Trusts fall within the Anguilla Trust Companies and Offshore Banking Act.

Anguilla has no income, capital gains, wealth, withholding, gift or inheritance taxes. Nonetheless, "Exempt Trusts" are legislatively excluded from such taxes and from distributions tax and estate duty. An Exempt Trust is one where neither the settler nor any of the beneficiaries are resident in Anguilla and where Trust property does not include any land in Anguilla or the shares of any company beneficially owning such land. Anguilla is not a party to any tax treaties.

An Anguillian Trust is not a separate legal entity. The Trusts Act provides that a Trust exists where a Trustee holds property for the benefit of a beneficiary, whether or not yet ascertained or in existence, and/or for any valid charitable or non-charitable purpose which is not for the benefit only of the trustee. The settler may also be a Trustee, beneficiary or protector of the trust.

The protector may be provided with the power to remove the Trustee and to appoint new or additional trustees.

The Rule Against Perpetuities has been abolished and accumulation of income throughout the full term of a trust is possible.

The Fraudulent Dispositions Ordinance provides that a fraudulent disposition is violable by a creditor provided that the settler was insolvent at the time of the disposition or became so as a result thereof and provided that the creditor commences his action within three years of the date that the assets were settled into trust.
The burden of proving that the settler was or became insolvent as a result of the transfer is on the creditor.

In relation to asset (or creditor) protection trusts, therefore, Anguilla has deliberately taken a more conservative approach than some jurisdictions.

Where a Trust is created under the laws of Anguilla, the Court shall not vary or, set it aside or recognize the validity of any claim against the trust property pursuant to the law of another jurisdiction or the Order of another Court in respect of:

• Marriage or its termination;
• Succession rights;
• The claims of creditors in liquidation;
• The imposition of any foreign tax or duty.

Other characteristics of an Anguilla Trust include choice of governing law and flight provisions.

Offshore Banks

In compliance with the Anguilla Financial Services Commission based on the Trust Companies and Offshore Banking Act of Anguilla,
Offshore Banking licenses are also granted under the policies of this Act.

Under the current guidelines, Offshore Banking licenses will only be granted to:

 

•	Branches or subsidiaries of banks with a well-established and proven track record, which are subject to effective consolidated supervision.
•	Banks, which, although not subsidiaries, are closely associated with an overseas bank, and which, by agreement, will be included within the consolidated supervision exercised by the overseas bank’s home supervisory authority.
•	Wholly-owned subsidiaries of acceptable non-bank corporations whose shares are quoted on a recognized stock exchange, where the objective of the subsidiary is to undertake in-house treasury operations only, and where such operations are fully consolidated within the published financial statements of the parent company.

Banks will only be granted licenses if their place of incorporation, mind and management are within the same jurisdiction, or, in the case of a subsidiary, if the mind and management is located in the jurisdiction in which consolidated supervision is being exercised.

Anguilla onshore full service banks:

• Firstcaribbean International Bank (Barbados) Limited
• Caribbean Commercial Bank (Anguilla) Ltd.
• National Bank of Anguilla
• Scotiabank Anguilla Ltd.

Contact our offices for a consultation:

Caribbean Management Services Ltd. (CMS)
Managing Director
Post Office Box 950, The Valley
Anguilla, British West Indies
Phone: +1 264-498-5858
Fax:     +1 264-497-5504
E-mail: mgrdir@cmservicesltd.com
           mgrdir@yahoo.com
Website www.cmservicesltd.com