Financial Crime World

Antigua and Barbuda’s Financial Services Sector Faces Compliance Challenges

The Financial Services Regulatory Commission (FSRC) of Antigua and Barbuda has been established to regulate and supervise the country’s financial services sector. Despite efforts to strengthen regulations, compliance challenges persist in the sector.

Overview of the FSRCA Act

The FSRCA Act No. 5 of 2013 outlines the commission’s duties and powers, including:

  • Regulating international financial services
  • Supervising insurance companies, co-operative societies, money services businesses, corporate management and trust services providers, and limited liability companies
  • Providing assistance to overseas regulatory authorities
  • Advising the government on matters related to financial regulation

Regulatory Framework

The International Business Corporations Act (IBC) and other regulatory laws provide the framework for the FSR’s operations. The commission’s principal functions include:

  • Regulating and supervising financial service businesses
  • Conducting annual on-site examinations of institutions licensed under the IBC Act
  • Providing continuous off-site supervision through quarterly returns and annual audited financial statements
  • Enforcing enhanced due diligence and KYC requirements
  • Verifying compliance with internationally recognized prudential standards
  • Assessing the quality of management

Tax Information Exchange Agreements

Antigua and Barbuda has signed tax information exchange agreements with over 20 countries to facilitate cooperation in combating money laundering and other financial crimes. However, despite these efforts, compliance challenges persist, highlighting the need for continued vigilance and strengthening of regulatory frameworks.

Accessing the IBC Act

The IBC Act is available online for viewing, and a hard copy can be obtained from the Antigua and Barbuda Government Printery.

Conclusion

The commission’s role in promoting a sound financial system, maintaining market confidence, and protecting consumers is crucial to the sector’s overall stability and growth.