ECCB 2018-2019 Annual Report and Statement of Accounts

ORGANISATIONAL EFFECTIVENESS

Legislative Agenda to Support Strategic Priorities Banking Act 2015

The Bank, in consultation with the banking industry, undertook a review of the Banking Act 2015 with the view to propose amendments deemed necessary to address provisions in the Act that were either impractical or presented challenges to its effective operationalisation. In November 2018, the draft amendments were resubmitted to the Monetary Council, approved and dispatched to member countries for enactment. To date, the Bill has been enacted in Grenada. The Banking (Licences) Regulations 2018 were prepared by the Central Bank in consultation with the offices of the Attorneys General in the Eastern Caribbean Currency Union (ECCU). The intention of the regulations is to operationalise the general provisions under the Act which deal with the application for a licence to carry on banking business and the application for a licence for a financial holding company. The regulations were dispatched to member governments in May 2018. Anti-Money Laundering/Counter Financing Of Terrorism Legislation The Bank continues to encourage ECCU member Governments to pass amendments to existing Anti-Money laundering/Counter Financing of Terrorism legislation which shifts the supervisory and regulatory responsibility to the Bank. The amendments were dispatched to member governments and have been passed by two member countries. Software Pilot Agreement In February 2019 the Bank executed a Software Pilot Agreement with BITT Inc to design and construct a high security Digital XCD and a centralised private platform leveraging IBM Hyper ledger to create, issue, withdraw from circulation, verify, destroy, and re-issue Digital XCD. Participation in the pilot project is voluntary and within controlled parameters. The duration of the pilot project, development and deployment, is expected to be eighteen months. Payment System (Eastern Caribbean Clearing House) Rules The Bank in consultation with the ECCU Attorneys General finalised amendments to the Payment System (Eastern Caribbean Clearing House) Rules in 2018 to lend efficiencies and allow some flexibility in the processing of transactions by the Eastern Caribbean Automated Clearing House (ECACH) by removing the session times and the fees from the Rules. The amendments were dispatched to member countries in January 2019 for gazetting. To date the Rules have been published in one member territory. Credit Reporting Bill And Regulations Legislation The Bank remains committed to encourage member governments to bring the Credit Reporting Bill and Regulations legislation into force. To date, four member governments have passed the Credit Reporting Bill and the Credit Reporting Act and Regulations are in force in three member countries. Harmonised Registered Land Bill The legislative drafting phase of the ECCU Electronic Conveyancing System Project was completed in October 2018. The final deliverables of the Project, that is, the final report and a draft Harmonised Registered Land Bill have been published on the Bank’s website as part of the initial sensitization process. The aim of this Project is to provide a framework for a modernised arrangement which will yield greater predictability and simplicity in the property transfer system in the sub-region. This initiative is expected to ultimately facilitate the enhancement of the region’s competitiveness through an overhaul of the land registration systems of the ECCU.

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