Service

An applicant for licence under the Nevis Trust and Corporate Service Providers Ordinance, must complete the following forms:

• Form 1 – Application for a TCSP licence
• Form 2 – Application for a Class IV licence
• Form 3 – Personal Questionnaire
• Form 4 – Banker’s Questionnaire

The forms must be accompanied by supporting documents; and the prescribed fee.

The Licensing Committee will process the application in accordance with its application processing procedures. Upon completion of this process, if it is satisfied that an application is in order and the applicant is a fit and proper person to be licensed to conduct trust and corporate services business, the Licensing Committee will approve the application and issue the relevant licences to the applicant subject to the applicant paying the prescribed licence fees.

Due diligence investigations and fit and proper assessments are also conducted on the principals, shareholders, beneficial owners, directors, etc of the applicant.   The relevant forms and fees are contained in the Nevis Trust and Corporate Service Providers (Forms and Fees) Regulations.

Under the Alien Land Holding Act Cap. 102, foreign beneficial owners and directors of a local company must have an Alien Land Holding licence to hold shares in the company and act as directors. These applications are made through the Ministry of Agriculture. Work permits are also required for the staff that are non-nationals of the Federation of St. Kitts and Nevis.

A licence issued by the Licensing Committee shall be subject to the conditions that the licensee:

• carries on business only in accordance with the class of licence issued;
• informs the Licensing Committee by notice in writing within 30 days of any change, or proposed change, in the information contained in, or supplied with the last application for a licence;
• informs the Licensing Committee of any change of address of the licensee;
• requests and receives prior written approval from the Licensing Committee, within 30 days of the date of the request, to operate a subsidiary, branch, agency or representative office outside of the Island of Nevis;
• does not appoint members to its board of directors or appoint any senior management staff without the prior written approval of the Licensing Committee.
• shall, if a company, at no time have fewer than two directors who must be individuals

All TCSPs are required to submit annual audited financial statements within 3 months of the end of their financial year in accordance with sections 35-37 of the Financial Services Regulatory Commission Act (FSRC Act).

They are also subject to AML/CFT compliance audits as mandated under the FSRC Act, the Anti-money Laundering Regulations, 2011, the Anti-Terrorism (Prevention of Terrorist Financing) Regulations, 2011 and the Financial Services (Implementation of Industry Standards) Regulations, 2011. The Compliance audits are undertaken pursuant to our Risk-Based Supervisory Framework to evaluate the adequacy and completeness of the measures that are in place for AML/CFT with special attention on the internal controls procedures for client acceptance, monitoring risks, suspicious activity reporting to authorities and record keeping.

• Form 1 – Application for a TCSP licence
• Form 2 – Application for a Class IV licence
• Form 3 – Personal Questionnaire
• Form 4 – Banker’s Questionnaire
• Form 5 – Application for Renewal for TCSP licence
• Form 7 – Notice of Change of Registered Office
• Form 8 – Notice of Change of Particulars
• Application for the Approval of the Appointment of a Compliance or Reporting Officer
• Renewal Application for a Compliance or Reporting Officer

LICENSING FEES

LICENCE RENEWAL FEES

FEES FOR ANCILLARY SERVICES

• Nevis TCSP (Forms and Fees) Regulations 2021
• Nevis Trust and Corporate Service Providers Ordinance (Commencement) Order 2021
• Nevis Trust and Corporate Service Providers Ordinance 2021
• Erratum – Nevis Trust and Corporate Service Providers (Forms and Fees) Regulations 2021

Application and Registration Fees for a Credit Union

FND Co-operative Credit Union
Nevis Co-operative Credit Union
Police Co-operative Credit Union
St. Kitts Co-operative Credit Union

In order to obtain a licence as a money services business, a person shall apply in writing to the Financial Services Regulatory Commission, pay the prescribed application fee, complete Form A and Form B as outlined in Schedule 2 of the Money Services Business Act of 2008 and submit the required documents. The Financial Services Regulatory Commission will process the application in accordance with its application processing procedures. Upon completion of this process, if it is satisfied that an application is in order and the applicant is a fit and proper person to be licensed to conduct money services business, the Financial Services Regulatory Commission will approve the application and issue a licence to the applicant subject to the applicant paying the prescribed licence fee and making the prescribed statutory deposit in accordance with the Money Services Business Act.

It is anticipated that every sponsor will arrange for a delegation of its senior officers, or, in the case of an independent institution, of its principal controllers, to make a presentation in respect of the applicant and its proposed business before a formal application is submitted.

Audited Financial Statements

1. If the applicant is a business that was existent and operating prior to the date of application, copies of audited financial statements (balance sheet, profit and loss, auditor’s report and notes to accounts) for the five consecutive years immediately preceding its application, except however that where such applicant has been functioning for less than five years, a copy of its audited financial statements for each year it has been in operation shall be sufficient.
2. Where item 1 is not applicable the opening balance sheet, (audited).
3. Operating projections for the proposed licensee’s first five years of business. This should include balance sheet, income statement and cash flow projections prepared in an acceptable accounting format. Details of any financial or economic assumptions on which these projections are based should be clearly indicated.
4. Where Applicant is a subsidiary or affiliate of another company, submit in addition to item 1 or 2, audited financial statements of the parent company and all other “connected” companies.

Licensed Money Services Businesses

• MP Express
• Western Union

Application and annual licensing fees are as follows:

Offences in respect of which liability to conviction may be discharged by payment of fixed penalty

Definitions

The Nevis International Insurance Ordinance 2004 as amended allow for entities to be licensed insurance companies under the defined Act.

The following are the types of Insurance Entities:

• Allied Reinsurance – means a company carrying on insurance business where the registered reinsurer is allied to a primary insurer who typically initiates insurance contracts as part of its normal course of business, and the allied reinsurer will only assumes risks and accepts premiums from this primary insurer;
• Allied Annuity – means a company carrying on insurance business where the registered insurer’s business entails only the issuance of annuity contracts, and/or single premium life contracts, and where premiums are acceptable only from its parent(s), or other person(s) of substantial relationship, whether personal or business, and the number of annuitants does not exceed ten (10) persons;
• Captive Insurance Business – means insurance business where the insured is a parent or affiliated company of the registered insurer or is a person in respect of whom the registered insurer is authorized by the Registrar to provide insurance;
• General Business – means insurance business that is not long-term business, reinsurance business or captive business and without limiting the generality of this term includes marine insurance, engineering insurance, aviation insurance, transportation insurance, motor insurance, property liability insurance, pecuniary loss insurance, credit and guarantor insurance and miscellaneous personal insurance;
• Insurance Adjuster – means a person, not being an employee of a registered insured, but employable by insurer or insured, who investigates, qualify and/or quantify a loss experienced in relation to a covered risk;
• Insurance Broker– means a person, not being an employee of a registered insured, who arranges contracts of insurance between insurer and insured, or gives advice facilitating the sale of insurance contracts, or is authorized by one or more insurer to enter that insurer into contracts of insurance, collect premiums, and otherwise act as the insurer in dealing with the insured.
  1. 1. provides management services for one or more insurers; or
     2. holds himself out as a manager in relation to one or more insurers, but does not include the keeping of insurance business accounts for a registered insurer

  No Person shall act as an insurance manager for, or in relation to, a registered insurer, unless that person is registered in a register to be kept by the Registrar in accordance with regulations and has paid to the Registrar the prescribed fee and every prescribed registration fee and every prescribed annual renewal fee.

• Long Term Insurance Business– means insurance business of any of the following kinds, namely,–
  • affecting and carrying out contracts of insurance on human life or contracts to pay annuities on human life;
  • effecting and carrying out contracts of insurance against risks of the persons insured sustaining injury as the result of an accident, or of an accident of a specified class, or dying as the result of an accident or of an accident of a specified class, becoming incapacitated in consequence of disease, or disease of a specified class, being contracts that are expressed to be in effect for a period of not less than five years or without limit of time and either not expressed to be terminable by the insurer before the expiration of five years from the taking effect thereof or are expressed to be so terminable before the expiration of that period only in special circumstances therein mentioned;
  • effecting and carrying out contracts of insurance, whether effected by the issue of policies, bonds or endowment certificates or otherwise, whereby in return for one or more premiums paid to the insurer a sum or a series of sums is to become payable to the persons insured in the future, not being contracts such as to fall within either paragraph (a) or (b); and
  • any kind of insurance business declared by regulation to be long-term business;
• Reinsurance – means insurance business where the risk insured by a person is a risk that person has accepted from an insurer;
• Registered Agents – A Registered insurer shall appoint a Registered Agent in Nevis where its principal place of business is outside Nevis and Manager is not resident in Nevis.

Minimum Paid Up Share Capital

The minimum paid up share capital for the classes of insurance business are as follows:

Minimum Margin of Solvency

“Minimum margin of solvency” is the amount by which an insurer’s assets must exceed its liabilities.

In the case of an insurer other than an insurer carrying on long-term business, the minimum margin of solvency shall be at least the minimum amount of paid up capital as prescribed in section 7 (1)(b) of the Ordinance or, if greater:

• where the net retained premium of the insurer does not exceed $5,000,000 the prescribed amount is 20% of net retained premium;
• where the net retained premium of the insurer exceeds $5,000,000, the prescribed amount is US$1,000,000 plus 10% of the amount by which net retained premium exceeds US$5,000,000.

In the case of an insurer carrying on long-term business the minimum margin of solvency shall be at least the minimum amount of paid up capital as prescribed in sub-regulation (a)(ii) of the Ordinance.

In the case of an insurer carrying on long-term business and other business the minimum margin of solvency shall be the aggregate of the amounts required by sub-regulations (a) and (b) of the Ordinance, in respect of both categories of business.

For the purposes of calculating the margin of solvency of an insurer, the registrar shall take into account all assets of the insurer that he reasonably considers to be allowable and shall exclude all those that he reasonably considers to be not allowable.

It is essential that all prospective applicants familiarize themselves with the relevant local insurance laws, regulations, rules and codes, including the anti money laundering requirements, before applying for a license to become a registered insurer in Nevis’ jurisdiction. An international insurer applicant should contact one of the licensed insurance managers in Nevis to discuss any management requirements. Please be aware that the Financial Services Department is unable to make any recommendations in this respect.

It is recommended that prospective applicants contact the Department at the earliest possible opportunity to discuss their outline proposals.

Should a prospective applicant wish to proceed with a formal application for licensing, a completed application form, together with the relevant fees and all necessary documentation, should be submitted to the Department for processing.

The required documents are as follows:

In order to apply for a registered insurer, registered Insurance Manager or registered agent’s license the following must be submitted to the Nevis Financial Services Department:

Completed Application form –

• Form 1 – Insurance Manager, Registered Agent: Application for Insurance Manager's or Registered Agent's Licence
• Form 3 – Captive: Application for Captive Insurer's Licence
• Form 4 – General, Long Term, Reinsurance: Application for General and or Long-Term or Re-Insurer's Licence
• Form 5 – Allied Reinsurance: Application for Allied Insurer's Licence
• Form 7 – Insurance Broker and Insurance Adjusters: Application for Insurace Broker's or Insurance Ajuster's Licence

• Completed Personal Questionnaire Form (Form 2) (all directors, beneficial owners and shareholders, managers and officers) At least 2 directors is required – Section 34 of the Ordinance
• Completed Insurance Manager Undertaking Form (Form 6) (all beneficial owners of the entity to be registered)
• Application fee
• Due diligence documentation must be submitted with the application for each control person (directors/ shareholders/managers/officers) who have completed a Form 2, this includes:
  • Notarized passport declaration pages or government issued photo ID
  • Utility bill confirming address (dated within 3 months of application date)
  • 2 references: 1 professional reference (from accountant, lawyer, or administrator etc), 1 bank reference (on company stationery) attesting to good standing of individual
  • Police record (preferred) and/ or notarized criminal history declaration form or affidavit
  • Curriculum vitae for each control person (directors, manager, officers). For each director it is preferred that skill and expertise along with professional qualifications be highlighted.
  • Annual accounts for 2 years preceding year of application, of each shareholder which is a body corporate holding more than 10% of the applicant’s issued share capital or total voting rights, together with similar accounts for the parent body, if any, of each such body corporate.
• Business plan must be submitted with application
• Financial projections (3-5 yrs minimum) including Pro Forma Income Statement, Balance Sheet and Cash Flow Statement
• Documents by which the body corporate is to be constituted such as Articles of Incorporation, Memorandum of Association, Articles of Association, By-laws etc. If not yet incorporated attach the proposed documentation.
• Insurance Manager/ Registered Agent Agreement (ALLIED REINSURANCE AND ALLIED ANNITY).
• A list of all insurers whom the applicant is, or will be engaged to act as manager or consultant (INSURANCE MANAGER/ REGISTERED AGENT)
• External Due Diligence Fee of US 5000 per non national control person (INSURANCE MANAGER/ REGISTERED AGENT/ GENERAL INSURANCE/ LONG TERM INSURANCE)
• An undertaking from company management that risks and premiums will only be assumed from named and approved primary company; (ALLIED REINSURANCE)
• Specimen Contracts indicating (i) the annual maximum frequency and amount of contribution; and (ii) maturity (ALLIED REINSURANCE)
• Registration fee is required to be paid before the applicant receives the license.