Antigua has emerged as a strong jurisdiction for international banking, offering a clearly defined and regulated framework for institutions seeking to conduct cross-border financial activities. An international bank in Antigua and Barbuda is a corporation established under the IBC Act and granted a licence to carry on international banking business in accordance with statutory requirements, capital thresholds, and ongoing supervisory standards.

Licensing Categories and Capital Requirements

Any person wishing to carry on international banking business must apply in writing to the Commission for a licence. The regulatory regime provides for three categories of international banking licences, each with specific operational scope and capital requirements.

A Class I International Banking Licence authorizes an institution to conduct full international banking business. A licensed institution holding a Class I licence must maintain a minimum paid-up capital as determined by the Commission, but not less than USD 3,000,000. From this amount, USD 500,000 must be deposited with the Commission or in a manner approved by the Commission on the recommendation of the appropriate official.

A Class II International Banking Licence permits the licensed institution to carry on international banking business for a restricted list of customers. This list is approved by the Commission from time to time or specified as part of the terms upon which the licence is granted. A licensed institution holding a Class II licence must maintain paid-up capital of not less than USD 500,000, of which USD 100,000 must be deposited with the Commission or in a manner approved by the Commission on the recommendation of the appropriate official.

A Class III Composite International Banking and Trust Licence allows the licensed institution to provide international banking and trust services for an unrestricted list of customers. Institutions holding this licence must maintain paid-up capital of not less than USD 3,000,000, with USD 500,000 deposited with the Commission or otherwise approved in accordance with regulatory requirements.

Physical Presence and Operational Substance

All corporations licensed under the IBC Act are required to maintain a physical presence in Antigua and Barbuda. This requirement ensures that licensed institutions operate with sufficient substance and are subject to effective regulatory oversight.

Each licensed corporation must maintain its own separate office, large enough to comfortably accommodate at least 2 persons, along with appropriate computer equipment and facilities to accommodate clients. While opening hours may be flexible, the office must be open Monday to Friday for a minimum of 6 hours per day, and opening hours must be clearly posted outside the premises.

Licensed institutions must employ at least 1 full-time employee. That individual, or at least one other employee, must have relevant experience and be capable of understanding the operations of the corporation, including the ability to recognize and apply due diligence processes so as not to be unwittingly involved in money laundering activities.

Physical records must be remitted to Antigua and Barbuda at least on a monthly basis and stored in a manner that allows for easy reproduction. This facilitates regulatory inspection of transactions in the event of an inquiry. In addition, facilities to access current information must be established.

Regulatory Oversight and On-Site Examinations

International banks are subject to annual on-site examinations to assess compliance with applicable laws, regulations, and international standards. These examinations include a review of adherence to Know Your Customer (KYC) requirements and the maintenance of detailed records of customers and transactions.

Examiners may also review procedures for reporting and filing suspicious transactions with the appropriate supervisory authority, including compliance with the Money Laundering (Prevention) Act 1996, the Prevention of Terrorism Act 2005, and the Money Laundering (Prevention) Regulations, 2007. This supervisory framework reinforces Antigua and Barbuda’s commitment to regulatory transparency and international compliance standards.