On 2 October 2026, the St Helena Government (SHG) officially launched a public consultation on a new legislative framework designed to strengthen the territory’s arrangements for tackling money laundering, terrorist financing, and the proceeds of crime. The consultation, which runs for a period of eight weeks, invites comments from financial institutions, legal practitioners, businesses, and the general public. The proposed framework aims to bring St Helena’s anti-money laundering (AML) and counter-terrorist financing (CFT) regime into full alignment with the Financial Action Task Force (FATF) Recommendations and the OECD’s standards for tax transparency and information exchange. This initiative is part of a broader government strategy to enhance the island’s financial integrity, protect its reputation as a cooperative jurisdiction, and ensure compliance with international obligations. The consultation document outlines significant amendments to the Proceeds of Crime Ordinance and the Anti-Money Laundering Regulations, introducing new offences, expanding the scope of regulated entities, and enhancing the powers of the Financial Intelligence Unit (FIU). Stakeholders are encouraged to submit written responses by the deadline of 27 November 2026.
Key Takeaways
- Expanded Legislative Scope and New Offences: The draft framework significantly broadens the definition of predicate offences for money laundering to include all serious crimes, consistent with FATF standards. It introduces specific offences for the failure to report suspicious transactions, tipping off, and the concealment of beneficial ownership information. The legislation also extends AML obligations to a wider range of designated non-financial businesses and professions (DNFBPs), including real estate agents, legal practitioners, accountants, and trust and company service providers. These entities will be required to implement customer due diligence (CDD) measures, maintain transaction records for a minimum of five years, and appoint a nominated compliance officer. The new regime also establishes a statutory requirement for risk-based assessments, obliging regulated entities to identify, assess, and mitigate their money laundering and terrorist financing risks on an ongoing basis.
- Enhanced Investigative Powers and International Cooperation: The proposed legislation grants the Financial Intelligence Unit (FIU) and law enforcement agencies enhanced powers to obtain information, including the ability to apply for production orders, search warrants, and asset freezing orders without prior conviction. It also facilitates greater international cooperation by providing a clear legal basis for mutual legal assistance requests and the sharing of financial intelligence with foreign counterparts. The framework incorporates the OECD’s Common Reporting Standard (CRS) and the FATF’s guidance on beneficial ownership transparency, requiring companies and legal arrangements to maintain accurate and up-to-date beneficial ownership registers accessible to competent authorities. These measures are expected to improve St Helena’s ability to trace, freeze, and confiscate the proceeds of crime, thereby deterring financial criminals from exploiting the jurisdiction.
- Consultation Process and Implementation Timeline: The SHG has emphasized a transparent and inclusive consultation process, with the draft legislation published on the government website and public meetings scheduled in Jamestown and Half Tree Hollow. Feedback will be analyzed by the Attorney General’s Chambers and the Treasury, with a summary of responses to be published within 30 days of the consultation closing. Subject to the consultation outcome, the final bill is expected to be presented to the Legislative Council in early 2027, with a target commencement date of 1 July 2027. Regulated entities are advised to begin preliminary compliance preparations, including reviewing their existing AML policies, conducting gap analyses, and engaging with industry associations to coordinate feedback. The government has also indicated that guidance notes and training workshops will be provided to assist with the transition to the new regime.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement