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
WHO CAN BE DIRECTORS AND
Only individuals who are of 'fit and proper' character with appropriate
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
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.
Existing legislation provide for the imposition of a fine of $10,000 or a
term of imprisonment for one year on anyone who except when lawfully
required to do so, discloses any information (which he has acquired in the
performance of his duties under the Act) on any licensee or customer.
ICMS works closely with the applicant to ensure that the application is
prepared according to the guidelines issued by the authorities. We review
all required supporting documentation to ensure that there are no
unnecessary delays at the processing end.
On receipt of the licence ICMS as
authorized agent, and the management team including the bank's Compliance
Officer work together to ensure that the bank meets its statutory
obligations including those relating to the prevention of money laundering,
as well as meeting capital and reporting requirements, and other prudential
SCHEDULE OF FEES IN US$
Offshore Banking, and Trust
||Pro-rated licence Fee
(so if a licence is granted in June the fee would be 50% of the total,
that is, $4,000)
||Annual Licence Renewal
Fee (due by the end of January each year)
Our professional fees:
$14,000 Preparation of Incorporation Documents,
Guiding and Assisting with putting together the Application, and following
$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
$5000 Annual retainer to in-house Attorney-at-Law
will assist with identifying local staff and local office space and other
organizational matters at cost, meaning that there will be no service charge
for doing this .
APPLYING FOR AN OFFSHORE BANKING LICENCE
1. Incorporation of the local company which will be the applicant for the
The client must then indicate:
(a) The proposed name
(b) The desired share capital
2. Completed application form.
This form requires information to be provided in respect of the following:
(a) Financial standing and reputation of the beneficial owner.
(b) The beneficial owner’s record in international business.
(c) The financial performance of affiliated companies for the preceding 3
(d) The audited financial net worth of each shareholder associated or
(e) The character and standing of each shareholder, director or proposed
(f) Evidence that the applicant company has paid up capital of at least US$
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.
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.
Nancy Whiticker House
7 Old Street
Commonwealth of Dominica
Fax: +1 212 202-6468
or use this form:
ask for information
FIND/BUY RELATED BOOKS!
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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