Friday, 30 July 2021
Bank of St. Kitts and Nevis. Offshore accounts in St. Kitts and Nevis
PDF Print E-mail

Banking activities in the country governed by the Banking Act 1991 and banking activities outside the country shall be in accordance with the Law on Financial Services in 1997 Nevis has its own Law of the Offshore Banking Act 1996 in accordance with the Code of Financial Services in 1997 issued banking licenses of two types: 'unrestricted banking license' require minimal financial resources amounting to 1.35 million Eastern Caribbean dollars ($ 500,000), while the 'limited' license requires only 135,000 licenses the level is only 135,000 East Caribbean dollars ($ 50,000). The Confidential Relationships Ordinance 1985 of St. Kitts and Nevis offers complete privacy, if the foreign authorities will require the disclosure of private banking information and financial reports. For violation of provisions of the statute provides different sentences. The banking system consists of state-owned banks Saint Kitts and Anguilla, the Development Bank of St. Kitts and Nevis, private and partially private bank: Bank of Nova Scotia s, the bank s Nevis. First Caribbean Royal Bank of Canada, Royal Bank of Trinidad And Tobago, Finance Company of Saint Kitts and Nevis (FINCO), Nevis Co-operative Bank, Credit Union of St. Kitts and Police Credit Union.

Law of the Offshore Banking Act 1996 defines a Nevis offshore banking as follows:
- To receive foreign funds - foreign currency, demand deposits, time deposits or deposits with a notice;
- For sale or placement of foreign bonds, notes or other debt obligations or securities, or
- Any other activity related to foreign currency or foreign securities, and
- Use as a full or partially, foreign funds to make loans, advances and investments, both in Nevis, as well as abroad.

License in accordance with the Banking Act issued by the relevant companies or qualified foreign banks. The company concerned shall be a subsidiary of a local bank (a wholly-owned local bank), whose activity is regulated by the Eastern Caribbean Central Bank, who is licensed to conduct banking activities in Nevis. A qualified foreign bank is a foreign bank licensed under the Banking Act, or foreign bank that has the minimum required capital and fixed assets according to the instructions of the Minister, where such a bank is not licensed under the Banking Act, but has a license to carry out banking activities in its own jurisdiction of registration.

Relevant company should be registered under the Companies Act as a limited liability company, and should deal exclusively with offshore banking in Nevis. The company must have at least one director who is a citizen of St. Kitts and Nevis, who lives in Nevis. The minimum required registered capital must be at least 2 million Eastern Caribbean dollars, of which at least 1 million must be subscribed and paid in cash to be deposited in an account maintained by the Permanent Secretary in the Eastern Caribbean Central Bank. No later than 4 months after the close of its fiscal year, the licensee shall send to the Permanent Secretary, a copy of its balance sheet, profit and loss account and full and accurate names of directors of the licensee. Balance sheet and profit and loss account must be accompanied by the Auditor. In 2000, Saint Kitts and Nevis was in the black lists of the Organization for Economic Cooperation and Development (OECD) and the Ad Hoc Finance Committee on Money Laundering (FATF), but then was eliminated from both lists after promising to settle the law on these matters, which was done through a series of legislative acts in 2001-2003. After Saint Kitts and Nevis was recognized as the refuge of the taxpayers, that did not conform to the principles of anti-money laundering, the government enacted the Prevention of Money Laundering Act, the administration to gather information about companies, financial services, and the Law Commission Financial Services Authority. The latter Act established the Commission as the chief regulator for the offshore sector. In June 2002, St. Kitts and Nevis was removed from the blacklist of the OECD.

Eastern - Caribbean Central Bank

The Eastern Caribbean Central Bank (ECCB) was established in October 1983, this bank for a group of eight island economies: Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines. Appointment of ECCB is to maintain the stability of the Eastern Caribbean dollar and the integrity of the banking system with the aim of balanced growth and development of member states. Monetary policy is characterized by:

- The issuance of a single common currency, whose movement between member countries is not limited to;
- A common pool of foreign exchange reserves, and
- Existence of a Central Monetary Authority which decides on the Union's monetary policy.
The objectives of the Bank are:
- Regulate the availability of money and credit;
- To promote and maintain monetary stability;
- To promote credit and exchange conditions and a sound financial structure conducive to the balanced economic growth and development of territories of the Member States of the Union;
- Active economic development of territories of the Member States of the Union with measures that are consistent with other objectives of the Bank.

The governing bodies of the Eastern Caribbean Central Bank are the Monetary Council and Board of Directors. The Monetary Council - the supreme decision making body, composed of one minister from each government participating countries. Council is to provide guidelines and recommendations to the Bank on matters of monetary and credit policy. The Board of Directors consists of ten directors, the chairman and deputy chairman, and one director from each of the eight participating governments. The Board of Directors is responsible for policy and general administration of the Bank, while the chairman and chief executive officer responsible for operational management.

Functioning financial agencies

Saint Kitts and Nevis - Anguilla Neshnl Bank (St Kitts-Nevis-Anguilla National Bank)
Divelopment s Bank of St. Kitts and Nevis (Development Bank of St Kitts and Nevis)
Bank of Nova Scotia s (Bank of Nova Scotia)
The Bank s Nevis (Bank of Nevis)
First Karibian (First Caribbean)
Royal Bank of Canada (Royal Bank of Canada)

Royal Bank of Trinidad And Tobago (Royal Bank of Trinidad and Tobago)
St. Kitts - Nevis Finance Company Limited. (FINCA) (St. Kitts-Nevis Finance Co. Ltd (FINCO))
Nevis Cooperative Bank (Nevis Cooperative Bank)
St. Kitts Credit Union (St. Kitts Credit Union)
Nevis Credit Union (Nevis Credit Union)
Police Credit Union (Police Credit Union)

English (United Kingdom)Danish(DK)Russian (CIS)French (Fr)Italian - Italy