Credit Unions

Application and Registration Fees for a Credit Union

Total Assets Application Fee (Non-refundable) Annual Registration Fee
Less than $20 000 000 $3,500.00 $5,000.00
Between $20 000 000-$40 000 000 $3,500.00 $7,500.00
Greater than $40 000 000 $3,500.00 $10,000.00

FND Co-operative Credit Union
Nevis Co-operative Credit Union
Police Co-operative Credit Union
St. Kitts Co-operative Credit Union

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Money Services Business

Money Services Business means the business of providing as a primary service any of the following: transmission of money or monetary value in any form; cheque cashing; currency exchange; the issuance, sale and redemption of payment instruments; any other services the Minister may specify by notice published in the gazette; or the business of operating as an agent or franchise holder.

The several classes of licence issued under the Money Services Act, No. 26 of 2008, shall authorize the holders to carry on money services business as specified –

  • CLASS A licence permits the holder to carry on the transmission of money or monetary value in any form, the issuance, sale or redemption of money orders or traveller’s cheques, cheque cashing and currency exchange.
  • CLASS B licence permits the holder to carry on the issuance, sale or redemption of money orders or traveller’s cheques, cheque cashing and currency exchange.
  • CLASS C licence permits the holder to carry on cheque cashing.
  • CLASS D licence permits the holder to carry on currency exchange.
  • CLASS E licence permits the holder to carry on pay day advances.

Where different places of business are kept in the name of the same legal person, a separate licence is required for each such place of business.

In order to obtain a licence as a money services business, a person shall apply in writing to the Financial Services Regulatory Commission, pay the prescribed application fee, complete Form A and Form B as outlined in Schedule 2 of the Money Services Business Act of 2008 and submit the required documents. The Financial Services Regulatory Commission will process the application in accordance with its application processing procedures. Upon completion of this process, if it is satisfied that an application is in order and the applicant is a fit and proper person to be licensed to conduct money services business, the Financial Services Regulatory Commission will approve the application and issue a licence to the applicant subject to the applicant paying the prescribed licence fee and making the prescribed statutory deposit in accordance with the Money Services Business Act.

It is anticipated that every sponsor will arrange for a delegation of its senior officers, or, in the case of an independent institution, of its principal controllers, to make a presentation in respect of the applicant and its proposed business before a formal application is submitted.

Audited Financial Statements

  1. If the applicant is a business that was existent and operating prior to the date of application, copies of audited financial statements (balance sheet, profit and loss, auditor’s report and notes to accounts) for the five consecutive years immediately preceding its application, except however that where such applicant has been functioning for less than five years, a copy of its audited financial statements for each year it has been in operation shall be sufficient.
  2. Where item 1 is not applicable the opening balance sheet, (audited).
  3. Operating projections for the proposed licensee’s first five years of business. This should include balance sheet, income statement and cash flow projections prepared in an acceptable accounting format. Details of any financial or economic assumptions on which these projections are based should be clearly indicated.
  4. Where Applicant is a subsidiary or affiliate of another company, submit in addition to item 1 or 2, audited financial statements of the parent company and all other “connected” companies.

Licensed Money Services Businesses

  • MP Express
  • Western Union

Form A – Information to be contained in and to accompany an application for the grant of a licence.

Form B – Personal questionnaire (Fit and Proper Test)

NFSD MSB application forms A and B

Application and annual licensing fees are as follows:

Class Application Fee Annual Licence Fee
Class A $2,000 $10,000
Class B $2,000 $10,000
Class C $2,000 $10,000
Class D $2,000 $10,000
Class E $2,000 $10,000

Duration of Money Services Businesses

A licence to carry on money services business is valid from the date of first issue to the 31st December of that year and is renewable each year on payment of the prescribed annual fee on or before the 15th day of January.

If the Commission has reasonable cause to suspect that any person is carrying on money services business without a licence granted under the Money Services Business Act, No. 26 of 2008, the Financial Services Regulatory Commission may relay the matter before a Magistrate with regards to its suspicions.

Accounts

A licensee is required to appoint annually an Auditor who must be a Chartered Accountant, Certified Public Accountant, a member of the Institute of Chartered Accountants of the Eastern Caribbean or some other professionally qualified accountant, whose duty shall be to prepare reports on the annual financial statements and financial position of the licensee.

Accordingly, the licensee must, within three months of the end of their financial year, forward the audited financial statements to the Financial Services Regulatory Commission unless prior written approval for an extension was granted by the Commission.

A licensee shall institute procedures to ensure that its accounting records and systems of business control comply with the requirements of the Anti-Money Laundering Regulations, No. 25 of 2008.

Annual Returns

The holder of a Class A or Class B licence, must, within the format provided by the Financial Services Regulatory Commission, file quarterly returns with the Commission within fifteen days of the end of a quarter, along with a written declaration that the information set out in the application for the licence remains correct and gives a fair picture of the operations of the money services business.

The holder of Class C, Class D or Class E licence must, within fifteen days of the end of the financial year, file an annual return with the Commission along with a written declaration that the information set out in its application remains correct.

Revocation and Termination of a Licence

The Financial Services Regulatory Commission may revoke any licence to carry on money services business in Saint Christopher and Nevis if the licensee (a) fails to commence operations within a period of three (3) months following the granting of the licence; (b) fails to comply with the conditions or restrictions of its licence; (c) is in breach of any of the provisions of the Money Services Business Act; (d) ceases to carry on money services business in Saint Christopher and Nevis; (e) is conducting its affairs in a manner detrimental to the public interest or to the interest of its customers; (f) goes into liquidation or is winding up or otherwise dissolved; (g) by reason of any other circumstance, is no longer a fit and proper person to hold a licence. The Financial Services Regulatory Commission will also terminate a licence at the request of the licensee.

Where a licence to carry on money services business in Saint Christopher and Nevis has been revoked, the Financial Services Regulatory Commission will publish a notice of the revocation in the Gazette and a newspaper circulating in Saint Christopher and Nevis and take any other steps necessary to inform the public of such revocation.

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International Banking

The matter in respect of which the prescribed fee is payable USD
Initial License fee 50,000.00
Application fee   6,000.00
Administrative fee   1,500.00
Annual license fee 50,000.00

Offences in respect of which liability to conviction may be discharged by payment of fixed penalty

Section of Ordinance Section of Ordinance Fixed Penalty
    6 (2) Carrying on International Banking within Nevis without a license Not exceeding $500,000.00 and a further penalty of $50,000.00 for each day in default
  15 (11) Breach of condition of license $25,000.00 and a further penalty of $1,000.00 for each day in default
  16 (2) Failure to display copy of current license $25,000.00 and a further penalty of $1,000.00 for each month in default
  17 Unauthorised use of the word “bank” in name $25,000.00 and a further penalty of $1,000.00 for each day in default
  21 Appointment of a person debarred from management $25,000.00 and a further penalty of $1,000.00 for each day in default
25, 26, 27, 28 Failure of director to disclose and declare interest $10,000 for each contravention
  29 Disclosure of confidential information $20,000.00
  31 Failure to forward to the Regulator and shareholders, copies of Annual Audited Financial Statements by the prescribed date or forwarding returns after the prescribed date $25,000.00 and a further penalty of $1,000.00 for each month in default
  76 Failure to report to the Regulator any abandoned property in its possession or failure to deposit or convey to the Administration and abandoned property $25,000.00 and a further penalty of $1,000.00 for each day in default
77(1) and (2) Conducting international banking from within Nevis during any period in which a licensee/director/officer does not hold a license Not exceeding $250,00.00 (Licensee)

Up to $50,000.00 (director/officer)

  78 Engaging in advertising practices contrary to Ordinance $10,000.00 and a further penalty of $1,000.00 for each day in default
  79 Making false statements and obstruction $50,000.00
     10(4) Failure to submit returns as required by the Regulator                   $5,000.00

The Application and supporting forms for international banking licences are available below. You are strongly advised to contact the International Banking Division to discuss your proposals before completing and submitting an application form.

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Insurance

Definitions

The Nevis International Insurance Ordinance 2004 as amended allow for entities to be licensed insurance companies under the defined Act.

The following are the types of Insurance Entities:

  • Allied Reinsurance – means a company carrying on insurance business where the registered reinsurer is allied to a primary insurer who typically initiates insurance contracts as part of its normal course of business, and the allied reinsurer will only assumes risks and accepts premiums from this primary insurer;
  • Allied Annuity – means a company carrying on insurance business where the registered insurer’s business entails only the issuance of annuity contracts, and/or single premium life contracts, and where premiums are acceptable only from its parent(s), or other person(s) of substantial relationship, whether personal or business, and the number of annuitants does not exceed ten (10) persons;
  • Captive Insurance Business – means insurance business where the insured is a parent or affiliated company of the registered insurer or is a person in respect of whom the registered insurer is authorized by the Registrar to provide insurance;
  • General Business – means insurance business that is not long-term business, reinsurance business or captive business and without limiting the generality of this term includes marine insurance, engineering insurance, aviation insurance, transportation insurance, motor insurance, property liability insurance, pecuniary loss insurance, credit and guarantor insurance and miscellaneous personal insurance;
  • Insurance Adjuster – means a person, not being an employee of a registered insured, but employable by insurer or insured, who investigates, qualify and/or quantify a loss experienced in relation to a covered risk;
  • Insurance Broker– means a person, not being an employee of a registered insured, who arranges contracts of insurance between insurer and insured, or gives advice facilitating the sale of insurance contracts, or is authorized by one or more insurer to enter that insurer into contracts of insurance, collect premiums, and otherwise act as the insurer in dealing with the insured.
      1. provides management services for one or more insurers; or
      2. holds himself out as a manager in relation to one or more insurers, but does not include the keeping of insurance business accounts for a registered insurer

    No Person shall act as an insurance manager for, or in relation to, a registered insurer, unless that person is registered in a register to be kept by the Registrar in accordance with regulations and has paid to the Registrar the prescribed fee and every prescribed registration fee and every prescribed annual renewal fee.

  • Long Term Insurance Business– means insurance business of any of the following kinds, namely,–
    • affecting and carrying out contracts of insurance on human life or contracts to pay annuities on human life;
    • effecting and carrying out contracts of insurance against risks of the persons insured sustaining injury as the result of an accident, or of an accident of a specified class, or dying as the result of an accident or of an accident of a specified class, becoming incapacitated in consequence of disease, or disease of a specified class, being contracts that are expressed to be in effect for a period of not less than five years or without limit of time and either not expressed to be terminable by the insurer before the expiration of five years from the taking effect thereof or are expressed to be so terminable before the expiration of that period only in special circumstances therein mentioned;
    • effecting and carrying out contracts of insurance, whether effected by the issue of policies, bonds or endowment certificates or otherwise, whereby in return for one or more premiums paid to the insurer a sum or a series of sums is to become payable to the persons insured in the future, not being contracts such as to fall within either paragraph (a) or (b); and
    • any kind of insurance business declared by regulation to be long-term business;
  • Reinsurance – means insurance business where the risk insured by a person is a risk that person has accepted from an insurer;
  • Registered Agents – A Registered insurer shall appoint a Registered Agent in Nevis where its principal place of business is outside Nevis and Manager is not resident in Nevis.

Minimum Paid Up Share Capital

The minimum paid up share capital for the classes of insurance business are as follows:

US$185,000 Long-Term Business
US$185,000 General Insurance Business
US$75,000 Reinsurance Business
US$10,000 Single-Owner Captive
US$20,000 Less than 5 Owners Captive and
US$50,000 5 or more Owners Captive
US$10,000 Allied Reinsurance Business
US$10,000 Allied Annuity Insurance Business

Minimum Margin of Solvency

“Minimum margin of solvency” is the amount by which an insurer’s assets must exceed its liabilities.

In the case of an insurer other than an insurer carrying on long-term business, the minimum margin of solvency shall be at least the minimum amount of paid up capital as prescribed in section 7 (1)(b) of the Ordinance or, if greater:

  • where the net retained premium of the insurer does not exceed $5,000,000 the prescribed amount is 20% of net retained premium;
  • where the net retained premium of the insurer exceeds $5,000,000, the prescribed amount is US$1,000,000 plus 10% of the amount by which net retained premium exceeds US$5,000,000.

In the case of an insurer carrying on long-term business the minimum margin of solvency shall be at least the minimum amount of paid up capital as prescribed in sub-regulation (a)(ii) of the Ordinance.

In the case of an insurer carrying on long-term business and other business the minimum margin of solvency shall be the aggregate of the amounts required by sub-regulations (a) and (b) of the Ordinance, in respect of both categories of business.

For the purposes of calculating the margin of solvency of an insurer, the registrar shall take into account all assets of the insurer that he reasonably considers to be allowable and shall exclude all those that he reasonably considers to be not allowable.

License Application Registration Renewal
Allied Annuity Company 450 1,200 1,200
Allied Reinsurance 450 600 600
Captive Insurer 450 1,750 1,200
General Insurance 2,500 2,500 2,500
Reinsurance 450 1,750 1,200
Long Term Insurance 2,500 2,500 2,500
Insurance Adjuster 300 1,200 1,200
Insurance Broker 300 1,200 1,200
Insurance Manager 300 1,200 1,200
Registered Agent 300 1,200 1,200

Other Fees (USD)

Certificate of Endorsement  –  10.00

Certificate of Incorporation  –  10.00

Penalties for late filing of any of the above renewal fees (to be paid in addition to renewal fee):-

(a) After January 31       –     1/2 of applicable annual renewal fee

(b) After June 30           –     a sum equal to the applicable annual renewal fee

  • All annual fees are due by 31st January each year for licenses in effect on 1st January of that year.
  • In the case of an insurer carrying on more than one class of business the prescribed fee shall be the aggregate of the prescribed fees in respect of each class of business.
  • Where an insurer is in run-off the prescribed fees shall be fifty percent of the regular fees.
  • External Due Diligence fees are subject to a rate of US$5,000.00 per person applicable to each foreign control person and or key persons wishing to conduct business under the following business entities namely: Insurance Manager, Registered Agent, Insurance Broker, and Insurance Adjuster.  Furthermore, please be advised that individuals who are proposed to be a control person of a General or Long Term Insurance Company may be required to undergo an external due diligence search at the discretion of the Registrar.

It is essential that all prospective applicants familiarize themselves with the relevant local insurance laws, regulations, rules and codes, including the anti money laundering requirements, before applying for a license to become a registered insurer in Nevis’ jurisdiction. An international insurer applicant should contact one of the licensed insurance managers in Nevis to discuss any management requirements. Please be aware that the Financial Services Department is unable to make any recommendations in this respect.

It is recommended that prospective applicants contact the Department at the earliest possible opportunity to discuss their outline proposals.

Should a prospective applicant wish to proceed with a formal application for licensing, a completed application form, together with the relevant fees and all necessary documentation, should be submitted to the Department for processing.

The required documents are as follows:

In order to apply for a registered insurer, registered Insurance Manager or registered agent’s license there following must be submitted to the Nevis Financial Services Department:

Completed Application form –

  • Completed Personal Questionnaire Form (Form 2) (all directors and shareholders, managers and officers) At least 2 directors is required – Section 28 of the Ordinance
  • Completed Insurance Manager Undertaking Form (Form 6) (all beneficial owners of the entity to be registered)
  • Application fee
  • Due diligence documentation must be submitted with the application for each control person (directors/ shareholders/managers/officers) who have completed a Form 2, this includes:
    • Notarized passport declaration pages or government issued photo ID
    • Utility bill confirming address (dated within 6 months of application date)
    • 2 references: 1 professional reference (from accountant, lawyer, or administrator etc), 1 bank reference (on company stationery) attesting to good standing of individual
    • Police record (preferred) and/ or notarized criminal history declaration form or affidavit
    • Curriculum vitae for each control person (directors, manager, officers). For each director it is preferred that skill and expertise along with professional qualifications be highlighted.
    • Annual accounts for 2 years preceding year of application, of each shareholder which is a body corporate holding more than 10% of the applicant’s issued share capital or total voting rights, together with similar accounts for the parent body, if any, of each such body corporate.
  • Business plan must be submitted with application
  • Financial projections (3-5 yrs minimum) including Pro Forma Income Statement, Balance Sheet and Cash Flow Statement
  • Documents by which the body corporate is to be constituted such as Articles of Incorporation, Memorandum of Association, Articles of Association, By-laws etc. If not yet incorporated attach the proposed documentation.
  • Insurance Manager/ Registered Agent Agreement (ALLIED REINSURANCE AND ALLIED ANNITY).
  • A list of all insurers whom the applicant is, or will be engaged to act as manager or consultant (INSURANCE MANAGER/ REGISTERED AGENT)
  • External Due Diligence Fee of US 1200 per non national control person (INSURANCE MANAGER/ REGISTERED AGENT)
  • An undertaking from company management that risks and premiums will only be assumed from named and approved primary company; (ALLIED REINSURANCE)
  • Specimen Contracts indicating (i) the annual maximum frequency and amount of contribution; and (ii) maturity (ALLIED REINSURANCE)
  • Registration fee is required to be paid before the applicant receives the license.

 

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Foundations

The Matter in Respect of which Prescribed Fee Shall be Payable USD XCD
Filing Annual Return 250.00 675.00
Issuing any Certificate (including Certificate of Filing) 30.00 80.00
For undertaking an Apostille 25.00 68.00
Issuing a Certificate of Correction 100.00 270.00
Issuing a Certificate of Discontinuance 345.00 932.00
Issuing a Certificate of Establishment 287.00 775.00
Issuing a Certificate of Establishment by Consolidation 345.00 932.00
Issuing a Certificate of Establishment by Continuance 345.00 932.00
Issuing a Certificate of Establishment by Conversion 345.00 932.00
Issuing a Certificate of Establishment by Merger 345.00 932.00
Issuing a Certificate of Establishment by Transformation 345.00 932.00
Issuing a Certificate of Establishment for Change in Proper Law 176.00 475.00
Issuing a Certificate of Good Standing 35.00 95.00
Issuing a Certificate of Filing of Amended By-laws 176.00 475.00
Issuing a Certificate of Establishment of Change in Multiform 287.00 775.00
Issuing a Certificate of Registration on Change of Name 176.00 475.00
Issuing a Certificate of Revival 287.00 775.00
Issuing a Certificate of Tax Residency 1157.00 3125.00
Issuing a certified true copy of filed documents:
  -First three pages 10.00 27.00
  -Each additional page 0.75 2.00
For conducting searches 20.00 55.00
For late penalties for filing documents:
  – for first six (6) months 115.00 311.00
  – after six (6) months 250.00 675.00
For undertaking a name reservation 30.00 80.00
For Undertaking a Renewal of Name Reservation    30.00    80.00
For filing a notice of change of or by the registered agent or situation of the registered office 30.00 80.00
For filing a notice of change of the particulars of the secretary, management board or supervisory board 30.00 80.00
For filing a notice of dissolution 150.00 405.00
For filing a withdrawal of a notice requesting by-laws are made available for public inspection on the Register 30.00 80.00
For filing a withdrawal of notice requesting that particulars of members of management board are available for public inspection on the Register 30.00 80.00
For filing a withdrawal of a notice requesting particulars of members of the supervisory board are available for public inspection on the Register 30.00 80.00
For filing a notice requesting by-laws are made available for public inspection on the register 30.00 80.00
For filing a notice requesting particulars of members of management board are made available for public inspection on the Register 30.00 80.00
For filing a notice requesting particulars of members of supervisory board are made available for public inspection on the Register 30.00 80.00
For undertaking a renewal of name reservation 30.00 80.00
For receiving voluntary filings 40.00 108.00
Administrative Fee (rush requests,re-application of Fees requests etc.)    30.00    80.00
For late filing of Annual Returns (foreach day the offence continues)    50.00  135.00
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