ECCB 2016/2017 Annual Report

ECCB ANNUAL REPORT 2016/2017

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Modernisation of the Financial System The work towards the harmonisation of legislation and enhanced regulation included, improving the foreclosure process through revised legislation and the establishment of the Eastern Caribbean Institute of Appraisers. Developments regarding digital and crypto currency and the Bank’s role pertaining to these were discussed during the year. Regulation and supervision of the banking sector remained a priority for the ECCB with a concentration on the operationalisation of the Banking Act (2015). The issue of de-risking prompted the Monetary Council to approve the ECCB’s assumption of full responsibility for AntiMoney Laundering/Combating the Financing of Terrorism (AML/CFT) regulation of all ECCU institutions licensed under the Banking Act. With respect to the Foreign Accounts Tax Compliance Act (FATCA), all member territories, except the Commonwealth of Dominica, have signed Inter- Governmental Agreements with the US. BANKING SERVICES In fulfilling its mandate to maintain financial stability, the Bank continued to increase its focus on its role as Banker to member governments and commercial banks in accordance with Parts VIII and IX of the ECCB Agreement Act (1983). Towards that end, the Bank: •  • Provided the necessary liquidity support to the financial system; •  • Focused on further development of the Eastern Caribbean Automated Clearing House (ECACH); •  • Explored ways to enhance its role as Fiscal Agent to member governments, particularly as it related to the Regional Government Securities Market (RGSM);

•  • Collaborated with member governments to develop a cohesive action plan for public sector financial management; •  • Facilitated the operationalisation of the member governments’ administration of the Abandoned Property – safe deposit boxes. PAYMENT SYSTEM The Payment System will continue to feature prominently in the Bank’s strategic priorities given its role in contributing to the maintenance of financial stability in the ECCU. The Banking and Monetary Operations Department (BMOD) is finalising the Business Requirement Document for the Electronic Funds Transfer (EFT) phase of the Eastern Caribbean Automated Clearing House (ECACH) project which will be forwarded to the developer. The EFT phase is expected to create the platform that facilitates: •  • Consumer to Consumer payments, example: rent and remittances; •  • Consumer to Company payments, example: taxes and utilities; •  • Company to Consumer payments, example: payroll and social security; and •  • Company to Company payments, example: loans and investments.

Implementation of the EFT is expected to be completed and operationalised by the first quarter of 2018.

During the year, the Bank sought assistance from The World Bank to undertake an assessment of the Payment and Settlement System of the Eastern Caribbean Currency Union. The Bank will address the issues and areas which the consultation identified as critical to the maintenance of financial stability. Some of the areas identified and intended to be pursued over the upcoming year are: