Govt intensifies efforts to address FATF concerns to avoid ‘grey listing’

GREAT BAY--In his address at the opening of the new parliamentary year, His Excellency Governor Ajamu Baly highlighted urgent steps being taken by the Government of Sint Maarten to address concerns raised by the Caribbean Financial Action Task Force (CFATF) and mitigate the risk of the country being placed on the Financial Action Task Force (FATF) “grey list.”

For the past eighteen months, Sint Maarten’s Financial Intelligence Unit has been executing a National Risk Assessment to evaluate potential vulnerabilities of the financial system to money laundering and terrorism financing. The findings were presented at the CFATF plenary held in Trinidad in May 2025. Results showed Sint Maarten performing with low effectiveness in nine of the eleven immediate outcomes of anti-money laundering (AML) and counter-terrorism financing (CTF) measures.

Governor Baly cautioned that these shortcomings, if left unaddressed, could result in Sint Maarten being placed under increased monitoring by the FATF. Such an outcome, he stressed, would be “undesirable for Sint Maarten as a Kingdom country” and could have serious consequences for the island’s international financial reputation.

In response, both the Financial Intelligence Unit and local law enforcement agencies have begun corrective actions aimed at strengthening the jurisdiction’s AML/CTF framework. The government is also working in close coordination with the Dutch Ministries of Finance and Justice and Security to address key deficiencies and demonstrate progress ahead of the next CFATF plenary, scheduled for May 2026, where Sint Maarten will seek a formal re-rating.

Earlier this year, Minister of Justice Nathalie Tackling traveled to Trinidad on May 26th to attend the 60th plenary of the CFATF. The meeting assessed Sint Maarten’s progress in combating money laundering, terrorism financing, and related financial crimes. The evaluation, covering the period from 2019 to 2023, measured both technical compliance and effectiveness.

“The evaluation showed improvement in several areas, but it also made clear that we still have a lot of work ahead of us,” Minister Tackling stated. She emphasized the importance of targeted actions to strengthen supervisory bodies, align strategies with regional partners, and advance the national risk-based action plan. The next report is due in May 2026, and the Minister assured the public that her team is committed to making significant progress.

Minister Tackling further highlighted the value of attending the plenary in person, noting that it provided valuable insights into how other countries address financial crimes. “Financial crime is not just a technical issue; it’s about trust, safety, and opportunity for our people,” she remarked.

The Governor emphasized that Sint Maarten remains committed to financial transparency, international cooperation, and the rule of law. “By tackling these shortcomings head-on, we aim to safeguard our financial system and protect the country’s standing in the international community,” he stated.

The government has reaffirmed that improving compliance with AML/CTF obligations is a top priority for the 2025–2026 policy agenda and will be supported through targeted reforms, inter-ministerial collaboration, and technical assistance from Kingdom partners.

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