Anguilla Financial Services Commission

Charting The Course Ahead in 2010By

Eleanor M Astaphan, Deputy Director

Overview

• Review of past year (financial, operational, legal)

• Regional Developments• External Developments• Preview of 2010

Year in Review

Financial Performance• Note change in financial year end for 2008

Perfmance Indicators

August 2009Unaudited

December 2008 (16 mo)

August 2007

License Fees 921,048 946,388 757,246

Total Assets 1,593,849 1,295,821 959,131

Surplus 513,132 296,550 319,036

Acc. Surplus 1,551,357 1,038,224 897,414

Year in Review

Operating PerformanceA) Supervisory & Regulatory function• Licensing : process granting authorization to

enter the market• New Fit &Proper Guideline on website :

criteria: character and integrity, competence and experience, financial soundness

• New regulatory approval fees- services previously gratis

Year in Review

Growth in Licensees

Year in Review

Captives CoM MF + Int Trust Co Off. Bnks Dom Ins

2006 71 34 55 17 3 20

2007 124 43 77 18 3 22

2008 180 45 85 19 3 25

2009 200 54 68 16 3 23

Year in Review

Operating PerformanceB) Surveillance/Offsite Monitoring• Continuous process• Purpose – compliance, EWS, understand and

explain significant matters• Type of activity: financial statements, prudential

meetings, data collection• In 2009 introduction of reporting forms ( new

and revised)

Year in Review

• Tested standard reporting forms to assist in data collection for domestic Insurance, MFunds, MSBs, TCSPs, Cus

• In 2009 conducted several prudential meetings with various licensees

• Success of the Commission in off-site surveillance is heavily dependent on timely and accurate reporting of the industry

Year in ReviewOperating PerformanceB(ii) Surveillance/On-site examination• Selective process- leading from off-site or part of cycle

of periodic examinations• Purpose – high degree of familiarization with

operations and performance to ensure satisfactory performance

• Examiners are sworn to confidentiality • Caution note: Role of Commission limited to

evaluation of adherence to reasonable prudential limits of risk in relation to products and services offered

Year in Review

• In 2008/09 32 on-sites were conducted

Year in Review

Operating performanceC) Legislation( passed in 2009)• Proceeds of Crime Act and the AML/CFT

Regulations and Code• Money Services Business Act• Payment System Act• Amendments to the Financial Services Act

Year in Review

• Commission issued Guidelines:• Issues Guide on AML/CFT Procedures Manuals

Year in Review

Operating PerformanceD) External Relationships• Interface with other regulatory

bodies/authorities worldwide• Commission maintains policy of disclosure and

transparency- annual reports, engagement and consultation of private sector, annual meetings

• Use of website for information dissemination

Regional Developments

• Signed MOU with regional regulators• AFSC participation in ROC co-ordinated by

ECCB (Fallout CL Financial/BAICO/CLICO)• Continued interface with regional bodies-

CARTAC, ECCB, CAIR• Continued participation in regional training

and regulatory fora- • In 2009 Anguilla hosted regional meeting of

Heads of SRUs

External Developments

• Fallout of financial crisis in the US – slowed recovery and resulting pressures on tourism industry, financial services

• G20 declarations on offshore financial centres in relation to their efforts to stem leakages of tax revenues to tax havens

• Two external assessments of Anguilla – Foot Review and the CFATF ME Report

Preview 2010/CFATF ME

• Peek at Preliminary ratings assigned:-• 40 FATF Recommendations:10 Compliant, 14 Largely

Compliant, 14 Partially Compliant and 2 Non Compliant• 9 Special Recommendation: 5 Largely Compliant,

3Partially Compliant and 1 Non Compliant• One primary reasons for not achieving full compliance

in some areas was newness of legislation • Some ratings likely to change based on

negotiations/finding of Plenary May 2010

Preview 2010/Work Programme• Work programme will involve response to CFATF

Plenary• Guided by recurring themes in both external

assessments:-• Regulatory resources• Restructuring to accommodate expanded scope

of the Commission (possible implementation of Compliance/Enforcement Unit)

• Greater regulatory co-operation with UK, other OTCs

Preview 2010/Work Programme

• Increased regulatory coverage to include other financial service providers- DNFBPs; MSBs

Preview 2010/Work Programme

New legislation and Guidelines• International Insurance Bill• Domestic Insurance Bill (ECCU)• Co-operative Societies Bill (ECCU)• Amendments to MF Act• Guidelines for Company Managers• Guidance Note on Maintaining Statutory

Reserves &Deposits for licensed insurers

Questions/Feedback

Thank You!