The Antigua Financial Services Regulatory Commission (FSRC) is responsible for supervising all institutions licensed under the IBC Business Companies Act. These institutions must undergo annual site visits to ensure compliance with relevant laws, regulations and international standards.
About Antigua Financial Services Regulatory Commission (FSRC)
- Antigua and Barbuda's international financial services sector began with the enactment of the International Business Companies Act, Chapter 222, 1982 (the "IBC Act"). Initially, the IBC Act was administered by the Ministry of Finance. By 1990, the country's financial services industry had grown significantly and the government, encouraged by this growth, worked to position the country as a premier international financial centre. Part of the repositioning strategy was the enactment of anti-money laundering legislation contained in the Prevention of Money Laundering Act, 1996.
- Subsequently, a series of significant amendments to the IBC Act were made, culminating in 2002 with the establishment of what is now known as the Financial Services Regulatory Commission (the “Commission”). The 2002 amendments expanded the scope of activities regulated by the Commission to include businesses operating or carrying on under the Financial Institutions Non-Banking Act, the Cooperative Societies Act, the Insurance Act, and more. In addition to the above, the amendments brought Antigua and Barbuda into line with the current international trend towards consolidating the regulation and supervision of financial services under a single regulatory authority.
Antigua Financial Services Regulatory Commission (FSRC) Main functions
Article 5 of the Financial Services Regulation Act No. 5 of 2013 sets out the main functions of the Commission, which include:
1. Regulatory functions
That is, to regulate and supervise the business of financial services carried on in or from Antigua and Barbuda, in accordance with this Act and the supervisory laws, and to perform any other regulatory or supervisory duties imposed on the Commission by other laws.
2. Collaboration Function
That is, providing assistance to overseas regulatory authorities under the Act.
3. Consulting function
namely, advising the Government on matters relating to whether supervisory and cooperation functions are consistent with those performed by overseas regulators, whether supervisory laws are consistent with the laws and regulations of counters and territories outside Antigua and Barbuda; and advice from international organisations.
In performing its functions and managing its affairs, the Committee shall:
- Taking into account the requirements of Antigua and Barbuda’s sound financial system;
- Respect for maintaining market confidence, protecting consumers and Antigua and Barbuda’s reputation as a financial centre;
- prudent use of its resources to achieve efficient and economical operations;
- respect for generally accepted principles of good corporate governance;
- comply with the Act or any other act, including any regulations or directions made or given under the Act; and
- Possess such ancillary powers as are necessary to perform its functions.
In performing its functions and managing its affairs, the Committee shall:
- Working with domestic and international government agencies and statutory bodies to reduce the likelihood that financial services operations or related financial services operations will be used for money laundering or other criminal purposes;
- Recognizes that the burden imposed on a person or the imposition of a burden or restriction on the performance of an activity should be proportionate to the benefits generally expected to accrue from the imposition of such burden or restriction;
- Recognize the desirability of promoting innovation in financial services operations; and
- Recognize the need for transparency and fairness in the Committee.
Regulation and Supervision
The Commission is responsible for the management and supervision of all institutions licensed under the International Business Companies Act. These institutions are subject to on-site inspections every year to determine whether they comply with relevant laws, regulations and international standards. The annual on-site inspections include the following:
- Determine solvency (investment quality and loan portfolio);
- review policies and procedures governing operations;
- Review of internal control systems for general and anti-money laundering
- Verify compliance with appropriate customer account management guidelines;
- Verify compliance with internationally recognized prudential standards;
- Assessing management quality;
- Verify the accuracy of tax returns filed with the Commission;
- Implementing enhanced due diligence and KYC requirements; and
- Determine whether detailed records of transactions and customer files are maintained.
In addition to on-site inspections, there is ongoing off-site supervision in the form of analysis of quarterly returns and annual audited financial statements, as well as follow-up on prescribed corrective actions.
mission
To develop Antigua and Barbuda into an effectively regulated, well-regulated, and leading financial services jurisdiction.
Vision
The Financial Services Regulatory Commission is committed to effectively regulating and supervising the financial services sector in Antigua and Barbuda by adhering to internationally recognized compliance standards, thereby positioning the jurisdiction as a pre-eminent financial centre in the financial services sector.
