Background

Since its independence in 1981, Antigua and Barbuda has continued to practice a tradition of English Common Law. Its legal procedures are structured in accordance with strong democratic principles of good governance, patterned after the British parliamentary system.

The original legislation governing the Antigua offshore jurisdiction is the International Business Corporations (IBC) Act of 1982. Within fifteen years the number of offshore banks registered in Antigua exceeded seventy institutions. In 1998 the government of Antigua and Barbuda undertook a major exercise to over-haul legislation for banking and money laundering prevention. The task was challenging and the closure of more than fifty offshore banks indicates the depth of the major re-organization that took place.

Offshore banks are still licensed under the original IBC Act, but amendments to this Act as well as to the Money Laundering (Prevention) Act (MLPA) in 1999, 2000 and 2001 have created a regulatory and compliance environment equal to, or stronger, than most international financial centres. The Government of Antigua and Barbuda received the support and cooperation of most of the private sector, which is generally committed to meeting or surpassing the international standards set for the Sector.