Offshore Banks can still be advantageously formed in a number of leading offshore jurisdictions and financial centers, as well as in some new, up-and-coming banking hubs. IFLS Corporate Services Ltd knows where it makes sense and where you better shouldn't try it. 

 

In most jurisdictions, it is almost impossible for a new applicant who wants to offer banking services, to establish a bank company, unless the applicant is a renowned and respected international bank corporation.The authorities protecting the tax sector from adverse impacts, which could put in doubt the stability of the bank sector or the goodwill of the country in question, have thought out a number of bureaucratic and financial obstacles.

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A full or partially limited general or international bank license is more demanding, with respect to the minimum, required, registered capital amounts. Nonetheless there are locations where it is possible to get even this type of license under acceptable conditions.

There are two types of Offshore Banking Licenses:

General Bank License
Understood in a majority of jurisdictions as a license for providing bank services, at the place of registration and internationally, direct to the general public. The bank acts as any other bank entity, it can accept deposits from the public and perform common bank services with residents or non-residents.In an overwhelming majority of countries, however, the activity is limited to providing services to non-residents, i.e. offshore banking services only. This type of offshore bank is established in lieu of providing commercial bank services in an offshore regime.

 

Restrictive Bank License
Often referred to as the "internal" license, is a license that:

• limits territorial activities of the bank

• limits the possibility of providing services in foreign currencies

• limits the possibility of providing services to certain people

Typical Bank Form Requirements

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The information and backgrounds required from the bank license applicant, in an overwhelming majority of jurisdictions, are as follows:

 

• Bank name and its legal form

• Applicant status (whether the matter concerns establishment of a branch office of a foreign bank or a new company)

• Names and curricula vitae of the bank directors

• Certificates of police clearance of applicants and directors

• Bank and business references

• Submission of information about economic management of the firms of the applicant(s)

• Identification of the bank shareholders

• Identification of the type of issued shares of the bank (registered shares, priority shares, shares without voting rights, etc.)

• Denomination of the issued shares of the bank and type of currency used

• Capital structure of the bank and capital security

• Capital reserves of the bank Information stating from what resources the bank will be invested

• Document of certifying that the registered capital has been paid up (if registered in the host country)

• Document certifying that all taxes, stamp duties and royalties have been settled

• Identification of the registered office in the host country

• AML / CFT Compliance Policy Setup

• Identification data of the registered agent or representative (if required)

• Identification data of the auditor and lawyer with a registered office in the host country

• Type of intended services which are to be provided

• Territorial operational range of the bank

• How the company will protect itself from fraudulent or criminal conduct

• Business plan of the bank (the authorities generally require a balance sheet from 3 to 10 years)

• Benefits for the host country resulting from the bank operation

• Signed and presented applications for the issue of the bank license

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