ECCB 2022-2023 Annual Report and Financial Statements

Eastern Caribbean Central Bank Annual Report 2022 - 2023

AML/CFT/CPF Related Activities The ECCB issued the 8th edition of its AML/CFT newsletter in January 2023. The newsletter, which was launched in March 2021, aims to provide an informative platform for technical discussions and raise awareness on emerging money laundering, terrorist financing and proliferation financing risks. Some topical areas covered in past issues included: regulatory and legislative updates; money laundering typologies; targeted financial sanctions; risk assessments; and AML/CFT/CPF governance structures. In the past year, the Bank provided scholarships to its member countries to encourage the relevant regulators to become Certified AML specialists (CAMS). At the end of the financial year 28 people were successful in the exam and are now considered CAMS. World Bank Risk-Based Approach Toolkit The ECCB continued its partnership with The World Bank to facilitate training for national regulators, as part of an initiative, which was launched in April 2020. National regulators continued to strengthen their capacity in AML/CFT/CPF risk-based supervision, towards the maintenance of an enhanced regulatory environment. The programme included seven modules which focused on the following: 1. Basic AML/CFT concepts and risk-based design - Modules 1 and 2; 2. Legislative review of member countries - Module 3; 3. Risk-based on-site and off-site supervision processes and procedures - Module 4 ; 4. A collaborative workshop with supervisors and reporting institutions, to better understand the needs and challenges of the industry and establish regulatory expectations - Module 5 ; 5. Development of risk-based supervision manuals - Module 6 ; and 6. Data and technology, which included training on

the Risk-based Approach (RBA) risk assessment tool - Module 7

The training culminated in a closing workshop held in Miami over the period 12-14 December 2022. Twenty-five regulators and supervisors from the six ECCB independent member countries attended the workshop. Participants committed to utilising the additional knowledge, tools and resources received throughout the training series to strengthen the overall AML/CFT/CPF supervisory framework. Capacity Building/Industry Consultation The ECCB provided technical support to internal and external stakeholders including training sessions for ECCB staff on the IRRBB and Market Risk Prudential Standards. Externally, bilateral engagements were held with several LFIs on Basel-related issues. Industry sensitisation and training were also held during the meeting of the Basel Working Group. This group comprises the ECCB staff and representatives from the LFIs, to which Basel II/III applies. CDB Mentorship Programme The ECCB, in collaboration with the Caribbean Development Bank, implemented a technical assistance project towards “Improving the Integrity and Financial Transparency of the Eastern Caribbean Currency Union”. A fundamental component of this project was ensuring that member countries were supported in the application of their risk-based AML/CFT/CPF supervision programme. Under this project, the ECCB initiated its AML/CFT/CPF Supervisory Mentorship Programme, which sought to build on The World Bank Risk-Based Toolkit training, through the practical application of the risk-based toolkit. The mentorship programme included: pre-onsite assessment and scope memorandum planning; conduct of the AML/ CFT/CPF on-site examination; preparation of the on site examination report; the drafting of remedial action documents (where applicable); and post examination assessment reviews. All eight member countries opted

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