2019-2020 Annual Report and Statement of Accounts

ORGANISATIONAL EFFECTIVENESS Legislative Agenda to Support Strategic Priorities Banking Act The Bank remains committed to encouraging Member Governments to enact the amendments to the Banking Act (the Act). To date, four Member Governments have passed the Bill. Anti-Money laundering/Counter Financing of Terrorism Legislation The Bank continues to urge Member Governments to pass amendments to the existing Anti-Money laundering/Counter Financing of Terrorism legislation, which shifts to the ECCB the supervisory and regulatory responsibility for anti-money laundering and counter financing of terrorism for financial institutions licensed under the Banking Act. To date four Member Governments have passed the amendments conferring that authority to the Bank. The Banking (Licences) Regulations The Banking (Licences) Regulations, intended to operationalise the general provisions under the Act dealing with the application for a license to carry on banking business and the application for a license for a financial holding company, have been issued in four member countries. Legislative Framework for Regulation Virtual Assets The Bank, in collaboration with the Regional Security System - Asset Recovery Unit (RSS-ARU), launched a project for the development of a legislative framework for the regulation of virtual assets or “cryptocurrencies” in the ECCU. Policy recommendations were circulated to stakeholders for feedback and were ultimately approved by the Monetary Council. Following approval of the policy recommendations, a first draft of a Virtual Assets Bill was prepared and circulated to stakeholders and the first set of consultations was held in November 2019. One Member Government has passed the Bill. Credit Reporting Bill and Regulations The Bank continues to encourage Member Governments to bring the Credit Reporting Bill and Regulations into force. The primary objective of this legislation is to develop a credit reporting infrastructure that would provide financial institutions and other lending institutions with a supplementary tool to evaluate the credit-worthiness of customers and monitor their credit circumstances. This will allow for the local credit markets to function more efficiently. To date, five countries have passed the Bill, and the Credit Reporting Act and Regulations are in force in three member countries. Harmonised Registered Land Bill The Bank continues to pursue the ECCU Electronic Conveyancing System Project, which is intended to facilitate the development of a harmonised and modern system of land registration throughout the ECCU. This is anticipated to revolutionise the way business is conducted in so far as land transactions are concerned, and significantly improve countries’ ranking in the World Bank Doing Business Report. One of the outputs of the project, a draft harmonised Registered Land Bill, has been the subject of in-country consultations in one member country. Amendments to Schedule to the Eastern Caribbean Central Bank Agreement Act. In support of the Bank’s efforts to issue a digital Eastern Caribbean Dollar (DXCD), amendments have been made to the Schedule to the Eastern Caribbean Central Bank Agreement Act. Those amendments were approved by the Monetary Council at its 95 th Meeting in February 2020.

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