Financial Crime World

Title: Saint Lucia’s International Banking Sector: New Regulations for Stricter Compliance

Boosting Financial Services and Maintaining International Integrity

In an attempt to strengthen the financial services sector and uphold international integrity, the Government of Saint Lucia issued new regulations, the International Banks Regulations, to govern international banking businesses within the island nation. The regulations came into effect on April 15, 2000, with the Statutory Instrument, 2000, No. 97.

New Regulations: Overview

The International Banks Regulations consist of application and licence procedures, notice of change and revocation, fees, and deposit and investment guidelines. These regulations aim to provide a robust regulatory framework for maintaining financial stability and regulatory compliance.

Application Process for International Banking Institutions

Prospective international banking institutions intending to establish a presence in Saint Lucia must:

  1. Submit an application to the relevant authorities.
  2. Provide necessary documentation, including:
    • Capital requirements
    • Shareholders’ information
    • Business plan

Licence Classes and Capital Investment Requirements

International banking businesses in Saint Lucia may be eligible for one of the following classes of licences:

  • Class “A”: Requires a US$ one million capital investment
  • Class “B”: Requires a US$250,000 capital investment

Both classes of licences are issued through the Financial Services Supervision Department.

Licences, Renewals, and Notices

  • Licences: Issued in designated forms (Forms 2A and 2B).
  • Change of Particulars: Can be given pursuant to section 6.
  • Revocation: May be made under section 20.

Deposits and Investments: Liquidity and Financial Stability

Eligible depositing companies can make deposits or investments of at least US$100,000 in approved financial instruments:

  1. Government treasury bills
  2. Bonds and debentures
  3. Deposits with the Saint Lucia Development Bank or a bank licensed under the Banking Act of 1991
  4. Deposits with a financially recognized institution

All transactions require the approval of the Minister.

Additional Information

  • Detailed application forms (Form 1), licence forms (Forms 2A and 2B), and notices of change and revocation (Forms 3 and 4) are available in the First Schedule.
  • The Second Schedule provides the fees payable for application and Class “A” and Class “B” licence renewals.

With these regulations in place, Saint Lucia’s international banking sector will be better prepared for stricter compliance and a stronger regulatory environment.