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Draft:Antigua and Barbuda Financial Services Regulatory Commission

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Financial Services Regulatory Commission (FSRC)
Agency overview
Formed2013
JurisdictionGovernment of Antigua and Barbuda
HeadquartersRoyal Palm Place, Friars Hill Road, St. John’s, Antigua and Barbuda
Agency executive
  • Chief Executive Officer
Parent departmentMinistry of Finance
Websitewww.fsrc.gov.ag

The Financial Services Regulatory Commission (FSRC) is the statutory authority tasked with the licensing, regulation, and supervision of the financial services sector in Antigua and Barbuda. It oversees a range of activities including international banking, insurance, trust and corporate service providers, gaming, pensions, and digital asset businesses.[1][2]

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The FSRC was established by the Financial Services Regulatory Commission Act, No. 5 of 2013. Under Section 3, the Commission is defined as a body corporate with perpetual succession and legal capacity.

  • Section 4 outlines the composition and qualifications of the Board of Commissioners.
  • Section 5 delineates the Commission's principal functions, including licensing, monitoring, conducting inspections, and enforcing financial services legislation.

The Act was amended by the Financial Services Regulatory Commission (Amendment) Act, No. 40 of 2017, which introduced enhancements to regulatory cooperation. Notably, Section 13B was inserted to authorize information sharing with overseas regulators.[3][4]

Sectoral Regulatory Responsibilities

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The FSRC administers and enforces the following legislative instruments:

  • International Banking Act, No. 10 of 2016:
    • Section 4 empowers the FSRC to issue, suspend, or revoke licences for international banks.
    • Section 11 mandates annual audited financial statements be submitted to the Commission.[5]
  • Insurance Act, 2007 (Cap. 217):
    • Section 5 provides for FSRC licensing of insurers, agents, and brokers.
    • Section 47 empowers the FSRC to conduct inspections and request information.
  • Money Services Business Act, No. 28 of 2011:
    • Section 3 prohibits conducting a money services business without a licence from the FSRC.
    • Section 9 establishes capital adequacy and AML obligations under FSRC supervision.
  • Digital Assets Business Act, No. 16 of 2020:
    • Section 6 designates the FSRC as the competent authority for licensing and regulating digital asset businesses.
    • The Digital Assets Business Regulations, 2021, Section 12 requires quarterly filings, AML/CFT policies, and internal controls.[6]
  • Corporate Management and Trust Service Providers Act, 2008 (Cap. 369B):
    • Section 3 requires all corporate and trust service providers to be licensed and regulated by the FSRC.
  • International Trust Act, 2007 (Cap. 422):
    • Section 5 mandates registration of international trusts with the FSRC.
    • Section 10 allows the FSRC to inspect and revoke registration in case of statutory violations.

AML/CFT Oversight

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The FSRC shares responsibility for Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) oversight with the Antigua and Barbuda Office of National Drug and Money Laundering Control Policy (ONDCP). A Memorandum of Understanding signed in 2010 enables joint inspections and intelligence sharing. The Caribbean Financial Action Task Force (CFATF)’s 2017 Mutual Evaluation Report noted that the FSRC implements risk-based supervision, sector-specific risk assessments, and compliance enforcement.[7][8]

Digital Assets Regulation

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Following enactment of the Digital Assets Business Act, No. 16 of 2020, the FSRC assumed oversight over cryptocurrency exchanges, wallet providers, and ICO issuers. The framework aligns with FATF Recommendations 15 and 16, and includes due diligence, reporting, and record-keeping requirements.[9]

International Assessment

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The IMF Article IV Consultation Report (2023) recommended that the FSRC strengthen risk-based supervision and increase coverage of credit unions and cooperative institutions. The report also cited the FSRC’s critical role in maintaining financial stability and international compliance.[10][11]

Controversies

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Allen Stanford Ponzi Scheme & Leroy King

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In 2009, U.S. authorities exposed a massive US$7 billion Ponzi scheme operated through Stanford International Bank, headquartered in Antigua. The Financial Services Regulatory Commission (FSRC), led by CEO Leroy King, was accused of actively helping Stanford obstruct regulatory oversight. Court documents later revealed that King had forwarded confidential SEC inquiries directly to Stanford and allowed Stanford’s lawyers to draft responses on official FSRC letterhead. King was indicted in the United States and extradited after a lengthy legal battle. In 2020, he pleaded guilty to obstruction and conspiracy charges and was sentenced to 10 years in prison. The scandal severely damaged Antigua’s international regulatory reputation and raised longstanding concerns about the FSRC’s independence and integrity. [12]

Global Bank of Commerce (GBC) & Paul Ashe

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In 2024–2025, Global Bank of Commerce became embroiled in a legal and regulatory controversy after depositor Jack Stroll claimed the bank withheld over US$10 million despite court judgments in his favor. A 2025 court order mandated that GBC’s CEO Brian Stuart-Young repay at least US$341,130 or face jail time. The FSRC was accused of regulatory inertia as the bank delayed compliance and made partial payments in Eastern Caribbean dollars instead of U.S. dollars. Paul Ashe, Chief Regulatory Officer at the FSRC, was heavily criticized for his prolonged silence. Antigua.news published an editorial titled "The Muted FSRC" questioning Ashe’s leadership and suggesting the Commission had again failed depositors under stress. [13][14] [15]

BOI Bank Scandal & FSRC License Renewal

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In 2022, a Venezuelan national sued BOI Bank, alleging that despite a High Court ruling granting access to US$2.5 million, the bank refused to release the funds. The case also named the FSRC and its officer Paul Ashe, who had allegedly failed to intervene or provide proper oversight. Antigua Observer reported that complaints about BOI Bank had been lodged as far back as 2019. Despite this, the FSRC continued to renew its license without apparent regulatory consequences. Ashe issued a statement only after the Commission was formally named in the lawsuit, sparking allegations of delayed and inadequate action. [16][17]

References

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  1. ^ Financial Services Regulatory Commission Act, No. 5 of 2013, Section 5(1)(a)–(h).
  2. ^ International Monetary Fund. (2024). Antigua and Barbuda: 2023 Article IV Consultation. IMF Country Report No. 24/22.
  3. ^ Financial Services Regulatory Commission (Amendment) Act, No. 40 of 2017, Section 13B.
  4. ^ Caribbean Financial Action Task Force (CFATF), Mutual Evaluation Report: Antigua and Barbuda, June 2017.
  5. ^ Eastern Caribbean Central Bank, Financial Sector Supervision Reports, 2022.
  6. ^ Charltons Quantum. (2023). Antigua and Barbuda Digital Asset Regulation Guide.
  7. ^ CFATF Mutual Evaluation Report: Antigua and Barbuda, 2017.
  8. ^ OECD Global Forum on Transparency and Exchange of Information for Tax Purposes. (2022). Peer Review Report: Antigua and Barbuda.
  9. ^ Charltons Quantum, Antigua and Barbuda Digital Asset Regulation Guide, 2023.
  10. ^ IMF Country Report No. 24/22, January 2024.
  11. ^ International Monetary Fund. (2024). Antigua and Barbuda: 2023 Article IV Consultation. Washington, D.C.
  12. ^ "Leroy King sentenced to 10 years for role in Stanford Ponzi scheme". Antigua Observer. Observer Media Group. 9 December 2020. Retrieved 4 July 2025.
  13. ^ "Muted FSRC: Stuart Young & the Jack Stroll Saga – Editorial". Antigua News. Antigua.News. 16 May 2025. Retrieved 4 July 2025.
  14. ^ "Court Order: Global Bank CEO Must Pay Jack Stroll by May 19 or Face 21 Days in Jail". Antigua News. Antigua.News. 17 April 2025. Retrieved 4 July 2025.
  15. ^ "FSRC Under Fire: Economic Analyst Questions Its Integrity". Antigua News. Antigua.News. 2 February 2024. Retrieved 4 July 2025.
  16. ^ "Financial Services Regulatory Commission Implicated in Lawsuit". Antigua Observer. Observer Media Group. 6 December 2022. Retrieved 4 July 2025.
  17. ^ "FSRC Issues Statement Following BOI Bank Scandal". Antigua News. Antigua.News. 2 December 2022. Retrieved 4 July 2025.

See Also

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