Dominica’s international banking license is issued by the Department of Financial Services under the Ministry of Finance of the Commonwealth of Dominica, which regulates the work of banks in the state.
Institutions of the financial and credit region that have an international license issued by the republican regulatory bodies are offshore banks.
The license gives the right to provide basic services in the banking sector: opening accounts (personal / corporate), accepting deposits, providing card products, and conducting interstate transactions.
Banks in offshore companies are engaged in the provision of investment consulting services, finance enterprises in the trading sector, and regulate the welfare of individuals and legal entities.
BASIC REQUIREMENTS FOR REGISTRATION OF LICENSES FOR BANKS
To register a banking institution in the Commonwealth, you must go through a complex step-by-step algorithm of the licensing process. At the same time as the establishment of the enterprise, it is necessary to submit an application for the purpose of registering the enterprise.
The name of the company should have the word “Bank”. These are normative legislative requirements necessary for compliance with the desire to establish local companies in the republic.
REGISTRATION OF BANK INSTITUTION ON THE ISLAND
After analyzing the business plan, the employees of the regulatory body get the opportunity to study your plans, analyze the level of attractiveness of the institution for the state. The text of the business plan must include:
- the reason for sending the application for opening a banking institution;
- economic directions;
- organization structure of the enterprise;
- the boundaries of the market territory of coverage, as well as development plans for the next five years;
- specific features, as well as sources of financing for the initial stage of functioning and further development;
- the structure of the corporation, showing the features of the relationship between the candidate for licensing, companies – “mother and daughter”, as well as other persons associated with this company;
- long-term planning of the movement of material assets from functioning with forecasting for the primary five-year period of economic and financial work;
- documents confirming the legality of the origin of the material means and the financial situation of the beneficiaries;
- Evidence-based documentation to confirm the payment of a share capital of 1 million US dollars in the form of securities or in foreign currency.
INTERNATIONAL BANKING LICENSE OF DOMINICA. MAINTAINABILITY
Upon receipt of the results of inspections from an independent bureau, a license is granted. To save it, you need to start the work of the bank within six months, and also:
- have a representative office in the republic;
- have authorized and alternative authorized agents;
- provide permission from the Ministry to amend the address of the central office of the institution;
- ensure business in accordance with the interests of deposit account owners, the public, taking the necessary measures for persons who do not fulfill loan obligations, counteract the devaluation of foreign currency;
- to help maintain the paid part of the shareholders’ capital in the amount of not less than 1 million USD or 5% of deposit obligations (the percentage level is set by the Ministry);
- engage in the support of a certain degree of liquidity in cash or exchange-traded securities, treasury bills, other convertible or fixed-term deposits with a payout period of up to a year in an international financial institution, in the amount of at least 12% of the total asset or another percentage level determined by order of the Ministry;
- introduce and apply an accounting program that fully meets the criteria of the Ministry;
- pay a license annually until January 15;
submit to the employees of the department of foreign economic activity statements on profit and damage, other necessary
- documentation quarterly within a month from the last quarter day.
REGISTRATION PROCEDURE: ITS ORDER
Registration of a license lasts 60-300 days. What remains to be done during this time:
- present a developed business plan that describes banking operations;
- register the applicant company;
- to pay authorized capital in the amount of from 1 million US dollars;
- submit documents to confirm the reputation of candidates;
- describe the work of applicants in the field of international activity;
- to report on financial performance to indicators of subsidiaries for a three-year period prior to the submission of an application, with
- the confirmation of an independent auditor;
- submit an audit confirmation on the net profit of each shareholder, partner, branch of the institution that filed the application;
- organize a representative office in the Commonwealth of Dominica or register the main company;
- approve two persons appointed by the ministry as authorized agents;
- freeze in government bonds 150 thousand US dollars for the entire period of the institution.
Specialists of Eternity Law International will provide you with professional services in full legal support, selection of documents and we will provide advice on this issue.