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Regulatory Requirements for Financial Institutions in Antigua and Barbuda

The financial regulatory landscape in Antigua and Barbuda requires international banks to comply with a range of stringent requirements to operate legally within the country. The Antigua and Barbuda Financial Services Commission (Commission) has established specific guidelines for obtaining licenses and conducting business.

International Banking Licenses

To operate an international bank in Antigua and Barbuda, financial institutions must apply for one of three types of licenses: Class I International Banking Licence, Class II International Banking Licence, or Class III Composite International Banking and Trust Licence. Each license type has unique requirements, including minimum capitalization and customer restrictions.

Class I License Requirements

Minimum Capital

  • $3 million in minimum capital required
  • $500,000 deposited with the Commission

Class II License Requirements

Minimum Capital

  • $500,000 in minimum capital required
  • $100,000 deposited with the Commission

Class III License Requirements

Minimum Capital

  • $3 million in minimum capital required
  • $500,000 deposited with the Commission

Physical Presence Requirements

Corporations licensed under the International Business Companies Act (IBC Act) must maintain a physical presence in Antigua and Barbuda, adhering to specific requirements:

  • A separate office large enough to accommodate a minimum of two staff members, computer equipment, and facilities for clients.
  • Monday-to-Friday operating hours for at least six hours daily, with posted schedules outside the office.
  • At least one full-time employee with relevant experience in understanding the corporation’s operations and recognizing due diligence procedures.
  • Physical records must be submitted to Antigua and Barbuda on a monthly basis and stored in a format allowing easy reproduction.

Annual Examinations

Licensed international banks are subject to annual on-site examinations, which assess compliance with local laws, regulations, and international standards. Examiners will investigate:

  • Know Your Customer (KYC) standards
  • Transaction and customer details
  • Procedures for reporting suspicious transactions under relevant anti-money laundering and terrorism financing legislation

Fees and Supporting Documents

For more information on fees and supporting documents required for international banking licenses, please click here.

These regulatory requirements ensure the integrity of Antigua and Barbuda’s financial sector, providing a secure environment for both domestic and international businesses.