Eastern Caribbean Central Banking Agreement Strengthens Financial Sector Supervision
Enhanced Reciprocal Access to Information
The Eastern Caribbean Central Banking Agreement (ECCB) has made significant progress in enhancing financial sector supervision by allowing for reciprocal access to information between foreign authorities and local regulators. Under the agreement, any officer responsible for supervising and regulating licensed financial institutions (FIs) can assess the security and soundness of a foreign FI on a reciprocal basis.
Addressing Deficiencies Identified during MER Process
The ECCB has been commended for its efforts in addressing deficiencies identified during the Mutual Evaluation Report (MER) process. While some minor shortcomings remain, the country has made significant progress in implementing recommendations to improve its anti-money laundering and combating the financing of terrorism (AML/CFT) regime.
Establishment of Domestic Mechanism for Exchange of Information
A notable development is the establishment of a domestic mechanism for exchange of information between competent authorities. The National Oversight Committee on Financial Action (NOCFA) has been set up to review the national AML/CFT policy, ensuring that all policies are under review and subject to change as needed.
Key Initiatives:
- Establishment of an MMOU for the exchange of non-public information related to cooperation arrangements or information exchange
- Coordination and cooperation between relevant authorities
Recognition by Financial Action Task Force (FATF)
The country’s efforts have been recognized by the FATF, which has upgraded its rating on Recommendation 2 from “largely compliant” to “compliant”. The revised recommendation requires countries to have cooperation and coordination between relevant authorities to ensure compatibility of AML/CFT requirements with data protection and privacy rules.
Data Protection Act
The FATF has also praised Antigua and Barbuda’s progress in implementing recommendations related to data protection, including the establishment of a Data Protection Act that provides security for personal data.