ST. JOHN’S, Antigua, CMC -The Antigua and Barbuda Parliament has given the green light to the Money Laundering (Prevention) Act even as government and opposition legislators complained of developed countries, mainly Europe and the United States, imposing forcible compliance with international standards on Small Island Developing States (SIDS).
Earlier this year, the European Union listed Antigua and Barbuda as non-compliant tax jurisdictions, even as St. John’s complained about the practice of shifting the goalposts in anti-money laundering policies.
Prime Minister Gaston Browne, who tabled the legislation, told legislators that the Bill is not a matter of “discretionary” policies by his administration but was mandated by various international agencies to ensure that the Caribbean country continues to fail to adhere to anti-money laundering rules.
“If we were even to utilize the argument of sovereignty and we decided not to make these changes, we would be exposing the country to sanctions,” he said, adding, “What the Financial Action Task Force (FATF) and Organisation for Economic Co-operation and Development (OECD) are recommending is that we use a risk-based approach, so it’s not a situation that all non-profit organisations should be treated with suspicion.”
The legislation calls for non-profit organizations to be included among the organizations that now must follow anti-money laundering and counter-terrorism legislation, including listing beneficial owners and directors.
It also requires establishing a supervisory authority and regular risk assessment of non-profit organizations.
Browne said that having understood the business and assessed the risk associated with the non-profit organization, the Supervisory Authority and its staff could determine whether or not they are likely to represent a significant risk for money laundering and terrorism financing and, in that case, would be required to take the necessary mitigating steps.
“As I said to the Attorney General, this matter is so urgent that we are not risking any form of sanctions because we are late. I suggested to the Attorney General that we pass the Act as is,” he said, referring to some issues he still had with the legislation.
He added, “I don’t see why we should be holding up these urgent changes while determining who should be the supervisor.”
Opposition Leader Jamale Pringle noted some concerns over the legislation’s due process and anti-competition implications.
“This is something that we have to look at seriously, and [with] this type of legislation, we must be able to tailor this legislation to suit us as a country,
Opposition legislator Sherfield Bowen said the government needs to ensure that persons accused under the legislation have the right to due process.
“You first have to prove that I am engaged in money laundering activity…and where is the review process? There is no review process. The supervisor makes the decision independently, and you have no review process. Mr. Speaker, that violates our Constitution”.
Another opposition legislator, Asot Michael, argued that offshore islands directly controlled by the US and the United Kingdom face different scrutiny and burdensome legislative pressures than other small island states.
“These same rules that they are asking you, the same regulations to tighten your laws and to pass legislation in respective countries across the Caribbean and Latin America and across the world to be fair…the guise it in the framework of terrorism financing, money laundering.
“But they do not have those same thresholds in Switzerland, France, and the United Kingdom. And you look at the offshore islands; it is called the Channel Islands, the Isle of Man, all of those offshore islands that are still open …they do not have the same regulation they are asking us to pass,” he added.
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