Saint Kitts and Nevis: Wealth Management in the Face of Crisis Management
Introduction
For the past twenty years, Nevis has established itself as a reliable and innovative jurisdiction in international financial services and tourism. The island’s legislative regime for financial services includes international exempt trusts, international business companies, limited liability companies, and offshore banks.
Challenges Faced by Nevis’ Financial Services Industry
Recent years have posed significant challenges to Nevis’ vibrant financial services jurisdiction. The continued attacks by international organisations and national governments using measures such as blacklists, anti-money laundering regulations, counter-terrorism financing enforcement, advisories, and the imposition of heightened standards have increased pressure on the Caribbean financial services industry.
- Attacks by international organisations and national governments
- Increased regulatory requirements
- Heightened standards and expectations
Ongoing Challenges in a Global Arena
The world economic recession and terrorist attacks in the global arena have also presented ongoing challenges to governments and private sector practitioners. Moreover, the threat of global conflicts continues to pose a significant risk.
- Economic recession
- Terrorist threats
- Global conflicts
Nevis’ Response to Challenges
Despite these challenges, Nevis has emerged stronger and more competitive than ever. The island’s regulatory and legal infrastructure is being upgraded to ensure that it remains a high-quality, respectable international financial centre.
- Upgrading regulatory and legal infrastructure
- Enhancing reputation and competitiveness
- Improving due diligence and compliance procedures
Government Initiatives
The Government of Nevis has demonstrated its commitment to developing a reputable international financial services sector by undertaking extensive due diligence and other measures to ensure that only persons with the highest degree of integrity are permitted to conduct business activity on the island. A Service Providers Corporate Management & Trustee (Licensing) Ordinance has been drafted and is awaiting presentation to the Nevis Island Assembly.
- Due diligence procedures
- Licensing and regulatory framework
- Enhancing reputation and competitiveness
Addressing FATF and OECD Listings
To address the challenges posed by the FATF and OECD listings, Nevis has taken steps to enhance its reputation and competitiveness. The island has become more competitive despite its size, and with advancements in technology, borders have broken down, enabling Nevis to compete directly with centres in developed countries.
- Enhancing reputation and competitiveness
- Improving compliance procedures
- Addressing FATF and OECD listings
Recent Initiatives and Future Plans
Recent initiatives undertaken by the Nevis Island Administration include anti-money laundering, compliance training, and other seminars held in conjunction with regional and international organisations for services providers on the island. The Government has also worked assiduously to launch chapters of international organisations in Nevis, including a Compliance Officers Association and a local Chapter of the Offshore Institute.
- Anti-money laundering initiatives
- Compliance training and seminars
- Launching international organisation chapters
One of the top priorities for the future is to focus on education to better prepare practitioners on the island for meeting the needs of a dynamic industry. To achieve this goal, plans are underway to make the international financial services industry conference an annual event.
- Education and training initiatives
- Annual international financial services industry conference
Nevis’ aim is to increase its market share in the financial services arena by establishing various committees to develop legislation for new products and identifying new markets. The Administration is committed to giving serious consideration to lucrative investment proposals and invites investors to take a closer look at Nevis as a prudent place to undertake business activity.
- Increasing market share in financial services
- Establishing committees for product development and market identification
- Attracting investment opportunities