Nevis observes best practices in the international financial services arena
International financial business in Nevis is conducted in accordance with international best practices, according to Hanzel Manners of the Bank of Nevis Limited, parent company of Bank of Nevis International, its offshore subsidiary. St Kitts-Nevis has representation in all major regional and international bodies such as the Caribbean Financial Action Task Force (CFATF) and the International Trade and Investment Organisation (ITIO).
Manners said that with over 20 years of experience in the International Financial Services Industry and with the watchwords: “Quality,” “Efficiency,” Integrity,” and “Innovativeness,” Nevis continues to position itself as a mature, well-regulated, reputable, and reliable international financial center.
Premier of Nevis and Minister of Finance, the Hon. Joseph Parry, said that the government of St. Kitts and Nevis had worked assiduously to implement the majority of the recommendations made by the Caribbean Financial Action Task Force examiners since the September 2003 evaluation. He said that the government responded to the call by the global community to implement anti-terrorist financing measures.
The resulting professional environment, Parry said, is founded on the commitment by the Nevis Island government to developing its human resources and its international financial services industry. The premier said that he has given his assurance to the Caribbean Financial Action Task Force that the Nevis Island Administration is committed to continuous enhanced regulation and supervision for the financial services sector.
The financial services industry remains one of the pillars of economic development
Financial Secretary Laurie Lawrence, who has held this position for the past 14 years, indicated that the Ministry of Finance and Nevis Financial Services support a business environment that promotes success in the international financial services arena. “Nevis financial services sector has flourished, firmly anchored on the island’s stability, financial integrity, well-planned modern legislation, and the implementation of protective regulations” Lawrence said. “Relevant legislation includes the Nevis Limited Liability Company Ordinance of 1995, the Nevis International Exempt Trust Ordinance of 1994 and the Nevis Business Corporation Ordinance of 1984.”
Lawrence added that the financial services legislation is user-friendly and progressive, and that there are modern support mechanisms in place, such as an appropriate telecommunications network, “Nevis is recognized for its superior value by private investors, as it offers a full range of financial services and products, including asset management and protection, company formation and administration, insurance, foundations, mutual funds administration, offshore banking, investment management, and trust services.
“Private investors can maximize on their corporate and personal wealth management portfolios in Nevis, thanks to the support of competent registered agents, attorneys, accountants, a range of banking institutions and asset management companies,” said Lawrence.
Kimone Moving, Assistant Director of the Development and Marketing Department of Nevis Financial Services, pointed out that Nevis was one of the first jurisdictions in the Eastern Caribbean to recognize the benefits of establishing international financial services.
In 1984, the Nevis Island Government initiated several measures providing investment and business opportunities for international investors.
“Today, Nevis is a successful international financial services center, which offers a full range of financial services supported by a well trained human resources base, effective regulation, appropriate legislation, and a proactive approach to meeting the needs of existing and potential investors,” said Moving. She added that Nevis will continue to improve its standards and will maintain its position as a highly regarded, dependable, and viable jurisdiction.
Moving also said that plans for 2008 include “converting the Marketing Division of the Financial Services Department to an Investment Promotion Authority (IPA) to further facilitate local and foreign investment. The Authority will be responsible for overseas promotion and marketing, and enhanced facilitation of projects and policy advocacy. Work has already begun with the help of USAID – COTS (Caribbean Open Trade Support).”
Morning Star is the leading international financial institution on Nevis
Morning Star Holdings Limited is the oldest and largest company formation and registered agent in Nevis licensed to incorporate companies under the Nevis Business Corporation Ordinance of 1984.
Manager Ernest Dover said, “Our worldwide client base consists of professional and institutional intermediaries and multinational corporations for whom we provide a reliable, knowledgeable, and efficient company formation service.
“Our staff here, as all the people on Nevis, is well educated and very amenable to further training and professional development. Many are professionally qualified, experienced, and have been working with us for many years. We have a very low turnover of staff, and, of the few that leave us, most do so to pursue overseas study and personal development opportunities rather than to join other employers in the same industry in Nevis.
“The interaction between our office and government, essentially our main partners in this business, is exceptional. Nevis government runs a very efficient registry. It is a good partnership—we work very well together. Our core business is company formation and, with the efficiency of our own staff and those at the registry, we can form companies in Nevis faster than in other comparable jurisdictions. Once the client has provided all their diligence information, it typically takes us just two business days between receipt of formation request and dispatch of the corporate documents to the client.”
Since 1984, Nevis has developed a framework of modern corporate and trust laws tailored to the needs of the international financial services community. This policy has resulted in Nevis today being the preferred domicile of many international business and private client advisors, offering a compact yet growing and modern financial center.
Morning Star Holdings Limited is also licensed by the Nevis government to establish and serve as the registered agent for Nevis Limited Liability Companies. The Nevis Limited Liability Company Ordinance, enacted in 1995, is widely used by intermediaries and their clients for international asset protection and tax planning.
Dover said, “Our sister company, Meridian Trust Company Limited provides a broad range of fiduciary and company administration services to complement the services Morning Star provides. In addition, Meridian offers Trustee and Trust Registration amongst its services.”
Dover pointed out that Nevis is a corporate domicile used worldwide by professional institutions and other intermediaries. The Nevis Business Corporation Ordinance of 1984 is widely recognized as a modern, flexible statute, which is well-suited to the needs of international tax, business, and individual planning.
Based upon American corporate law and practice, the ordinance also contains many features of British corporate law. For this reason, persons involved with either or both types of corporate statutes find the jurisdiction’s products familiar and very easy to use.
Financial services center since 1700s
The introduction of sugar cane to the Caribbean had a greater effect on the history of Nevis than any other factor. Nevis was transformed from a peasantry to a plantocracy. The labor-intensive crop created a dire need for cheap labor, which fostered the West Indian slave trade. It was then that Nevis first became a well-known financial services center, as the island was a market for selling slaves to neighboring islands. During the 1700’s and early 1800’s, a rich economy developed, great houses were built and the planter class lived in splendor. Nevis soon became known as “The Sugar Cane Colony.”
Nevis not only generated revenue from sugar cane cultivation but also instigated a tourism industry. One of the earliest ventures in tourism was the Bath Hotel, built in 1778. Situated adjacent to natural hot springs, the hotel attracted European travelers for many years. The Bath Hotel, along with the booming sugar industry, helped to maintain Nevis’s economy until the middle of the nineteenth century. This hotel now houses the Nevis Island Administration, including the office of the premier.
