2019-2020 Annual Report and Statement of Accounts

FINANCIAL SECTOR STABILITY

Phase II of the Statistical Enterprise Solution (SES) went live in June 2019. The solution supports web-based technology and covers collection, processing, storage and the dissemination of data. Commercial banks currently upload data through a secure web server and can access various reports using their own data. Deliver New Risk Management Infrastructure to Support the ECCU Financial Sector Operationalisation of the ECCB’s Mandate for Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Supervision of LFIs: During the year, the ECCB hasmade significant progress towards the development and implementation of its AML/CFT Supervision Framework. The relevant tools and documents to support the framework are being finalised. These include: the AML/CFT SupervisionManual; a Prudential Return that captures information used to develop an AML/CFT risk profile for each LFI; and an AML/CFT Prudential Standard for institutions licensed under the Banking Act. The Bank continued to encourage the relevant Member Governments to amend the necessary AML/CFT legislation to name the ECCB as the AML/CFT supervisory authority for its licensees. To date, the ECCB is named as the AML/CFT supervisory authority for institutions licensed under the Banking Act in Antigua and Barbuda, the Commonwealth of Dominica, Grenada, and Saint Vincent and the Grenadines, and has limited authority in Saint Lucia. The ECCB conducted eight AML/CFT onsite examinations in Antigua and Barbuda, Grenada, and Saint Vincent and the Grenadines. In Antigua and Barbuda and Grenada, joint onsite examinations were conducted with national competent authorities. As part of the ECCB’s AML/CFT Supervisory mandate for LFI’s, an inaugural AML/CFT Conference had been planned for Friday, 13 March 2020, under the theme: Raising Awareness and Reducing Risks: Emerging Money Laundering Issues in the Region . The conference was postponed amidst concerns surrounding the COVID-19 pandemic. The ECCB continued to support the Mutual Evaluation process at the invitation of its member countries, and facilitated the process in Saint Lucia, Grenada and Saint Christopher (St Kitts) and Nevis. The Caribbean Development Bank (CDB) supported by Global Affairs Canada (GAC), signed an agreement with the ECCB in February 2020, to fund a project aimed at strengthening the AML/CFT supervisory framework in the ECCU. The project will be governed by a Steering Committee with members from the CDB, GAC, Caribbean Financial Action Task Force (CFATF) and the ECCB as well as a representative from the ECCU national regulators. The project activities will include training workshops, simulation of onsite examinations, review of legislation and training of the legal fraternity. This project will complement technical assistance to be provided by The World Bank on developing a risk- based supervision framework for AML/CFT.

Phase II of the Statistical Enterprise Solution (SES) went live in June 2019. The solution supports web-based technology and covers collection, processing, storage and the dissemination of data. Banks currently upload data through a secure web server and can access various reports using their own data.

| EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2019-2020 7