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.
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