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

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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
The Monetary Council is the highest decision making authority. It is comprised of one Ministerappointed by each Government of the participating countries.3.5.3 Banking regulation in OECSThe regulatory framework of the domestic banking system has two main legislative components:• First, there is the ECCB Agreement Act of 1983 and its amendments, which under Article3 paragraph 2(e) of the ECCB Agreement Act give the Eastern Caribbean Central Bank thepower to “regulate banking business on behalf of and in collaboration with ParticipatingGovernments.”• Second, there are the Banking Acts of the various territories of the ParticipatingGovernments which govern the regulation of banking business in those territories.Over the period 1988 to 1992, new banking legislation was enacted in each of the member states.These Acts, collectively referred to as the Uniform Banking Act, are facilitating the harmonisation ofbanking business within the ECCB area.Over the period 2004 to 2006, the Banking Acts in the territories of the Participating Governmentswere revised and upgraded in relation to the Basle core principles. This harmonised bankinglegislation has strengthened the legal framework for the conduct of banking business and enhancedthe regulatory environment.The harmonised Banking Acts recognise the ECCB as the ECCU’s Central Bank, with primaryresponsibility for the supervision of domestic banks. The ultimate authority for regulating institutionscovered by this Act is jointly vested in the Minister of Finance and the ECCB. The Minister of Financeis normally required to act in consultation with, and on the recommendation of the ECCB withrespect to those areas where the Minister of Finance has ultimate responsibility.The Act applies to all institutions that conduct banking business. It requires that a banking licence beobtained from the Minister of Finance before a financial institution can engage in banking business.All commercial banks (and other institutions deemed to be carrying on banking business) arerequired to be licensed under the Banking Act and are regulated by the ECCB.The offshore financial services sector is governed by the Offshore Banking Acts in the respectivecountries and is primarily the responsibility of the national regulators.The table below illustrates the number, year and commencement date of the Banking Act in eachmember territory.The Banking Acts in Member TerritoriesTERRITORYCOMMENCEMENT DATEAnguilla 1 January 2006Antigua & Barbuda 1 January 2006Commonwealth of Dominica 31 March 2006Grenada 31 March 2006Montserrat 1 May 2005St Kitts and Nevis 4 November 2005Regulatory framework: Implementation of Mobile Money Transfer services - June 2009 -61
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Review of the regulatory environmen
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Table of contentsExecutive summary
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Executive summary (regulatory)The p
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• Suspicious transactions must be
Page 10 and 11: • A line of conclusions regarding
Page 12 and 13: B) FAFT RecommendationsFAFT has iss
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Page 16 and 17: ecommendation that countries put in
Page 18 and 19: Remittance providers are subject to
Page 20 and 21: the regime, and expanding also the
Page 22 and 23: Customer due diligence procedures s
Page 24 and 25: 3 MLD risk based approachCDD proced
Page 26 and 27: suppress the financing of terrorism
Page 28 and 29: EU Wire Transfers Regulation was co
Page 30 and 31: Know your customer rulesDutch regul
Page 32 and 33: FAFT Mutual evaluation Report (Abst
Page 34 and 35: B) Payment Services included in PSD
Page 36 and 37: However the European Commission has
Page 38 and 39: Preliminary Information Information
Page 40 and 41: SinglePaymentTransactionInformation
Page 42 and 43: An application shall besubmitted wi
Page 44 and 45: G) The European passportThe passpor
Page 46 and 47: 3.1.2 Electronic Money DirectiveA)
Page 48 and 49: This definition is more neutral fro
Page 50 and 51: The UK Government pointed out on di
Page 52 and 53: to refuse a licence to those who fa
Page 54 and 55: Opening of a bank account in the UK
Page 56 and 57: Operating without the required lice
Page 58 and 59: Going further, the Regulation intro
Page 62 and 63: Saint Lucia 1 April 2007St Vincent
Page 64 and 65: 4. ConclusionsFrom a regulation sta
Page 66 and 67: discussions within EU governments,
Page 68 and 69: Debit card: a card enabling the hol
Page 70 and 71: Main regulatory references FAFT for
Page 72: Regulatory framework: Implementatio
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