International (Offshore) Banking
International banking and trust company licences are granted under the International Banking and Trust Companies Act. International Banking means banking business carried on in or from within Montserrat in a currency other than Eastern Caribbean dollars with a non-resident of Montserrat.
The requirements of a licensee under the Act include the following:
- that shareholders, directors, controllers are fit and proper persons;
- Maintenance of Reserve;
- Minimum capital of US$1,000,000;
- Maintenance of adequate capital;
- that licensees are audited in accordance with internationally accepted auditing standards (IAAS);
- that auditors report to the Commissioner any matter it is required to report on any licensee to any investigative, regulatory or other institution, within a reasonable time of reporting to that licensee.
It is the Commission’s policy that it will only grant licences to applicants that are:
- branches or subsidiaries of banks with a well-established and proven track record which are subject to effective consolidated supervision.
- banks which, although not subsidiaries, are closely associated with an overseas bank, and which, by agreement, will be included within the consolidated supervision exercised by the overseas bank’s home supervisory authority.
- wholly-owned subsidiaries of acceptable non-bank corporations whose shares are quoted on a recognized stock exchange, where the objective of the subsidiary is to undertake in-house treasury operations only, and where such operations are fully consolidated within the published financial statements of the parent company.
In addition, international banking licences will only be granted if the applicants’ place of incorporation, mind and management are within the same jurisdiction or, in the case of a subsidiary, if the mind and management is located in the jurisdiction in which consolidated supervision is being exercised.
Licences will not be granted to applicants with head offices outside Montserrat unless there is an agreement to receive adequate management information from the bank or home supervisory authority, and
- the Commission is satisfied that the Basle Committee on Banking Supervision minimum standards are being met by the foreign banking group; and
- has obtained approval from the home supervisory authority for the establishment of the Montserrat entity and receive their confirmation that they will carry out consolidated supervision.