Relative size of offshore banking sector of Antigua and Barbuda is small. It is regulated and supervised by International Financial Sector Regulatory Authority (IFSRA). Main principles of banking sector regulation/supervision and the mandate of regulatory authority are set in International Business Corporation Act of 1998. The regulatory authority is run by four directors and the Solicitor General that is the chairman of the entity.
The regulatory authority has following functions:
1. Ensure the effective regulation of the banking sector and investor protection against fraud and mismanagement;
2. Preventing money laundering transaction;
3. Cooperating with other countries’ regulatory authorities to assist in exercising their regulatory/supervisory functions;
The regulatory authority is also responsible for conducting various functions assigned by International Business Corporations Act: granting certificates of incorporation for international business companies, issuing licenses for conducting offshore banking services, trust and insurance business and supervision of all entities licensed or registered under International Business Corporations Act. The authority also recommends authorities over amendments to be made to the current legislation.
The authorities of Antigua and Barbuda are devoted to properly regulating the offshore banking sector. International requirements on money-laundering and illegal transaction prevention induced authorities to review and amend existed legislation on offshore banking. The government aims to ensure country’s reputation and promote Antigua and Barbuda as regional offshore banking center.
The offshore banking sector in Antigua and Barbuda is subject to wide range of controls:
1. Offshore banks are examined annually by government examiners;
2. Offshore banks are required to keep detailed information on each customer;
3. Equity to asset ratio of an offshore bank must be a minimum of 5%;
4. Changes in offshore bank ownership must be approved by the regulatory authority;
5. Banks are not allowed to accept bearer negotiable instruments;
6. Offshore banks are not allowed to receive and transfer funds for the individuals that are not customers of the bank;
7. Each must have compliance officer that will ensure that the bank complies with all the regulations in force;
8. Courts are allowed to cooperate with other countries’ courts to prevent money laundering;
The establishment, licensing and supervision of offshore banks are regulated by International Business Corporations Act. Any International Business Corporation (IBC) is eligible to apply for offshore banking license. Licenses are granted by IFSRA.
Under current legislation banks are required to maintain minimum capital of $5,000,000 out of which $1,500,000 must be kept in a bank licensed in Antigua and Barbuda. Offshore banking sector ensures high degrees of bank secrecy.
Legislation of Antigua and Barbuda sets some requirements on offshore banks:
1. At least one director of the bank must be citizen or resident of Antigua and Barbuda;
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2. All applicants for offshore bank license must submit full background information on shareholders, directors and officers;
Largest banks operating in Antigua and Barbuda are:
Antigua Commercial Bank Ltd
Bank of Antigua
Bank of Nova Scotia
Barrington Bank
Global Bank of Commerce Ltd.
PKB Privatbank Limited
Royal Bank of Canada
Standford International Bank Limited
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