1. Anguilla Financial Services Commission Charting The Course Ahead in 2010 By Eleanor M Astaphan, Deputy Director

2. Overview Review of past year (financial, operational, legal) Regional Developments External Developments Preview of 2010

3. Year in Review  Financial Performance Note change in financial year end for 2008 Perfmance Indicators August 2009 Unaudited December 2008 (16 mo) August 2007 License Fees921,048946,388757,246 Total Assets1,593,8491,295,821959,131 Surplus513,132296,550319,036 Acc. Surplus1,551,3571,038,224897,414

4. Year in Review  Operating Performance A) Supervisory & Regulatory function Licensing : process granting authorization to enter the market New Fit &Proper Guideline on website : criteria: character and integrity, competence and experience, financial soundness New regulatory approval fees- services previously gratis

5. Year in Review Growth in Licensees

6. Year in Review CaptivesCoMMF + IntTrust CoOff. BnksDom Ins 200671345517320 2007124437718322 2008180458519325 2009200546816323

7. Year in Review  Operating Performance B) Surveillance/Offsite Monitoring Continuous process Purpose – compliance, EWS, understand and explain significant matters Type of activity: financial statements, prudential meetings, data collection In 2009 introduction of reporting forms ( new and revised)

8. Year in Review Tested standard reporting forms to assist in data collection for domestic Insurance, MFunds, MSBs, TCSPs, Cus In 2009 conducted several prudential meetings with various licensees Success of the Commission in off-site surveillance is heavily dependent on timely and accurate reporting of the industry

9. Year in Review  Operating Performance B(ii) Surveillance/On-site examination Selective process- leading from off-site or part of cycle of periodic examinations Purpose – high degree of familiarization with operations and performance to ensure satisfactory performance Examiners are sworn to confidentiality Caution note: Role of Commission limited to evaluation of adherence to reasonable prudential limits of risk in relation to products and services offered

10. Year in Review In 2008/09 32 on-sites were conducted

11. Year in Review  Operating performance C) Legislation( passed in 2009) Proceeds of Crime Act and the AML/CFT Regulations and Code Money Services Business Act Payment System Act Amendments to the Financial Services Act

12. Year in Review Commission issued Guidelines: Issues Guide on AML/CFT Procedures Manuals

13. Year in Review  Operating Performance D) External Relationships Interface with other regulatory bodies/authorities worldwide Commission maintains policy of disclosure and transparency- annual reports, engagement and consultation of private sector, annual meetings Use of website for information dissemination

14. Regional Developments Signed MOU with regional regulators AFSC participation in ROC co-ordinated by ECCB (Fallout CL Financial/BAICO/CLICO) Continued interface with regional bodies- CARTAC, ECCB, CAIR Continued participation in regional training and regulatory fora- In 2009 Anguilla hosted regional meeting of Heads of SRUs

15. External Developments Fallout of financial crisis in the US – slowed recovery and resulting pressures on tourism industry, financial services G20 declarations on offshore financial centres in relation to their efforts to stem leakages of tax revenues to tax havens Two external assessments of Anguilla – Foot Review and the CFATF ME Report

16. Preview 2010/CFATF ME Peek at Preliminary ratings assigned:- 40 FATF Recommendations:10 Compliant, 14 Largely Compliant, 14 Partially Compliant and 2 Non Compliant 9 Special Recommendation: 5 Largely Compliant, 3Partially Compliant and 1 Non Compliant One primary reasons for not achieving full compliance in some areas was newness of legislation Some ratings likely to change based on negotiations/finding of Plenary May 2010

17. Preview 2010/Work Programme Work programme will involve response to CFATF Plenary Guided by recurring themes in both external assessments:- Regulatory resources Restructuring to accommodate expanded scope of the Commission (possible implementation of Compliance/Enforcement Unit) Greater regulatory co-operation with UK, other OTCs

18. Preview 2010/Work Programme Increased regulatory coverage to include other financial service providers- DNFBPs; MSBs

19. Preview 2010/Work Programme  New legislation and Guidelines International Insurance Bill Domestic Insurance Bill (ECCU) Co-operative Societies Bill (ECCU) Amendments to MF Act Guidelines for Company Managers Guidance Note on Maintaining Statutory Reserves &Deposits for licensed insurers

20. Questions/Feedback Thank You!