US Alleges Antigua And Barbuda Is 'Susceptible To Money Laundering'

by Amanda Banks, for LawAndTax-News.com, London

10 March 2005

In its 2005 International Narcotics Control Strategy Report, published on Friday, the US State Department's Bureau for International Narcotics and Law Enforcement Affairs announced that Antigua and Barbuda remains susceptible to money laundering activity.

The report, released as the tiny Caribbean jurisdiction continues to lock horns with the US government over the latter's ban on the use of online gaming services by US citizens, stated that:

"Antigua and Barbuda (A&B) has comprehensive legislation in place to regulate its financial sector, but it remains susceptible to money laundering because of its loosely regulated offshore financial sectors and its Internet gaming industry. Money laundering in the region is related to both narcotics and fraud schemes, as well as to other crimes, but money laundering appears to occur more often in the offshore sector than in the domestic financial sector."

The report went on to advise that:

"The Government of Antigua and Barbuda should continue its international cooperation, and rigorously implement and enforce all provisions of its anti-money laundering legislation. Antigua and Barbuda should take the necessary legislative and regulatory steps to ensure its gambling sector is properly covered by anti-money laundering legislation and is strictly supervised."

"Additionally, Antigua and Barbuda should vigorously enforce its anti-money laundering laws by actively prosecuting money laundering and asset forfeiture cases. Antigua and Barbuda should ensure that all offshore banks licensed there have a physical presence, consistent with international standards."

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