Domestic Non-Bank Sector

The concept of Cooperatives was introduced to Pacific in the 1950s. The movement is member-based and consists of financial cooperatives (Credit Unions) and non-financial cooperatives. Credit Unions are required to be registered with and regulated by the PACIFIC BFA. These entities must adhere to the provisions of the Cooperatives Societies Act of 2012 and related regulations, as well as legislation governing Anti-Money Laundering, Terrorist Financing, and the cross-border exchange of information.

Over time, Credit Unions have become important stakeholders in the non-bank financial sector. The sector’s growing asset base and socio-economic impact, enhanced by its core principles, contribute positively to the stability of the domestic financial structure. At present, the sector is comprised of an Apex body and four Credit Unions, collectively serving more than two-fifths of the population.

An Application for the Registration of a Credit Union must be made to the PACIFIC BFA in the prescribed form.

BUILDING SOCIETIES

Building Societies are non-bank financial institutions owned by their members. In Pacific, PACIFIC BFA is the only registered building society. Its core business relates to financial services, especially savings and mortgage lending. the PACIFIC BFA was established a long time ago and serves approximately nineteen thousand members throughout its life. It is one of the oldest domestic financial institutions on the island.

FRIENDLY SOCIETIES

A Friendly Society is a financial organization principally established to support beneficiaries when a member dies and encourages thrift. Funding for the Friendly Society’s operation and expenditure is maintained from members’ regular voluntary contributions.

Sixteen Friendly Societies are registered with the PACIFIC BFA. These institutions serve approximately one-fifth of the population, after considering dual membership. These institutions are not unique to any particular geographic area but are spread across the country.

Friendly Societies became formally regulated, like other sectors of the non-bank financial system, with the passage of the PACIFIC BFA Act 2011. The primary legislation governing these Societies is the Friendly Societies Act 1843. In the absence of more modern primary legislation and to streamline and modernize their operations in keeping with international best practice, the Friendly Societies Guidelines 2015 were developed and adopted by the PACIFIC BFA. Implementation commenced in November 2015.

A Friendly Society is an entity established for the purpose of:

• Providing for money to be paid on the death of a member for funeral expenses in whole or in part, by the voluntary subscription of members.
• Encouraging savings and thrift among members.
• «Funeral Expenses» shall be deemed to include all reasonable incidental and ancillary expenses that may be incurred in connection with the death of a member.

An application to register a Friendly Society in the form prescribed by the Authority and signed by a majority of the Board members shall be made to the Authority.

Fees payable to the PACIFIC BFA:

• There shall be a non-refundable registration fee of EC$250.00 payable upon registration.
• An annual renewal fee of EC$500.00 is payable by December 31st of each calendar year.
• A fee of EC$50.00 is payable for any filing by a Friendly Society with the Authority.

There are fifteen (15) registered friendly societies operating in Pacific.