BANKING SYSTEM OF ST.VINCENT & THE GRENADINES

The financial sector in Saint Vincent and the Grenadines is comparatively small and as at the beginning of 2005 was made up of the following financial institutions. The domestic sector: seven (7) banks, one (1) co-operative building society, three (3) major credit unions, thirteen (13) motor and general insurance companies (5 local and 8 CARICOM) and 8 long term and life insurance companies (all CARICOM).
The international finance sector: six (6) banks, thirteen (13) international insurance companies, eleven (11) mutual funds, ten (10) mutual fund managers.

The Regulatory Authority
The International Financial Services Authority (IFSA) was created by Parliament to institute a new system to manage, direct control and supervise the offshore financial services industry in St. Vincent and the Grenadines. Its role is clearly defined by the governing stature – The Saint Vincent and the Grenadines Offshore Finance Authority Act, 1996. The business of The Authority is under the direction of a five-member board of directors. The International Financial Services Authority has been charged with these particular duties:
1. To administer and oversee the process of licensing Registered Agents, Private
Trustees, Financial Fiduciaries, and Registered Trustees and regulate the activities of
Registered Agents and their services to ensure compliance.
2. To administer and oversee the licensing, regulation and supervision of International
Banks.
3.To appoint, and to supervise the activities of, the Executive Director.
4.To oversee the activities of the Registrar of IBCs and the Registrar of International
Trusts.

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.

Anti Money Laundering Legislation
St Vincent and the Grenadines has implemented a package of legislation aimed at detecting, preventing, and prosecuting money laundering and other serious crimes as well as confiscating the profits of crime. The legislative measures reflect international best practices and take account of the 40 Recommendations of the Financial Action Task Force (FATF) on money laundering and the 19 Recommendations of the Caribbean FATF. The relevant laws are:
- Mutual Assistance in Criminal Matters Act, Act No. 45 of 1993
- Proceeds of Crime and Money Laundering (Prevention) Act, 2001
- Proceeds of Crime and Money Laundering Regulations, 2002
- Financial Intelligence Unit Act, 2001
- Exchange of Information Act, 2002
On 20th June 2003 St. Vincent and the Grenadines was removed from the FATF Blacklist. With this clean bill of health St. Vincent and the Grenadines has become a world-class international financial service center, characterized by integrity, confidentiality and innovation.

Financial Institutions Operating:

First Caribbean International Bank
National Development Bank
RBTT Bank Caribbean Ltd
Bank of Nova Scotia
First St.Vincent Bank
National Commercial Bank (SVG) Ltd
St.Vincent Co-Operative Bank
St.Vincent and the Grenadines Development Bank