§ 1
Short Title
Cited as the Digital Residency Act 2025.
§ 2
Interpretation
Defines Applicant, Digital Residency Office, Minister, Operator, Permit, Permit Holder, Regulations, and related terms used throughout the Act.
§ 3
Purpose
To establish a sovereign digital residency framework for Montserrat — advancing governance modernisation, generating non-tax revenue, and positioning Montserrat as a premium-tier jurisdiction for international digital residents.
§ 4
Application of the Act
Applies to all applications for, issuance, renewal, suspension, and revocation of digital residency permits under Montserrat law.
§ 5(1)(b)
Scope · Adjacent Services Enabling
Load-bearing. Pre-authorises the Minister to extend the Programme, by regulation, to cover adjacent services including streamlined IBC registration (activated Year 1 Q3 under this Act), financial services, a regulated digital payment token, and digital asset infrastructure. Enabling, not activating — every extension requires a separate regulation and Cabinet decision. The stablecoin payment-token extension is currently scoped for Year-2 activation under this section.
§ 6
Eligibility
Applicants must be natural persons above majority age, not sanctioned or listed under § 17, and must satisfy Regulations on identity verification and source-of-funds.
§ 7
Application Process
Prescribes the three-tier approval gate: (a) Digital Residency Office review, (b) Financial Intelligence Unit screening, (c) Minister's final approval. No permit is issued without Ministerial sign-off.
§ 8
Permit Limits · Sovereignty-Additive
Load-bearing. A Permit does not confer right of entry, right of abode, employment rights, voting rights, tax residency, or citizenship. Fully BOT-compatible by design.
§ 9
Fees
Initial application fee and renewal fee prescribed by Regulations. The initial application fee covers a 3-year validity term; subsequent renewals cover 5-year validity terms. Revenue split between Government and Operator is defined in the Operating Agreement (§ 14). Government fees are paid into a Government-controlled settlement account. Current revenue model: Government receives US$750 per initial application (covering 3 years) and US$1,250 per renewal (covering 5 years). Each fee includes a US$500 application-processing fee that is a pass-through covering institutional costs (KYC, verification, document handling) and is not part of revenue sharing — see Hub Revenue Model for the full fee schedule.
§ 10
Renewal
Permits are issued for a 3-year initial term and renewable for successive 5-year terms thereafter. Renewal at each term-end requires re-verification (biometric and source-of-funds) and continued satisfaction of eligibility under § 6 and ongoing monitoring under Regulations.
§ 11
Digital Residency Office
Load-bearing. Establishes the Digital Residency Office (DRO) as the Government oversight body responsible for application review, permit administration, compliance monitoring, revocation initiation, and coordination with FIU / FSC.
§ 12
Minister's Powers
The Minister may: approve or reject applications; suspend issuance Programme-wide; issue Regulations under § 20; terminate or amend the Operating Agreement; and direct the DRO on policy matters. Individual permit decisions follow the statutory process; Programme-level decisions rest with the Minister.
§ 13
Financial Intelligence Unit
Integrates FIU screening into the application process. FIU operates independently of the Operator and the DRO. Negative FIU outcomes are binding on the issuing authority.
§ 14
Operating Agreement
Load-bearing. Mandates a contractual Operating Agreement between Government and the Operator (FCB). Must specify: scope of delegated functions, performance standards, revenue split, indemnities, reporting obligations, termination triggers, and transition-out procedures. Government retains oversight authority under defined conditions.
§ 15
Operator Standards
Load-bearing. Imposes statutory performance, indemnity, data-security, compliance and reporting obligations directly on the Operator — independent of the Operating Agreement. Breach may trigger suspension or termination under § 14.
§ 16
Data Protection
Data handling must comply with applicable Montserrat data protection law and international standards. Cross-border transfers are permitted only under Regulations; applicant data remains subject to Montserrat regulatory oversight.
§ 17
Blacklist
Load-bearing. Establishes a permanent register of rejected, suspended, and revoked applicants. Information-sharing permitted with FIU, FSC, and — under Regulations — foreign regulators.
§ 18
Revocation
Grounds for revocation include: material misstatement, sanctions listing, criminal conviction, breach of Regulations, and failure to renew. Revocation is initiated by the DRO and confirmed by the Minister.
§ 19
Appeals
Applicants and permit holders may appeal DRO or Ministerial decisions through a prescribed appeals process. Appeal does not suspend effect of revocation unless ordered.
§ 20
Regulations
The Minister may make Regulations on any matter under this Act, including fees, eligibility criteria, adjacent services under § 5(1)(b), data handling, and procedures of the DRO.
§ 21
Commencement
This Act comes into force on a date appointed by the Minister by Commencement Order.