BANKING



CHALLENGE
To find a jurisdiction with good banking facilities and services that offer the full range of banking activities to encourage international financial services activities.

SOLUTION Anguilla has four banking entities that, for a significant time, have honed their services to facilitate effective solutions to the needs of clients, both in Anguilla and throughout the world.

RESULT Anguilla’s banks make doing business easy and effective.

DOMESTIC BANKING

Domestic banking business is banking conducted with residents of Anguilla or banking conducted in the Eastern Caribbean Dollar (XCD). Domestic banks are licensed under the Banking Act and regulated by the Eastern Caribbean Central Bank (ECCB), based in St. Kitts. The ECCB serves as the Central Bank to all member states of the Eastern Caribbean Currency Union, including Anguilla, and is responsible, inter alia, for regulating and supervising all domestic banks within member states. There are currently four domestic banks, two of which are locally owned, namely National Bank of Anguilla Limited (NBA) and Caribbean Commercial Bank (Anguilla) Limited (CCB). The other two domestic banks, CIBC FirstCaribbean International Bank and Scotiabank (Anguilla) Limited, are either branches or subsidiaries of well-known international banks. NBA is also a licensed Broker-Dealer in the Eastern Caribbean Securities Market. The Broker-Dealer operations are regulated by the Eastern Caribbean Securities Regulatory Commission.

Domestic banks provide a wide variety of services. These services include, but are not limited to:
  • deposit accounts, which are chequing, savings and term deposit accounts for personal and commercial customers. Non residents of Anguilla are permitted to open Eastern Caribbean Dollar denominated accounts at domestic banks.
  • personal loans, for example overdrafts, home mortgage loans and student loans.
  • commercial loans, which include loans to businesses for working capital, loans for land purchase, the purchase of inventory and/or equipment, or finance to construct commercial buildings.
  • foreign exchange services, which include the purchase and sale of foreign currencies, international wire transfers, cash advances and the sale of international drafts in multiple currencies.
  • Visa branded debit cards, which are offered to deposit customers and linked to their savings and chequing accounts.
  • Visa and MasterCard, branded credit cards.
  • merchant account services, which provide business customers the ability to accept payments from debit and credit cards.
  • investment services, whereby customers are able to invest in bonds, notes and treasury bills issued by governments and corporations.
All domestic banks open deposit accounts denominated in Eastern Caribbean Dollars (XCD) or United States Dollars (USD) and the ATMs on Anguilla dispense both XCD and USD currencies. Deposit accounts denominated in other currencies, such as Great Britain Pounds, Canadian Dollars and Euros may also be opened by Anguillian residents.

Domestic banks are required to comply with the applicable Laws and Regulations relating to Anti Money Laundering and Combating Terrorist Financing (AML/CFT). The most significant update to the AML legislation in Anguilla occurred in 2009 with the enactment of the Proceeds of Crime Act 2009 and the Anti Money Laundering and Terrorist Financing Code 2009, with more recent amendments following a review of the legislation. These regulations require the banks to conduct due diligence checks prior to opening accounts and also require ongoing monitoring of transactions within existing accounts. This may entail the Bank requesting additional documentation from customers, to confirm the source of funds.

Persons interested in opening accounts must submit a completed application to the bank. Due diligence requirements are approached on a risk basis, however. When opening a personal account in Anguilla, all customers can expect to be required to provide a copy of their passport, proof of address, personal references and banking references. When opening corporate accounts, additional documents are required, including company registration documentation, directors’ resolutions, business plans and confirmation of the source of funds of the corporate client and its beneficial owners.
OFFSHORE BANKING

Offshore banking licenses are granted under the Trust Companies and Offshore Banking Act (TCOBA). Offshore banks are supervised by the Financial Services Commission (“The Commission”) in collaboration with the supervisory authority of the home jurisdiction of its parent bank or company. Under the TCOBA, an offshore banking license is required to conduct offshore banking business, which is defined as banking business in a currency other than Eastern Caribbean dollars with non-residents of Anguilla. There are currently three offshore banking licenses issued by the Commission. Two offshore banks are wholly owned subsidiaries of domestic banks, National Bank of Anguilla (Private Banking and Trust) Limited (PB&T), which is a wholly-owned subsidiary of NBA, and the Caribbean Commercial Investment Bank Ltd (CCIB) a wholly-owned subsidiary of CCB.

As with the domestic banks, offshore banks are required to comply with the applicable laws in Anguilla related to the global effort to combat money laundering and terrorist financing. Due to the nature of offshore banking business, confirmation of the due diligence information may be more difficult to achieve, depending on the home country of the account signatories and the beneficial owners. The full participation of all persons affiliated with the account in the due diligence process is critical to the speed at which the process can be completed and the account activated and available for use.

For more information on the requirements for opening offshore accounts, please visit the websites of the offshore banks.
   

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