Anti-Money Laundering Review of St. Vincent and the Grenadines
At its meeting in Aruba in November 2023, the Caribbean Financial Action Task Force adopted a 284-page evaluation report of SVG, which it published in February 2024.
The report assesses SVG’s AML/CFT system’s effectiveness and adherence to Financial Actions Task Force 40’s recommendations, and it provides recommendations for system strengthening.
Key findings described SVG as a popular transit point for smugglers, with its many islands and rugged coastline contributing to its vulnerability, rendering it difficult for law enforcement to extensively patrol and prevent criminal activities. A 2020 risk assessment report identified drug trafficking activity as the primary vulnerability facing SVG.
Data from joint investigations, prosecutions, and confiscations within the jurisdiction supports this position. Forgery and deception, theft, robbery, and burglary also pose money laundering threats. The risk assessment identified money laundering vulnerabilities in sectors such as money service businesses, registered agents, lawyers, and real estate agents. However, SVG is not deemed a regional or international financial centre.
The Financial Intelligence Unit increased its capacity, implemented an online platform to enhance its analytical and investigation functions, and in February 2023 commenced onsite examinations of non-regulated service providers.
The Financial Services Authority enhanced its risk-sensitive supervision of money service businesses and registered agents and implemented its supervisory framework. MOUs have been signed between respective agencies to facilitate the sharing of information and intelligence. However, technical compliance deficiencies remain in relation to several FATF recommendations, such as those for wire transfers, transparency, and beneficial ownership of legal persons.
Recent investigations into financial crimes have highlighted weaknesses and a lack of oversight, however. The fund group comprising the Classic Car Fund and the Classic Investment Fund, both SVG-registered and formerly administered by the non-existent local firm Fortuna Administration (run by Liechtenstein-based Scarabeus Wealth Management), resulted in numerous European criminal complaints by shareholders and allegations of fraud and money laundering against investment manager Filippo Pignatti, based in Switzerland.
Despite the in-depth investigation and subsequent allegations of extensive criminality, the SVG regulators and liquidator have been slow to act, under the very noses of the CFATF. Paul Mantoura’s SVG-registered Platinum Advisors ran Trade Mark International, a second scam, defrauding international investors into believing they were financing a major skyscraper development in the City of London. Intel Suisse conducted both investigations, and the international press has covered them.
The Caribbean Financial Action Task Force (CFATF) is an inter-governmental body consisting of 24 member states and territories of the Caribbean Basin, Central America, and South America that have agreed to implement common countermeasures to address money laundering («AML«), terrorist financing («CFT«) and the proliferation of weapons of mass destruction.
