One of the key features in the obtaining of the offshore banking license, according to the Dominica Offshore Banking Act, is the need to ensure that there must be absolute transparency in the respect of the shareholders and directors of each offshore bank. Therefore the applicant can not be the International Business Company and the bearer shares are not allowed.
Dominica does not have different classes of offshore banking licenses. It is granted only one type of banking license, which allows the licensee to provide all types of offshore banking services (ie it cannot provide its services to local companies and Dominica citizens). However, if the licensee wants to work as a resident bank, it will require to obtain an additional license.
Requirements for obtaining of offshore banking license in Dominica:
- A business plan outlining the intended operation.
- Registration of a local company, which will be the applicant for the offshore license.
- The proof of paid up capital of 1 million USD in cash or readily negotiable securities.
- Documents to allow the Minister to consider the following questions:
- the financial and personal reputation of the applicant.
- the description of applicant activities in the international business.
- the financial performance of affiliated companies for three years immediately preceding the date of application, certified by an independent auditor.
- the audited financial net worth of each of the shareholders, associates or affiliates of the company applying for the offshore banking license.
- the character and reputation of all shareholders, directors and proposed directors of the applicant company.
- A representative local office in Dominica.
- Approval from the government minister for the appointment of two individuals as its authorized agent and alternate authorized agent and where the agent is a body corporate, for the appointment of such company
Requirements on item 5 and 6 can be provided by our company.
The extension of offshore banking licenses
In order to extend its offshore banking license, an offshore bank must:
- have a representative office in Dominica
- have an authorized agent and alternate authorized agent in Dominica
- obtain the approval of the Minister for changes to the address of its principal office or in respect of its authorized agents.
- conduct business in a manner consistent with the interest of depositors and the public, and make adequate provision against loan defaulters, devaluation of currency and deposit losses.
- maintain paid up capital of at least US$500,000 or five percent of deposit liabilities or such other percentage as shall from time to time be fixed by order made by the Minister.
- maintain adequate liquidity by way of cash or marketable securities, including Treasury bills or any other convertible or time deposits with a maturity of less than twelve months, with an acceptable international bank amount to at least 12 percent of total asset or such other percentage as may be determined by the Minister by order.
- establish and maintain an accounting system to the satisfaction of the Minister.
- pay the prescribed annual license fee by 15th January each year.
- submit to the International Business Unit a statement of assets and liabilities and other specified accompanying reports for every quarter within thirty (30) days of the end of the quarter.
Total cost for setting-up all should be in the region of €400.000. Ready-made ones (“off-the-shelf”) if/when available may be priced circa €850.000 to €900.000.
The first step (either for a brand new or a ready-made one) is for the applicant to be vetted (under an applicable Due Diligence/KYC/AML process).
Please don’t hesitate to contact us anytime for further details and for discussing this matter.
Please also note that Dominica should become the First Nation with universal Bitcoin possession, its 70,000 Island Residents all become Bitcoin holders and adopt the crypto-currency as of March 15, 2015. The attraction to new start-ups and the Government’s willingness to encourage e-commerce will create major offshore banking opportunities: