General Overview.  St. Kitts and Nevis introduced a favourable legislation for offshore company formation and positioned itself as a competitive offshore financial center. Its reputation has improved in 2002 when it implemented all the recommendations of the OECD and the FATF, thus adhering to international standards of financial services and anti-money laundering procedures.

Banking Sector. There is a Federation and a separate Nevis Banking Ordinance. Domestic and offshore banks are distinguished in St. Kitts and Nevis. Different capital requirements are imposed on companies wishing to obtain an Unrestricted banking license and those aiming to achieve a Restricted Banking license. As the name suggests, only specific services may be provided by a banking institution which holds a Restricted license. Offshore Banking Ordinance of Nevis allows to establish and run an offshore bank; it precisely outlines what is intended with an offshore bank and which services it may provide.

Investment Funds. An investment fund may take different legal types of companies. The Mutual Funds Ordinance 2004 distinguishes private, public and professional investment funds. Foreign funds may be redomiciled in the jurisdiction by following a precisely outlined and rather simple procedure. St. Kitts and Nevis is often chosen by international entrepreneurs and investors for managing and investing into an offshore investment fund.

Trust Management. Offshore trusts in St. Kitts and Nevis may be created under Nevis Trust Act. Offshore trust management in Nevis is an effective asset protection instrument. Companies wishing to provide trust management services are required to obtain permission from the local authorities and adhere to minimum capital requirements.

Insurance Companies. An offshore insurance company must obtain a license, in order to provide insurance services, by submitting a number of requested documents to the local authorities, as well as adhering to the minimum capital and liquidity provisions. An effective and at the same time flexible regulation framework for captive insurance companies has been established in St. Kitts and Nevis.