A "grandfather" bank with cutting edge standards

In Antigua, the marriage of natural beauty and a thriving business climate creates an environment that has long appealed to foreign investors. Add to this the investment incentives sprinkled in by the Government, and you have a financial paradise. "Antigua and Barbuda has the infrastructure to respond to the special needs of locals and to service regional and international client relationships. The combination of well regulated financial services, an excellent communications infrastructure, a skilled IT workforce, and strong professional resources provide a comprehensive environment for international business services," said Brian Stuart-Young, Chairman and CEO of Global Bank of Commerce.

The globalized economy is changing the way financial institutions operate by opening the doors for banks located in small jurisdictions to support financial market integration. As explained by Mr. Stuart-Young, "the Global Bank of Commerce (GBC) represents a new breed of financial institutions, one which is selective in maintaining best banking traditions but is prepared to step outside the box to deliver services demanded for global commerce."

While the Global Bank of Commerce has embraced modern technology, it is also recognized as being a mainstay of the country. As the first international bank formed on the island, following the Independence of Antigua and Barbuda in 1981 and the enactment of the International Business Corporations Act in 1982, Global Bank of Commerce has a tradition of being "the grandfather bank of Antigua and Barbuda." In 2002, the bank was re-branded as a locally owned and operated entity to provide even greater security and technology. "As a local owner and operator, I am proud of our Caribbean heritage and therefore have strengthened the banking services we provide within the region, expanded the role we play in Antigua’s development, and made investments and strategic partnerships in technology to support payment platforms for e-commerce services to the region and international clients," said Stuart-Young.

The transition of GBC was well-timed since the role of international banking in Caribbean jurisdictions had recently experienced a massive boost after the implementation of regulations that guarantee safe and ethical depository of foreign currencies. "Even prior to the management buyout of GBC in 2002, we were well positioned to satisfy the enhanced scrutiny given to international banking as GBC had introduced internal policies to govern compliance controls and meet international standards. These initiatives, including third-party audits of its anti-money laundering (AML) practices and an investment in AML software, assisted the Bank to establish new strategic relationships under its Caribbean ownership and business vision," said Stuart-Young. Institutions in Antigua and Barbuda are dependent on good correspondent banking relationships located in international jurisdictions, and are therefore subject to the host country’s sovereign rule and policies. In fact, as noted by Mr. Stuart -Young, "as a small bank we must not only meet but surpass international banking standards." Mr. Stuart-Young points out that a central focus of his group is to ensure that Global Bank of Commerce keeps ahead of the curve in respect of all regulatory and compliance issues related to a financial institution.

Antigua provides a strong regulatory environment for investment
Antigua and Barbuda’s international banking sector had earlier faced its sternest challenge in 1999 when the United Kingdom and the United States issued a financial advisory against the jurisdiction. However the vigorous attention of the Government of Antigua and Barbuda to improve the regulatory oversight and implement necessary laws and regulations helped to restore the reputation of the Jurisdiction as a safe and ethical financial centre. Consequently, the Financial Services Regulatory Commission (FSRC) was established as the supervisory authority for international banks, and the Office of National Drug and Money Laundering Policy (ONDCP) was created with a Financial Intelligence Unit to be the supervisory authority for the prevention of money laundering and to combat terrorism financing. This regulatory framework and enforcement mechanisms have, in turn, led the country to become aggressive in the global fight against financial crime. In this process, the jurisdiction has become more discriminating of its institutions and the number of regulated banks was practically halved.

In Antigua and Barbuda there is a comprehensive and regularly updated Money Laundering Prevention Act of 1996 and the Prevention of Terrorism Act which, along with related regulations and a number of associated government to government arrangements treaties such as a Mutual Legal Assistance Treaty and a Tax Information Exchange Treaty, ensure that new business attracted to the country comply with international standards and the requirements of the World Trade Organization. "We continually amend these laws to continue the Islands’ harmonious relationships with the rest of the world’s financial communities and institutions," said Errol Cort, Minister of Finance and Economy.

In 2000, the Financial Action Task Force ("the FATF") reviewed the anti-money laundering regime of Antigua and Barbuda in the context of its analysis to identify Non Cooperative Countries and Territories (NCCT), and deemed it was fully cooperative in the global fight against money laundering. "We have established strong regulatory controls; in fact Antigua’s rating on the FATF 25 point NCCT criteria was identified as even higher than major financial centers in the United Kingdom, United States and Canada. But they are big and we are small," said Stuart-Young. Still, FATF’s positive review ensured that Antigua and Barbuda was never included in this published NCCT list, seen as a black list, and its absence from the list helped to demonstrate that the jurisdiction’s legislative regime, and regulatory and enforcement machinery was consistent with the highest international standards.

Among the regulations and guidelines introduced to enhance the scrutiny of the international bank sector are the requirements for each bank to undergo an annual regulatory inspection by the FSRC and to have an annual third-party audit of its anti-money laundering (AML) and combating financing of terrorism (CFT) policies and practices provided to the ONDCP. Banks need to have detailed records on all their clients readily available for at least 6 years. Moreover, the banks are not allowed to process deposits and withdrawals for individuals or companies not registered as an accountholder and who have not submitted the required due diligence information. "This is the only financial centre that prohibits its international banks from accepting cash deposits, which means that deposits cannot be anonymous as it requires a financial instrument to remit the funds from another institution which must be received or cleared via our correspondent banks in the United States or Europe; any suspected illicit activity can therefore be more easily investigated via the international banks," explained Stuart-Young. In Antigua, the trail is kept transparent.

The Government of Antigua and Barbuda provides a stable and democratic environment for international banking and trust services and ensures the appropriate over-sight of its banking laws, covered under the provisions of the International Business Corporations Act as amended. This Act ensures that international clients with bank deposits in the country maintain their rights in accordance with the legal requirements of international banking.

As a result, the country’s international business and banking sector continues to thrive, contributing towards the growth of the sector. The jurisdiction has successfully merged business with pleasure and has become a premier investment center, offering generous investment opportunities, excellent banking services and a social environment which is among the best in the Caribbean.