AML/CFT/CPF

Overview of AML/CFT

On 22 July 2016, the Monetary Council, at its 85th meeting took the decision to recommend to Member Governments that the legal responsibility for anti-money laundering and combating the financing of terrorism (AML/CFT) supervision and regulation of financial institutions licenced under the Banking Act (LFIs) be transferred to the Eastern Caribbean Central Bank (ECCB). The recommendation to designate the ECCB as the regulatory authority for AML/CFT for its licencees was necessary to address deficiencies relating to AML/CFT supervision that were cited in the Caribbean Financial Action Task Force Mutual Evaluation Reports. Additionally, there is a need to promote uniformity and consistency regarding the application of an AML/CFT supervisory framework to address some of these deficiencies.

In 2018, the ECCB implemented its Risk Based Supervision Framework for prudential supervision of its licencees. The Risk Based Supervision Framework describes the principles, concepts and core process which the ECCB utilises to supervise LFIs. In this regard the ECCB has strategised its mission to balance prudential supervision with AML/CFT supervision to ensure an integrated approach to supervision.

In keeping with its proactive approach to supervision, and in response to addressing new and emerging risks to the Eastern Caribbean Currency Union (ECCU), the ECCB periodically reviews its applied processes and procedures to ensure that it aligns with international best practices. Accordingly, and congruent with a dynamic risk environment, the ECCB has reviewed and revised its supervisory approach to ensure relevance to the current operating environment.

The revised anti-money laundering and combating terrorism and proliferation financing (AML/CFT/CPF) Supervision Framework includes:

• The AML/CFT legislation in Eastern Caribbean Currency Union (ECCU) member countries that transferred the regulatory and supervisory authority of AML/CFT for LFIs to the ECCB;
• The Multi-lateral Memorandum of Understanding (MMoU) between AML/CFT supervisory authorities in the ECCU for the purpose of providing a framework for cooperation in the supervision of LFIs and to implement an effective AML/CFT system for the financial institutions for which the Central Bank has regulatory responsibility;
• The implementation of the AML/CFT/CPF Risk-Based Onsite Examination Manual;
• Implementation of the money laundering, terrorist and proliferation financing (ML/TF/PF) Prudential Return;
• Implementation of the ML/TF/PF Risk Assessment Tool; and
• Partnership with key stakeholders to ensure ongoing training on AML/CFT/CPF emerging issues.