Message from FCC's CEO

The year 2002 was a success for St. Lucia in terms of the financial services industry. St. Lucia continued to build on a solid foundation and the rate of registrations of IBCs, Trusts and Insurance companies continued to grow. Interest in mutual funds was also evident in the latter half of the year with significant reputable professional firms taking very seriously the option of using St. Lucia as a valid domicile for private funds. St. Lucia's model for developing the industry, the key components of which are: the separation of marketing from regulation; a modern on-line public IBC registry and modern legislation governing the industry, in particular the Registered Agent and Trustee Licensing Act, has been recognized by industry observers as efficient and effective.

The latest jurisdiction to announce an on-line companies' registry is the Bahamas. St. Lucia's public, on-line registry continues to serve us well. We have also noted that there has been a move toward establishing independent marketing entities in a number of jurisdictions. Clearly the separation of the marketing function from the Government's regulatory role has been widely accepted and accords with the KPMG report.

St. Lucia has taken the business of Financial Services seriously. In saying this, we are also quick to add that we know that the threats to our industry are real and we are under no delusions that we have a great deal still to do to ensure that the jurisdiction keeps it's reputation in tact.

Where do we go from here? Well, the stage is set, we have demonstrated that we are serious and we will continue to develop our jurisdiction to make it attractive to legitimate financial services business. In the coming months, we expect to introduce LLC legislation and legislation dealing with protected cell companies.

The industry is very much alive and the public and private sectors are vitally interested in the continued development of the jurisdiction. This interest is translated into commitment to keep abreast of the latest trends and to the delivery of service, second to none. We will also continue our efforts to provide professionals worldwide, with information on St. Lucia. It is our belief that we have a premium product and we aim to keep the standard high.

Pinnacle Review 2002: Pinnacle St Lucia online system continues to attract visitors to the web site recording a 40% increase over the number of hits recorded for the calendar year 2001. Refinements to the software for the online registry facilitated client/agent communication, resulting in quicker transmission of incorporation applications.

There was a 68% increase in the number of IBC registered; two registered agents and a registered trustee were licensed for the year 2002.

Legislation and Amendments: Amendments to the International Business Companies Act 1999 and the International Mutual Funds Act 1999 became law on 19 September 2002. The text of the amendments is available for download, in the legislation section of this web site. The new International Trust Act 2002 which replaces the International Trusts Act 1999, was brought into force on 4th September 2002. The revised Act and the Regulations will soon be available for download from the legislation section of the web site.

CFATF : The CFATF XVI Plenary & Council Meeting was held in Nassau, the Bahamas, October 14-17, 2002. The CFATF has now moved from twenty-six (26) member states in the Caribbean Basin region to twenty-nine (29) member states, with the addition of Guatemala, Guyana and Honduras in October 2002.

The Plenary meeting was dominated by the presentation of Mutual Evaluation Reports from six (6) jurisdictions namely, Panama, Cayman Islands, Costa Rica, Dominican Republic and Trinidad and Tobago. The presentation of Barbados' Mutual Evaluation report was deferred for the next plenary meeting.

Some of the highlights of the CFATF Plenary XV1 & Council Meeting:

- A report on the Sub-Regional FIU for the OECS was presented by the United Nations Global Programme on Money Laundering (UNGPML) and from all indications the member states of Organisation of Eastern Caribbean States (OECS) were supportive of such a regional FIU but there was a concern that greater efforts should presently be directed towards strengthening individual FIUs of the region.
- The Eastern Caribbean Central Bank presented its report on its efforts to assume greater responsibility in the regulation and supervision of the offshore sector in the OECS sub region.
- Setting up of a steering group consisting of the following representatives: Bahamas, Antigua, Venezuela, British Virgin islands, Haiti, Dominican Republic (the out-going Chair) and Spain representing the group of Co-operating and Supporting Nations (COSUN). One of the steering group's main responsibilities is to advise the Secretariat regarding issues of policy, which arise and require action prior to meetings of the CFATF. Extension of the CFATF mandate to include terrorist financing.

FATF Black List : Dominica, Niue, the Marshall Islands and Russia were removed from the list of NCCTs following a review of each territory's anti money laundering policies and controls as of 14 October 2002.

OECD : The OECD Global Forum - Joint Ad Hoc Group on Accounts was held in Grand Cayman on October 28 through November 01, 2002.

- The meeting appeared to have brought about an enhanced sense of partnership amongst the delegates from the non-OECD and OECD countries and territories. As a demonstration of this enhanced partnership, the delegates came up with the term "participating partners" which applies to both co-operative or committed jurisdictions and participating OECD member countries.
- The participants of the meeting are committed to developing a platform for ongoing dialogue in achieving a higher common standard for transparency and effective exchange of information for tax purposes. The participating partners sought to confirm the common aim of fostering a transparent and well-regulated global financial system based on common standards.
- Various technical groups were established to deal with the various issues in regard to the Accounts and Filing or Auditing Requirement. At the conclusion of the meeting, the non-OECD territories appeared satisfied with the progress made on the Accounts and Filing or Auditing Requirement.
- All participants agreed that the next step was to further the group's work. This includes recognition of the importance of all international institutions working in this area to cooperate with a view towards harnessing scarce resources within participating jurisdictions, consistent with creating efficient and realistic compliance norms.

The benefits of Saint Lucia's unique regulatory structure are summarized in an article entitled "Regulation at its Best" published by attorney-at-law Michael Gordon QC, published in the October 2002 issue of OffShore Investment. Click here to read the Article.

Pinnacle St. Lucia and Financial Centre Corporation (FCC) will be participating in the following Conferences:

- March 5th ­ 7th Barbados Financial Services Conference
Global Finance 2003 - Bridgetown, Barbados
- March 9th ­ 11th Captive Insurance Companies Association (CICA)
Annual International Conference ­ Orlando, FL
- March 16th ­ 18th International Tax Planning Association (ITPA)
Cannes Meeting ­ Cannes, France
- March 20th ­ 21st Baker& Mc Kenzie Law Firm
8th Annual International Tax & Trust Training Program ­ Montreux, Switzerland
- April 6th ­ 10th Risk & Insurance Management Society, Inc. (RIMS)
41st Annual Conference & Exhibition ­ Chicago, IL

St Lucia celebrates 24 years of Independence on February 22nd, under the theme "Guarding Our National Pride Amidst The Global Tide." The month of activities leading to the Anniversary are presided over by the island's Governor General and the Prime Minister and Minister of International Financial Services, Hon. Kenny D. Anthony. www.stlucia.gov.lc

Preparations are well underway for the island's 12th Jazz Festival to be held May 2nd ­ 11th. The Festival, which features a mix of Jazz and R&B performers, has as its headliners Boyz II Men, Yolanda Adams, Earth, Wind & Fire and Chasing the Trane (a tribute to John Coltrane). For more details, visit the St. Lucia Tourist Board's official website: www.stluciajazz.org

If you have any questions, comments or if you do not wish to be on our mailing list, please feel free to send them to enquiries@pinnaclestlucia.com

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