Financial Crime World

Anguilla’s New Financial Compliance Regulations: ERSP/NRSP Regulations for Externally and Non-Regulated Service Providers

Anguilla, a British Overseas Territory in the Caribbean, has strengthened its financial compliance regulations through the Externally and Non-Regulated Service Providers Regulations, 2013 (ENRSP Regulations). These new regulations, introduced on September 25, 2013, aim to bolster the country’s anti-money laundering (AML) and counter-terrorist financing (CTF) framework.

Background

According to the ENRSP Regulations, the Anguilla Financial Services Commission (FSC) is now mandated to maintain registers for both externally regulated and non-regulated service providers (ERSP and NRSP, respectively). The regulations were enacted under the Proceeds of Crime Act (POCA) and amended the existing AML/CTF Regulations.

Categories of Service Providers

  • ERSP: A service provider falls under the category of an ERSP if they hold a license under either the Banking Act or the Securities Act. This category includes banks and trust companies, as well as securities firms.
  • NRSP: Those service providers not covered under ERSP regulations are categorized as NRSPs. Schedule 2 of the AML/CTF Regulations, as amended, enumerates specific providers considered as NRSPs. These include independent legal professionals, accountants, and auditors, among others.

NRSP Regulations

The ENRSP Regulations emphasize the necessity for these non-regulated entities to maintain compliance with applicable AML/CTF regulations. This ensures a cohesive and robust regulatory environment across the financial services sector in Anguilla.

Applications

  • Registration: Any individual or entity intending to carry on a relevant business in or from within Anguilla is required to make an application to the FSC for registration. This can be done by applying either as an ERSP or as an NRSP supervised by the FSC.
  • Money Laundering Officer: Entities listed under Schedule 2 of the AML/CFT Regulations (excluding sole traders) are required to appoint a Money Laundering Compliance Officer/Money Laundering Reporting Officer (MLCO/MLRO), approved by the Commission, to ensure effective implementation of AML/CTF policies and procedures.

Conclusion

The ENRSP Regulations represent a significant step forward in Anguilla’s efforts to fortify its financial services sector against money laundering and terrorist financing risks. This commitment to maintaining a well-regulated environment ensures integrity and transparency within the jurisdiction.