BANKING SYSTEM OF ANTIGUA AND BARBUDA

The Financial Services Sector in Antigua and Barbuda is relatively small. The Sector offers service in international banking, trust and insurance in addition to the incorporation of ordinary international business corporations (IBC’s).
The Financial Services Sector is supervised and regulated by the International Financial Sector Regulatory Authority (“The Authority”). The Authority was established as a body corporate under the International Business Corporation (Amendment) Act 1998. Its composition was changed in 1999. The Authority is now managed by four Directors with the Solicitor-General serving as the chairman of the Authority.

The main objectives of the Authority are:

(1) To maintain a well regulated Financial Services Sector and to ensure that investors are protected against fraud and mismanagement of their financial resources;
(2) To ensure that the Financial Services Sector is not used by white-collar criminals such as money launderers;
(3) To cooperate with Regulatory Authorities in other jurisdictions in assisting such authorities to exercise their regulatory functions.
The duties of the Authority include administration of the International Business Corporations Act including the issuing of certificates of incorporation for international business corporations, licensing of corporations to conduct international banking, trust and insurance business and regulation of all entities incorporated and licensed under the Act. The Authority is also responsible for recommending regulations to be made to give effect to the better administration of the Act.

Offshore Banks
The Government of Antigua and Barbuda has implemented numerous policies and safeguards to properly regulate the Offshore Banking Industry.
International concerns about Money-Laundering and other illegal financial activities have promoted the Government to review, and revise the existing laws that apply to offshore Banking. As a result, there have been recent amendments to the International Business Corporation Act and the Money-Laundering (Prevention) Act. The Government's objective is to ensure that the country's reputation, within the International financial services community, is not tarnished or compromised.
There are some of the provisions of these Acts which are primarily intended to create, within Antigua and Barbuda, a stable and safe operating environment for Offshore Banks:
- All Offshore Banking affairs are subject to annual examination by designated Government Examiners.
- Detailed customer and transaction records must be kept by all Offshore Banks.
- An "equity to assets ratio" of at least 5% must be maintained by Banks.
- Changes in the ownership and Board of Directors of Banks will require the prior approval of the Authority.
- Banks are prohibited from accepting bearer negotiable instruments.
- Banks are prohibited from receiving or transmitting funds for persons who are not customers or account holders.
- Each Bank must appoint a Compliance Officer who is responsible for ensuring the Bank's compliance with applicable laws.
- A Money Laundering Supervisor has been appointed by Government and given the authority to freeze funds, derived from Money Laundering for up to 4 days with a Court Order.
- The assets of any person convicted of money laundering can be forfeited.
- Courts in Antigua and Barbuda are authorized to co-operate with other States in identifying, tracing, freezing or forfeiting property.
The establishment, licensing and activities of offshore Banks are governed by the provisions of the International Business Corporations Act.
Any International Business Corporation (IBC) may apply to the International Financial Sector Regulatory Authority for a license to carry on International (or "Offshore") Banking. Under the IBC Act, the Supervisor of International Banks is responsible for the issuance of Banking Licenses.
There is a statutory requirement that Offshore Banks must maintain a minimum capital of US$5 million. Of this amount, US$1.5 million must be deposited and kept in a bank licensed to do business in Antigua and Barbuda.
As a condition of its license, an offshore bank is required to submit financial returns to the Supervisor of banks every three (3) months. An audited financial statement must be filed annually, together with a certificate verifying current owners, directors and officers of the Bank.
The Government has endeavored to balance the need for customer confidentiality against its desire to adequately regulate the offshore banking industry. As a result, the law expressly prohibits unauthorized disclosure of certain information relating to the Bank's operations and violators can be fined and/or imprisoned.
Statutory Requirements:
- At least one of the directors of an Offshore Bank must be a citizen of, and resident in, Antigua and Barbuda. Corporate directors are not allowed; all directors must be natural person.
- An applicant for an Offshore Banking License must submit pertinent biographical information on each proposed directors, shareholders (with more than 5% share-holding) and officers of the Bank. Generally, information is required on the business background of these persons.
- A Banking License can, generally, be issued within four (4) weeks of submission of completed application documents.

Eastern Caribbean Central Bank
The Eastern Caribbean Central Bank (ECCB) was established in October 1983. It is the Monetary Authority for a group of eight island economies namely - Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines. The mission of ECCB is to maintain the stability of the EC dollar and the integrity of the banking system in order to facilitate the balanced growth and development of member states. The monetary arrangements are characterized by :
- the issuance of a single common currency, the flow of which is unrestricted among its members.
- a common pool of foreign exchange reserves; and
- the existence of a Central Monetary Authority which decides on the Union's monetary policy.
The purposes of the Bank are:
- to regulate the availability of money and credit;
- to promote and maintain monetary stability;
- to promote credit and exchange conditions and a sound financial structure conducive to the balanced growth and development of the economies of the territories of the Participating Governments;
- to actively promote through means consistent with its other objectives the economic development of the territories of the Participating Governments.
The governing bodies of the Eastern Caribbean Central Bank are the Monetary Council and the Board of Directors. The Monetary Council is the highest decision making authority. It is comprised of one Minister appointed by each Government of the participating countries. The function of the Council is to provide directives and guidelines on matters of monetary and credit policy to the Bank. The Board of Directors is comprised of ten Directors - the Governor and Deputy Governor, and one Director appointed by each Government of the eight participating countries. The Board of Directors is responsible for policy and general administration of the Bank, while the Governor, the Chief Executive, is responsible for the day-to-day management and operations.

Confidentiality Provisions
The IBC Act provides criminal penalties for any disclosure of the business affairs of customers regarding banking or trust matters. The only exception for the disclosure of information relates to sound evidence regarding an alleged criminal offence that is triable in Antigua (or which would have been triable, if it has been committed in Antigua).

Financial Institutions Operating - The main banks are as follows:

Antigua and Barbuda Development Bank,
Antigua / Barbuda Investment Bank Ltd,
Antigua Commercial Bank Ltd,
Bank of Antigua,
Bank of Nova Scotia,
First Caribbean International Bank Ltd.
Caribbean Banking Corp Ltd,
CIBC Caribbean Ltd,
RBTT Bank Ltd,
Royal Bank of Canada.