INTERNATIONAL FINANCIAL SERVICES (IFS)

The Industry

The IFS industry is regulated by a governmental statutory body: the International Financial Services Authority (‘the Authority’). The Authority seeks to regulate and supervise the international financial sector in accordance with best international practices so as to promote the safety, soundness and integrity of the sector, thereby enhancing the reputation of St. Vincent and the Grenadines as a secure and competitive international financial centre.

St. Vincent and the Grenadines has developed a small but well regulated international financial industry where risks of exposure to money laundering and terrorist financing, have been mitigated by strong legislative and administrative measures. The laws, regulations and administrative framework which now govern this industry may be viewed by visiting the website: www.svgifsa.com.

Other key institutions that are pillars in ensuring the sound regulation of the industry are the Financial Intelligence Unit (FIU) and the National Anti-Money Laundering Committee. The FIU is a member of the Egmont Group and has been commended by key States and organizations for its role in anti-money laundering investigations and compliance.


The Services

The Authority offers efficient and professional service. Incorporations of IBCs and trust registrations can be done within one business day. All international business transactions are conducted through the services of a ‘Registered Agent’. These service providers are licensed and regulated by the Authority under a regime set out by the Registered Agent and Trustee Licensing Act 1996.

The Products

The sector is comprised of the following products:

	International Business Companies (IBCs)
	International Trusts
	International Banks
	International Insurance Companies
	Mutual Funds

The Advantages

St. Vincent and the Grenadines provides for excellent investment opportunities in relation to IFS, since the country has the following advantages:
 

	A sovereign government that is committed to the growth of St. Vincent and the Grenadines as a reputable and exclusive international finance center.
	A highly respected regulatory authority overseeing a regime that meets international standards.
	A tradition of support for foreign private investment (the Mustique Company being a fine example).
	A low cost operating center – low and highly competitive fee structure, low costs of doing business.
	Zero- option/election for 1% taxation, including 25-year tax exemption for IBCs.
	Government policy that facilitates the employment of qualified foreign nationals to augment local skills.
	Efficient private sector service providers with quick turn around time.
	Industry legislation that is practical and business friendly.
	Old tradition of banking and finance in the domestic economy.
	Excellent telecommunications.

The Challenges and Opportunities

In recent years, there has been a significant shift in policy and practice of most offshore financial jurisdictions, including St. Vincent and the Grenadines. This shift has been as a result of certain international initiatives and the domestic circumstances of some countries. In St. Vincent and the Grenadines, the end result undoubtedly has been more transparency and vigorous regulatory oversight of the IFS sector. Despite various external challenges such as the global financial recession and other economic pressures, the sector survives and thrives, and continues to provide potential investors with a variety of opportunities to conduct legitimate businesses at low costs in an attractive environment.

With a strengthened regulatory and supervisory infrastructure, user friendly legislation to balance a flexible investment regime and crime prevention, industry adherence to international best practices, St. Vincent and the Grenadines has been heralded as an IFS jurisdiction of distinction.
Key to investment promotions of this sector is the role of the agency mandated to market the IFS products, Invest SVG.

Statement from the Hon. Prime Minister and Minister of Finance:

‘St Vincent and the Grenadines offers to wealth managers, financial intermediaries and service providers a well grounded political stability and good governance, an excellent judicial system, a splendid professional infrastructure which is internationalist in outlook, with advanced telecommunications, industry adherence to international best practice, zero (or 1% option) taxation of international entities, the lowest government fees of any comparable jurisdiction, a multiplicity of strong support systems, and a magnificent landscape and seascape in the Caribbean.''