its offshore
financial sectors and Internet gaming industry.
"As with other countries in the region, illicit proceeds from the
transshipment of narcotics are laundered in Antigua and Barbuda. Its
offshore financial sector exacerbates Antigua and Barbuda's
vulnerability to money laundering," the report indicated.
"Despite the comprehensive nature of the law, Antigua and Barbuda has
yet to prosecute a money laundering case and there are few arrests or
prosecutions."
The twin-island state's government has been urged to conduct more
thorough investigations that could lead to higher numbers of arrests,
prosecutions, and convictions; and train law enforcement and customs
authorities to recognise money laundering typologies that fall outside
the formal financial sector.
In the Bahamas, which is a regional and offshore financial centre,
money laundering was said to be primarily related to financial fraud
and the proceeds of drug trafficking, while Belize which does not have
the same prominence in the industry, has seen the criminal activity
occurring within its offshore financial sector.
According to the report, while Haiti's dire economic condition and
unstable political situation inhibit it from advancing its formal
financial sector, it is a major drug-transit country with money
laundering activity linked to the drug trade.
"Money laundering and other financial crimes are facilitated through
the banks and casinos, and through foreign currency transactions and
real estate transactions," it was noted.
Venezuela was however identified as a major concern since according to
the U.S report, it's "proximity to drug producing countries, weaknesses
in its anti-money laundering regime, refusal to cooperate with the
United States on counternarcotics activities, and rampant corruption
throughout the law enforcement, judicial, banking, and banking
regulatory sectors continue to make Venezuela vulnerable to money
laundering."
In the other category of 'jurisdictions of concern', the Caribbean
territories of Aruba, Barbados, Dominica, Grenada, Guyana, Jamaica, St.
Kitts and Nevis, St. Lucia, St. Vincent, Suriname are among those
listed. The classification for St. Kitts represents an improved view of
the country since it was previously seen as a country that presented
primary concern.
The report suggested that while the actual money laundering problem in
these jurisdictions is not as acute, "they too must undertake efforts
to develop or enhance their anti-money laundering regimes".
|
