St Vincent Revokes Nine Banking Licenses

Tax-News.com, London

08 April 2002

Nine offshore banks operating in St. Vincent and the Grenadines have had their licences revoked by the Offshore Finance Authority, as the jurisdiction continues with efforts to clean up its offshore sector and to make it more transparent.

The following class I international banks had their licences revoked: Mariner International Bank Ltd., Platinum Capital Bank, Baltic Bank Ltd., Bank Net & Finance Inc., Heritage International Bank, Digital Commerce Bank, Vantage Internet Bank Ltd., Rhein Bank AG and Global Access Bank Ltd. The Private Bank has voluntarily surrendered its licence.

On March 28, 2002 the Supreme Court of St. Vincent and the Grenadines granted an application by the Offshore Finance Authority for the appointment of Marcus A Wide, a partner of Price Waterhouse Coopers, as liquidator of international banks New Bank Ltd. and Nano and Sons Private Bankers.

The Offshore Finance Inspector (Ag) Colin Williams said that the reason for the revocation of 9 licences was their failure to comply with the banking laws and regulations in St. Vincent and the Grenadines. All banks were given reasonable opportunity to comply prior to the decision to revoke.

Mr Williams also said that the 'policy of the government of St. Vincent and the Grenadines is to have a carefully vetted and regulated international banking sector.'

In February St. Vincent and the Grenadines committed itself to the principles of transparency and the sharing of information enunciated by the OECD after discussions with OECD officials. Prime Minister Dr. Ralph Gonsalves said: 'The move by St. Vincent and the Grenadines to commit to these principles is part of a general shift in the direction of the offshore industry in this country away from privacy and towards a new era where the industry will offer innovative offshore products, fiscal incentives and efficiency.'

In January the Parliament of St. Vincent and the Grenadines had approved the Proceeds of Crime (Money Laundering) Regulations, 2002, . In particular the Regulations set out the record keeping, identification and reporting requirements for banks and other financial institutions.

The Offshore Finance Authority said it was particularly pleased that the Regulations address the particular concern of the Financial Action Task Force about the existence of anonymous accounts in St. Vincent and the Grenadines. The Regulations have a transitional provision, namely section 10, which ensures that all existing anonymous accounts must disclose their beneficial owners within one year.

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