St Vincent Strengthens Banking Supervision

Tax-News.com, London

01 November 2001

On Monday, the Saint Vincent and the Grenadines Offshore Finance Authority (OFA) and the Eastern Caribbean Central Bank (ECCB) concluded an Administrative Procedures Agreement to cover the supervision of offshore banks.

A team from the Saint Kitts-based ECCB met with officials of the OFA to finalise the Agreement, which deals with matters such as the licensing of offshore banks and the supervision and regulation of offshore banks.

Under the Agreement, the OFA and the ECCB will review applications for international (offshore) bank licenses before any approval is given. Previously, the OFA was the sole body responsible for reviewing applications. The ECCB already supervises all commercial banks in Saint Vincent and the Grenadines.

The ECCB will also collaborate with the OFA in conducting off-site and on-site examinations of banks. These would include reviews of the licensees' quarterly returns and annual statements, as well as regular meetings with the offshore banks to review their performance.

Acting Offshore Finance Inspector, Colin Williams, noted that this Agreement is another step in the process of ensuring that Saint Vincent and the Grenadines is a clean and credible jurisdiction.

Assistant Offshore Finance Inspector, Louise Mitchell, welcomed the Agreement. She pointed out that it strengthens the capacity of the OFA to supervise the offshore banking sector.

\The St Vincent government is currently working on two pieces of legislation that will form part of its anti-money laundering defences - the Financial Intelligence Unit Bill and a Proceeds of Crime Prevention of Money Laundering Bill. Both are currently with a Select Committee and are expected to be enacted shortly.

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