Financial Crime World

Anguilla Financial Services Commission Tightens Grip on Banking Sector with New Compliance Procedures

The Anguilla Financial Services Commission (AFSC) has taken significant steps to strengthen the banking sector in the island territory by introducing new compliance procedures for money services businesses. The measures aim to ensure that all banking operations are conducted in a transparent and secure manner.

New Licensing Requirements for Money Services Businesses

Effective July 16, 2009, the AFSC requires any individual or entity operating a money services business in Anguilla to obtain a license from the Commission. There are four classes of licenses:

  • Money Transmission: For businesses involved in transmitting funds on behalf of customers.
  • Issuance, Sale and Redemption of Payment Instruments: For companies issuing, selling, or redeeming payment instruments such as credit cards, debit cards, or prepaid cards.
  • Cheque Cashing: For businesses that cash cheques for customers.
  • Currency Exchange: For entities that exchange currency on behalf of customers.

Application Review Process

Prospective applicants are advised to meet with the AFSC before submitting their applications to discuss their proposal. The application review process involves a thorough assessment of various factors, including:

  • Validity of documents submitted: The Commission verifies the authenticity and accuracy of all submitted documents.
  • Financial condition and history of the applicant: A review of the applicant’s financial records and history is conducted to ensure they have a sound financial foundation.
  • Nature of their business: The AFSC assesses the type of business and its activities to determine if it aligns with the licensing requirements.
  • Experience of key personnel: The Commission evaluates the experience and qualifications of key personnel, including the Money Laundering Compliance Officer, Money Laundering Reporting Officer, and Compliance Officer.

Additional Requirements

Applicants must also demonstrate that they have:

  • Appointed a Money Laundering Compliance Officer
  • Appointed a Money Laundering Reporting Officer
  • Appointed a Compliance Officer

The Commission will assess the fit and proper nature of an applicant’s key stakeholders, and a license will not be granted unless all legal, regulatory, due diligence, and fit and proper requirements are met.

Capital Adequacy and Deposit Requirements

The AFSC has also emphasized the importance of capital adequacy and deposit requirements for Class A and Class B license applicants. In considering these applications, the Commission will take into account:

  • Adequacy of the applicant’s capital structure: The Commission assesses whether the applicant’s capital structure is sufficient to meet their business needs.
  • Earnings prospects: The AFSC evaluates the applicant’s earnings potential and ability to generate profits.
  • Risk management policies and procedures: The Commission reviews the applicant’s risk management policies and procedures to ensure they are adequate.

Industry Reaction

Industry experts have welcomed the new compliance procedures, citing them as a positive step towards ensuring the integrity and stability of the banking sector in Anguilla. The AFSC has pledged to continue monitoring the industry closely to ensure that all financial institutions operate within the law and maintain high standards of governance and conduct.