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Vincent and the Grenadines, and Trinidad and Tobago. Subsequently, Antigua and Barbuda signed an Article 98 arrangement in September 2003; Belize signed one in December 2003; and Dominica signed one in Might 2004. This leaves Barbados, St. Vincent, and Trinidad and Tobago as the 3 Caribbean countries forgoing U.S. military help because of the ASPA sanction. Trinidad and Tobago, which foreclosed timeshare played a leading role in the establishment of the ICC, has highly resisted signing an arrangement, as has Barbados. (For extra information see CRS Report RL33337, Short Article 98 Arrangements and Sanctions on U.S. Foreign Help to Latin America, by [author name scrubbed]) Due to the fact that of their geographic area, lots of Caribbean countries are transit countries for cocaine and heroin from South America destined for the U.S.

In addition, 2 Caribbean nations, Jamaica and St. Vincent and the Grenadinesare big manufacturers and exporters of cannabis. Of the 16 countries in the Caribbean region, President Bush in September 2006 designated four of them as significant drug-producing or drug-transit nations pursuant to annual legal drug accreditation requirements: the Bahamas, the Dominican Republic, Haiti, and Jamaica. The President advised the brand-new government in Haiti to strengthen law enforcement and the judiciary to bring drug about timeshares trafficking and criminal activity under control. All four designated Caribbean nations are significant transit nations for illegal drugs to the U.S. market, and Jamaica is the biggest cannabis manufacturer and exporter in the Caribbean.

The Dominican Republic, a significant transit country for both cocaine and heroin, complies closely with the United States, although the State Department's March 2006 International Narcotics Control Method Report keeps in mind that "corruption and weak governmental institutions remained an impediment to controlling the flow of prohibited narcotics" through the country. Jamaican cooperation with U.S. law enforcement firms on counternarcotics efforts is described by the State Department report as outstanding for the most part, although it preserves that the federal government requires to additional intensify its law enforcement efforts and boost worldwide cooperation. In Haiti, anti-drug efforts have actually been hindered for many years by weak organizations, poor financial conditions, and political instability.

Many other Caribbean countries, while not designated major transit nations, are still susceptible to drug trafficking and associated criminal activities because of their geographic area. In specific, the State Department's March 2006 report keeps that such criminal activities have the potential to threaten the stability of the small states of the Eastern Caribbean, and to varying degrees, have actually damaged civil society in some of these nations. Offered the poor outlook for the banana industry in the Caribbean, some observers think that it will be tough to consist of cannabis production unless there is appropriate support to diversify these economies away from banana production.

Vincent and the Grenadines is the biggest marijuana producer in the Eastern Caribbean. Efforts to crack down on cash laundering also make up a significant element of U.S. Which of these is the best description of personal finance. anti-drug technique, and became significantly important as a counter-terrorist technique in the consequences of the September 2001 terrorist attacks in the United States. The State Department's list of major cash laundering nations (likewise classified as "jurisdictions of main concern") includes six Caribbean countries, Antigua and Barbuda, the Bahamas, Belize, the Dominican Republic, Haiti, and St. Kitts and Nevisand one British Caribbean dependency, the Cayman Islands. The Department of State keeps that although Antigua and Barbuda has thorough legislation to manage its financial sector, the nation stays vulnerable to money laundering since the sector is loosely managed and due to the fact that of its Internet video gaming market.

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In Belize, money laundering is thought to occur mainly in the country's growing offshore financial center. Money laundering in both the Dominican Republic and Haiti come from their roles as significant timeshare floating week explanation drug transhipment points. In the Dominican Republic, monetary organizations take part in deals with money originated from illegal drug sales in the United States, with courier and wire transfers the main methods for moving the funds. St. Kitts and Nevis, according to the State Department, is at significant threat for corruption and money laundering since of the high volume of narcotics being trafficked through the nation and since of the existence of known traffickers on the islands.

The FATF evaluative procedure has actually been a significant consider Caribbean nations improving their anti-money laundering routines. 4 Caribbean countries and one dependent territory were on the first FATF non-cooperative list issued in 2000: the Bahamas, the Cayman Islands, Dominica, St. Kitts and Nevis, and St. Vincent and the Grenadines. Grenada was added to the list in September 2001. Subsequent actions by all these nations to improve their anti-money laundering regimes resulted in all of them being eliminated from the list by June 2003. The Bahamas and the Cayman Islands were eliminated from the list in June 2001; St. Kitts and Nevis in June 2002; Dominica in October 2002; Grenada in February 2003; and St.

Once a nation is eliminated from the list, the FATF continues to keep track of advancements in the country to make sure compliance. Some Caribbean officials and others have actually complained that pressure to reinforce and enforce anti-money laundering programs in the region will have a detrimental impact on its overseas monetary sectors. They preserve that the anti-money laundering measures needed have actually been indiscriminate and constitute an attack on genuine business conducted in the little financial sectors of the area. In specific, after the U.S. congressional passage of brand-new anti-money laundering provisions in the USA PATRIOT Act (P.L. 107-56, Title III), authorized in the aftermath of the September 11 terrorist attacks, some feared that the stricter examination of deals between U.S.

The act's anti-money laundering arrangements include a restriction on U.S. reporter accounts with shell banks (banks that have no physical existence in the chartering country) and tighter bank record keeping requirements. Some observers maintain that the conditioning of anti-money laundering regimes in the Caribbean will have the end outcome of increasing the attractiveness of the region's overseas financial sectors for genuine organization deals. According to this view, such efforts as the FATF evaluative procedure and the newer anti-money laundering measures under the PATRIOT Act will assist alter the reputation of the Caribbean as being a haven for money launderers and tax evaders.

In 1983, Congress enacted the Caribbean Basin Economic Recovery Act (CBERA) (P.L. 98-67), the focal point of a broader U.S. diplomacy initiative referred to as the Caribbean Basin Effort (CBI) connecting Central America and Caribbean nations together under one preferential trade program. The CBERA permitted duty-free importation of lots of categories of items with particular exceptions. A lot of garments and textile goods were disqualified under the CBERA, however in the late 1980s imports of apparel from CBERA nations that were assembled from U.S. components were qualified for reduced duties. These production-sharing plans enhanced the apparel sectors of a number of Caribbean Basin countries, consisting of most considerably the Dominican Republic.