Basseterre, St. Kitts, February 6, 2020 (SKNIS): Registrar of Companies and Registrar of Non-Governmental Organisations (NGOs) at the Financial Services Regulatory Commission (FSRC), Renee Gumbs, said that the FSRC’s role of regulating NGOs is important as these organisations, which fall under the Non-Bank Financial Sector, can be vehicles for money-laundering and terrorist financing activities.
The FSRC is responsible for anti-money laundering and counter terrorist financing measures for all institutions in St. Kitts and Nevis.
While being a guest on the government’s television and radio show “Working for You” on February 5, 2020, Ms. Gumbs defined a Non-Governmental Organisation as a non-profit making non-governmental body whose aims, nature and objectives are primarily for the benefit of the public. These organisations are independent of Government control in their operations and management.
The FSRC official highlighted that regulating NGOs is especially important because they can be used as fronts for illicit activities.
“International organisations can pose as charitable organisations, but behind that, they are actually affiliated to a terrorist group affiliated to a country that is susceptible to that type of activity. These types of organisations (NGOs) are excellent at networking … and because of this, it provides a platform that may very well be used for terrorist financing and money laundering as well,” said Ms. Gumbs.
What also provides a platform for terrorist financing and money laundering, Ms. Gumbs said, is the fact that these companies are “cash-intensive” and “are easily incorporated and fly under the radar.”
Money Laundering refers to the concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate businesses.
Terrorist financing is the process by which terrorist organizations receive funding for operations.
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