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Saint Vincent and the Grenadines: Law of Offshore

Table of Statutes

This is a non-exhaustive list of the main Saint Vincent and the Grenadines statutes affecting offshore and non-resident business. The statutes are listed in alphabetical order – click on the statute for a fuller description of the statute, the legal regime it forms part of, or in some cases the text of the law.

Aliens Land Holding Ordinance
Confidential Relationships Preservation (International Finance) Act 1996

Exchange of Information Act 2002 (169KB)

Exchange of Information Order S R & O 2002 No. 48
Financial Intelligence Unit Act
Financial Intelligence Unit Amendment Act 2002
Fiscal Incentive Act No.5 of 1982
International Banks Act
International Banks (Amendment) Act 2002
International Banks (Amendment) Act 2008 
International Banks (Amendment) Regulations 2002
International Business Companies Act
International Business Companies Amendment Act 2002

International Business Companies Amendment Regulations 2003

The Saint Vincent and the Grenadines International Business Companies (Amendment and Consolidation) Act 2007
International Insurance (Amendment and Consolidation) 1998 Act
International Insurance Regulations 1999

International Trusts Act
International Trust Amendment Regulations 2002
International Trust Amendments Act 2002

International Banks Amendment Regulations 2002

Money Laundering Prevention Guidance Notes

Mutual Funds (Amendment and Consolidation) 1998 Act

Proceeds of Crime and Money Laundering (Amendment) Act 2002
Proceeds of Crime (Money Laundering) Regulations 2002 
Proceeds of Crime (Amendment) Regulations 2002
Proceeds of Crime and Money Laundering (Prevention) Act 2001

Registered Agent & Trustee Licensing Act, 1996

Saint Vincent & the Grenadines Offshore Finance Authority Act 1996
 
United Nations Anti Terrorism Measures Act 2002

VAT legislation was introduced in 2006, and in 2007, a bill to faciliate ICT investment through the use of incentives was put in place.

In May, 2008, amendments to The Banking Act repatriated control over international banks to the International Financial Services Authority (IFSA). The tightening of the regulatory regime for banks after 2000 resulted in a sharp drop in the number of offshore banks operating in the jurisdiction, from 40 in 2001 to just seven. At the time of writing there are four international banks. The government is thought not to be keen to see rapid expansion of the banking sector.

In March, 2009, after the US Securities Exchange Commission accused Millennium Bank of being involved in a USD68 million Ponzi scheme, the government moved swiftly to close the bank down, saying that it had not wished to give it a banking license in the first place. “The funds alleged to be defrauded from investors did not pass through Millennium Bank in Saint Vincent and the Grenadines nor our National Commercial Bank,” said Prime Minister Gonsalves. “It is believed that domestic banks in the US were used to deposit funds from investors in the name of United Trust Switzerland and then payments made to the defendants.”

In 2011, the IFSA was expected to fall under the umbrella of the Financial Services Authority, a single regulatory organisation, in an effort to enhance and strengthen the regulatory and supervisory capacity of the jurisdiction. However, the Financial Services Authority Act 2011 has yet to come into force.

 

 

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