New Financial Regulations Launched by St. Helena Government

The government of Saint Helena has introduced new financial regulations to ensure the stability and integrity of the island’s banking sector.

Strengthening Banking Sector

Under the new regulations, all banks operating in Saint Helena must meet certain requirements to maintain a minimum capital base and have sufficient management structure in place. The key requirements include:

• A minimum capital base of £1 million or such other amount as may be fixed by the Governor in Council
• At least two individuals who will effectively direct the business on the island

Licensing Requirements

To obtain a banking licence, applicants must meet several conditions, including:

• Being a fit and proper person to carry out the Relevant Business
• Ensuring that all qualifying shareholders, controllers, and persons who will effectively direct the business are suitable and can ensure prudent management
• Complying with any other conditions determined by the regulatory authority

Licence Revocation and Restrictions

The regulations also provide for the restriction and revocation of banking licences in certain circumstances. The regulatory authority may revoke a licence if:

• The holder has ceased to operate or is no longer carrying out the Relevant Business
• The holder has failed to comply with any provisions of the ordinance or has concealed information from the regulatory authority
• The holder has insufficient assets to cover its liabilities or has suspended payment

The regulatory authority may also impose restrictions on a licence, such as requiring the removal of an officer or the divestment of a qualifying shareholding.

Due Process

Before imposing any restriction or revoking a licence, the regulatory authority must serve written notice on the bank and provide it with a period to make representations as to why the action should not be taken.