Banking Compliance Regulations in St. Kitts and Nevis
Overview of Banking Legislation
The Nevis International Banking Ordinance, No 1 of 2014, provides a comprehensive framework for international banking in St. Kitts and Nevis. The legislation aims to promote the development of the jurisdiction as a responsible international financial centre while safeguarding depositor’s funds and ensuring that banks maintain acceptable accounting standards.
Eligibility Requirements
To obtain an international banking licence, applicants must meet specific requirements, including:
- Being a body corporate incorporated under the Companies Ordinance
- Having a physical place in Nevis approved by the Regulator of International Banking
- Having a chief executive officer with at least ten years’ experience in banking or finance
Fees and Charges
The following fees are applicable for international banking licences:
| Matter | Fee (USD) |
|---|---|
| Initial Licence Fee | 100,000.00 |
| Application Fee | 7,500.00 |
| Administrative Fee | 2,500.00 |
| Annual Licence Fee | 100,000.00 |
Regulatory Requests and Ancillary Matters
The following fees are applicable for regulatory requests and ancillary matters:
| Matter | Fee (USD) |
|---|---|
| Change of Shareholder/Director/Senior Management or other Control Person | 1,000.00 |
| Amendments to Ownership Structure | 1,000.00 |
| Approval for Issue, Transfer, Disposal of Shares (no change in control) | 500.00 |
| Approval for Change of Particulars | 500.00 |
| Approval for Change of Name | 1,000.00 |
| Approval for Altering Articles of Incorporation and By-laws | 500.00 |
| Approval for Appointment of Auditors | 250.00 |
| Request Extension of Time for Filing of Regulatory Reports | 150.00 |
| Amendments to Business Plan | 500.00 |
| Approval for Use of the Word “Bank” and its Derivatives | 500.00 |
| Approval for Registered Office or Change of Registered Address | 200.00 |
| Approval of Maintenance of Reserve Fund | 500.00 |
| Approval for Voluntary Winding Up | 2,500.00 |
| Approval to Enter into a Merger, Amalgamation or Consolidation | 2,500.00 |
| Request for Approval of Subsidiary/Sales Office | 2,500.00 |
| Regulatory Request Letter | 350.00 |
| Request for Change in Auditor | 250.00 |
| Request for Extension of Submission of Quarterly Returns | 150.00 |
| Request for Extension of Submission of Audited Financial Statements | 150.00 |
| Miscellaneous Request | 300.00 |
Onsite Examination Fee - Subsidiaries and Overseas Based Operations
The following fees are applicable for onsite examination:
| Matter | Fee (USD) |
|---|---|
| Onsite Examination Fee | 5,000.00 |
Offences and Penalties
The following penalties are applicable for offences under the Nevis International Banking Ordinance:
| Offence | Penalty |
|---|---|
| Failure to disclose and declare interest | $10,000 per contravention |
| Disclosure of confidential information | $20,000.00 |
| Failure to forward to the Regulator and shareholders, copies of Annual Audited Financial Statements by the prescribed date or forwarding returns after the prescribed date | $25,000.00 and a further penalty of $1,000.00 for each month in default |
| Conducting international banking from within Nevis during any period in which a licensee/director/officer does not hold a license | Not exceeding $250,000.00 (Licensee) Up to $50,000.00 (director/officer) |
| Engaging in advertising practices contrary to Ordinance | $10,000.00 and a further penalty of $1,000.00 for each day in default |
| Making false statements and obstruction | $50,000.00 |
| Failure to submit returns as required by the Regulator | $5,000.00 |
Application Forms
The application forms for international banking licences are available below. It is advised that applicants contact the International Banking Division to discuss their proposals before completing and submitting an application form.
This information provides a comprehensive overview of the banking compliance regulations in St. Kitts and Nevis. The laws and rules outlined above provide a framework for international banking in the jurisdiction, promoting responsible financial practices while safeguarding depositor’s funds.