Requirements for operating international banks

1. Persons desiring to carry on international banking business in Antigua and Barbuda shall apply in writing to the Commission for the granting of a licence under any of the following categories—

1. Class I International Banking Licence;
2. Class II International Banking Licence;
3. Class III Composite International Banking and Trust Licence.

A licensed institution holding a Class I International Banking Licence shall maintain a minimum capital as may be determined by the Commission from time to time, but not being less than three million United States dollars in paid up capital, of which five hundred thousand United States dollars shall be deposited with the Commission or in a manner approved by the Commission on the recommendation of the appropriate official, as the case may be.

A Class II International Banking Licence permits the licensed institution to carry on international banking business for a restricted list of customers, approved by the Commission from time to time, or specified in the list issued as part of the terms upon which the licence is granted. A licensed institution holding a Class II International Banking Licence shall maintain a minimum capital as may be determined by the Commission from time to time, but not being less than five hundred thousand United States dollars in paid up capital, of which one hundred thousand United States dollars shall be deposited with the Commission or in a manner approved by the Commission on the recommendation of the appropriate official, as the case may be.

A Class III International Banking and Trust Licence permits the licensed institution to carry on international banking and trust services for an unrestricted list of customers. A licensed institution holding a Class III International Banking and Trust Licence shall maintain a minimum capital as may be determined by the Commission from time to time, but not being less than three million United States dollars in paid up capital, of which five hundred thousand United States dollars shall be deposited with the Commission or in a manner approved by the Commission on the recommendation of the appropriate official, as the case may be.

2. Any corporation in Antigua and Barbuda licensed under the IBC Act is required to maintain a physical presence. The physical presence requirement provides that licensed corporations must conform to the following minimum requirements:

• A licensed corporation must have its own separate office large enough to comfortably accommodate a staff of at least two (2) persons, computer equipment and facilities to accommodate clients.
• The time of the opening of the corporation may be flexible but it must open each day, Monday to Friday, for a minimum of six (6) hours per day. Opening hours should be posted outside the corporation notifying any interested person of the schedule.
• Licensed corporations must have at least one (1) full-time employee.
• The person mentioned above, or at least one other person employed with the corporation, must have relevant experience, that is, capable of understanding the operation of the corporation. The person must be responsible enough to recognize the process or otherwise of due diligence so as not to be unwittingly caught up in money laundering.
• Finally, physical records are to be remitted at the latest on a monthly basis to Antigua and Barbuda and stored in a manner that can be easily reproduced. This would facilitate inspection of transactions in the event of an inquiry. In addition, the facility to avail of current information must be established.

3. An international bank is subject to annual on-site examination to ascertain, among other things, compliance with the relevant laws, regulations and international standards; observance of Know Your Customer (KYC) standards; and maintenance of details of transactions and customers. Examiners may also investigate procedures for reporting and filing suspicious transactions with the appropriate supervisory authority under the Money Laundering (Prevention) Act 1996; the Prevention of Terrorism Act 2005 and the Money Laundering (Prevention) Regulations, 2007.

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