How To Set Up An Offshore Bank License In Dominica

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How Much Money Do You Need?

Capital Requirement

The capital requirement is $1,000,000, but the money can be paid into a bank account for the bank, outside Dominica. The funds can also be left in the account of the owner of the bank, but then the same amount must be pledged to the government of Dominica.

Full Amount You Need

The total amount you will require will be $1,990,000, made up as follows:

  • Initial set-up fees $490,000
  • Operating budget required $500,000
  • Capital $1,000,000

TOTAL                         $1,990,000

What Is The Time Frame

As a rule you will obtain your license within 60-days after filing your application.

 

 

 

What Is The Scope Of The Banking License

You will obtain a full offshore banking license similar to a Class A banking license elsewhere.  This will include:

  • Retail banking
  • Investment banking
  • Cryptocurrency banking

After You Are Licensed, You Need The Following To Activate It

  • Office

You need an office, of course, and this could be an obstacle since a storm destroyed many of the buildings on the island in September 2017.  Expect to pay in the vicinity of $2,000 to $2,500 per month for adequate office space.

  • Personnel

In terms of legislation you need two employees to take care of KYC and compliance.  Expect to pay salaries of $1,500 to $2.,000 per month for the same.

  • Office Outfitting And Equipment

To outfit the office appropriately and to purchase the required servers and computers, you should budget an amount of between $50,000 and $100,000.

  • Swift Application
  • Swift Fees

Your swift fees are dependent on the banking option you selected.  For light cloud swift set-up, the costs will be around $10,000 and afterward, $500 per month.  A full software license will cost as much as $100,000.

  • Do not make the mistake of selecting an untested software package. Select a package that is in use in several offshore banks and institutions. You will pay between $15,000 and $55,000 for all banking modules.  You have to include set-up costs for a website, with maintenance costs afterward of a further $500 per month.
  • A correspondent bank account in the European Union for Euros and other currencies will cost you $80,000 per year, and for a US account, you will pay $150,000 per year.
  • If you want to hire professionals to handle and supervise all the above for you, add another $50,000 for their costs.

You Have To Keep Your Own Location In Mind:

Tier Structure

The structure above will only allow you to receive clients on behalf of the bank, in Dominica, the only jurisdiction where you are licensed. It will be illegal to receive clients for this bank in the UK, Europe, or the US.

 

 

How Apply For This Banking License In Dominica

  • Due Diligence

You will have to to due diligence for your shareholder and foreign directors first.  The shareholder and directors must have unblemished financial histories that exclude bankruptcy. They should be well respected on the world wide web and should never have been expelled from a country or refused entry visas anywhere.  Every director and shareholder will have to submit the following documents:

  • Notarized copy of passport
  • Notarized copy of ID or license
  • A legalized and apostilled copy of their criminal record
  • A copy of their original proof of address[2]
  • A copy of the original second proof of address, such as a credit card or bank statement that shows their name and address.
  • A letter of recommendation from a lawyer that explains:
    • How long they know the client
    • In what capacity they know the client
    • That the client is honest and trustworthy
  • A reference letter from an accountant
  • A copy of a reference letter from a Bank which stipulates that:
    • The individual has been a client of this bank for more than two years
    • That the individual’s account is faultless
  • A full curriculum vitae that show the individual’s experience and education.

An application for a banking license requires only one shareholder and director, and it is much easier to use an individual as a shareholder. The government charges a fee of $10,000 per person, for due diligence. The process can take up to two months.

  • Application

It is wise to prepare the application during due diligence to have the application ready as soon as approval is granted.

 

Offshore Company

Click Here For Offshore Bank Account Application

 

Your application for a Dominican Banking License must include:

  • Filing of Application Forms
  • Supporting documents including your KYC manual, Business Plan, and Profit and Loss projections for the first three years.
  • You need to file applications with FSU
  • Incorporation of a Banking Corporation with one local director and one local agent.
  • After the banking license is granted, the name of the above corporation has to be changed to add the word Bank to it.
  • Swift Applications

Lobbying and meetings are often required during the process. It is wise to appoint local experts to assist you in this. Click here to email us and start your project.

Readers should note that this article is only intended to convey general information on these issues and that FAS CPA & Consultants (FAS) in no way intends for the contents of this article to be construed as accounting, business, financial, investment, legal, tax, or other professional advice or services.  This article cannot serve as a substitute for such professional services or advice.  Any decision or action that may affect the reader’s business should not rely solely on the contents of this article, but should rather be consulted on with a qualified professional adviser. FAS shall not be responsible for any loss sustained by any person who relies on this presentation.  This article is subject to change at any time and for any reason.

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Fulton Abraham Sanchez, CPA

Fulton Abraham Sánchez, CPA I am Certified Public Accountant, specialized in Tax Planning & Offshore Strategies for Real Estate, Hedge/Equity Funds, Fintech, Crypto, Expats, IRS Debt Resolution. You can email me fa@fascpaconsultants.com and follow us on Facebook : FAS CPA & Consultants.

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