OFFSHORE BANK

ARE SHELL BANKS ALLOWED?
No. In order to adequately regulate licensees, the legislation requires licensees to have a physical presence, which means that, at least one senior executive must be based in Dominica, and all books and records must be kept in Dominica.

WHO CAN BE DIRECTORS AND MANAGERS?
Only individuals who are of 'fit and proper' character with appropriate experience.

DUE DILIGENCE
The due diligence requirements are aimed at protecting the clients of the licensees, the licensees, and Dominica's good reputation Every shareholder, beneficial owner, and proposed director and senior officer of the applicant must complete and submit the required Disclosure Form as well as the Personal Questionnaire. The outcome of the due diligence checks will determine the likelihood of a licence being granted by the authorities.

SPECIAL TAX PROVISIONS
The licence holder is exempt from paying income tax, or any other direct tax levied in Dominica, upon its profits or gains in respect of its business in Dominica. Accordingly, licence holders are not required to submit tax returns in Dominica. When specialist services, which are not readily available in Dominica must be sourced from overseas, special incentives (by way of tax- free salaries and payment of salaries in foreign currency) will be granted.
Licensees are also granted duty free concessions on imports, which are related to the conduct of their offshore banking business. Service charges however are not waived, but these tend to be minimal.

CONFIDENTIALITY
Existing legislation provide for the imposition of a fine of $10,000 or a term of imprisonment for one year on anyone who except when lawfully required to do so, discloses any information (which he has acquired in the performance of his duties under the Act) on any licensee or customer.

COMPLIANCE ISSUES
ICMS works closely with the applicant to ensure that the application is prepared according to the guidelines issued by the authorities. We review all required supporting documentation to ensure that there are no unnecessary delays at the processing end.

On receipt of the licence ICMS as authorized agent, and the management team including the bank's Compliance Officer work together to ensure that the bank meets its statutory obligations including those relating to the prevention of money laundering, as well as meeting capital and reporting requirements, and other prudential guidelines.

SCHEDULE OF FEES IN US$

Offshore Banking, and Trust Company Licence

GOVERNMENT FEES
 

Our professional fees:

• $14,000 Preparation of Incorporation Documents, Guiding and Assisting with putting together the Application, and following up approval

• $5,000 Authorised Agent   (due on receipt of licence, and annually on anniversary  date of licence)

• $60 Corporate Seal (optional)

So, the total initial cost would be US$15,778, or less depending on month in which licence is granted, comprising:

This amount is due prior to commencement of work as soon as a decision to proceed with the application is sent to us.

On approval of the application the following become due:

• $???? Licence fee to Government (pro-rated based on the month of the year)

• $5000 Annual retainer  as Authorised Agent

• $5000 Annual retainer to in-house Attorney-at-Law 

We will assist with identifying local staff and local office space and other organizational matters at cost, meaning that there will be no service charge  for doing this .

REQUIREMENTS FOR APPLYING FOR AN OFFSHORE BANKING LICENCE

1. Incorporation of the local company which will be the applicant for the licence.
The client must then indicate:

(a) The proposed name
(b) The desired share capital

2. Completed application form.
This form requires information to be provided in respect of the following:

(a) Financial standing and reputation of the beneficial owner.
(b) The beneficial owner’s record in international business.
(c) The financial performance of affiliated companies for the preceding 3 years.
(d) The audited financial net worth of each shareholder associated or affiliated company.
(e) The character and standing of each shareholder, director or proposed director.
(f) Evidence that the applicant company has paid up capital of at least US$ 1M in cash, or readily negotiated instruments or an irrevocable letter of credit stating that the money is held as the capital of the bank and will not be disbursed without the consent of the Government.
 

CAPITAL REQUIREMENTS

1. Minimum start up capital of US$1,000,000 freely available in cash and or readily negotiable instruments.

2. Total paid up capital plus reserves of accumulated profits less accumulated losses cannot be less than US$1,000,000 or its equivalent in another convertible currency.

3. A Reserve Fund must be maintained and must not be below the level of the issued paid up capital of the company. Whenever the Reserve Fund falls below the level of the issued paid up capital of the company, at least 25% of net profit before payment of dividends, must be transferred to the Fund.

4. Permanent capital of at least US$1,000,000 or 5% of deposit liabilities whichever is greater, must be maintained.
 

Contact us:
Dominica:
OffshoreSimple Inc.
Nancy Whiticker House
7 Old Street
Roseau,
Commonwealth of Dominica
Fax: +1 212 202-6468
E-mail:
or use this form: ask for information

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Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions.

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