Anquilla is a British overseas territory situated in the Caribbean Sea.
Anguilla's economy depends largely on luxury tourism, offshore banking, lobster fishing. Anguillan athorities put substantial efforts to develop the offshore financial sector, which is small but growing.
The banking sector of Anguilla comprises 7 banks: 4 domestic and 3 offshore banks. National Bank of Anguilla Limited (“NBA”) and Caribbean Commercial Bank (Anguilla) Limited (“CCB”) and are the two largest banks in terms of total assets.On 12 August 2013, the Eastern Carribean Central Bank assumed control of both NBA and CCB.
|Population (2011)||13 452|
|EU Status||not part of the EU (OCT)|
|Dependent Territory Of||United Kingdom (British Overseas Territory)|
|National Currency||XCD (East Caribbean dollar)|
|Credit Ratings (as of Sep 2016)|
|Withholding Tax||0.0 - 0.0%|
|Exchange on Request||17 signed agreements|
|Automatic Exchange||starts in September 2017|
|FATCA||IGA agreed on 30 June 2014, Model 1|
|Deposit Guarantee Scheme|
|Maximum Protected Amount||0 XCD|
|Banking Supervision||Financial Services Commission|
|Banking Sector Structure|
|Number of Banks||7|
|National Bank of Anguilla Limited||Caribbean Commercial Bank (Anguilla) Limited|
|List of Banks in Anguilla|
Anguilla is one of the OCTs (Overseas Countries and Territories) of the European Union. This means that although its nationals are in principle EU citizens, Anguilla is not part of the EU or directly subject to EU law.
Anguilla's currency is the East Caribbean dollar (XCD); the US dollar is also widely accepted. The East Caribbean dollar has been pegged to the United States dollar since July 7, 1976 and the exchange rate is 1 USD = 2.70 XCD.
Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.
Withholding tax rates applied on payments of interest and dividends in Anguilla are shown in Table 1.
|Natural person, resident||0.0||0.0|
|Natural person, non-resident||0.0||0.0|
There are 3 ways for jusrisdictions to exchange information on tax matters:
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Anguilla signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Anguilla and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Anguilla signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
Anguilla agreed in substance to use FATCA on 30 June 2014 (Intergovernmental Agreement Model 1): the text of the IGA has not been released and financial institutions operating in Anguilla are allowed to register on the FATCA website consistent with the treatment of having an IGA in effect provided that Anguilla continues to demonstrate firm resolve to sign the IGA as soon as possible.
FATCA and European countries
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
There is no deposit guarantee scheme in Anguilla
Currently there are 7 credit institutions operating in Anguilla.
All the credit institutions operating in Anguilla can be classified into several categories. Table 2 summarises the number of banks in each category.
|Category||Number of Banks|