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Dominica Banking License

Posted by: Christian Reeves
Category: Dominica, Offshore Bank License

Of the jurisdictions you can choose to obtain an international bank license, Dominica offers some of the best options for foreign investors. An international banking license from Dominica is the lowest cost and the easiest to obtain if you compare it to other countries. Dominica is the most efficient jurisdiction for an offshore banking license on a budget.

Dominica has strengthened its banking regulations in the past years in order to give foreign investors a more stable and reliable offshore banking license. The shoddy regulations and illicit practices that are pervasive in other jurisdictions have greatly harmed the market and Dominica has worked to resolve these issues.

Government officials in the country have made it very clear that they only wish to attract foreign investors who wish to open a bank for commercial reasons. If they spot any illegal activities or have any reason to believe the bank is doing inappropriate business, they will shut the bank down. That is to say, the AML and KYC regulations in Dominica have been strengthened in order to save the industry.

Quality not quantity is the motto that Dominica banking regulators are following these days regarding the incorporation of international banks into the country. In Dominica, you will find a good banking reputation and privacy, which are two of the most desired elements sought after in applying for an offshore bank license.

An offshore banking license from Dominica has the lowest capital requirement of any offshore jurisdiction. While Belize and others are demanding $5 million, Dominica will allow you to license a bank with only $1 million in capital.

Dominica is also the lowest cost license to procure. In fact, the cost of Dominica is a fraction of competitors such as Cayman and Belize. Assuming you have a business plan and a board of directors in place, a bank license from Dominica should cost around $195,000, including government and legal fees.

Here is what you will need to provide in order to secure an offshore banking license from Dominica:

– List of Directors and Shareholders with proper knowledge in the business that is going to be carried out in Dominica along with their due diligence
– Proper capitalization of the company (minimum $1 million)
– Fully paid-up capital deposited in a bank account opened in Dominica
– Business plan with financial projections for the first five years
– KYC and Anti Money Laundering Compliance Documents
– Paid statutory capital
– Formation of the Company alongside the original corporate documents
– Registered Agent
– Registered Address
– Due diligence report on shareholders, officers, directors, and key persons provided by a reputable 3rd party (such as Kroll)
– Submitting an application to the FMU

It usually takes about 3 months for the FMU to process the application once it has been determined that every document required is found in the package and there is nothing missing or incomplete.

As I mentioned before, Dominica has become stricter when it comes to due diligence so make sure that the capital requirements and all the documentation is in place before you submit the application. The most difficult license to secure is an offshore banking license and the process becomes more difficult each year.

As opposed to other offshore banking jurisdictions, Dominica has one type of international banking license. The island does not offer a captive bank license or family office type international bank license as found in other jurisdictions like Belize.

When you are approved and you obtain an international banking license you can perform all forms of international banking activities such as retail banking, investment banking, and cryptocurrency banking.

The only limitation on a Dominica offshore bank license is that you can’t do business with locals. You can’t open accounts for domestic persons or domestic companies. You can only do business with persons outside of Dominica.

Dominica is your best option for a pure international bank in the Caribbean… one that’s outside of the U.S. banking system. It’s cheap, safe, there are privacy laws, centrally located, and most importantly, the government wants you to invest in their country.

For those who want to connect into the U.S. banking system, I recommend an international banking license in the U.S. territory of Puerto Rico. For those that want to be truely “offshore,” I recommend Dominica.

I hope you’ve found this article on Dominica’s Banking License to be helpful. For more information, or for assistance in starting a bank in Puerto Rico or Dominica, contact us at info@banklicense.pro