Saint Vincent - Corruption
The law provides criminal penalties for official corruption, but the government did not implement the law effectively, and officials at times engaged in corrupt practices with impunity. There were isolated reports of government corruption during 2016.
Allegations of political handouts and other forms of low-level corruption in the time leading up to the 2015 election continued to plague both parties. The government stated there was no need to have a national anticorruption agency. The law provides the DPP with the authority to prosecute the following offenses related to official corruption: extortion by public officers, public officers receiving property to show favor, false claims by officials, abuse of office, and false certification by public officers.
Allegations of political handouts and other forms of low-level corruption in the time leading up to the 2010 election continued to plague both parties ahead of anticipated upcoming elections. Such bribes were historically a part of the country’s political culture. The government stated there was no need to have a national anticorruption agency. The law provides the DPP with the authority to prosecute the following offenses related to official corruption: extortion by public officers, public officers receiving property to show favor, false claims by officials, abuse of office, and false certification by public officers.
In October 2014 officials fined Tamara Gibson-Marks, former registrar of the High Court, $10,500 Eastern Caribbean Dollars (XCD) ($3,900), after she pleaded guilty to charges of theft and abuse of authority while serving in public office. The DPP dropped a third corruption charge related to false certification by public officers after Gibson-Marks plead guilty to the other two charges.
Members of the public called for the resignation of the commissioner of police when he attended a political rally in plain clothes and showed support for the prime minister’s party. The media and the public questioned his ability to perform official duties objectively when he was expressing a political view so publicly. The individual was a political appointee whose mandatory retirement was extended so he could continue to serve as commissioner of police.
SVG remains vulnerable to money laundering and other financial crimes as a result of drug trafficking and its offshore financial sector. The set of islands remains a small but active offshore financial center with a relatively large number of IBCs. United States currency is often smuggled into the country via couriers, go-fast vessels, and yachts.
Money laundering is principally affiliated with the production and trafficking of marijuana in SVG, as well as the trafficking of other narcotics from within the Caribbean region. Money laundering occurs in various financial institutions, such as domestic and offshore banks, and through money remitters.
As of 2016, the offshore financial sector includes five offshore banks, four offshore insurance companies, 16 registered agents, 39 mutual fund managers and administrators handling 92 mutual funds, and two casinos. As of 2015, there were 6,331 International Business Companies (IBC), 440 continued IBCs, and 100 international trusts. There are no internet gaming licenses. No physical presence is required for offshore sector entities and businesses, with the exception of offshore banks. The regulatory body with the mandate to supervise the offshore financial sector and DNFBPs is the Financial Services Authority. Resident nominee directors are not mandatory except when an IBC is formed to carry on banking business. Bearer shares are permitted for IBCs, but not for banks. The St. Vincent and the Grenadines government requires registration and custody of bearer share certificates by a registered agent who must also keep a record of each bearer certificate issued or deposited in its custody. There are no FTZs in SVG.
The primary laws and regulations that constitute the anti-money laundering [AML] regime in SVG are the Proceeds of Crime Act, No. 38 of 2015; the Financial intelligence Unit Act, Cap 174 of the Revised Laws of 2009, as amended by Act No. 7 of 2013; the Drug Trafficking Offenses Act, Cap 173 of the Revised laws of 2009; the Exchange of Information Act, cap 146 of the Revised Laws of 2009; the Mutual Assistance in Criminal Matters Act, cap 177 of the Revised Laws of 2009; the AntiMoney laundering and Terrorist Financing Regulations, No. 20 of 2014; and the Confiscation in the Magistrates’ Court Regulations, No. 22 of 2015.
The Mutual Assistance in Criminal Matters Act signed between the St. Vincent and the Grenadines government and the United States government on January 8, 1998 is the operative instrument through which records and information can be exchanged with the United States. The Treaty covers mutual legal assistance in criminal matters, the scope extending to civil and administrative matters as well.
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