Transnational criminal networks continue to exploit St. Vincent’s banking and nonbanking financial sectors, especially cash-intensive businesses, by using them to launder proceeds from narcotics trafficking and organised crime activities. This is according to a 2025 report from the U.S. State Department.
The report states that SVG faces several challenges in addressing money laundering and financial crimes due to its proximity to transnational crime networks in the region.
“Although SVG has made strides in bolstering its anti-money laundering/combating the financing of terrorism (AML/CFT) framework, challenges remain related to resource limitations and interagency coordination.”
“Money launderers may use the nonprofit organisation (NPO) sector due to its lack of comprehensive AML/CFT oversight. To strengthen oversight, SVG designated the Financial Intelligence Unit SVG (FIU-SVG) as the supervisory authority for NPOs under new 2024 regulations. These entities require ongoing monitoring and training to mitigate risks,” the report stated.
The nation has adopted a series of AML laws, regulations, and frameworks that incorporate AML/CFT international standards.
“Despite SVG’s progress, there are gaps in the nations AML framework, including insufficient AML/CFT supervision over domestic banks. The supervisory framework for domestic banks remains underdeveloped, reducing the ability to detect and mitigate risks within the banking system.”
The report stated that there is a need for a more effective risk-based approach to supervision in sectors like the securities area, which lacks robust “fit and proper” requirements.
“SVG’s system for the declaration of BNIs and cash transactions lacks mechanisms to record and retain information on large cash transactions. This gap complicates efforts to track cross-border currency movements,” the report notes.
Throughout 2024, St Vincent took notable steps to enforce and implement its AML regulations.
The FIU, FSA, and other supervisory authorities received expanded powers through the new regulations, which allow for the imposition of administrative penalties on entities failing to comply with AML requirements.
SVG reported no prosecutions or convictions for money laundering in 2024. However, the state did seize approximately $24,650 through the civil courts.
The country holds these funds in the Confiscated Assets Fund, with 15 per cent allocated to law enforcement to support crime prevention and investigative activities, the reported stated.
