PART I
These Guidelines have been issued by the Financial Intelligence Authority (FIA) in recognition of the risks the financial sector in Saint Lucia is exposed to with regard to the financing of terrorism.
The Guidelines reflect best practice internationally and implement the recommendations of the Financial Action Task Force (FATF) and the Caribbean Financial Action Task Force (CFATF).
The Guidelines are directed to all financial institutions and are designed to assist with the enforcement of the Anti-Terrorism Act (ATA), as they
represent good industry practice. It is recommended that financial institutions should adopt internal procedures which are of equivalent standard.
Institutions should be aware that business dealings with terrorists or terrorist organizations could result in the institution facing significant legal, operational and reputation risks. These risks increase significantly if there is a lack of effective monitoring which may enable persons to carry out acts of terrorism.
All financial institutions are therefore required to establish and implement programmes, policies, procedures and controls in order to prevent and deter the financing of terrorism as specified in the ATA.
These Guidelines should be read in conjunction with the FIA's Revised Anti-Money Laundering Guidelines, particularly with regard to “Verification” or “Know Your Customer” procedures.
The FIA recognizes that institutions may have systems and procedures in place which, whilst not identical to these outlined in the Guidelines, nevertheless impose controls and procedures, that are at least equal if not higher to those contained in the Guidelines.
The Authority actively encourages all institutions to develop and maintain links with it to ensure that the internal systems and procedures are effective and up to date, so enabling them to implement their duty of vigilance.
WHAT IS TERRORISM?
Under the Anti-Terrorism Act a terrorist act is defined as—
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(a) an act or omission in or outside Saint Lucia which constitutes an offence within the scope of a counter terrorism convention;
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(b) an act or threat of action in or outside Saint Lucia which—
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(i) involves serious bodily harm to a person,
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(ii) involves serious damage to property,
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(iii) endangers a person's life,
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(iv) creates a serious risk to the health or safety of the public or a section of the public,
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(v) involves the use of firearms or explosives,
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(vi) involves releasing into the environment or any part thereof or distributing or exposing the public or any part thereof to—
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(aa) intimidate the public or a section of the public; or
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(ab) compel a government or an international organization to do, or refrain from doing, any act; and
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(ac) is made for the purpose of advancing a political, ideological, or religious cause;
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(c) an act which—
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(i) disrupts any services, and
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(ii) is committed in pursuance to a protest, demonstration or stoppage of work,
shall be deemed not to be a terrorist act within the meaning of this definition, so long as the act is not intended to result in any harm referred to in sub-paragraphs (i),(ii), (iii) or (iv) of paragraph (b).
WHAT IS FINANCING OF TERRORISM?
Financing of terrorism is the term used to describe the accommodating or facilitating of financial transactions that may be directly related to terrorist groups or organizations and their activities.
Financing of terrorism may involve funds raised from criminal activity e.g. fraud (credit cards and cheques), prostitution, smuggling, intellectual property theft (e.g. CD piracy), kidnapping and extortion.
Some terrorists operations, however, do not depend on outside sources of money and may be self funding either through legitimate sources such as employment, personal donations and profits from charitable organizations.
Money laundering and terrorist financing often share similar transactional features mostly in relation to the concealment and disguise of funds. It should be noted, however, that terrorist financing tends to be in smaller amounts than in the case with money laundering, and when terrorist raise funds from legitimate sources, the detection and tracking of these funds becomes more difficult.
RELEVANT OFFENCES UNDER THE ATA
Provision of Services for Commission of Terrorist Acts
Any person who, directly or indirectly, provides or makes available financial or other related services—
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(a) intending that they be used, in whole or in part, for the purpose of committing or facilitating the commission of a terrorist act or for the purpose of benefiting any person who is committing or facilitating the commission of a terrorist act; or
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(b) knowing that in whole or part, they will be used by or will benefit, a terrorist group, commits an offence and is on conviction on indictment, liable to imprisonment for a term of twenty-five (25) years.
Dealing with Terrorist Property
Any person who knowingly—
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(a) deals, directly or indirectly, in any terrorist property;
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(b) acquires or possesses terrorist property;
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(c) enters into, or facilitates, directly or indirectly any transaction in respect of terrorist property;
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(d) converts, conceals or disguises terrorist property;
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(e) provides financial or other services in respect of terrorist property at the direction of a terrorist group;
commits an offence and is on conviction on indictment, liable to imprisonment for a term of twenty-five (25) years.
Financial Institutions
A financial institution which engages in the financing of terrorist acts commits an offence and is liable on conviction on indictment to a fine of one million dollars ($1,000,000.00).
A director, general manager, secretary or other like officer or an employee of the financial institution engages, in the financing of a terrorist act commits an offence and is liable to conviction on indictment to a fine of five hundred thousand dollars ($500,000.00) or to imprisonment for a term of years or both.