According to the U.S. State Department Bureau for International Narcotics and Law Enforcement Affairs, which is currently locked in a battle with tiny Antigua & Barbuda at the World Trade Organization over its Internet gaming industry, recently claimed that the island “remains susceptible to money laundering” because of gaming and “ its loosely regulated offshore financial sectors.”

A recent report released by the bureau charged that the islands Office of National Drug Control and Money Laundering Policy (ONDCP) and its Financial Services Regulatory Commission (FSRC) are receiving four suspicious activity reports from domestic and offshore gaming entities per week. Internet gaming companies in the islands are required to enforce know-your-customer verification procedures, maintain records relating to all gaming and financial transactions of each customer for six years and report suspicious activities to both the FSRCand the ONDCP.

It also claimed that, in recent years, a number of Antiguan and Barbuda government civilian and law enforcement officials, both in and out of the ONDCP, have received anti-money laundering training, adding that despite the comprehensive nature of The Money Laundering (Prevention) Act of 1996, Antigua and Barbuda has yet to prosecute a money laundering case on its own, but is presently seeking the extradition of two individuals from the UK and Canada on money laundering charges. Still, nearly $3.4 million has been frozen in A&B in connection with the case.

The report also pointed out that “no known evidence of terrorist financing has been discovered in Antigua and Barbuda to date.”

Still it urged the government of Antigua and Barbuda to “take the necessary legislative and regulatory steps to ensure its gambling sector is properly covered by anti-money laundering legislation and is strictly supervised.”

“Additionally,” said U.S. officials, “Antigua and Barbuda should vigorously enforce its anti-money laundering laws by actively prosecuting money laundering and asset forfeiture cases (and) should ensure that all offshore banks licensed there have a physical presence, consistent with international standards.”

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