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Customer Due Diligence in Banking in Dominica: What You Need to Know
In its efforts to maintain its reputation as a respected offshore banking jurisdiction, Dominica has implemented strict customer due diligence requirements for individuals seeking to acquire a bank license in the country. The Financial Services Unit (FSU) is responsible for regulating the banking industry in Dominica and ensures that all applicants undergo a thorough due diligence process before being granted a license.
What is Customer Due Diligence?
The Offshore Banking Act 1996 and 1997, as amended and supplemented over the years, requires applicants to demonstrate a high level of integrity and reputation. This includes a rigorous background check on connected physical persons, including:
- Promoters
- Incorporators
- Purchasers of existing bank licenses
The Due Diligence Process
The due diligence process involves providing various documentation, including:
- Passport copies
- National ID cards
- Driving licenses
- Utility bills
- Professional references from lawyers and accountants
- Bank references
- Curriculum vitae
- Proof of source and funds for capitalization
Applicants must also demonstrate a clean criminal record in all countries they have resided or conducted business activities.
The Application Process
Once the due diligence report is submitted to the FSU, it will be assessed and if deemed satisfactory, the applicant may proceed with the application process for a new bank license or acquire an existing one. As part of this process, applicants must also demonstrate their ability to meet the minimum capital requirement and comply with:
- Anti-money laundering regulations
- Know-your-customer regulations
Seeking Professional Help
Vardikos & Vardikos, a reputable firm specializing in banking licenses, offers turn-key services to help clients navigate the complex due diligence and licensing process. The company’s expertise can ensure a swift and smooth establishment of bank operations from the Caribbean, targeting international clientele.
Dominica: A Preferred Destination for Offshore Banking
With strict customer due diligence requirements in place, Dominica remains an attractive destination for individuals seeking to establish offshore banks while maintaining a reputation for transparency and integrity.