ST JOHN’S, Antigua (CMC) — The Antigua and Barbuda Government has sent a diplomatic note to the United States formally registering its objection to a US report that labelled the Caribbean island as “a jurisdiction of primary concern for money laundering” for the second consecutive year.

Prime Minister Gaston Browne said that the diplomatic note sent to the US State Department “observes that the comments and assertions on Antigua and Barbuda in the INCR 2015 lack any basis in fact and are not based on objective criteria.

“Information in the INCSR sourced from Antigua and Barbuda is taken out of context and is not current. The report characterises Antigua and Barbuda as having a ‘large’ financial sector,” Browne told Parliament.

In its INCSR (International Narcotics Control Strategy Report) for 2015, Washington defined a major money laundering country as one “whose financial institutions engage in currency transactions involving significant amounts of proceeds from international narcotics trafficking”.

But it said the complex nature of money laundering transactions now makes it difficult in many cases to distinguish the proceeds of narcotics trafficking from the proceeds of other serious crime.

“Moreover, financial institutions engaging in transactions involving significant amounts of proceeds of other serious crime are vulnerable to narcotics-related money laundering.”

Washington said that this year’s list of major money laundering countries recognises this relationship by including all countries and other jurisdictions, whose financial institutions engage in transactions involving significant amounts of proceeds from all serious crime.

But Prime Minister Browne said that whether or not a large financial sector is per se considered to be an international risk, the fact is that by any measure, assets, turnover, employment or registered entities, the financial sector in Antigua and Barbuda is small.

“Indeed it is better characterised as ‘tiny’. If all the assets and transactions of the financial services sector are taken together, they would not amount to 0.001 per cent of the world’s financial assets. They could pose no international risk.”

He said in the diplomatic note, St. John’s has made this point forcefully.

“Nonetheless, we have further pointed out to the US Government that the Anti-Money Laundering controls in Antigua and Barbuda are extensive, detailed and meet all regional and international standards, particularly those set by the Financial Action Task Force and that are monitored by the International Monetary Fund and the Caribbean Financial Action Task Force,” said the prime minister.

He said that the legislation in Antigua and Barbuda as it relates to companies is far more restrictive than that found in most States in the United States of America and many other jurisdictions.

Prime Minister Browne said that Washington had also been told that Antigua and Barbuda is especially amazed that the Internet gaming sector in Antigua and Barbuda is described as “growing”.

“We have made the point that, in fact, Internet gaming has been in decline directly as a result of action by the United States Government which has been found by the World Trade Organisation to have damaged the economy of Antigua and Barbuda.

“We have further stated that, in actuality, the Internet gaming sector is subject to exactly the same Anti-Money Laundering controls as other regulated sectors and is subject to especially tight oversight and regulation.”

Browne, in his communication to Washington, said his administration has also noted that the 2015 INCSR makes reference to the mutual co-operation between the US and Antigua and Barbuda that has existed for some years, and that it cites the recent asset sharing between the two countries as an illustration of this cooperation.

“In this regard, we have stated that it would be a pity to see such co-operation undermined by the comments in the 2015 INCSR that are inappropriate and factually incorrect.

“… The Government of Antigua and Barbuda urged the Government of the United States to correct the material on Antigua and Barbuda in the 2015 INCSR and to agree to review any further such reports directly and transparently with authorised agencies of the Government of Antigua and Barbuda,” Prime Minister Browne added.