Determination: In Place But Needs Improvement
Saint Kitts and Nevis’ domestic legislative framework is in place and contains most of the key aspects of the CRS and its Commentary requiring Reporting Financial Institutions to conduct the due diligence and reporting procedures, but it needs improvement in relation to the scope of due diligence procedures (SR 1.2) and the framework to enforce the requirements (SR 1.4). Most significantly, Saint Kitts and Nevis’s legislative framework has an anti-circumvention rule that does not cover all relevant persons that may engage in practices to avoid due diligence and reporting and it does not include an explicit legal basis to impose or enforce a sanction where a Reporting Financial Institution is a legal arrangement.
SR 1.1 Jurisdictions should define the scope of Reporting Financial Institutions consistently with the CRS.
Saint Kitts and Nevis has defined the scope of Reporting Financial Institutions in its domestic legislative framework in accordance with the CRS and its Commentary.
Recommendations:
No recommendations made.
SR 1.2 Jurisdictions should define the scope of Financial Accounts and Reportable Accounts consistently with the CRS and incorporate the due diligence procedures to identify them.
Saint Kitts and Nevis has defined the scope of the Financial Accounts that are required to be reported in its domestic legislative framework and incorporated the due diligence procedures that must be applied to identify them in a manner that is largely consistent with the CRS and its Commentary. While a deficiency has been identified with respect to defining the term Participating Jurisdiction, it is considered relatively minor and does not materially undermine the implementation of SR 1.2. Saint Kitts and Nevis has taken all necessary steps to ensure relevant agreements are in place.
Recommendations:
Saint Kitts and Nevis should amend its domestic legislative framework to ensure that the approach taken with respect to the nine jurisdictions defined as Participating Jurisdictions and with which Saint Kitts and Nevis does not have an agreement to exchange CRS information with, is in accordance with the AEOI Standard.
SR 1.3 Jurisdictions should incorporate the reporting requirements contained in Section I of the CRS into their domestic legislative framework.
Saint Kitts and Nevis has incorporated the reporting requirements in its domestic legislative framework in accordance with the CRS and its Commentary.
Recommendations:
No recommendations made.
SR 1.4 Jurisdictions should have a legislative framework in place that allows for the enforcement of the requirements of the CRS in practice.
Saint Kitts and Nevis has a legislative framework in place to enforce the requirements in a manner that is largely consistent with the CRS and its Commentary. However, deficiencies have been identified. More specifically, Saint Kitts and Nevis’s legislative framework legislative framework has an anti-circumvention rule that does not cover all relevant persons that may engage in practices to avoid due diligence and reporting and Saint Kitts and Nevis does not include an explicit legal basis to enforce a sanction where a Reporting Financial Institution is a legal arrangement. These deficiencies relates to key elements of the AEOI Standard and are therefore material to its proper functioning.
Recommendations:
Saint Kitts and Nevis should ensure that its anti-avoidance rule covers avoidance of CRS reporting and due diligence when entered into by Account Holders or intermediaries, not just by Financial Institutions.
Saint Kitts and Nevis should amend its legislative framework to ensure that there is an explicit legal basis to enforce a sanction when there is non-compliance by a Reporting Financial Institution that is a legal arrangement.