Establishing a Bank in Dominica: A Step-by-Step Guide

The Commonwealth of Dominica is an attractive destination for offshore banking due to its favorable tax regime, stable economy, and robust financial infrastructure. To set up a bank in Dominica, you’ll need to obtain a Full Bank License from the Financial Services Unit (FSU) of the government.

Step 1: Incorporate a Company

• Incorporate a local company: Tetra Consultants can assist with incorporating a local company, which will serve as the promoter/incorporator and one of the directors.
• Benefits: This step lays the foundation for your banking license application and ensures compliance with regulatory requirements.

Step 2: Open a Corporate Bank Account

• Open a fully functional bank account: With Tetra Consultants’ assistance, you can open a corporate bank account within four weeks of incorporation.
• Benefits: This step enables you to manage your financial transactions and maintain operational efficiency.

Step 3: Submit Application for Banking License

• Obtain necessary application forms: We’ll help you obtain the required application forms from the FSU and ensure accurate completion of all paperwork.
• Benefits: This step ensures that your application is complete and compliant with regulatory requirements, increasing the chances of approval.

Step 4: Comply with Regulatory Requirements

• Meet minimum capital requirement: You’ll need to deposit $1 million to meet the regulatory requirement.
• Submit various forms and supporting documents: You’ll need to provide additional documentation to support your application.
• Appoint a local director: This is a mandatory requirement for banking license approval.

Step 5: Regulatory Approval

• Positive assessment by FSU: Upon a successful assessment, you’ll be granted the opportunity to assume the role of promoter/incorporator and serve as one of the directors.
• Benefits: This step marks the final stage of obtaining your banking license in Dominica.

Activating Your Banking License

• Secure office space: You’ll need to rent an office space in Dominica to set up your bank’s operations.
• Employ local staff: You’ll need to hire two individuals who are resident in Dominica to handle Know Your Customer (KYC) and compliance tasks.
• Set up office and equipment: This includes setting up your office, computer systems, and other necessary infrastructure.
• Consider expenses associated with Swift application and related fees: You’ll need to factor in these costs as part of your overall budget.

The process typically takes 4 weeks, but it may vary based on case-specific circumstances. Our team at Tetra Consultants can guide you through this process efficiently and ensure compliance with regulatory requirements. We also offer a comprehensive engagement fee that covers company registration, license fees, and additional costs.