Anguilla’s new Executive Council held their first discussion on financial services, a key economic sector in Anguilla, on 11 March. They noted the importance of the sector to Anguilla: it is responsible for approximately 6% of employment and typically generates around 12% of Anguilla’s GDP.

Before the elections the Government set out, in the AUM manifesto, their commitment to strengthen and promote this important sector. They also pledged to ensure that Anguilla is firmly established on the “white list” of countries engaged in international financial services. The government have also pledged to update the institutional, legal and regulatory framework governing the international financial services sector. The Governor, who has oversight of the regulation of international financial services under the Constitution, fully supports all these aims and will be working in partnership with the Government to take them forward.

In this context, EXCO noted that the Chief Minister would shortly be signing Tax Information Exchange Agreements with Germany and Australia to bring the total of TIEAs signed by Anguilla to a thirteen. The Chief Minister had also initiated discussions with the French authorities about a TIEA with France.

At the EXCO meeting the Hon Hubert Hughes, Chief Minister and Finance Minister, and HE Alistair Harrison, Governor of Anguilla, agreed to establish a Task Force to ensure that Anguilla meets the highest international standards for financial services, thereby enhancing Anguilla’s competitiveness as a financial services provider.

Governor Alistair Harrison

The Task Force, chaired by a senior representative of the Ministry of Finance, will develop a scorecard recording Anguilla’s compliance with international standards and a timeline for action. The Task Force will review the recommendations of the Foot report, published in late 2009, in relation to financial regulation, fighting financial crime and improved tax transparency. The report usefully sets out benchmarks against which Anguilla can assess compliance with international norms. The Task Force will consult fully with representatives of the industry as it pursues its work and will report in three months.

Chief Minister Hubert Hughes

The Foot report also emphasised that accurate revenue forecasting and close monitoring of public expenditure become even more critical in difficult economic times. The Government of Anguilla is working hard to make improvements in these areas and is exploring ways to diversify sources of revenue, control public expenditure and ensure value for money so that Anguilla has sufficient reserves in place to withstand external shocks.

The Task Force membership will be representatives of the Ministry of Finance, Governor’s Office, Anguilla Financial Services Commission and the Attorney General’s Chambers.

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