Eternity Law International News Offshore bank license in Vanuatu

Offshore bank license in Vanuatu

Published:
October 7, 2020

Financial flows, credit activities, a set of monetary and settlement transactions – all this very attractive for the development of banking. Opening a bank in Europe is a rather problematic event. An alternative to obtaining a banking license is the Pacific Republic of Vanuatu in Melanesia.

Security License in Vanuatu is quite profitable for the business in the field of finance, covers the activities of Forex and Banking. This jurisdiction is favorable for the establishment of an offshore company, the opening of a foreign bank account for foreign economic activity.

The main principles of jurisdiction are transparency and classic offshore activities in accordance with international standards.

The activity of banks is regulated by the law of the Financial Institutions Act of November 2, 1999. According to legislation, a bank is regulated as a person who:

– coordinates the flow of bonds, certificates, securities with individuals or with legal entities, using the profits from these operations in whole or in part for lending and investing;
– carries out acceptance of financial investments from individuals with withdrawal upon request or upon expiration of the term.

FOR WHOM IS THE DECISION ABOUT ISSUING A LICENSE TO OPEN A BANK?

The decision to assign a license to a certain bank remains with the Minister. All documents for registration of a license are prepared and submitted by a licensed agent. Anyone who came to Vanuatu will not be able to issue a license. He will have to use the services of a licensing agent who organizes the transfer of documents.

WHAT IS REQUIRED TO APPLY FOR A BANK LICENSE IN THE REPUBLIC OF VANUATU?

To apply for a license in the banking sector, you must:

– provide the existence of statutory capital in the amount of 500 thousand US dollars to open a financial institution;
– availability of a physical office registered in the Republic;
– detailed business planning, with the definition of goals and ways to achieve them, which is prepared by a professional financier;
– copies of documents certifying the identity of bank beneficiaries that are thoroughly checked by the government of Vanuatu;
– provide a professional team of employees with education in the banking sector; our professional team can help in solving this issue;
– accounting support each year is 16 thousand American dollars;
– pay license annually;
– construct and apply, in accordance with the ministerial rules, the accounting of financial flows, as required by the accounting department.

After the preparation of the entire set of documents, an application is submitted to the Reserve Bank of the Republic of Vanuatu. This requires:

– payment of all state duties;
– a written application for permission to grant a license to an organization registered on the island.

All information must correspond to reality and be truthful, otherwise it is punishable by law in the form of imprisonment of up to two years or penalties ranging from 2 million to 6 million VT. The application is reviewed within four months.

REASONS FOR THE FAILURE OF MINISTER OF VANUATU TO RECEIVE A LICENSE

The reserve Bank may refuse the licensee if:

– the organization does not exist legally;
– it is not beneficial to the economy of the Republic;
– financial flows to confirm the authorized capital are contrary to the law, their history of occurrence is criminal or non-transparent;
– confirmation of the identity of shareholders or the founding director is unsatisfactory;
– internal control, accounting, risk management legal. persons do not meet the requirements of the Minister;
– the very functioning of the bank-owner or an acceptable joint-stock company is unacceptable;
– the amount of payments was not completed in full, as required by the legislative framework of Vanuatu, for a bank this amounts to VT 200 million, for a creditor firm – 100 million VT.

COMMISSION FEES

The cost of creating a banking structure in Vanuatu includes government fees, fees for the services of a license agent, renting office space in the Republic, staffing, etc. All calculations can be made at a special consultation.

The duty every year in the amount of 1.5 thousand USD is charged for the payment of the constituent company, without which the bank cannot be registered.

The state fee in the amount of 8 thousand USD is paid for submitting an application for the assignment of a license, the annual renewal is 8 thousand USD. As a result, accounting costs for the year range from 16 thousand USD.

SEQUENCE OF ACTIONS FOR OBTAINING A LICENSE FOR A BANK SPHERE

First, to begin the process of obtaining a license, you should consult with experts who have experience in such matters.

Secondly, the initial formation of the organization and the cost of a license on the territory of the island of Vanuatu will be 150 thousand EUR, they are transferred using international means of payment Pay Pal, Western Union, WebMoney or carried out using a banking transaction.

Thirdly, it is necessary to provide a set of official papers and create a company on the territory of the Republic of Vanuatu.

The founders or beneficiaries provide:

– notarized copies of passports for travel abroad;
– confirmation of registration – it can be a notarized copy of utilities, an extract from the bank about the existence of an account, indicating the address of the owner, the validity of this document is a maximum of 3 months at the time of submission of papers for a license;
– CV in English;
– certificate of good conduct;
– business plan;
– application for the acquisition of a banking license.

The term of issuing a license takes up to four months, it is necessary to renew each year. For detailed advice on obtaining a banking license, please contact our specialist.

Also, every week we have new jurisdiction to offer a ready-made turn-key solution! We work worldwide.

You could be interested

Malta gambling license

Over the past years Malta has successfully established itself as a leading and well-regulated European gaming jurisdiction, which hosts approximately 10% of the world’s online gaming companies. The Government of Malta has carried out a complete review and consolidation of the gaming legislation, by virtue of which the Malta Gaming Authority (MGA) was created. The...

AML compliance in Canada: Regulation of Payment Service Providers

Payment service providers (PSPs) in Canada must put a risk-based AML/CFT program in place to comply with an AML Law, otherwise, they face regulatory risks. Find out how money services businesses (MSBs) and PSPs fall under AML regulations and what compliance represents for these businesses. The FINTRAC has updated the Money Laundering Laws. These regulations...

Taxes in Saint Kitts and Nevis

Nevis is the first offshore jurisdiction to start registering offshore LLCs. Nevis and Saint Kitts are tax-free offshore jurisdictions. On them, more and more often the choice falls during personal tax planning. One of the reasons for such a high level of popularity in Nevis is the strong and reliable protection of customer privacy that...

How to open a Merchant Account?

Online trading has become quite popular lately. This means that stores need to acquire payment acceptance systems. Some online companies use the services of intermediaries or aggregator systems, but there are also stores where payment is only possible through electronic wallets, such as Yandex.Money, Webmoney or QIWI. Moreover, this does not suit all clients, but...

Overview of a regulatory and legal regime for blockchain in the EU

The EU executive, the Cοmmission, recognizes the significance of transparency of regulatory and legal regime for blockchain. Fields related to cryptocoins are getting more popular nowadays as the virtual currency market is now being regulated by the law. The EU demonstrates support for established regulative norms for blockchain regulation aiming to prevent legit and regulative...

Company registration in Luxembourg

Luxembourg is a developed region with a stable economy and a transparent legal framework. This is the basis for entrepreneurs to be able to successfully conduct their activities here, earning a high income. However, it should be remembered that Luxembourg is not an offshore zone. Company forms and taxation In Luxembourg there is no offshore...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

Washington

1629 K St. Suite 300 N.W.

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7