Anguilla: Solid Legislative Programme In Place In Anguilla

Since the election of March 2000 Anguilla has undergone a thorough programme of legal reform designed to ensure that the financial services legislative framework serves the people of Anguilla; the needs of international business and global regulatory authorities while facilitating the growth of Anguilla’s financial services. In many cases the new legislation upgrades existing legislation and has positioned Anguilla as the jurisdiction of choice in the 21^st Century.

The Attorney General, the Hon. Ronald Scipio, says Anguilla’s reputation for being a proactive and well-regulated jurisdiction will be reinforced by the new legislation.

"The new legislation is part of the Government’s determination to effectively match the growth of Anguilla’s financial services with robust and progressive laws that meet international regulatory standards as well as strengthening the island’s anti-money laundering efforts."

The legislation programme is in two parts:

• The Proceeds Of Criminal Conduct Act 2000
  deprives criminals of the benefit of their criminal activity and enables the Court to confiscate assets originating from criminal conduct. It also establishes the circumstances under which suspicious transactions should be reported.

• The Money Laundering Reporting Authority Act (MLRAA) 2000
  establishes a Money Laundering Reporting Authority for Anguilla. Under the Act, persons involved in the provision of financial services are required to report to the Authority any suspicious transactions derived from drugs and criminal conduct. The Regulations issued under the MLRAA establish procedures for customer identification, the keeping of records, internal reporting and training procedures. Accompanying Guidance Notes (which are based on the UK’s Joint Money Laundering Steering Group’s model), provide a practical interpretation of the Regulations that will assist persons, subject to them, to affect compliance. They will assist all financial services businesses to develop policies, systems, controls and procedures that will minimise the risk of their becoming unwittingly involved in money laundering schemes.

• The Company Management Act 2000
  provides for licensing and regulation of company-management business by setting minimum criteria for the granting of a licence and the returns to be submitted. The Inspector has been granted the power to issue a Code of Practice to license holders. (The office of Inspector is a public office to which appointments are made by the Governor. The Director of Financial Services is the current appointee.)

• The Trust Companies And Offshore Banking Act 2000
  replaces the Offshore Banks and Trust Companies Ordinance 1991. It enables offshore banks and trust business to be licensed as well as the ongoing supervision of licensees by the Inspector (The Director of Financial Services is the current appointee). The Act sets out the duties of licensees under the Act and the minimum criteria for the granting of an offshore banking or trust license. Further, it enables the surrender, suspension and revocation of licenses and details the offences under the Act.

• International Business Companies Act 2000
  has been further amended to provide for the optional registration of charges and mortgages with the Registrar of Companies, and a priority for the registration of such charges. All IBCs are now required to maintain a register of charges at the registered office of the company. In 1998 the Ordinance was amended to allow for the optional registration and de-registration of directors.

• The Companies Act 2000
  further modifies the original 1994 version and amended 1998 version. Given the fact that Anguilla is a zero-tax jurisdiction the Companies Act can also be used for incorporating IBCs.

• The Limited Liability Company Act 2000
  makes provision for the Governor to issue regulations under the Act. They also provide for certain provisions as breaches and the rationalisation of offence provisions.

• The Limited Partnership Act 2000
  abolishes the previous requirement for general partners to be residents in Anguilla or companies incorporated under the Companies Act. The amendments also provide for the dissolution of limited partnerships by the Court and the assignment of the interest of a limited partner.

• An Act To Establish Anguilla’s Regulatory Authority As An Independent Entity.
  this new legislation will meet global regulatory standards as recommended in the KPMG Review. The act will enable the Financial Standards Regulatory Authority to become independent from Government. The legislation will cover the structure, funding, licensing and supervisory roles and powers of the proposed regulatory authority.
  Due date: September 2001
• Electronic Transactions Act 2001
  will draw on the UNCITRAL Model Law on Electronic Commerce and the relevant EU Directive and will cover media neutrality, digital signatures, rules of evidence, and the liability of intermediaries. As facilitating legislation it is proposed that this Act be technologically neutral in its application.
  Due date: June 2001
• Insurance Act 2001
  will bring regulatory and reporting standards for both domestic and captive insurance up to modern requirements.
  Due date: June 2001
• Mutual Funds Act 2001
  is a priority for Anguilla. It will likely take the route whereby the legislation differentiates between public and private and professional funds. The Act will define both private and professional funds and will detail how fund managers and administrators will be licensed or registered.
  Due date: June 2001
• Securities Act 2001
  Is an initiative of The Eastern Caribbean Central Bank (ECCB) which has prepared draft legislation for implementation in all of the Organisation of Eastern Caribbean States (OECS) which includes Anguilla. The legislation will cover the activities of securities and investment businesses, the development of a regional stock exchange and the regulation and supervision of mutual funds invested within the region.
  Due date: June 2001

Anguilla already has legislation covering the acceptance of electronic filing and digital signatures in its Companies Registry legislation.