The international bank Hermes Bank Limited, based in Saint Lucia, is currently (as of April 2026) in the process of compulsory liquidation. The proceedings were initiated in 2025 by the national financial regulator.
- Hermes Bank was placed under receivership by the FSRA on 10 February 2025 under Section 28 of the International Banks Act.
- The FSRA petitioned for compulsory liquidation on 11 April 2025, and the bank ceased business operations when liquidation began in June 2025.
- A liquidator is realising assets and settling creditor claims; depositors and creditors must formally submit claims to participate in distributions.
- The bank remains on the FSRA’s list of licensed international banks until liquidation procedures are fully completed, for regulatory purposes only.
- Liquidation stems from undisclosed statutory non-compliance and large legal claims, in line with typical triggers such as weak capital, risk management, and AML failures.
The Course of Events
On 10 February 2025, the Financial Services Regulatory Authority (FSRA) of Saint Lucia placed the Bank under receivership in accordance with Section 28 of the International Banks Act (Cap. 12.17). A receiver-manager was appointed, assuming full control over the bank’s affairs.
By law, the FSRA was required to initiate compulsory liquidation or reorganization within 60 days of the manager’s appointment. Consequently, the FSRA filed a petition for the compulsory liquidation of the bank with the Commercial Division of the Saint Lucia High Court on 11 April 2025.
The liquidation process officially began in June 2025, at which point the Bank effectively ceased its business operations. In September 2025, the FSRA submitted a formal court application for the appointment of a liquidator to oversee the final winding up of the Bank’s assets.
Current Bank Status
As of April 2026, Hermes Bank is in liquidation and does not conduct ordinary business as a financial institution; it provides no services to individuals or legal entities.
Under the direction of the liquidator, the Bank is currently realizing its assets and settling creditor claims. Depositors and creditors of the Bank have been invited to formally submit their claims to the liquidator.
Until all liquidation procedures are finalized, the Bank remains on the FSRA’s list of licensed international banks in Saint Lucia for regulatory purposes.
Reasons for Liquidation
The primary reasons for the liquidation of Hermes Bank were its failure to comply with statutory requirements (the specific nature of these violations has not been disclosed) and significant legal claims brought against the bank.
The International Banks Act grants the relevant Minister the authority to appoint a receiver for a bank in the following cases:
- Insufficient capital or other financial issues that could jeopardize the interests of the state;
- Conducting business in an unlawful or imprudent manner;
- Threat to the interests of depositors;
- Failure to submit required accounting records;
- Revocation of the banking license.
Typically, the liquidation or revocation of a banking license is triggered by failure to meet capital requirements, inadequate risk management or AML procedures, or violations of “fit and proper” requirements for management or major shareholders.
About Hermes Bank
Hermes Bank was registered in Saint Lucia in 2012 and held a Class “A” International Banking License. It offered various transactional and deposit products for non-residents, including corporate and personal offshore bank accounts in major global currencies.
Hermes Bank is not the first offshore bank to be liquidated over the past decade. For example, FBME Bank (Tanzania/Cyprus) ceased operations in 2017, followed by Loyal Bank (Saint Vincent and the Grenadines) and Choice Bank (Belize) in 2018.
