HISTORIC PRESS RELEASE : Money Laundering – Treasury Warns about Financial Transactions involving Antigua and Barbuda [April 1999]

The press release issued by HM Treasury on 19 April 1999.

The Treasury has issued a formal notice to financial institutions, drawing attention to deficiencies in the anti-money laundering system in the Caribbean state of Antigua and Barbuda.

Commenting on the notice, Economic Secretary Patricia Hewitt said :

“The UK is determined to take a global approach to combat money laundering. As part of the G7 initiative on financial crime, we have signalled our willingness to identify jurisdictions which fail to meet minimum standards.

In doing so, we also help protect UK financial institutions from corruption by criminal money, as well as helping to address the insidious influence of global organised crime.”

Also welcoming the move, Foreign Office Minister Baroness Symons said :

“The UK will continue to impress upon the government of Antigua the importance that we lace upon effective action to counter money laundering. We have also provided technical assistance to Antigua, and to the region as a whole; we welcome recent moves by the Antiguan government in respect of possible changes to its legislative and regulatory regime; and will continue to play a leading role in international initiatives to improve standards in this and other areas.”

The Treasury expresses concern about amendments to the anti-money laundering law, and to legislation governing international financial services in Antigua and Barbuda. These amendments strengthen bank secrecy, restrict cooperation with overseas law enforcement authorities, and seriously erode the ability of Antigua to counter the threat from money launderers. There are also, in the Treasury’s view, serious concerns about the independence and integrity of the system of financial regulation.

In the light of these concerns, financial institutions (including professionals – such as lawyers and accountants – engaged in financial business) are asked to pay particular attention to transactions involving Antiguan off-shore financial institutions, and other institutions for which the Antiguan authorities have sole supervisory responsibility.

Where financial institutions regard transactions as suspicious, taking into account the Treasury’s concerns about the anti-money laundering system in Antigua, they should report the transaction to the National Criminal Intelligence Service. It is not necessary to issue a suspicions ransaction  report in respect of all transaction involving Antigua, and financial institutions are not asked to avoid business with citizens of Antigua. But they should pay particular attention to large or unusual transactions for which their is no clear economic purpose.

The UK government will support actions that the Antiguan government agrees to undertake to address these concerns, and will continue the dialogue. In particular, the Caribbean Financial Action Task Force on money laundering, which the UK part-funds and on which we are an observer member, will be taking the lead in monitoring their compliance with international standards.