ECCB 2023-2024 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2023 - 2024

S upervision of A nti -M oney L aundering , C ombating the F inancing of T errorism and C ombating P roliferation F inancing The ECCB, as the named regulator for Anti Money Laundering and Combating the Financing of Terrorism and Proliferation (AML/ CFT/CPF) for licensed financial institutions (LFIs), continued to actively monitor and assess the level of money laundering, terrorist financing, and proliferation financing (ML/TF/PF) risks of LFIs. For the 2023-2024 financial year, the Bank conducted 12 examinations of LFIs including, three thematic reviews. The scope of the examinations was guided by information garnered from off-site monitoring; utilising risk-focused information submitted by the LFIs; the quarterly AML/CFT/CPF prudential returns; updates on remedial action items; annual ML/TF/PF self-assessment questionnaires; and emerging ML/TF/PF risks from media surveillance. On 27 December 2023, Montserrat transferred the supervisory authority for AML/CFT for institutions licensed under the Banking Act, 2015 of Montserrat (No 15 of 2015) as amended, to the ECCB, pursuant to section 157 of the Proceeds of Crime Act (Cap. 4.04) as amended. Accordingly, the ECCB is now named as AML/ CFT/CPF supervisory authority in Antigua and Barbuda, Commonwealth of Dominica, Grenada, Saint Lucia, Saint Vincent and the Grenadines and Montserrat. The Bank also provided the following technical assistance to member countries: ; A comprehensive assessment of the ECCU financial system regarding AML/CFT risks, effectiveness of AML/CFT control and

reporting systems, gaps between legal and regulatory frameworks compared with 2012 FATF recommendations, and proposed measures to improve control and reporting systems; ; Advice on appropriate tools, laws and regulations to reduce institutional and societal vulnerability to transnational financial crime associated with AML/CFT risks; and ; On-site training, to the relevant authorities in Montserrat, on the implementation of The World Bank AML/CFT regulatory framework. The ECCB continued to conduct its on-site and off-site surveillance activities through the application of its risk-based supervision framework. The Bank conducted 10 prudential examinations and four information technology examinations utilising a hybrid approach of virtual and on-site examinations. Off-site monitoring of LFIs’ credit and liquidity risks, threats to earnings sustainability and capital adequacy, large credit exposures, corporate governance, and risk management, was also conducted. The ECCB, in keeping with its mandate to protect the interest of depositors and creditors of First St Vincent Bank Ltd (FSVB), took the decision, effective 26 May 2023, to appoint Receivers in accordance with Section 138(1)(c) of the Banking Act, 2015 of Saint Vincent and the Grenadines (No 4 of 2015), as amended. The revocation of FSVB’s Banking Licence was finalised in August 2023. E nhanced P rudential S upervision of L icensed F inancial I nstitutions

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