Financial Regulatory Bodies in Antigua and Barbuda Tighten Grip on Financial Services Sector
Introduction
The Financial Services Regulatory Commission (FSRC) in Antigua and Barbuda has been empowered to regulate and supervise the financial services sector with even greater efficiency following the introduction of a new legislation, The Financial Services Regulatory Act No. 5 of 2013.
Composition of the FSRC Board of Directors
- The FSRC’s Board of Directors consists of seven or nine members, including a Chairman and Deputy Chairman.
- Each director must have qualifications in business administration, accounting, banking, finance, law, and/or experience in business management.
Regulatory Functions
The Commission has been tasked with regulating and supervising international financial services sector with international business corporations incorporated and licensed under the International Business Corporations Act (IBC Act). It also regulates and licenses domestic non-bank financial services sector which includes:
- Insurance companies
- Co-operative societies
- Money services businesses
- Corporate management and trust services providers
- International insurance, foundations, trusts, and limited liability companies
Principal Functions of the FSRC
- Regulate and supervise financial service business carried on in or from within Antigua and Barbuda according to the Act and regulatory laws.
- Provide assistance to overseas regulatory authorities and advise the Government on matters related to the regulatory functions and collaborative functions being consistent with function discharged by an overseas regulatory authority.
Performance of Regulatory Functions
In performing its functions, the FSRC must have regard to the requirements of a sound financial system in Antigua and Barbuda, maintain market confidence, consumer protection, and reputation of Antigua and Barbuda as a financial center. It must also use its resources prudently for efficient and economic operation, comply with the Act, and any other act, including regulations or directions made or given thereunder.
Oversight of Licensed Institutions
The FSRC is responsible for regulating and supervising all institutions licensed under the IBC Act, which are subject to annual on-site examinations to ascertain their compliance with relevant laws, regulations, and international standards. The examinations involve determining solvency, reviewing policies and procedures, verifying compliance with customer account management guidelines, enforcing enhanced due diligence and KYC requirements, and maintaining detailed records of transactions and customer files.
International Cooperation
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, and United States.
Continuous Supervision
The FSRC has implemented continuous off-site supervision through the analysis of quarterly returns and annual audited financial statements, with follow-up on prescribed corrective actions.