Antigua & Barbuda High Commissioner Discusses Advisories With UK and US Governments

by Mandy Robinson, Tax-news.com, London

07 May 2001

The Antigua & Barbuda High Commissioner, Sir Ronald Sanders, has entered into discussions with officials from both the UK and US governments to persuade them to lift the financial advisories imposed on the islands in April 1999.

According to Sir Ronald the talks, which took place last week, were of a very positive nature due to Antigua & Barbuda's efforts to improve its anti-money laundering regime over the last two years. In a press release Sir Ronald stated: 'Representatives of both the UK and US governments have acknowledged the fact that the Antigua and Barbuda government is in compliance with the highest international standards and stands head and shoulders above others.'

He added: 'Prime Minister Lester Bird has personally spearheaded the effort to ensure that Antigua and Barbuda's anti money laundering legislation and enforcement machinery meets the highest international standards. Amendments to our money laundering legislation signed into law this week, and the strengthening of our Financial Intelligence Unit with the allocation of more resources put Antigua and Barbuda ahead of the vast majority of countries in the world.'

The amended law aims to levy a 3 per cent tax on gross income and gross handle of businesses regarded as financial institutions such as casinos with a physical presence, Internet gaming operations, sports books and virtual casinos. It also contains provisions dealing with freezing the ownership of property that has been disguised by employing complex corporate or trust structures, or has been passed off as belonging to a third party. Furthermore, the law will allow Antigua's prosecution authorities in the country easier access to statements and official documents from other countries during their investigations.

Sir Ronald revealed that a relatively large number of suspicious activities reported by banks operating in Antigua & Barbuda have already been successfully dealt with by the country's Financial Intelligence Unit, which has also cooperated fully with foreign agencies in the prosecution of culprits.

Antigua & Barbuda has indeed made significant progress in the fight against money-laundering and the likelihood of shaking off the adivisories looks promising. In November last year UK Economic Secretary, Melanie Johnson, said: 'The UK recognises the efforts that the Government of Antigua and Barbuda has made since April 1999 to strengthen the system of supervision and control, with a particular view to strengthening anti-money laundering systems.' Altough the UK refused to lift the advisory at the time it is hopeful that Antigua & Barbuda's most recent anti-money laundering efforts could persuade the UK and the US to change their minds.

The High Commissioner concluded that 'there can be no good reason for maintaining the financial advisory against Antigua and Barbuda unless a signal is being sent to other countries that advisories will be imposed and maintained no matter what governments do to make money laundering virtually impossible. Discussions in London with representatives of the Foreign and Commonwealth Office and the UK Treasury encourage me to believe that the Advisory will not be maintained for much longer.'

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