Anguilla is an overseas territory of the UK. It is a member of the Organisation of Eastern Caribbean States and of the Eastern Caribbean Central Bank (ECCB). Anguilla’s offshore sector is mainly based on company and trust services and to a lesser extent on offshore banking. Anguilla’s legislative framework covers the regulation of domestic and offshore banks, insurance, companies and trust services providers. Government has been upgrading its legislation regulating the offshore financial sector to meet international standards. Anguilla’s UK-appointed governor has constitutional responsibility for all international financial services but the day-to-day supervisory responsibility rests with the financial services department at the ministry of finance. An independent regulator, the Financial Services Commission (FSC), is due to be established at the end of 2003 to supervise the offshore sector. The proposed FSC will assume most of the regulatory and supervisory powers and responsibilities currently vested with the governor and the financial services division.
The Trust Companies and Offshore Banking Act, 2000 and the related regulations govern the supervision of offshore banking. The domestic banking sector falls under the Banking Act, the related regulations, guidelines and the Eastern Caribbean Central Bank Agreement Act. Domestic banks are regulated by the ECCB. Government has also signed a memorandum of understanding with the ECCB to conduct consolidated supervision of the offshore subsidiaries of domestic banks when they become operational. The memorandum was signed in September 2002. The corporate ordinances provide for international business companies, limited liability (or limited life) companies and ordinary companies, which, due to Anguilla's true zero tax status, can be used as domestic or offshore vehicles. Companies limited by guarantee, hybrid companies and non profit companies are also permitted. Legislation covering limited partnerships, offshore banks and trust companies, insurance and company management has been enacted. Corporate services providers are regulated under the Company Management Act, 2000 and related regulations. A regulatory code of practice for the sector is being drafted. The Company Registry is currently under the administrative responsibility of the financial services division although legal responsibility lies with the Registrar. Twenty-nine company managers have been licensed under the legislation. Of these, 12 do not have a physical presence are referred to as 'cubicle agents'. The applicable legislation for trusts is the Trust Companies and Offshore Banking Act, 2000 and the Trust Ordinance, 1994. Trust companies are authorised to carry on company management business and are supervised by the financial services department. The Trusts Ordinance abolishes the Rule Against Perpetuities and permits accumulation of income throughout the entire term of the trust. Purpose trusts are permitted and the concept of a protector has been introduced. Asset protection trusts are also addressed by the new legislation.
Insurers are regulated by the Insurance Act and associated regulations. Anguilla has 20 registered insurers, including two domestic companies with local shareholding. All of the others are foreign-based firms underwriting domestic business and subject to home country regulation and supervision. Most of the insurance entities are engaged in property and casualty insurance. Five insurers provide life business only. The whole sector wrote total gross premiums of US$5.9 million in 2000. The FSC is in process of preparing a new Insurance Act to include provisions for captive insurance business, and to allow for the supervision of insurance intermediaries. Anguilla has licensed four domestic and two offshore banks. Bank deposits in the domestic sector at the end of December 2002 totalled US$290.2 million, of which US$227 million was in the form of foreign currency deposits. The relatively large proportion of foreign currency (78%) and non-resident deposits contributed to a decision by some banks to establish offshore subsidiaries to which some of the deposits are being transferred. It is intended that only foreign currency deposits held be non-residents will be transferred to the offshore banks. The company services sector has been the fastest growth area of Anguilla’s offshore sector. There were 29 licensed company managers and 12 trust companies on the register as at October 2002. A total of 4,642 companies and partnerships were on the register as at August 2002. A total of 78 trusts had reported their presence to the authorities although there is no requirement to register trusts. Anguilla’s Commercial Online Registration Network system (ACORN) went live on 16 November 1998 allowing licensed company managers and trust companies in Anguilla, together with their approved overseas agents, to incorporate companies electronically (www.anguillaoffshore.com).
The main money laundering legislation consists of the Proceeds of Criminal Conduct Act, the Money Laundering Reporting Authority Act, the Drug Trafficking Offences Act, the Criminal Justice (International Cooperation) (Anguilla) Act and the Anti-Terrorism (Financial and other Measures) (Overseas Territories) Order. Codes of practice and guidance notes have also been issued.
There is no income, capital gains, estate, profit or other forms of direct taxation either on individuals or corporations, whether resident in Anguilla or not. In addition, there are no exchange controls and the official currency is the Eastern Caribbean Dollar.
Government of Anguilla
Financial Services Department
The Secretariat, The Valley,
Anguilla, British West Indies
Tel: (264) 497 5881/3881
Fax: (264) 497 5872/8053
Latest available figures
British dependent territory.
11,797 (July 2000 estimate)
Eastern Caribbean Dollar (EC$) pegged at US$1 = EC$2.7. The US dollar is used extensively.
Based on the British common law system with variations. Anguilla is a member of the Eastern Caribbean Supreme Court, which is responsible for the high court and court of appeals. Final appeal rests with the UK Privy Council in the UK.
British dependent territory. Anguilla is a representative democracy with internal self-government. The British monarch is the head of state represented by a UK-appointed governor. The governor is is responsible for defense and international financial services. The House of Assembly has 11 members, of which seven members are elected for a five-year term in single-seat constituencies, two are ex officio members and two are nominated. The Executive Council is appointed by the governor from the elected members of the House of Assembly.
Governor: Peter Johnstone. Alan Huckle has been appointed to take over the position in May 2004.
Chief minister: Osbourne Fleming
Chief minister, home affairs, tourism, agriculture, fisheries and the environment: Osbourne Fleming
Finance, economic development and investment: Victor Banks
Education, health and social development, lands: Eric Reid
Infrastructure, communications, utilities, transportation and housing: Kenneth Harrigan
Anguilla Democratic Party (leader Victor Banks)
Anguilla National Alliance (leader Osbourne Fleming)
Anguilla United Party (leader Hubert Hughes)
In national elections held on 3 March 2000 the United Front-Anguilla National Alliance (ANA) won 34% of the vote and three seats. The Anguilla United Movement received 12% of the vote and two seats. The Anguilla Democratic Party (ADP) won 11% of the vote and one seat. An independent won one seat. The government is formed by a coalition of the ANA and the ADP.
The economy is dependent on tourism and the financial service sector. Government services makes up 16.2% of GDP; banks and insurance 15.5%; construction 15.5%; communication 9.2%; tourism 9%; wholesale and retail trade 8.4%; transport 6.7%; agriculture 2.8%, and manufacturing 1.4%. Grenada shares a common central bank (the Eastern Caribbean Central Bank) and a common currency with seven other members of the Organisation of Eastern Caribbean States (OECS). (2000). The contribution to the economy made by the finance industry has been growing steadily over the last five years and was the only sector that recorded significant growth in 2000 and 2001.
Gross domestic product (2001)
US$88.9 million at market prices. Real GDP rose by 2% in 2001 compared to a contraction of 0.3% in 2000.
Labour force (July 2003)
Total labour force: 5,962. Total employed: 5,495. Total unemployed: 467 (7.8%). Labour force by occupation: hotels and restaurants 23%, commerce 36%, services 29%, construction 12.9%, utilities, transport, communications and financial intermediation 12.63%, manufacturing and mining 7.8%.
Government accounts (2001)
Estimated revenues: US$36.53 million; total expenditures: US$35.63 million of which recurrent expenditure is US$32.88 million and capital expenditure is US$2.75 million. Government financial year: 1 January-31 December.
Public holidays (2004)
1 January (New Year's day), 18 April (Good Friday); 21 April (Easter); 1 May (Labour day); 30 May (Anguilla Day); 9 June (Whit Monday); 16 June (Queen’s Birthday); 7 July (Caricom Day); 4 August (August Monday, start of Carnival week); 7 August (August Thursday); 8 August (Constitution Day); 19 December (Separation Day); 25 December (Christmas ); 26 December (Boxing day).
GMT-4. There is no summer time clock change.
Government of Anguilla
International Monetary Fund
Acorn (Anguilla Online Registry)
Eastern Caribbean Central Bank
Elections Around the World
CIA Fact Book
Response to the KPMG Review
Anguilla's response to KPMG's 'Review of Financial Regulation in the Caribbean Overseas Territories and Bermuda’was issued 8 February 2001.