ECCB 2020-2021 Annual Report and Statement of Accounts

ORGANISATIONAL EFFECTIVENESS

Legislative Agenda to Support Strategic Objectives ECCB (Amendment) Agreement During the 2020/2021 financial year, the Bank engaged with member governments to facilitate the issuance of the statutory instrument to give effect to the amendment to the Schedule of the Eastern Caribbean Central Bank Agreement Act to give legal validity to the issuance of the EC currency in digital form. The statutory instrument has been issued in two member countries. Banking (Amendment) Act The Bank remains committed to encouraging member governments to enact the amendments to the Banking Act. In this regard, during the year, the Bank conducted one-on-one consultations with member governments geared towards facilitating the enactment of the Banking (Amendment) Bill in all ECCU countries. The Bill has been enacted in five member countries. Amendments to AML/CFT Legislation The Bank continued to encourage and support member Governments in enacting amendments to the existing Anti-Money Laundering/Counter Financing of Terrorism legislation which transfers the supervisory and regulatory responsibility for anti-money laundering and counter financing of terrorism for financial institutions licensed under the Banking Act to the Bank. Four member countries have passed the amendments conferring that authority on the Bank. The Bank also provided inputs to member governments’ mutual evaluation frameworks. Banking (Licences) Regulations The Bank continued to follow up with member governments on the Banking (Licences) Regulations intended to operationalise the general provisions under the Act which deal with the application for a license to carry on banking business and the application for a licence for a financial holding company. The Regulations have been issued in four member countries. Banking (Abandoned Property) Regulations The ECCB has revised the captioned regulations for consistency with the rules governing the processing of abandoned property under the Banking Act, 2015. The regulations are intended to replace the current regulations dealing with abandoned property. Importantly, in relation to the administration of abandoned property in safe deposit boxes, the contents are to be handled by the Ministry of Finance. The draft regulations were submitted to Member Governments in April 2020 for issuance. The regulations have been issued in three of the ECCU member countries. Insurance and Pensions Act The Bank facilitated the drafting of an Insurance and Pensions Bill which was discussed with the ECCU Attorneys General and Chief Parliamentary Counsel in April 2020. However, the Bank has since revisited its approach with this Bill. It is anticipated that efforts in this area would now be encapsulated under a new proposed Regional Optimal Regulatory Framework. Deposit Insurance During the year, the Bank received support from The World Bank in formulating the policy and in drafting an Eastern Caribbean Deposit Insurance Corporation Agreement Bill which seeks to, inter alia: ƒ establish a deposit insurance system to provide insurance against the loss of part or all of deposits; ƒ promote and otherwise contribute to financial stability in the Currency Union; and ƒ incorporate international best practices for establishing and reforming deposit insurance systems.

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