High-level talks took place last week in Antigua between delegations from the US and UK Treasuries, the Antiguan Government and private sector representatives. The aim of the meeting was to discuss the jurisdiction's status of its offshore financial sector.
The delegations met with Antigua & Barbuda Prime Minister, Lester Bird, and Attorney-General, Dr Errol Cort. It is believed that the major subjects of discussion involved the International Financial Sector Regulatory Authority (IFSRA), the Office of National Drug and Money Laundering Control Policy, and the staffing and monitoring of IBCs operating in Antigua.
Mr Bird was expected to argue that Antigua's offshore sector plays a vital role in strengthening the country's economy, whilst Dr Cort's agenda was to assure the official visitors of Antigua's commitment to co-operate with international agencies in order to credit Antigua as a reputable tax haven.
Only last year the UK Treasury issued a formal notice to financial institutions warning them about transactions with Antigua. Foreign Office Minister Baroness Symons pledged to 'continue to play a leading role in international initiatives to improve standards in this and other areas.' The Treasury expressed concern about amendments to the anti-money laundering law, and to legislation governing international financial services in Antigua and Barbuda. A press release at the time said 'these amendments strengthen bank secrecy, restrict cooperation with overseas law enforcement authorities, and seriously erode the ability of Antigua to counter the threat from money launderers. There are also, in the Treasury's view, serious concerns about the independence and integrity of the system of financial regulation.' The US Treasury Department did the same as its UK counterpart and advised its institutions to 'give enhanced scrutiny to all financial transactions routed into or out of Antigua and Barbuda.'
Hence the visit, one year on, from both treasury departments to "check-up" on Antigua & Barbuda. However, the visit is likely to be of a positive nature. Since both advisories were issued Antigua & Barbuda has indeed rectified some of its past legislative "mistakes". The jurisdiction was not one of the tax havens included on Financial Action Task Force (FATF) blacklist. And it does not expect to fare badly in the current US/UK talks, due to its endeavours over the past year to work in partnership with the US and the UK on matters relating to the offshore sector. Clear evidence of this is the implementation of "Operation Clean Slate" which has significantly reduced the number of offshore banks from 68 to 18.
Through the introduction of amended rules and regulations, the number of IBCs has also undergone a major reduction from 10,000 to around 2,000. With regard to the issue of staffing and personnel, the IFSRA is staffed in both the regulatory and support areas with competent and qualified employees, including a new inspector of banks who has over 30 years of international banking experience. The prime minister can further impress his visitors with the news that the Antigua & Barbuda banks are monitored by full-time compliance officers who ensure that they adhere to the new rules and regulations.
As the pièce de résistance, Prime Minister Bird will no doubt be pleased to point out to his official guests that Antigua & Barbuda already has in force a tough "Know Your Customer" policy that even the US could not pass into law. This means that all banks operating in the jurisdiction must now undergo an annual examination.
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