BANKING SYSTEM OD ST.LUCIA

At the beginning of 2006 St. Lucia had four offshore banks, 1,884 international business companies, 43 international trusts, 17 international insurance companies, two money remitters, three mutual fund administrators, nine registered agents and three registered trustees (service providers) and a total of 30 domestic financial institutions.
The Financial Intelligence Authority Act No. 17 of 2002 authorizes the establishment of a Financial Intelligence Unit (FIU) for St. Lucia, which became operational in October 2003. The FIU is able to compel the production of information necessary to investigate possible offenses under the 1993 Proceeds of Crime Act and the Money Laundering Prevention Act. Failure to provide information to the FIU is a crime, punishable by a fine or up to ten years imprisonment. The Financial Intelligence Authority Act permits the sharing of information obtained by the FIU with foreign FIUs. The Caribbean Anti-Money Laundering Program (CALP) has trained St. Lucia’s FIU personnel. In September 2003, legislation was adopted merging the St.Lucia Financial Authority with the FIU. In 2005, the FIU received 85 suspicious transaction reports. There has been no money laundering convictions to date in St. Lucia.

The government of St.Lucia established the Committee on Financial Services in 2001. The Committee, which meets monthly, is designed to safeguard St. Lucia’s financial services sector. The Committee is composed of the Minister of Finance, the Attorney General, the Solicitor General, the Director of Public Prosecutions, the Director of Financial Services, the Registrar of Business Companies, the Commissioner of Police, the Deputy Permanent Secretary of the Ministry of Commerce, the police officer in charge of the Special Branch, the Comptroller of Inland Revenue and others. The government announced in 2003 its intention to form an integrated regulatory unit to supervise the onshore and offshore financial institutions the government currently regulates. The Eastern Caribbean Central Bank regulates St. Lucia’s domestic banking sector. Counter-terrorism and counter terrorist financing legislation is pending before the St. Lucia Parliament. In 2002, St. Lucia signed the Inter-American Convention Against Terrorism, which includes counter terrorist financing provisions. St. Lucia circulates lists of terrorists and terrorist entities to all financial institutions. To date, no accounts associated with terrorists or terrorist entities have been found in St. Lucia. The government has not taken any specific initiatives focused on the misuse of charitable and nonprofit entities.

As a member of the Caribbean Financial Action Task Force (CFATF), St. Lucia underwent a First Round Mutual Evaluation immediately prior to the establishment of its offshore sector. St. Lucia underwent its Second Round evaluation in September 2003. St. Lucia is a member of the OAS Inter- American Drug Abuse Control Commission (OAS/CICAD) Experts Group to Control Money Laundering. In February 2000, St. Lucia and the United States brought into force a Mutual Legal Assistance Treaty. St. Lucia also has a Tax Information Exchange Agreement with the United States.
The government has been cooperative with the USG in financial crime investigations. St. Lucia is a party to the 1988 UN Drug Convention and, on September 26, 2001, signed, but has not yet ratified, the UN Convention against Transnational Organized Crime. The St.Lucia government has not signed the UN International Convention for the Suppression of the Financing of Terrorism.
A Single Regulatory Unit (SRU) involving all players in the financial sector is currently being introduced in St Lucia. The Single Regulatory Unit - authorized via a Cabinet memo - should come into effect during the last quarter of 2006. Once the SRU becomes operational, it will begin to work towards its mandate which is to strengthen and improve financial regulation and supervision of all financial institutions not licensed under the Banking Act in the context of the soon to be established Uniform Banking Act through an effective, integrated and dynamic framework.

Eastern Caribbean Central Bank
The Eastern Caribbean Central Bank (ECCB) was established in October 1983. It is the Monetary Authority for a group of eight island economies namely - Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines. The mission of ECCB is to maintain the stability of the EC dollar and the integrity of the banking system in order to facilitate the balanced growth and development of member states. The monetary arrangements are characterized by :
- the issuance of a single common currency, the flow of which is unrestricted among its members.
- a common pool of foreign exchange reserves; and
- the existence of a Central Monetary Authority which decides on the Union's monetary policy.
The purposes of the Bank are:
- to regulate the availability of money and credit;
- to promote and maintain monetary stability;
- to promote credit and exchange conditions and a sound financial structure conducive to the balanced growth and development of the economies of the territories of the Participating Governments;
- to actively promote through means consistent with its other objectives the economic development of the territories of the Participating Governments.
The governing bodies of the Eastern Caribbean Central Bank are the Monetary Council and the Board of Directors. The Monetary Council is the highest decision making authority. It is comprised of one Minister appointed by each Government of the participating countries. The function of the Council is to provide directives and guidelines on matters of monetary and credit policy to the Bank. The Board of Directors is comprised of ten Directors - the Governor and Deputy Governor, and one Director appointed by each Government of the eight participating countries. The Board of Directors is responsible for policy and general administration of the Bank, while the Governor, the Chief Executive, is responsible for the day-to-day management and operations.

Financial Institutions Operating
Some of the banks operating in St.Lucia:

- Bank of Nova Scotia
- First Caribbean International Bank (formerly Barclays Bank Plc)
- RBTT Bank Caribbean Ltd
- Royal Bank of Canada
- Bank of St.Lucia
- Bank Crozier International Ltd.