Offshore Bank License
Under the Offshore Banking Act of 1996, companies and individuals can form and operate private offshore banks in Dominica provided that prescribed requirements are met. Here you will find full details, requirements and terms for licensing of an offshore financial institution in Dominica.
Offshore Bank Formation — Main Reasons
Offshore banking is a legitimate financial exercise undertaken as a form of investment and means to financial security and freedom.
Offshore Bank Licensees acquire the power to:
- Maximize investment returns
- Guard pecuniary resources
- Efficiently transfer property
- Contribute to employment and infrastructural development
- Maximize profits
- Benefit from tax exemptions (on CGT, gifts, transfers, income, foreign exchange)
- Undertake personal inheritance and succession planning
- Preserve wealth
CCP Inc. delivers reliable offshore bank licensing agent services.
Offshore Bank Formation — Why in Dominica
Offshore bank licensing in Dominica is usually completed within six months after submission of application paperwork to the Government.
We generally encourage applicants to inquire about Second Citizenship-by-Investment since the document requirements for licensing are similar to those for second citizenship applicants.
Robust Statutory Framework and Regulations
Dominica is a respectable offshore jurisdiction with robust statutory framework for both domestic and international financial services. Among others, statutes regulating offshore banks include:
- Offshore Banking Act 2006, Act 8 of 1996
- Offshore Banking (Amendment) Act 2008
- Offshore Banking (Revocation of Offshore Banking License) Order 2008
- Money Laundering (Prevention) Act 2000
- Money Laundering (Prevention) (Amendment) 2013
- Financial Intelligence Unit Act, 2008, Act 18 of 2008
- Financial Intelligence Unit (Amendment) Act 2013, Act 10 of 2013
Dominica offers a unique opportunity to obtain both offshore and onshore licenses; hence the possibility of delivering banking services to both local residents and non-residents, including Dominica registered IBCs. Offshore banking must be directed only at foreign nationals who are non-residents.
Separate books must be kept for onshore and offshore banking services, so that income tax can be allotted accordingly. Offshore banks operate tax free.
Forming an offshore bank in Dominica will allow you to perform all types of legal banking operations for foreign companies or foreign individuals, even for the IBCs registered in Dominica.
Offshore Bank Licensing and General Requirements
To successfully apply for bank licensing, requirements generally include:
- Registration of a local company
- Appointment of a registered agent
- A representative office, or a main office in Dominica
- Paid up Share Capital in the amount of not less than USD 1,000,000.
- Reserve in Government Bonds USD 150,000 (possible from your share capital) for the whole period of operation
- Annual license fee of USD 8,000 by the 15th of January of every year
- Annual audited statements by a local or internationally recognized auditing company
Name of Bank
Applicants are free to choose a suitable name for their banks; certain restrictions apply, such as the use of the word ‘Royal’ and ‘Government of Dominica’ in the bank’s name.
Competitive Formation Costs
Summed up, formation with the application fees, Government Offshore Banking License fees, and registered agent’s services for the first year is USD 33,000 . (License fee — $8,000 + CCP fee — $25,000). From the second year and each subsequent year the cost is USD 16,000. (License fee $8,000 + CCP fee $8,000).
Offshore Bank Licensing Service Fees
CCP Inc.’s fee for this service is USD25, 000 and covers:
- Handling all procedures necessary for incorporating the company
- Full support as registered agent; first year fee
- Processing and submission of application for licensing
- Each subsequent year, fee for registered agent services is USD 8,000 prorated quarterly.
Kindly note that due-diligence costs are not shown above and are not included, as this varies on a case by case basis.
Usually, however, due diligence for offshore bank licensing varies from USD 4,000 to USD 10,000 (or more) for each director and shareholder. Factors which influence costs include:
- number of applicants involved
- age of applicant(s)
- number of countries of residency
- efficiency of registry and relevant authorities in the various countries of residence
Please don’t hesitate to contact our office if you require additional information. We will be pleased to answer all your questions.