IBCs

New International Business Companies Act 2007 and New International Business Companies Regulations 2008 have been gazetted.  Until the details for the website are formatted, you may contact IFSA for further information.

Important Facts on St. Vincent and the Grenadines Trusts     

1. Trust deeds are registered in a confidential government Trust Registry, whereupon an official Certificate of ‘Registration is issued to the Settler/Grantor.   
    

2. A duly registered trust will not be rendered unenforceable because it was invalid under the laws of the Settler/Grantor’s domicile or residence.  Thus, forced heirship law and community property regimes can be avoided.  
    

3. The traditional rule against perpetuities and the rule against accumulations are modifies and clarified. 
    

4. Purpose trusts, which are created for a specific purpose but without named beneficiaries, are allowed and statutorily prescribed.  
    

5. The role and duties of protectors are specifically set out and clarified to account for recent case law. 
    

6. Choice-of-law and conflicts-of-laws issues are anticipated and resolved in favor of the provisions of the International Trust Act.  
    

7. A foreign (non-Vincentian) judgment against a registered International Trust (or its settler or beneficiaries) is not enforceable in Saint Vincent if the judgment was based on law inconsistent with the International Trust Act, 1996.  
    

8. Actions against registered international trusts must be commenced within two years from date of creation of the trust. 
    

9. A complaining creditor may satisfy his claim against the property of a registered international trust only if that creditor can show both that the settlor/grantor’s principal interest in creating the trust was to defraud him, that the disposition of property to the trust rendered the settler/grantor insolvent.  
    

10. Traditional fraudulent conveyance laws (Statute of Elizabeth) are not applicable to registered international trust. 
     

11. The bankruptcy or insolvency of the settler/grantor under the laws of his residence or domicile will not affect a registered international trust.  
     

12. An international trust may own one or more Saint Vincent International Business Companies.    
     

13. Registered trustees fall within the definition of ‘financial institutions’ of the Proceeds of Crime Money Laundering Prevention Act 2001 and are thereby subject to its anti money laundering requirements.

Important facts on St. Vincent and the Grenadines International Insurance Sector
 

The International Insurance sector has been identified as an excellent growth area. The present insurance regime offers a great deal of flexibility to insurers wishing to conduct international insurance business.

The sector is regulated by the International Insurance (Amendment and Consolidation) Act 1998 which came into effect on December 15, 1998 and, the International Insurance Regulations gazetted on June 22, 1999 . Together these legislations set the legal framework for the high quality of regulatory and administrative processes necessary to foster and maintain market participation, transparency and confidence.

Under the new regime insurers have a choice of five classes of international insurance companies. This flexibility is designed to accommodate both the largest and the smallest insurance enterprises and allows for a diverse range of activity:

Class I – unrestricted- insurers can carry on any international insurance business, including long term;

Class II – General-  Insurers can carry on general but not long-term international insurance business;

Class III – Association- insurers can carry on general and long-term international insurance business with two or more owners of the insurer and/or their affiliates, and up to 30% of business with persons who are not owners of the insurer or their affiliates;

Class IV – Group- insurer can carry on general and/or long term international insurance business with one owner, its affiliates, and employees;

Class V – Single- insurer may carry on any international insurance business, with the sole owner of the insurer, if a company, or with the beneficial owners of the insurer, if a trust.

There are individual capital requirements for each class; higher requirements for higher risk firms. At the application stage, the firms themselves are allowed to state a class of business and to make their own specific assessment of the overall level of financial resources they would need to meet their liability.

Every single form that needs to be filed at the application stage and during the life of the licensee is exhibited in the Regulations along with all the relevant fees. This clearly allows for the simplification of the application process and further enhances the administrative process during the life of the licensed entity.

Important Facts on the St. Vincent and the Grenadines International Banking Sector

Saint Vincent and the Grenadines has always provided a sound economic climate for international banks. There are presently some six  international banks licensed in St. Vincent and the Grenadines.

The International Banks Act of 1996 and Regulations govern the registration of international banks.

All banks are subject to onsite inspections at least every 12 – 18 months.

The International Financial Services Authority's Executive Director, Mrs. Sharda Sinanan-Bollers has direct responsibility for banks.

The Authority grants two Classes of International Banking Licence:

1. Class A International Banking Licence

2. Class B International Banking Licence

All International banks applying for a licence to operate in St. Vincent and the Grenadines must submit a completed application (in duplicate) along with the prescribed fee to the International Financial Services Authority.  All applicants are required to complete a ‘fit and proper’ questionnaire. The following requirements apply to all banks that are issued with a license to operate in St. Vincent and the Grenadines:

1. They must establish a physical presence in the island
    

2. They must have local employees
    

3. There must be at least one (1) local Director approved by the International Financial Services Authority.

The following condition also applies specifically to the different classes of Offshore Banks.

CLASS A

1. Non-refundable application fee of US$1,000.00
    

2. Each Class A bank must establish and maintain a capital fund with fully paid-up capital of not less than one million US dollars (US$1,000,000.00) or its equivalent in another currency
    

3. Class A banks are required to hold a deposit or invest the sum of five hundred thousand US dollars (US$500,000.00) or its equivalent in another currency, in such a manner as the Authority may prescribe.  
    

4. Designate and notify the Authority by name a registered agent, which is not an official of the bank, to act as its registered agent in the state.
    

5. Class A license fees US$10,000.00
    

6. Class A annual renewal Fees US$10,000.00   

CLASS B

1. Non-refundable application fee of US$1,000.00
    

2. Each Class B bank must establish and maintain a Capital fund with fully paid-up capital of five hundred thousand United States dollars (US$500,000.00) or its equivalent in another currency
    

3. Class B banks are required to hold a deposit or invest the sum of one hundred thousand United States dollars (US$100,000.00) or its equivalent in another currency in such a manner as the Authority may prescribed
    

4. Designate and notify the Authority by name a registered agent, which is not an official of the bank, to act as its registered agent in the state.
    

5. Class B license fees US$10,000.00
    

6. Class B annual renewal fees US$5,000.00