The National Competitiveness And Productivity Council - St. Lucia

31/01/2023

Virtual Asset Legislation Enacted to bolster Saint Lucia’s Anti-Money Laundering Legislation

The National Anti-Money Laundering Oversight Committee (NAMLOC) presented certificates of participation to stakeholders involved in reviewing the recent amendments to Saint Lucia’s Anti-Money Laundering, Terrorist, and Proliferation Financing legislation. These amendments are critical to Saint Lucia's application for re-rating to be removed from enhanced follow-up. One piece of legislation which will impact several service providers is the Virtual Assets Business Act which was recently passed in December 2022.

Natalie Dusauzay, Executive Director of the Financial Services Regulatory Authority (FSRA), explained that a virtual asset is a digital representation of value that can be traded or used for payment or investment.

“Most virtual assets that you would know or would have heard of would be cryptocurrencies or virtual currencies such as bitcoin or lite coin. And, today it is reported that over 20,000 of those are in circulation.”

She said a virtual currency cannot be equated to a fiat currency.

“What do I mean by that? A fiat currency is a legal tender issued by a government, while a cryptocurrency or a virtual currency is backed by a blockchain technology that is not overseen by any central authority.”

Dusauzay added that blockchain technology has the ability to allow the transfer of value around the world quickly and efficiently, with law enforcement authorities reporting that illicit traders are using such technology to trade in cyberspace to conduct transfers between multiple accounts, in multiple jurisdictions using virtual identities where the owner of the virtual asset isn’t always known.

“So, you could understand how difficult it is for law enforcement to trace a transaction, and due to that emerging risk, the Financial Action Task Force (FATF) has issued recommendations to deal with such emerging risks and they have issued recommendation no.15 out of the 40 recommendations that have been issued by the Financial Action Task Force.”
These recommendations provide guidance to national authorities such as NAMLOC, virtual asset providers, financial entities, and the like to better understand their risks and potential exposure in relation to money laundering, terrorist, and proliferation financing. It calls for institutions to conduct effective and continuous customer due diligence.

“That Virtual Asset Business Act would provide for anyone wanting to provide a virtual asset business from or within Saint Lucia would have to be licensed. That means they would have to submit an application to the Financial Services Regulatory Authority to be approved as a virtual asset service provider.”

The Executive Director stated that NAMLOC is aware that virtual assets are a burning issue for many stakeholders and the intent of the legislation is not to stifle investment opportunities.

“We as prudential regulators and money laundering and terrorism financing regulators such as the Financial Intelligence Authority, understand that the objective is not to stifle the growth of virtual assets but rather to make sure that we remain compliant.”

A number of key stakeholders have volunteered their services to NAMLOC to address gaps in Saint Lucia’s Anti-Money Laundering Legislation and the ongoing National Risk Assessment.

25/01/2023

The Customs and Excise Department joins counterparts around the world in observance and World Customs Day on January 26th, 2023. The theme for this year’s observance is “Nurturing the next generation, promoting a culture of knowledge, sharing, and professional pride in customs.” Senior Customs Officer, Sarah Arlette Marshall outlined the activities planned in observance of World Customs Day.

“On that day we are going to have an exhibition at Constitution Park, sensitizing and creating an awareness of the roles and functions of the Customs Department. We will also have our networking agencies such as the Ministry of Agriculture and Ministry of Fisheries explain their role to the members of the public.”

An awards and dinner night to recognize and honour retirees of the Customs department will also form part of the observance as well as a cultural and games night to build comradery.

“We also what to have a fishing night in the South because we have customs in the south and customs in the north, so we want to incorporate everybody in what we do promoting that theme.”

Ag. Comptroller of Customs, Sherman Emmanuel, emphasized the critical role the Customs and Excise Department performs within the country to ensure border security, revenue collection, and trade facilitation. Apart from customs being the largest revenue earner for the Government of Saint Lucia, he said great attention is being placed on modernizing and digitizing cargo and passenger information systems in an effort to secure the island's ports.


“The department is moving towards employing more non-intrusive inspection methods and technology to screen cargo in order to combat illicit trafficking in small arms, light weapons, and narcotics. We are well aware of the social developmental impact of the inflows of illicit weapons and narcotics. In this regard, we commenced the x-ray screening of cargo at our main transit shed where we receive the highest volume of cargo that is at port Castries. We also have an x-ray screening programme at the ferry terminal and also at our main post office. We are expecting to have installed more x-ray equipment and tools in the short to medium term at all commercial ports of entry. We are also employing other measures in collaboration with other agencies for bolstering our border security.”


The Customs and Excise Department has a complement of over 200 staff, 190 of which are Customs Officers. The Ag. Comptroller has called for the support, cooperation, and collaboration of partner agencies, the trading community, and the general public as the Customs Department strives to improve its service delivery and overall productivity.


“The Saint Lucia Customs and Excise Department is your department and remains committed to serving you.”


The World Customs Organisation (WCO) encourages member organizations to conduct activities throughout the year in alignment with the theme for World Customs Day 2023.

16/01/2023

NAMLOC will soon apply for a re-rating as Saint Lucia strengthens its Money Laundering Prevention Legislation

Money Laundering is a serious and growing issue globally. The United Nations Office on Drugs and Crime estimates that between 2% and 5 % of global GDP is laundered, this amounts to $800 million to $2 trillion annually. Juliana Alfred, Permanent Secretary in the Attorney General’s Chambers and Chair of the National Anti-Money Laundering Oversight Committee (NAMLOC) explained that NAMLOC, which is an inter-sectoral committee set up by the Cabinet of Ministers, is actively working to monitor and mitigate the risks posed to the various sectors within Saint Lucia by money laundering, terrorist and proliferation financing.


“So, all of this work that the committee is doing is with the intension that towards the end of this year Saint Lucia will be applying for re-rating to remove us from enhanced follow-up because currently, we are under enhanced follow-up because of all of these deficiencies.”


Kozel Creese is the Senior Crown Counsel in the AG’s Chambers and Deputy Chair of NAMLOC. She said Saint Lucia has been sighted as falling short on some of the forty standards set by the Financial Action Task Force (FATF) which is the inter-governmental policymaking body established to set international standards to combat money laundering, terrorist, and proliferation financing.


“St. Lucia would have been graded on each of these rules. So, from our standpoint, we were partially compliant in at least twenty-two and non-compliant in eight. Some of the things I would identify in terms of our risks; one of the suggestions of the Mutual Evaluation Report is that Saint Lucia must be able to sufficiently identify its Money Laundering and Terrorist Financing risk and must be able to allocate resources in terms of which are the higher risker areas and which are the low-risk areas.”

She added that Saint Lucia’s Anti-Money Laundering legislation must also ensure that there is sufficient, dissuasive, and proportionate sanctioning for persons who breach the Money Laundering Prevention Act.


“Specifically in relation to Non-Profit Organisations (NPOs), they considered that these organizations are off course higher risk however St. Lucia has not addressed in terms of which subset of these NPOs would be a higher risk for money laundering or terrorist financing.”


Though compliance to the international standards is “voluntary” the economic ramifications for deliberate non-compliance can be catastrophic, with countries facing being grey or blacklisted or even losing correspondent banking privileges.

“What you will see happening is obviously a disruption in services, you would see higher costs of services as a result of that. When we look at the issue of remittances, which are a very big thing for the region, that can be affected as well. So these recommendations as small island developing states we essentially have no choice but to comply because the ramifications are quite intense.”

NAMLOC has commenced the ramping up of its stakeholder engagement and public sensitization programme in relation to the necessary amendments to various pieces of legislation that support the Anti-Money Laundering Prevention Act. A panel discussion held at the NTN Studios formed part of this public sensitization effort where issues such as customer due diligence, risk mitigation, compliance requirements, and sources of funds were addressed by industry professionals. Saint Lucia will apply for a re-rating of its National Risk Assessment in November 2023.

12/01/2023

Department of Finance : UNLEASHING THE BLUE ECONOMY OF THE CARIBBEAN (UBEC) TERMS OF REFERENCE COMMUNICATION SPECIALIST

Job Vacancy - Deadline 20th January 2023
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The Blue Economy is defined as an approach to promote sustainable and integrated use of marine resources for economic growth, improved livelihoods, and job generation while preserving the health of ocean ecosystems.  It covers a range of interdependent sectors, including fisheries, coastal tourism,...

12/01/2023

Department of Finance : Unleashing the Blue Economy of the Caribbean (UBEC) TERMS OF REFERENCE M&E Specialist

Job Vacancy - Deadline 20th January 2023
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12/01/2023

Department of Finance : UNLEASHING THE BLUE ECONOMY OF THE CARIBBEAN (UBEC) Terms of reference Administrative assisstant

Job Vacancy - Deadline 20th January 2023
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12/01/2023

Department of Finance : UNLEASHING THE BLUE ECONOMY OF THE CARIBBEAN (UBEC) TERMS OF REFERENCE ENVIRONMENTAL SPECIALIST

Job Vacancy - Deadline 20th January 2023UNLEASHING THE BLUE ECONOMY OF THE CARIBBEAN (UBEC) TERMS OF REFERENCE -ENVIRONMENTAL SPECIALIST

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12/01/2023

Department of Finance : UNLEASHING THE BLUE ECONOMY OF THE CARIBBEAN (UBEC) TERMS OF REFERENCE PROJECT MANAGER

Job Vacancy - Deadline 20th January 2023
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12/01/2023

Department of Finance : UNLEASHING THE BLUE ECONOMY OF THE CARIBBEAN (UBEC) TERMS OF REFERENCE SOCIAL SPECIALIST

Job Vacancy - Deadline 20th January 2023
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01/12/2022

The Treasury Department Launches its Micro Payments Convenient Cheque Collection for Soufriere and Vieux Fort

The Department of Finance via the Accountant General’s Office or Treasury Department has launched a long-awaited initiative dubbed, Micro Payments Convenient Cheque Collection. Accountant General, Matthew Branford said this initiative is set to directly impact the ease of doing business with the Treasury Department by decentralizing the collection of Cheques via its Sub-Offices in Soufriere and Vieux Fort.

“So, introducing Micro Payment Convenient Cheque Collection in the south will transform the landscape for the Treasury Department and enhance the government’s payment services. Vendors who have provided services to the government will have three locations, Castries, Vieux Fort and Soufriere where they can collect their cheque payments. Payment delays will be significantly reduced and in some instances eliminated but will be more convenient for many people. Thus beginning in December 2022 the Treasury Department will commence the printing of cheques at the Soufriere and Vieux Fort Sub-Accountant Offices. The staff have already been trained and are ready to deliver on this promise as well as technical requirements are all in place for a smooth transition.”

Director of Finance, Imran Williams highlighted that this initiative not only builds resilience within the government's payment system but creates greater inclusion for the population. He also proposed a challenge to the Treasury Department.

“Most forms of payment, in the advanced countries, and he did speak to it to his credit, we’re now dealing with electronic funds transfer, direct deposits into bank accounts. So, now we have to start thinking, now that we have removed the risk in the system we can even go a step further to make it more efficient. We can now try to encourage, let’s not say force or mandate, encourage most persons that interact business with the government at the very minimum to enter the banking system by way of a credit union, or bank account. We now have D-Cash coming on stream. We have electronic wallets. Once you do that you realize that you can, even get rid of the printing of cheques and deal with your direct deposits.”

Minister for Commerce and Parliamentary Representative for Soufriere, Hon. Emma Hippolyte acknowledged the obvious direct benefit to her constituents and further stated that such initiatives are part of the government's thrust to improve competitiveness and the ease of doing business in Saint Lucia.

“We promised to remove the impediments to transacting business and we continue to deliver and will not stop until Saint Lucia becomes the number one in the region for transacting business.”

Hon. Dr. Kenny D. Anthony, Parliamentary Representative for Vieux Fort South, though applauding the micro payments initiative called for greater attention to be focused on the decentralization of government services to foster increased social inclusion and equity in the provision of government services.

“In a sense, this service here is long overdue. As much as I compliment the Treasury Department and the Accountant General’s Office, I congratulate them, let’s face an inconvenient truth, it’s long overdue. It should have happened a long time ago but you know what sometimes, as the Accountant General indicated change is difficult and complicated and we create artificial barriers as to why we should not do things, why we should not make a difference, or why we should not change things. It really requires a fundamental change in the mindset of those who manage our affairs and those who manage our businesses, those who manage the delivery of services emanating from the government.”

Also endorsing the initiative was Parliamentary Representative for Choiseul/Saltibus, Hon. Bradley Felix and Cyprian Lansiquot representing Hon. Wayne Girard Parliamentary Representative for Anse La Raye Canaries.

The Micro Payment Convenient Cheque Collection will commence on December 1st at the Soufriere Sub-Office and on December 8th at the Sub-Office in Vieux Fort. Cheques valued at $50,000 and below can be printed on demand at these Sub Offices.

22/11/2022

Saint Lucia set to improve its National Risk Assessment Profile

The National Risk Assessment for Saint Lucia which was conducted in 2018 went through a validation exercise on November 15th and 16th 2022. The National Risk Assessment is a snapshot of Saint Lucia’s risk profile in various sectors. Juliana Alfred is the Permanent Secretary in the Attorney General’s Chambers.

“A lot has happened including the publication of Saint Lucia’s mutual evaluation report in 2021 and in that report a few deficiencies were highlighted, things that Saint Lucia has to address. One of the new elements is updating our National Risk Assessment, which is why you are here. But, there are also critical things that we are to address as a country to ensure that we are removed off enhanced follow-up, which is where we are at now.”

Over the past year, the Attorney General’s Chambers and the Anti-Money Laundering Committee have undertaken legislative changes and implemented policies geared at addressing identified gaps sighted in Saint Lucia’s Mutual Evaluation Report.

“So come the first quarter of 2023 Saint Lucia is supposed to be applying for a re-rating further to the publication of our report because we want to improve the standing of Saint Lucia and we want to be removed from enhanced follow-up.”

Various stakeholders from the public and private sectors were engaged for a two-day workshop on de-risking, reputational risk, and the economic impact if Saint Lucia fails to address its deficiencies. Attorney General, Leslie Mondesir indicated that the effectiveness of a National Risk Assessment is dependent on a real understanding of the risks facing the country and developing risk-based action plans to mitigate corruption, tax evasion, fraud, human trafficking, and countering the financing of weapons of mass destruction.

“A National Risk Assessment enables us:
1. To better understand the dimensions and sources of the proceeds of financial crime and better identify methods and trends of money laundering and terrorist proliferation financing
2. To better understand the weakness of the anti-money laundering system and combating the financing of terrorism and factor that may render us vulnerable
3. To identify vulnerabilities of Saint Lucia’s financial sector and non-financial sector along with weaknesses related to the operations of Saint Lucia’s Financial Intelligence Unit, law enforcement authorities, and the financial sector supervisors.
4. To allow government to target resources to areas of higher risk or greater vulnerabilities.”

The Attorney General added that pursuant to the publication of Saint Lucia’s Mutual Evaluation Report in January 2021 Saint Lucia was placed under the enhanced follow-up process having eight or more non-compliant or partially compliant ratings for technical compliance and a low or moderate level of effectiveness for seven or more of the eleven effectiveness outcomes.

“The National Anti-Money Laundering Committee (NAMLC) made a presentation to Cabinet, to brief the Cabinet as to what the fourth round CFATF Mutual Evaluation Process is all about and to let Cabinet know the way forward. How we deal with these particular issues.”

The dynamic and constantly changing international landscape brings with it new risks, threats, and new recommendations to reduce the vulnerabilities of Small Island Developing States (SIDS).

“So we constantly have to be evolving and stay on top of the trends in terms of what the new threats are. So, for example, terrorism financing, that was not there before and now it’s something we need to focus on. Proliferation financing is another issue that we need to focus on.”

Alfred added that the penalty for non-compliance can cripple a county’s economy thus the importance of strengthening the internal systems to combat potential threats. The first follow-up report was presented in December 2021 with the second follow-up report due in December 2022.

17/11/2022

Saint Lucia’s MTDS presented at the UN Development Partners Coordination Meeting

The Department of Economic Development recently presented Saint Lucia’s Medium Term Development Strategy (MTDS 2021-2026) at a United Nations organized meeting of Development Partners and the Government of Saint Lucia. The MTDS is the output of extensive stakeholder consultations with the public and private sectors, NGOs, and Civil Society Organisations who interrogated Saint Lucia’s development issues and proposed solutions. Perle Alcindor in the Ag. Chief Economist with the Department of Economic Development.

“So, it was very opportune for us to be part of the dialogue today because as we move from the official launch of the MTDS now we are going into implementation. This is where we need to dialogue further with our development partners to identify resources, so that we will be able to have the transformative projects that we have identified, through our process, that we can actually implement them to be able to have a transformative impact and improve the quality of life of the people of Saint Lucia.”

Development partners work bilaterally with governments providing support and aid in various areas. UN Country Coordination Officer for Saint Lucia, Dr. Lorraine Nicholas said the purpose of the meeting was to improve the delivery of development assistance to Saint Lucia and to reduce implementation bottlenecks “as very often the funds are available but, the implementation is rather important.”

“So today we have a number of development partners joining us in person as well as virtually. We have Japan, the EU, the UK, the OAS, IICA, the World Bank, CDB, and of course we have several United Nations Agencies joining us as well. Basically, to ensure that we provide coordinated assistance to Saint Lucia.”

Dr. Nicholas stressed the importance of development partners to understand the development priorities for Saint Lucia as articulated by the government which should also reflect the priorities of the private sector and civil society organisations.

“Coming out of this we would have identified where the gaps are. We now understand what each development partner is bringing to the table and so hearing from the government what are their priorities, juxtaposing the Medium Term Development Strategy priorities with what the development partners are offering. Where are the gaps? How can we work together better to provide the support? To be more strategic and more impactful and more relevant for the government of Saint Lucia.”

The MTDS lays the roadmap on how the government will tackle its priority issues while building resilience to external shocks such as the Covid 19 pandemic and Ukraine/Russia conflict.

“In the MTDS one of the priority areas is to enhance human capital and social resilience. So somebody going through the document will be able to see an intervention that we have identified to address that, is improving health facilities. We also look at access to housing justice and citizen security, there are actually specific interventions to address those. So the citizens will be able to understand what exactly is being done. So it’s not just aspirational but how we move from aspiration to impacting people every day.”

The MTDS is supported by a national development framework which triggers long-range planning for how citizens would like to see Saint Lucia 30 to 40 years from now. The development partners’ coordination meeting was held at the Harbor Club in Gros Islet.

09/11/2022

Saint Lucia pilots Security Interest in Movable Property legislation in the OECS

The National Competitiveness and Productivity Council (NCPC) says the passage of the Security Interest in Movable Property Bill in both the low and upper houses of Parliament will spur increased economic activity within the local business community. Micro, Small, and Medium Enterprises (MSMEs) will now be able to use their movable assets to secure financing from financial institutions. This new legislation is expected to positively impact national productivity and competitiveness.


“I bet to present for second reading a bill shortly entitled, Security Interest in Movable Property.” This was Prime Minister Hon. Phillip J. Pierre at the sitting of the House of Assembly on October 11th 2022.

The passage of the Security Interest in Movable Property Bill is intended to support Micro, Small, and Medium Enterprises and is a critical step towards a cohesive and inclusive system to promote access to finance and growth within the small business sector.
In his contribution to the bill at the sitting of Parliament, Hon. Dr. Ernest Hilaire stressed the importance of this novel piece of legislation particularly to the MSME sector.

“The seamstress who has four sewing machines can now use those machines as security to get a loan. That never existed before but it can now, Mr. Speaker.”

Sharma Mathurin is the economist with the National Competitiveness and Productivity Council Spearheading this reform.

“What I think is important and different about this new bill and this project is that it ensures that the proper structured and orderly, comprehensive legislative framework is established to guide those transactions. So the banks, credit unions, and other financial institutions must adhere to the administrative rules and guidelines and regulations contained within the provisions of the new bill.”

She pointed out that the Bill also calls for the establishment of an online Movable Property Collateral Registry. The Collateral registry is seen as a win-win mechanism for both debtors and creditors. This online centralized register of movable assets is only for assets that have been secured as collateral for loan financing.

“At present Saint Lucia does not have a registry of movable assets and so it adds further structure to those transactions as any banker or creditor will be able to undergo a search or register a claim within the collateral registry from any electronic device.”
Mathurin declared that Saint Lucia is the forerunner and pilot member state within the OECS to develop and draft this landmark piece of legislation.

“While many of the other countries are in the early stages of drafting and developing, Saint Lucia is at an advanced stage and so they’re looking to Saint Lucia as a good example and a model to follow from.”

The International Finance Corporation (IFC), the largest global development institution focused on the private sector in emerging markets, is also working closely with the Eastern Caribbean Central Bank to promote the adoption of a harmonized legal and institutional framework for secured transactions. This includes a regional web-based collateral registry for moveable assets for the Eastern Caribbean Currency Union (ECCU). As part of this effort, the ECCB and IFC propose the adoption of a uniform legislative model for secured transactions across the ECCU. The IFC will also work with the ECCB to review prudential guidelines on the use of movable assets as collateral.

"Small and medium-sized enterprises are a major source of employment and are essential for economic growth in Saint Lucia," said Ronke-Amoni Ogunsulire, IFC's Regional Manager for the Caribbean. "The project to build an online collateral registry, informed by international best practices, is designed to advance financial inclusion in the country and to help companies to grow and prosper."

The Security Interest in Movable Property Bill is the culmination of years of work and numerous consultations with key stakeholders such as the Chamber of Commerce, Bankers Association, Bar Association, and Consumers Association.

“I think generally this is the type of reform work and project that any competitiveness council would endorse or get involved in as unleashing credit to the private sector gives them the opportunity to take up projects within their firms that decrease their overhead cost, increase their efficiencies, empower them to export to other regional and international countries. And, when you have a private sector of firms collectively working towards improving their competitiveness it does augur well for country competitiveness and this has the potential to propel your economic growth in the right direction while ensuring that the general economic wellbeing of the country is enhanced.” Mathurin stated.

The new law was spearheaded by the National Competitiveness & Productivity Council with technical advisory support from the International Finance Corporation and the World Bank Group.