The Nevis International Banking Ordinance, No 1 of 2014 was designed to enable international banking to be carried on by international banks from within Nevis and to encourage the development of Nevis as a responsible international financial centre.The banking legislation is comprehensive with a strong built-in regulatory framework to ensure that a bank licensed under the legislation can be properly monitored to safeguard depositor's funds and ensure that the bank maintains acceptable accounting standards and satisfies capital requirements.
To deter the establishment of brass plate banks and to protect the reputation of the jurisdiction, the Ordinance provides that no license can be issued to an individual. Licenses are granted only to eligible companies or qualified foreign banks. A licensee is required to have a physical place in Nevis approved by the Regulator of International Banking which will also be its registered office.
An eligible company includes a body corporate which has been incorporated under the Companies Ordinance which is a wholly owned subsidiary of a bank which is indigenous to St. Kitts and Nevis and regulated by the Eastern Caribbean Central Bank; or a subsidiary of a qualified foreign bank which has been incorporated under the Companies Ordinance; or a body corporate which has been incorporated under the Companies Ordinance of which the chief executive officer at the time of its application for a license, has at least ten years’ experience in banking or finance.
A qualified foreign bank is defined as a bank with adequate capitalization and assets that is licensed to conduct domestic banking in its jurisdiction of incorporation, or a financial institution that is directly or indirectly a wholly owned subsidiary of a foreign bank.
Once an application is made and all requirements are satisfied, a license will be issued to the successful applicant upon the payment of a prescribed licensing fee.
The Ordinance permits the identification of shareholders and the investigation of directors and persons with large shareholdings in an international bank in Nevis. Only fit and proper persons will be permitted to be directors of international banking institutions in Nevis.
No income tax, capital gains tax or other direct tax will be levied in Nevis upon the profits or gains of a Licensee in respect of the international banking it does from within Nevis.
Banking: Related Downloads
Financial Services Regulatory Commission, Nevis Branch
P.O. Box 689, Main Street
Tel: (869) 469 - 1469
Fax: (869) 469 - 7739