Financial Crime World

Tough Compliance Regulations Ahead for Financial Institutions in Antigua and Barbuda

The financial services sector in Antigua and Barbuda is set to become one of the most heavily regulated in the region as the Financial Services Regulatory Commission (FSRC) continues to implement strict compliance regulations. The FSRC, established in 2013 under the Financial Services Regulatory Commission Act No. 5 of 2013, is committed to upholding internationally recognized standards of financial regulation and supervision.

A Long History of International Financial Services

Antigua and Barbuda’s international financial services sector has a long history, dating back to the enactment of the International Business Corporations Act CAP 222 (“the IBC Act”) in 1982. However, it was not until the passage of the FSRCA that the FSRC gained its current level of authority and autonomy.

FSRC’s Principal Functions

Under section 5 of the Financial Services Regulatory Act No. 5 of 2013, the FSRC is empowered to perform a range of principal functions, including:

  • Licensing and registration
  • Prudential regulation
  • Enforcement
  • Supervision

The Commission is also responsible for ensuring that all financial institutions operating in Antigua and Barbuda comply with the relevant regulatory laws.

Regulatory Framework

These regulations are provided for in section 2 of the Financial Services Regulatory Act No. 5 of 2013 and set out the framework within which financial institutions must operate. The regulations cover a range of areas, including:

  • Anti-money laundering (AML) and combating the financing of terrorism (CFT)
  • Capital adequacy
  • Risk management

FSRC’s Vision

The FSRC’s commitment to effective regulation and supervision is driven by its vision of positioning Antigua and Barbuda as a preeminent financial center in the region. By ensuring that all financial institutions comply with the highest standards of regulation and governance, the Commission aims to build trust and confidence among investors, regulators, and other stakeholders.

Conclusion

In summary, financial institutions operating in Antigua and Barbuda must be prepared to meet tough compliance regulations, as set out by the Financial Services Regulatory Commission. Failure to comply with these regulations can result in serious consequences, including fines and even revocation of licenses.