Financial Crime World

New Chapter in Anguilla’s Banking Sector: Government Takeover and Regulatory Updates

Anguilla’s banking sector has undergone significant changes in recent years, witnessing the acquisition of Scotiabank Anguilla Limited and updates to the regulatory framework for domestic and offshore banking institutions.

Domestic Banking Institutions: Ceased Operations and Government Takeover

  • Two domestic banks, National Bank of Anguilla Limited and Caribbean Commercial Bank (Anguilla) Limited, ceased operations in 2016.
  • Their customers were transferred to National Commercial Bank of Anguilla Limited, the sole locally-owned banking institution in Anguilla, fully owned by the Government.

Republic Bank (Anguilla) Limited: Acquisition and Name Change

  • Following regulatory approvals, Republic Financial Holdings Limited acquired Scotiabank Anguilla Limited in September 2019.
  • The transaction led to a name change, with Republic Bank (Anguilla) Limited now serving as Anguilla’s second largest banking institution.

Regulatory Framework for Domestic Banks

  • Aspiring domestic banks in Anguilla must apply for licenses with the Eastern Caribbean Central Bank (ECCB), based in St. Kitts.
  • The Financial Services Commission is responsible for anti-money laundering and combating financing of terrorism supervision.

Offshore Banking Institutions: Licensing and Requirements

  • Licenses for offshore banking institutions are granted under the Trust Companies and Offshore Banking Act (TCOBA).
  • Applicants must demonstrate a proven track record and be subject to effective consolidated supervision.
  • Only branches or subsidiaries of established banks, banks closely associated with overseas banks, or wholly-owned subsidiaries of acceptable non-bank corporations with quotable shares can apply.

License Requirements

  • Places of incorporation, management, and control must be within the jurisdiction or under consolidated supervision.
  • Applicants must submit a prudent business plan, provide adequate capital, and receive approval from the home supervisory authority.
  • Approved auditors must perform audits in accordance with internationally accepted standards.

Minimum Capital Requirements and Regulatory Expectations

  • The minimum capital requirement for a bank in Anguilla is US$250,000.
  • Adequate capital depends on risk-weighted assets.
  • Regulatory authorities expect applicants to meet strict requirements, ensuring a strong compliance stance and a stable banking sector.