ECCB 2022-2023 Annual Report and Financial Statements

Eastern Caribbean Central Bank Annual Report 2022 - 2023

Risk-based Supervisory and Management Framework Anti-Money Laundering, Combating the Financing of Terrorism and Combating Proliferation Financing (AML/CFT/CPF) Supervision The ECCB continued to monitor and assess the level of money laundering, terrorist financing and proliferation financing (ML/TF/PF) risks of Licensed Financial Institutions (LFIs). To that end, over the financial year, the ECCB conducted nine (9) examinations, and eight (8) thematic reviews of LFIs. The ECCB conducted sectorial risk assessments of the banking sector in Saint Christopher (St Kitts) and Nevis, the Commonwealth of Dominica, and Saint Vincent and the Grenadines, to supplement their National Risk Assessments (NRAs). The objectives of the sectorial risk assessments were to: z provide an overview of the banking sector of member countries; z apprise of the inherent ML/TF/PF risks to the banking sector; z provide an assessment of LFIs’ mitigating measures and controls; and z determine the overall ML/TF/PF risk rating of the banking sector. Enhanced Prudential Supervision of Licensed Financial Institutions (LFIs) Despite the relaxation in COVID-19 travel restrictions in the ECCU, the ECCB continued a hybrid approach to the conduct of examinations and conducted eight prudential examinations and three information technology examinations during the year. There were additional changes to the structure of the banking sector in the ECCU, with the acquisition of RBTT Caribbean Limited in Saint Vincent and the Grenadines by 1 st National Bank St Lucia Limited; the closure of FirstCaribbean International Bank (FCIB) branch in the

Commonwealth of Dominica; the transfer from BON Bank Limited (formerly RBTT Bank (SKN) Limited) to a branch of The Bank of Nevis Limited; and the sale of the FCIB branch in Saint Vincent and the Grenadines to the Bank of Saint Vincent and the Grenadines Limited. In light of the volatility of the US market and the exposure of LFIs to that market, the Bank increased off site monitoring of LFIs’ capital adequacy, large credit exposures, liquidity positions, risk management and mitigating strategies for market, credit, and liquidity risks. Furthermore, the ECCB provided guidance on cyber security/information technology risk, given the growing concerns in this area. Other Supervisory Activities The ECCB continued to provide oversight of the Receiverships of National Bank of Anguilla Limited and Caribbean Commercial Bank (Anguilla) Limited in Anguilla, and ABI Bank Limited in Antigua and Barbuda. The ECCB’s regulatory support for the moratoria and restructuring programme ended on 31 March 2022. Notwithstanding, a few LFIs continued the moratoria programme from 1 April 2022, and as at 31 March 2023, only one LFI offered the programme. Since the expiration of the regulatory support for the moratoria programme, there has been no evidence of significant deterioration in the credit portfolios of LFIs. The ECCB continues to closely monitor developments in this area. The ECCB continued to monitor and assess the level of money laundering, terrorist financing and proliferation financing (ML/TF/PF) risks of Licensed Financial Institutions. Loan Moratoria and Restructuring Programme

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