Banking Regulations Compliance in Saint Kitts and Nevis: A Guide to Money Services Business Licensing
In Saint Kitts and Nevis, operating a money services business requires a valid licence from the Financial Services Regulatory Commission (FSRC). In this guide, we will explore the requirements for licensing, compliance with regulations, and the responsibilities of licensed entities.
Licence Validity and Renewal
A licence to operate a money services business in Saint Kitts and Nevis is valid from its initial issue date until December 31st of that year. To maintain validity, the licence must be renewed annually by paying the prescribed fee before January 15th.
Compliance with Regulations
The FSRK takes strict measures to ensure compliance with regulations. If there is reasonable cause to suspect an individual is operating a money services business without a valid licence, the FSRC may present evidence in court against them.
Auditor Appointment and Financial Reporting
Licensed entities are required to appoint an auditor annually who must be:
- A chartered accountant
- Certified public accountant
- Member of the Institute of Chartered Accountants of the Eastern Caribbean
The auditor’s primary duty is to prepare reports on the financial statements and position of the licensee. The audited financial statements must be submitted to the FSRC within three months of the end of the financial year, unless prior written approval for an extension is granted.
Anti-Money Laundering Regulations
To prevent money laundering and other illicit activities, licence holders must establish procedures to ensure their accounting records and business control systems comply with anti-money laundering regulations.
Quarterly and Annual Returns
Quarterly returns are mandatory for Class A and B licence holders, which must be filed within 15 days of the end of each quarter along with a written declaration stating that all information provided in their application remains accurate. For Class C, D, and E licence holders, annual returns must be submitted to the FSRC within 15 days of the end of the financial year accompanied by a similar declaration.
Licence Revocation
The Financial Services Regulatory Commission can revoke a licence if the holder fails to:
- Commence operations
- Breach licensing conditions
- Engage in conduct detrimental to the public interest or customers
- No longer be a fit and proper person to hold a licence
Additionally, the FSRC may terminate a licence at the request of the licensee.
Notice of Licence Revocation
In the event of a licence revocation, the FSRK will publish a notice in the Gazette and a local newspaper, as well as take other necessary steps to inform the public of such revocation.