A Module 2 assessment is described in SM/00/136, Offshore Financial Centers—The Role of the IMF.
Two more offshore banks are reported to have opened offices after the mission.
Exchange rates: US$1.00 = EC$2.68 (fixed since 1976)
None of these banks has a meaningful physical presence on the Island.
Two of these banks are not located/managed in the country of origin. Five of the 11 banks are parallel-owned institutions by holding companies while one is a standalone shell bank. The ability of the “home supervisors” to effectively carry on consolidated supervision of these banks under the MOUs is still to be tested.
The Code represents good practice but it is not mandatory. However, a court may take the Code into account in determining whether a person has complied with the Regulations.
The assessment of Montserrat’s compliance with the Basel Core Principles for Effective Banking Supervision (CP) did not cover domestic banking regulation and supervision, which are the main responsibility of the Eastern Caribbean Central Bank (ECCB). Domestic banking supervision was reviewed in September 2003 as part of the ECCB FSAP.
The assessment team consisted of Mr. Manuel Vasquez (Mission Chief, MAE);
Ms. Margaret Cotter and Mr. Stuart Yikona (both LEG); Ms. Candice Muggins (Technical Expert), and Mr. Pierre Lapaque (Independent Law Enforcement Expert, Organization of American States-CICAD). Ms. Cotter, Ms. Huggins and Mr. Lapaque were part of a larger OFC mission led by Mr. Vasquez to Montserrat, October 21-November 1, 2002.
Throughout this report, the assessments relating to law enforcement conducted by the IAE are shown in italics.
1999 UK Review of Financial Regulation in the Caribbean Overseas Territories and Bermuda.