Anguilla has become an increasingly attractive option for US mid-market captive owners. Bacho Vega of Artex Risk Solutions outlines what is attracting captives to the Island’s beautiful shores.
Anguilla has established itself as the fifth largest captive insurance domicile in the world, and given its continued momentum and pace of growth, may soon close the gap on Guernsey to become the fourth largest international captive domicile. Just how it is earning the trust of risk managers and the international captive community may surprise people. While Anguilla is well known for the beauty of its beaches and the warmth of its people, the rising success of Anguilla as a captive domicile can be traced back to the strength of its regulation, thorough monitoring of its companies and the confidence it enjoys among international markets.
While it might seem to some that relaxed standards would be the logical choice to encourage growth, Anguilla has opted to take a rather different approach. Anguilla—emulating some of the most successful offshore captive domiciles—has placed significant emphasis upon compliance as a cornerstone of its character as a captive domicile. Strict adherence to anti-money laundering policies and careful screening of applicants is at the forefront of Anguilla’s requirements. Anguilla also expects and demands impeccable reputation and moral character of its captive owners. While Anguilla welcomes industry entrants and is keen to deliver a positive experience to new business, the jurisdiction is not afraid of turning down business when it does not meet Anguilla’s exacting standards.
Anguilla boasts a responsive, highly educated regulatory team that is readily on hand to guide prospective captive owners through the application and management process, willing to return a phone call and attend to your captive needs. Numerous captive domiciles claim accessible regulators, but the Financial Services Commission of Anguilla is truly committed to providing prompt responses and feedback to captives. Helping to deliver truly world-class service, the Anguilla regulator draws together the best local and international talent that together help deliver a well-rounded approach to regulation and legislation.
Helping to place Anguilla at the forefront of international domiciles is its willingness to enact progressive legislation that meets and exceeds changing international standards. In recent months for example, Anguilla has moved to amend its Anti-Money Laundering and Terrorist Financing Code. This move typifies Anguilla’s efforts to establish the jurisdiction as a leader in the region’s financial services industry and deliver added reassurance to international markets regarding the domicile’s commitment to compliance and transparency. It has been this commitment to global standards that has helped to propel the domicile into the global top five, instilling still further international confidence in the quality of its market.
Anguilla continuously monitors developments in international regulation and captive growth. Anguilla has also taken a proactive approach to bringing its own captive knowledge and experience to regions such as Latin America, Europe and Asia, where companies are often keen to explore the options that Anguilla can deliver. This global exposure has helped to create a demand for risk managers who understand exactly what it is that Anguilla offers potential clients.
With growth in the international captive sector continuing apace, it would be sensible for those in the industry to explore why so many owners are choosing to domicile in Anguilla. When considering the suitability of a domicile for your captive, it is worth considering the following factors:
• The accessibility of regulators;
• The bench of experience and quality of staff to address your captive needs; and
• How committed the domicile is in protecting its reputation, as well as the integrity of the captives it regulates.
Anguilla has positioned itself as a market leader and will continue to expand its role in the captive insurance industry in the coming years. If you haven’t given Anguilla a chance to earn your captive’s business, then you are missing out on an unrivalled and unique blend of strong regulation and global exposure. Don’t overlook Anguilla—a premier financial centre.
Bacho Vega is a regulatory manager at Artex Risk Solutions. He can be contacted at: Bacho_Vega@artexrisk.com
Bacho Vega is a regulatory manager at Artex Risk Solutions. He has several years’ experience with both large and mid-size organizations, and has a strong legal and compliance background in various industries. His expertise includes federal and state regulatory compliance, business formation, real estate and commercial litigation.
Anguilla, domicile selection, regulation, offshore