Review of the regulatory environment relative to Money Transfer ...

Evolution in relation with PSDThe CMF will be modified, effective November 2009, to be in accordance with the Payment ServicesDirective. According to new article 314-01-4, money transfer services will then be considered aspayment services, and not as banking services as it is today under present regulation.3.5 OECS countries specific regulation3.5.1 OECS countriesThe OECS is a nine member grouping comprising:• Antigua and Barbuda,• Commonwealth of Dominica,• Grenada,• Montserrat,• St Kitts and Nevis,• St. Lucia• and St Vincent and the Grenadines.• Anguilla and the British Virgin Islands are associate members of the OECS.Six of the states are independent states: Antigua and Barbuda, Dominica, Grenada, Saint Kitts andNevis, Saint Lucia, and Saint Vincent and the Grenadines. The other three are British overseasterritories: Anguilla, Montserrat, and British Virgin Islands. They are not members of the EU, and themain body of EU law does not apply.3.5.2 ECCBThe Eastern Caribbean Central Bank (ECCB) came into being on October 1983, as successor to theEast Caribbean Currency Authority.The Agreement to establish the Eastern Caribbean Central Bank (ECCB) was signed on July 1983 bythe governments of Antigua and Barbuda, The Commonwealth of Dominica, Grenada, Montserrat, StKitts and Nevis, St Lucia, and St Vincent and the Grenadines. Anguilla acceded to the Act on April1987.ECCB is issuing East Caribbean dollar, the only OECS member not using the East Caribbean dollar astheir de facto currency is the British Virgin Islands, which uses the U.S. dollar instead.The ECCB is considered as one of only four multi-state central banks in the world.Its stated purposes include the promotion and maintenance of monetary stability and the promotionof a sound financial structure conducive to the balanced growth and development of the economiesof Participating Governments.ECCB is also in charge of regulating banking business on behalf of and in collaboration withparticipating governments.The ECCB provides support and monitors developments, primarily in the credit unions and insurancesectors. These sectors are supervised by the relevant government authorities; however there is anongoing initiative to establish single regulatory units within the territories of the ParticipatingGovernments to regulate all financial institutions.Overall, the regulation and supervision of the financial sector in OECS is being enhanced with theultimate objective being the establishment of harmonised laws that are consistent with internationalbest practices with a regulatory and supervisory unit for financial services in each member state.Regulatory framework: Implementation of Mobile Money Transfer services - June 2009 -60