Antigua and Barbuda is a twin-island State located among the Leeward Islands in the Eastern Caribbean. It is approximately 3 1/2 hours by air from New York; approximately 8 hours by air from the United Kingdom and approximately 10 hours from most of the major capitals in Europe.
Antigua, the larger of the two islands, with 108 sq. miles (280 sq. km) has a population of approximately 65,000 made up of persons from various ethnic backgrounds. A number of American, British and European nationals have chosen Antigua as their retirement home and, by so doing, have taken advantage of the Government's PERMANENT RESIDENCE PROGRAMME which is designed to benefit "high net worth" individuals desirous of living in a tax-free environment.
The Capital of Antigua is St. John’s, a bustling commercial town with a population of just under 30,000. The island has an international airport, V.C. Bird International Airport, which caters to all the major international air carriers. This airport is about five miles and, approximately 15 minutes away from the Capital. There are Deep Water Harbour facilities capable of accommodating the largest of cruise ships and cargo vessels. Several major shipping lines use these facilities.
The capital of Barbuda - the "Sister Island" to Antigua - is Codrington. The island has a population of approximately 1600 and is a popular "hideaway" destination for movie stars, royalty and other celebrities. There are direct air-links between Antigua and Barbuda.
Temperatures on the islands generally average about 24 degrees Celsius (75F) and average rainfall is about 43 inches per annum.
Antigua and Barbuda has diplomatic relations with several countries and, an Ambassador or Consul, on the Island of Antigua, represents the following foreign governments:
- Britain
- Germany
- Norway
- The Netherlands
- Venezuela
- Republic of China
- Denmark
THE ECONOMY
Antigua and Barbuda has a good reputation for political, social and economic stability. The primary income-earner is Tourism but the manufacturing, agricultural and construction sectors also make significant contributions. There is no personal income tax, capital gains tax, or inheritance tax.
The country uses the Eastern Caribbean Dollars (EC$) which is pegged to the United States Dollar. The exchange rate, which is fixed, is US$1.00 equals EC$2.70¢.
There are two major political parties and general Elections are held every five (5) years.
The country has a 90% literacy rate.
Antigua and Barbuda has some of the most modern telecommunications (voice, fax and electronic mail) facilities in the world. There are numerous U.S. and U.K. trained technical personnel working in the telecommunications industry who are able to assist the offshore community in establishing vital links to the rest of the world.
THE OFFSHORE SCENE
In the early 80's, the Government took the initiative to develop the country as a reputable offshore jurisdiction. Since then, it has taken active steps to maintain this image. Legislations have been passed, both, to regulate the industry, and, to ensure that Antigua and Barbuda remain an attractive and safe offshore destination for potential investors. The end result is that the offshore industry in Antigua and Barbuda is stable and well-regulated.
With increasing attention being paid to the offshore industry by the Government, there has been a corresponding rise in the availability of professional offshore expertise on the Island.
The principal legislation, governing the industry is the International Business Corporations Act. This Act was passed in 1982 and has undergone substantial amendments to enable the country to keep pace with the dynamics of the evolving offshore industry.
The most recent amendments to the Act were passed in October, 1998 and these came into effect in November, 1998. Importantly, an International Financial Sector Authority (IFSA) was established. The primary role of this body, apart from assuming the responsibilities of the former Director of International Business Corporations, is to:
- ensure compliance with the International Business Corporations Act;
- regulate International Business Corporations (IBCs); and
- generally, to promote and foster the development of the offshore industry in Antigua and Barbuda.
The IFSA has also been empowered to ensure that financial institutions observe strict record-keeping and customer identification procedures. Provisions have been made for encouraging the exchange of information with external regulatory authorities relating to the ownership and management of offshore financial institutions. This is all part of the Government's initiatives to create an environment conducive to the growth of the offshore financial sector.
In 1996, a Money Laundering (Prevention) Act was passed. Among other things, this provides guidelines to Banks in order to steer them away from dubious financial transactions and suspicious activities.
In November 1998, this Act was amended with a view to further guarding against illegal activities.
Taken together, the recent amendments made to The International Business Corporations Act and The Money Laundering (Prevention) Act, together with the establishment of the International Financial Sector Authority, have effectively put Antigua and Barbuda, not only in the forefront of the anti money-laundering effort worldwide, but in the forefront of the international offshore scene. When combined with Antigua's participation in Mutual Legal Assistance Treaties, the financial environment that has been created should put the minds of potential investors at ease.
