ECCB 2021-2022 Annual Report and Statement of Accounts

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Legislative Agenda

ECCB (Amendment) Agreement The Bank engaged with member governments to expedite the issuance of the statutory instrument to give effect to the amendment to the Schedule to the Eastern Caribbean Central Bank Agreement Act to give legal validity to the issuance of the EC currency in digital form - DCash. To date, the statutory instrument has been issued in all eight member countries thereby making DCash legal tender in the ECCU. Banking (Amendment) Act The Bank remains committed to encouraging member governments to enact amendments to the Banking Act 2015. In this regard, the Bank continued to consult with member governments towards facilitating the enactment of the Banking (Amendment) Bill in all ECCU member countries. Amendments to Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) Legislation The Bank continued to encourage and support Member Governments in enacting amendments to the existing AML/CFT legislation, which shifts the supervisory and regulatory responsibility for AML/CFT for financial institutions licensed under the Banking Act, to the Bank. To date, four (4) member countries have passed the amendments conferring that authority on the Bank. The amendments were not applicable to Saint Vincent and the Grenadines, as under its Anti Money Laundering and Terrorism Financing Regulations issued under the Proceeds of Crimes Act 2013, the Bank was already named as the AML/ CFT supervisory authority. Banking (Licences) Regulations The Bank continued to follow up with Member Governments on the Banking (Licences) Regulations. Those Regulations are 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 license for a financial holding company. To date, the Regulations have been issued by five member countries. Banking (Abandoned Property) Regulations The ECCB revised the Banking (Abandoned Property) Regulations for consistency with the rules governing the processing of abandoned property under the Banking Act, 2015. The Regulations are intended to replace the existing ones that deal 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. To date, the Bill has been enacted by six member countries.

The draft regulations were submitted to Member Governments in April 2020 for issuance. To date, the regulations have been issued by seven member countries. Deposit Insurance The Bank continued its review of the draft Eastern Caribbean Deposit Insurance Corporation Agreement Bill. The development and implementation of a deposit insurance system in the ECCU will contribute towards the establishment of a comprehensive financial safety net and improve business conditions for banks in the region. Credit Reporting Bill The Bank continued 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 an additional mechanism to evaluate the creditworthiness of their customers, and monitor their credit circumstances. This will allow for the local credit markets to function more efficiently. Six member countries have passed the Bill and the Regulations have been issued in four countries. Harmonised Insolvency and Bankruptcy Legislation During the year, the ECCB continued to partner with The World Bank Group (WBG) on a number of initiatives to facilitate the development of a modern insolvency/bankruptcy framework in the ECCU. In partnership with INSOL International, the International Association of Restructuring, Insolvency and Bankruptcy Professionals and the Judicial Education Institute of the Eastern Caribbean Supreme Court, a Judicial Insolvency Programme (JIP) was successfully convened over the period 12-15 October 2021. The JIP was specifically created for judges to deepen their knowledge of the latest best practices and key principles of insolvency law. This would support court systems in resolving insolvency cases more efficiently and effectively. The programme was delivered in two parts: a self-paced e-learning component through a web based virtual platform, and a second component comprised of virtual workshops/peer to peer discussions delivered by judges. Recognising the critical importance of judiciary to the efficacy of insolvency frameworks in the ECCU and in ensuring the efficiency and integrity of insolvency proceedings, the Bank anticipates that this programme will be beneficial in advancing this initiative.

Over the period 9 to 10 March 2022, the Bank again partnered with the WBG and INSOL International on an inaugural virtual Caribbean Roundtable on Insolvency.

The objective of the Roundtable was to provide an opportunity for the participants to discuss issues concerning the development of insolvency and turnaround regimes and to build ties and develop professional relationships in the region.

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