Compliance Programs for Small Financial Institutions in Antigua and Barbuda
A New Era of Regulation
In recent years, the financial services sector in Antigua and Barbuda has undergone significant reforms with the establishment of the Financial Services Regulatory Commission (FSRC) under the Financial Services Regulatory Act No. 5 of 2013.
The FSRC is responsible for regulating and supervising all institutions licensed under the International Business Corporations Act (IBC Act), including banks, insurance companies, money services businesses, and corporate management and trust services providers. The Commission’s primary functions include:
- Regulatory Functions: Regulate and supervise financial service business carried on in or from within Antigua and Barbuda.
- Collaborative Functions: Provide assistance to overseas regulatory authorities.
- Advisory Functions: Advise the government on matters related to regulation, supervision, and international standards.
Key Requirements for Compliance
In performing its functions, the FSRC must have regard to the requirements of a sound financial system in Antigua and Barbuda, maintain market confidence, protect consumers, and uphold the reputation of the country as a financial center. The Commission must also comply with relevant legislation, including regulations and directions made or given under the Act.
Regulatory Laws
The FSRC operates under several regulatory laws, including:
- International Business Corporations Act, 2016
- Insurance Act, 2007
- Co-operative Societies Act 2010
- Money Services Business Act, 2011
- Corporate Management and Trust Services Providers Act, 2008
- International Foundations Act, 2007
- International Limited Liability Companies Act, 2007
On-Site Examinations
The FSRC conducts annual on-site examinations to assess the compliance of licensed institutions with relevant laws, regulations, and international standards. These examinations involve:
- Determining solvency and reviewing policies and procedures
- Reviewing general and money laundering prevention internal control systems
- Verifying compliance with proper customer account management guidelines
- Assessing the quality of management
Tax Agreement
Antigua and Barbuda has signed Tax Information Exchange Agreements with several countries, including:
- Aruba
- Australia
- Belgium
- Curacao
- Denmark
- Faroe Islands
- Finland
- France
- Germany
- Greenland
- Iceland
- Ireland
- Liechtenstein
- Netherlands
- Norway
- Portugal
- Sint Maarten
- Sweden
- Switzerland
- United Kingdom
- United States
Conclusion
The FSRC plays a critical role in ensuring that financial institutions in Antigua and Barbuda operate in a safe and sound manner. By complying with relevant legislation, regulations, and international standards, these institutions can maintain market confidence, protect consumers, and uphold the reputation of the country as a financial center.