Banking & Trust

Domestic Banking

Domestic banks are licensed under the Banking Act, 2015. There are currently two domestic banks: National Commercial Bank of Anguilla Limited and Republic Bank (Anguilla) Limited, formerly Scotiabank Anguilla Limited.

On 22 April 2016, two domestic banks of indigenous capital: National Bank of Anguilla Limited and Caribbean Commercial Bank (Anguilla) Limited ceased to carry on banking business. The operations of the banks were transferred to a recently established bank, the National Commercial Bank of Anguilla Limited, which is currently solely owned by the Government of Anguilla.

On 10 September 2019 the acquisition of Scotiabank Anguilla Limited by a subsidiary of Republic Financial Holdings Limited was approved by the bank’s prudential regulator, the Eastern Caribbean Central Bank (“ECCB”). The bank then changed its name from Scotiabank Anguilla Limited to Republic Bank (Anguilla) Limited.

Applications for domestic banking licenses must be made to the ECCB which is based in St. Kitts. The ECCB serves as the Central Bank to all member states of the Organisation of Eastern Caribbean States, including Anguilla, and is responsible inter alia for prudential regulation of all domestic banks within member states. However, the Financial Services Commission is responsible for the anti-money laundering and combating the financing of terrorism supervision for all domestic banks operating within Anguilla.

Offshore Banking

Offshore banking licenses are granted under the Trust Companies and Offshore Banking Act (TCOBA). Under the TCOBA, a banking licence is granted to applicants who are fit and proper and qualified to carry on offshore banking business. Under current guidelines offshore banking licenses will only be granted to:

• branches or subsidiaries of banks with a well-established and proven track record which are subject to effective consolidated supervision.
• banks which, although not subsidiaries are closely associated with an overseas bank, and which, by agreement, will be included within the consolidated supervision exercised by the overseas bank’s home supervisory authority.
• wholly-owned subsidiaries of acceptable non-bank corporations whose shares are quoted on a recognized stock exchange, where the objective of the subsidiary is to undertake in-house treasury operations only, and where such operations are fully consolidated within the published financial statements of the parent company.

Banks will only be granted licenses if their place of incorporation, mind and management are within the same jurisdiction, or, in the case of a subsidiary, if the mind and management is located in the jurisdiction in which consolidated supervision is being exercised.

In reviewing the application, the Commission will expect to be satisfied that:

• the management has a proven experience in a relevant field of banking;
• the controllers are fit and proper people to undertake the functions envisaged and that the ongoing management will be competent;
• the institution will conduct its business in a prudent fashion;
• the institution has devised an appropriate and sustainable business plan;
• adequate capital and other resources will be provided in relation to the business plan. The minimum capital requirement for a bank is US$250,000 or the equivalent amount in another currency. However capital adequacy will depend on the institution's capital and reserves covering risk-weighted assets to an acceptable ratio;
• direct confirmation has been received from the supervisory authority in the country in which the institution or its proposed parent is incorporated, that the authority consents to the establishment of the institution in the host territory; that it will exercise consolidated supervision over the institution’s overall activities including within the host territory and will cooperate fully in the sharing of regulatory information with the Commission and will provide all the information that the Commission needs to perform its functions
• the applicant will appoint approved auditors who will perform audit work according to internationally accepted auditing standards.

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