By Floyd French
Observer Reporter
floydfrench@thestkittsnevisobserver.com
(Basseterre, St. Kitts) – The Monetary Council of the Eastern Caribbean Central Bank would like the Harmonised Cooperative Societies Legislation for the Eastern Caribbean Currency Union (ECCU) enacted by December 2008. This was one of the mandates coming out of the just concluded 62nd Meeting of the Monetary Council in Antigua and Barbuda on July 18.
While legislation that governs non-banking institutions such as producers’ cooperatives and insurance companies already exists, Acting CEO of Caribbean Confederation of Credit Unions, Mr. Peter Etienne said his organisation is in favour of a comprehensive legislation that regulates both financial and non-financial cooperative societies.
“At the CCCU level, we have been saying that we want one harmonising act in view of the economic union and the need to upgrade the business climate of which cooperatives, the producers’ cooperatives play a vital part.
“That is in keeping with our theme for the just concluded convention in Jamaica earlier this month and our theme for that convention was ‘One unified cooperative sector for competitive advantage’,” Mr. Etienne said.
The CEO had not seen the full report on the Monetary Council’s position, but he was hopeful the CCCU stance on one piece of legislation for all cooperative societies is acceptable. He said his organisation had two consultants working with the ECCB to draft the proposed legislation.
The new legislation will have benefits to the customers of credit unions and other cooperative societies, according to Mr. Etienne.
“There are some provisions that would affect the customer and also protect their interest. For instance, there are provisions to strengthen the system soundness on the level of capital of credit unions. There are also provisions for fit and proper qualifications for directors,” Mr. Etienne highlighted.
The major objective of the new legislation, however, is to bring credit unions and other cooperatives societies in line with new international financial standards to combat money laundering and funding of terrorism.
