Eternity Law International News Dominica International Bank License

Dominica International Bank License

Published:
August 31, 2022

The Cοmmonwealth of Dominica, also famous as “Nature Isle of the Caribbean” is a highly respectable jurisdiction when it comes to establishing an offshore banking institution. The country has gained a solid reputation for maintaining customer confidentiality, as it has strict legislation, and as a result, it is an attractive center for many foreign clients who proceed to open a bank account. Generally, to offer bank services in this country, a Dominica international bank license must be obtained.

Overview of bank licensing in Dominica

In accordance to the local legislation, an offshore bank license in Dominica is a part of the regulative framework set by the main regulator of the sector of finances, Financial Service Unit (FSU), which is in the remit of the Ministry of Finances. Main FSU obligations include issuance and supervision of the permissions for operation. In this regard, an οffshore bank is an organization incorporated and granted the permission to take deposits and execute transactions of different types for customers who domicile in foreign countries. Contrary to traditional banking, offshore institutions typically render services to customers residing abroad and do not offer common banking goods.

There is no range of offshore banking licenses in Dominica – in this country, provided is one permission, which empowers the licensee to deliver all types of operations.

A permission issued by the FSU is complete, with the same legal power as in Class A in other jurisdictions, where such licenses are divided into Classes. Under the law, the licensee cannot deliver its services to domestic clients. However, if the institution is considering to start operating as a resident bank, it should obtain a separate license.

Scope of the license:

The license allows for the delivery of the banking types as follows:

  • Consuming;
  • Cryptocurrency;
  • Investment.

Bank Activation Process

Upon being granted the licensing permission, the operation of the bank is activated in the next steps:

  • Office opening;
  • Employment of a local director, compliance officer, and clerk after being approved by the FSU;
  • Fitting specialty bank equipment and bank software;
  • Setting up a business account with other banks and setting up at least 2 corresponding bank accounts, to acquire SWIFT membership eligibility;
  • Becoming a Swift member;
  • Notifying the regulator of all these measures undertaken.

Offshore Dominica bank license: requirements

Due Diligence: The reports on the company owners, employees and senior management are submitted to the FSU; if the regulator’s assessment results are positive, the business person may consider for sale offshore bank license in Dominica or acquire a new one.

Senior management: At least one person that resides in the country of formation of the institution should be appointed as a director. Other non-resident directors can also be appointed and operate as long as they have been approved by the FSU.

Compliance Officer: Minimum of one Compliance Officer.

Capital: The company can be formed with a capital of at least $1,000,000.

Current obligations for the applicants:

All license applicants have to provide:

  • Certificate of Good Conduct;
  • Duplicate of a Passport;
  • Duplicate of a National government-issued identification document;
  • Recommendations from lawyers and accountants;
  • Bank Reference;
  • CV;
  • Proof and origin of the money used to open a banking organization;

Generally, processing an application by FSU normally takes from 4 to 5 months.

If you have any questions or intend to apply for a license, please contact us. Our experts have huge expertise in buying and selling businesses, as well as licensing.

Also, you can view new offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.

You could be interested

Opening a German Bank Account

Key purpose of accounts-opening in a given jurisdiction is to get and process payments between users of local banking establishments. Government benefits and wages are transferred by employers and the government exclusively to such accounts. Trips to supermarkets are paid for with cards, and rental needs, utilities, Internet and insurance are carried out by transferring...

Implications of Brexit on attorneys and legal services

For the latest information on this topic, we invite you to familiarize yourself with our new research on Brexit, business and law. First, a disclaimer: there is a wealth of information on the possible effects of Brexit – too extensive to be comprehensively covered in this article. So instead, we’ve outlined common concerns in several...

Payment License in Czech Republic

Several time ago, certain amendments and additions were made to legislative basis regulating payment mechanisms in Czech. Provisions of Law 370/2017 demonstrates new duties regarding firms with status of e-money operators or issuers. These points have become a supplementation to already acting rules adopted at the level of local legislation and EU Directives norms having...

Financial Services Provider in New Zealand

New Zealand is a dynamic hub for financial services, offering extensive opportunities for businesses and individuals. As a prominent destination for investment and corporate activities, the country’s financial sector has seen significant growth. A financial services provider New Zealand is required to comply with strict regulations to ensure market stability and protect stakeholders. The New...

Private Foundation Setup

With more flexible mechanisms if compared to trusts, charitable or non-profit organizations are getting more and more approval because of their reduced costs, lenient regulative mechanisms, beneficial taxes, and strong security. Many individuals seeking for a structure to keep assets decide on trusts, and it’s particularly the case in Anglo-American legal systems. But private foundations setup,...

Trust in Cyprus

In order to protect financial assets from risks of various natures, including political and commercial, as well as to eliminate claims for capital by family members, offshore trusts and funds are organized. With the help of them, you can ensure that business transactions are protected from infringement of profits by your family. Features of the...

Related posts

Investment fund in Dominica

Registering an investment fund Dominica represents an excellent opportunity for potential investors. Dominica, located in the eastern Caribbean, offers attractive conditions for the creation and management of investment funds. In this material we will look at how to open an investment fund in the Commonwealth of Dominica and what requirements are imposed on foreign entrepreneurs....

Obtain Your Trust License in Dominica

Dominica has created and operates a unified legal framework to promote the development of the financial services and securities market, one of the representatives of which is the trust business. In order to be able to officially and legally operate as a trust, a firm must obtain permission such as a trust license Dominica. This...

International business company registration

Setting up an international-company offshore may seem like a simple and easy process at first glance. In fact, before registering, you need to decide in which country you want to create a legal-entity and study all the opportunities and benefits that are provided at the local level. Even today, not everyone understands why it is...

Citizenship for investment in Dominica

Ten-years ago, a local-project was designed to possess citizenship-rights for endowments to economical progression. It operates following paragraph 101 of Constitutional Acts, and  Citizenship-Laws 8 and 20 paragraphs. Citizenship for investment in Dominica – advantageous for jurisdiction and other-citizens intending getting jurisdiction’s citizenship-rights. Local passports allow people to move without unnecessary formalities and visas, save...

Cyprus International Trust

Rich people or entrepreneurs may enjoy the benefits of trusts when combined with tax preparation and corporate structure. Trusts have been established for a plethora of purposes, including asset preservation, minimizing taxation, and changing how assets are distributed after a person’s passing. Any class of asset—cash, stock, etc.—can be included in a trust, anywhere in...

Obtaining the citizenship of Dominica

Obtaining citizenship of Dominica is an excellent choice for anyone who thinks about obtaining another citizenship easily and without exorbitant costs. To find out the details of the conditions for its registration, as well as to get reviews of citizenship holders, read the article. If you want to understand what citizenship is for investment, what...
Fill the blank: