ECCB 2023-2024 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2023 - 2024

R evisions to the ECCB A greement Recognising that corporate governance is critical to the achievement of the ECCB’s mandate and reputation as a model regional institution, the Bank presented a policy proposal to the Monetary Council to amend the ECCB Agreement. That was with a view to reform its legal structures for autonomy, decision-making, accountability, and transparency, to strengthen the Bank’s governance framework to maintain alignment with international best practices. The policy framework is before the Monetary Council for consideration. The Bank made further advances towards the completion of the implementation of the Legislative Reform Programme, which was aimed at enhancing the resilience of the financial sector of the ECCU. Member countries are finalising the outstanding legislation. B anking (A mendment ) A ct The Bank continued to consult with the remaining member governments on the enactment of the Banking (Amendment) Bill. To date, the Bill has been enacted by seven member countries. Saint Lucia has not yet enacted the Amendment. A mendments to AML/CFT L egislation The ECCB continued to support member governments in enacting amendments to the existing Anti-Money Laundering/Counter Financing of Terrorism legislation to facilitate a shift in the supervisory and regulatory responsibility for financial institutions licensed under the Banking Act to the ECCB. One additional member country enacted the amendments during the 2023/2024 financial year. To date, five member countries have

passed the amendments conferring that authority on the Bank.

This initiative was not relevant 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 Central Bank was already named as the AML/CFT supervisory authority. B anking (L icences ) R egulations The ECCB continued to follow up with member governments on the Banking (Licences) Regulations, to operationalise the general provisions under the Act. Those provisions address the application for a license to carry on banking business, and the application for a license for a financial holding company. During the year, the final two remaining member countries issued the Regulations. Consequently, the Regulations have now been issued by all ECCB member countries. B anking (A bandoned P roperty ) R egulations All member countries have now issued the Banking (Abandoned Property) Regulations. The Regulations are intended to replace the current regulations, dealing with the administration of abandoned property in safe deposit boxes, where the contents would now be handled by the Ministry of Finance. D eposit I nsurance The ECCB continued efforts towards the development of a deposit insurance system to protect depositors of licensed financial institutions from the loss of their deposits.

In November 2023, the draft legislation was

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