Banking and Trusts
Domestic banks are licensed under the
Banking Act. There are currently four domestic banks. Two
of the domestic banks are of indigenous capital, National Bank of Anguilla
and Caribbean Commercial Bank (Anguilla), and are testament to the strength
of the Anguillian economy in that they are the two largest banks in terms of
asset base. The other two banks are well known international banks,
FirstCaribbean International Bank and Scotiabank. Applications for domestic
banking licences must be made to the Minister of Finance, who may grant the
licence based on the recommendation of the bank supervisory authority, which
is the Eastern Caribbean Central Bank (ECCB), based in St Kitts. The ECCB
serves as the Central Bank to all member states of the Organisation of
Eastern Caribbean States, including Anguilla, and is responsible inter alia
for regulating and supervising all domestic banks within member states.
Offshore banking licences are granted under the
Trust Companies and Offshore Banking Act
the TCOBA, a banking licence is granted to applicants who are fit and proper
and qualified to carry on offshore banking business. Under current
guidelines offshore banking licences will only be granted to:
- branches or subsidiaries of banks with a well-established and proven
track record which are subject to effective consolidated supervision.
- banks which, although not subsidiaries, are closely associated with
an overseas bank, and which, by agreement, will be included within the
consolidated supervision exercised by the overseas bank’s home
- wholly-owned subsidiaries of acceptable non-bank corporations whose
shares are quoted on a recognized stock exchange, where the objective of
the subsidiary is to undertake in-house treasury operations only, and
where such operations are fully consolidated within the published
financial statements of the parent company.
Banks will only be granted licences if their place of
incorporation, mind and management are within the same jurisdiction, or, in
the case of a subsidiary, if the mind and management is located in the
jurisdiction in which consolidated supervision is being exercised.
In reviewing the application, the Commission will expect to be
- the management has a proven experience in a relevant field of
- the controllers are fit and proper people to undertake the functions
envisaged and that the ongoing management will be competent;
- the institution will conduct its business in a prudent fashion;
- the institution has devised an appropriate and sustainable business
- adequate capital and other resources will be provided in relation to
the business plan. The minimum capital requirement for a bank is
US$250,000 or the equivalent amount in another currency. However capital
adequacy will depend on the institution's capital and reserves covering
risk-weighted assets to an acceptable ratio
- direct confirmation has been received from the supervisory authority
in the country in which the institution or its proposed parent is
incorporated, that the authority consents to the establishment of the
institution in the host territory; that it will exercise consolidated
supervision over the institution’s overall activities including within
the host territory and will cooperate fully in the sharing of regulatory
information with the Commission and will provide all the information
that the Commission needs to perform its functions
- the applicant will appoint approved auditors who will perform audit
work according to internationally accepted auditing standards.
The TCOBA provides for the licensing of two types of trust
licence. The first is a general trust licence. Such a licence allows the
licensee to offer trustee services to the public in general and is granted
if the Commission is satisfied that the applicant is a fit and proper person
and is qualified to carry on trust business.
A general trust licence allows the licensee to extend the
licence to wholly owned subsidiaries, engaged in trust activities. Minimum
paid up capital of US$250,000 or the equivalent in another currency is
required. Licensees are required to seek the approval of the Commission for
any change of director and change of ownership and beneficial ownership and
to submit annual audited financial statements.
The second type of trust licence is a restricted trust licence,
which limits the licensee to administering a limited number of trusts, the
names of the settlors of which are required to be listed in the application
or in any amendment to an existing restricted trust licence. There is no set
minimum capital requirement for a restricted trust licensee. The Commission
sets the capital requirement based on the circumstances of the application.
The underlying legislation regarding trusts is the
Trusts Act 1994, which seeks to modernize trust law with
respect to security, confidentiality and flexibility, while preserving the
best features of common law trust interpretation. The Trusts Act allows for
the optional registration of trusts.
Applicable fees and application forms to
undertake offshore banking and trust activities are detailed in the
Trust Companies and Offshore Banking Regulations and the
Trust Companies and Offshore Banking (Fees) Regulations together with the
Licensing Guidelines for Offshore Banking.