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18
ECCB ANNUAL REPORT 2016/2017
Modernisation of the Financial System
The work towards the harmonisation of legislation
and enhanced regulation included, improving the
foreclosure process through revised legislation and
the establishment of the Eastern Caribbean Institute of
Appraisers. Developments regarding digital and crypto
currency and the Bank’s role pertaining to these were
discussed during the year.
Regulation and supervision of the banking sector
remained a priority for the ECCB with a concentration
on the operationalisation of the Banking Act (2015).
The issue of de-risking prompted the Monetary Council
to approve the ECCB’s assumption of full responsibility
for AntiMoney Laundering/Combating the Financing of
Terrorism (AML/CFT) regulation of all ECCU institutions
licensed under the Banking Act.
With respect to the Foreign Accounts Tax Compliance
Act (FATCA), all member territories, except the
Commonwealth of Dominica, have signed Inter-
Governmental Agreements with the US.
BANKING SERVICES
In fulfilling its mandate to maintain financial stability,
the Bank continued to increase its focus on its role
as Banker to member governments and commercial
banks in accordance with Parts VIII and IX of the ECCB
Agreement Act (1983). Towards that end, the Bank:
•
•
Provided the necessary liquidity support to the
financial system;
•
•
Focused on further development of the Eastern
Caribbean Automated Clearing House (ECACH);
•
•
Explored ways to enhance its role as Fiscal
Agent to member governments, particularly as
it related to the Regional Government Securities
Market (RGSM);
•
•
Collaborated with member governments to
develop a cohesive action plan for public sector
financial management;
•
•
Facilitated the operationalisation of the
member governments’ administration of the
Abandoned Property – safe deposit boxes.
PAYMENT SYSTEM
The Payment System will continue to feature
prominently in the Bank’s strategic priorities given its
role in contributing to the maintenance of financial
stability in the ECCU. The Banking and Monetary
Operations Department (BMOD) is finalising the
Business Requirement Document for the Electronic
Funds Transfer (EFT) phase of the Eastern Caribbean
Automated Clearing House (ECACH) project which
will be forwarded to the developer. The EFT phase is
expected to create the platform that facilitates:
•
•
Consumer to Consumer payments, example:
rent and remittances;
•
•
Consumer to Company payments, example:
taxes and utilities;
•
•
Company to Consumer payments, example:
payroll and social security; and
•
•
Company to Company payments, example:
loans and investments.
Implementation of the EFT is expected to be completed
and operationalised by the first quarter of 2018.
During the year, the Bank sought assistance from
The World Bank to undertake an assessment of
the Payment and Settlement System of the Eastern
Caribbean Currency Union. The Bank will address the
issues and areas which the consultation identified as
critical to the maintenance of financial stability. Some
of the areas identified and intended to be pursued
over the upcoming year are: