ECCB 2025-2026 Annual Report

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2025 - 2026

Financial Stability

member countries, engaging representatives from government ministries, financial institutions, legal associations, and the private sector. Key concerns raised during consultations including data protection, credit risk management, asset valuation, prudential implications, and access to registry systems, will be incorporated into the development of a comprehensive legislative and policy framework. Enhanced Risk-Based Supervision Framework Anti-Money Laundering, Combating the Financing of Terrorism and Proliferation (AML/ CFT/CPF) The Bank continued to strengthen its AML/CFT/ CPF supervisory programme under its Risk Based Supervision (RBS) Framework. Eleven targeted examinations were conducted based on institutional risk profiles, focusing on remediation efforts and the effectiveness of internal controls. A major milestone was the hosting of the inaugural AML/CFT/CPF Conference in October 2025, which brought together over 110 regional and international stakeholders. The conference facilitated dialogue on financial inclusion, digital transformation, emerging financial crime risks, and preparation for

upcoming mutual evaluations, thereby enhancing regional collaboration and technical capacity. In an effort to address evolving risks, the Bank issued a series of advisories covering high-risk jurisdictions, card skimming and ATM fraud, borrower-initiated loan fraud, and cyber-enabled financial crimes. Those advisories provided practical guidance to LFIs on strengthening due diligence, monitoring systems, and internal controls. The Bank further enhanced its supervisory approach by integrating operational risk and resilience assessments into its RBS framework. Supervision activities included 12 examinations— comprising both prudential and information technology reviews—conducted through on-site, off-site, and hybrid modalities. These assessments evaluated key risk areas, including credit risk, corporate governance, capital adequacy, earnings sustainability, asset liability management, and information technology resilience. Institutions were also assessed for compliance with legislative and regulatory requirements, including prudential standards and supervisory directives. Prudential Supervision of Licensed Financial Institutions

The Bank issued a series of advisories covering high-risk jurisdictions, card skimming and ATM fraud, borrower-initiated loan fraud, and cyber-enabled financial crimes. Those advisories provided practical guidance to LFIs on strengthening due diligence, monitoring systems, and internal controls.

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