Nevis Tightens Insurance Legislation

by Amanda Banks, for LawAndTax-News.com, London

10 May 2006

Lawmakers on the island of Nevis have approved an amendment to the jurisdiction's insurance law that will clarify and tighten up certain sections of the legislation to combat fraud.

The Nevis International Insurance (Amendment) Ordinance, 2006 passed through the Nevis Island Assembly last week and Premier Vance Amory has said that the bill was drafted to "eliminate loopholes which could be exploited by persons who do not really care what they do in international business."

The amendment updates the Nevis International Insurance Act of 2004. This legislation is divided into six sections, and provides for the licensing and regulation of general insurance, captive insurance and reinsurance companies.

It is compulsory for insurance companies to have a physical presence in Nevis, whether via a resident manager or a fully trained registered agent, with adequate knowledge and experience of the insurance industry.

The twin island federation of St Kitts & Nevis has been keen to encourage "real investment" to its shores rather than "shell companies" after securing removal from the FATF and OECD 'blacklists' of non-cooperative tax havens in 2002.

According to Shawna Lake, the jurisdiction's Director of Marketing and Development, there has been a "big improvement" in the number of companies registering in St Kitts & Nevis in recent times, and by the end of 2005 there were 1,680 companies on the register.

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