Financial Crime World

COMPLIANCE PROCEDURES FOR BANKS IN ANTIGUA AND BARBUDA

Operating an international bank in Antigua and Barbuda requires strict adherence to a set of rules and regulations outlined by the Commission.

CLASSIFICATION AND REQUIREMENTS

Class I International Banking Licence

  • This licence permits banks to conduct international banking business with a minimum capital requirement of $3 million in paid-up capital. Five hundred thousand dollars must be deposited with the Commission.
    • Advantages:
      • Ability to conduct international banking business
      • Higher level of capitalization for more substantial operations

Class II International Banking Licence

  • This licence allows banks to conduct international banking business for a restricted list of customers, with a minimum capital requirement of $500,000 in paid-up capital. One hundred thousand dollars must be deposited with the Commission.
    • Advantages:
      • Lower level of capitalization for smaller operations
      • Ability to focus on specific customer segments

Class III Composite International Banking and Trust Licence

  • This licence permits banks to conduct international banking and trust services for an unrestricted list of customers, with a minimum capital requirement of $3 million in paid-up capital. Five hundred thousand dollars must be deposited with the Commission.
    • Advantages:
      • Ability to offer comprehensive financial services
      • Higher level of capitalization for more substantial operations

PHYSICAL PRESENCE REQUIREMENTS

International banks licensed under the IBC Act are required to maintain a physical presence in Antigua and Barbuda, which includes:

  • A separate office that can accommodate at least two staff members, computer equipment, and facilities for clients.
    • Advantages:
      • Ability to provide face-to-face services to clients
      • Increased security and control over operations
  • The office must be open six hours a day, Monday to Friday, with posted opening hours outside the office.
    • Advantages:
      • Ability to serve clients during regular business hours
      • Increased visibility for customers
  • At least one full-time employee with relevant experience in understanding the operation of the bank.
    • Advantages:
      • Ability to provide expert knowledge and guidance to clients
      • Increased credibility and trustworthiness

ANNUAL EXAMINATIONS

International banks are subject to annual on-site examinations to ensure compliance with laws, regulations, and international standards. Examiners will also investigate procedures for reporting suspicious transactions under the Money Laundering (Prevention) Act 1996, the Prevention of Terrorism Act 2005, and the Money Laundering (Prevention) Regulations, 2007.

FURTHER INFORMATION

For more information on fees related to international banking requirements and licensing procedures, click here.