Restrictions on Financial Services

The Movement of Capital is closely integrated with the provision of Financial Services. Therefore, under Article 38 of the Revised Treaty, Member States are required to remove discriminatory restrictions on banking, insurance and other financial services.

CARICOM Financial Services Agreement (CFSA)

The main objectives of the CARICOM Financial Services Agreement are to:

  • Streamline and facilitate the cross border operations of financial institutions
  • Create the environment for enhancing competitiveness of the Single Market in financial services
  • Reduce explicit or hidden barriers to cross border financial flows while ensuring transparency with respect to the rules of the game
  • Reduce payments system and portfolio risks, while ensuring stability and soundness of the financial system and the integrity of financial markets in the CSME
  • Provide for the harmonisation of essential definitions of principles in order to avoid loopholes and different approaches, thereby, minimising regulatory arbitrage
  • Provide a mechanism for ongoing consultation and review to assess the implementation of the financial integration and to resolve problems affecting the delivery of cross border financial services
  • Strengthen the process of Capital Market Integration