The House of Representatives in Antigua and Barbuda approved amendments to the Money Laundering (Prevention) Act yesterday, aiming to align with international standards.
After the European Union designated Antigua and Barbuda as a non-compliant tax jurisdiction, the government expressed frustration over what they perceive as constantly changing criteria in anti-money laundering policies.
Prime Minister Gaston Browne emphasized that the Bill is not a matter of discretionary policy but is mandated by various international bodies to ensure compliance with anti-money laundering regulations. He stated, “If we were to argue based on sovereignty and chose not to implement these changes, we would inevitably expose the country to sanctions.”
The amended legislation mandates that non-profit organizations adhere to anti-money laundering and counter-terrorism laws, which include disclosing beneficial owners and directors. Furthermore, the Bill necessitates the establishment of a supervisory authority to conduct regular risk assessments on non-profit organizations.
Prime Minister Browne clarified the approach recommended by the Financial Action Task Force (FATF) and the Organisation for Economic Co-operation and Development (OECD): “They advocate a risk-based approach, meaning not all non-profit organizations should be viewed with suspicion. After assessing the business and associated risks of the non-profit, the Supervisory Authority can determine if they pose a significant risk for money laundering or terrorism financing and take appropriate mitigating actions.”
However, the opposition raised concerns regarding due process and potential anti-competition implications of the legislation.
Leader of the Opposition, Jamale Pringle, commented, “We must seriously consider these concerns and ensure that any legislation is tailored to fit our country’s needs.”
St Peter MP Asot Michael pointed out disparities in scrutiny and regulatory pressures, noting that offshore islands under direct control of nations like the US and UK face less rigorous oversight compared to other small island states.
