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Dominica Banking Procedures: A Guide to Establishing an Offshore Bank

In a move that is likely to attract international clients seeking to maintain their financial privacy, the Commonwealth of Dominica has emerged as a highly respectable jurisdiction for establishing offshore banks. The country’s strict confidentiality laws and robust regulatory framework make it an attractive destination for those looking to set up a bank account.

Regulation by the Financial Services Unit

The Dominica banking industry is regulated by the Financial Services Unit (FSU), which is responsible for issuing offshore banking licenses under the Offshore Banking Act 1996 and the Offshore Banking Act 1997. The FSU ensures that all banks operating in Dominica meet strict standards of governance, risk management, and customer protection.

Types of Offshore Banking Licenses

There are four types of offshore banking licenses available:

  • Retail Banking: Provides services to individual clients
  • Investment Banking: Focuses on investment activities such as trading and advisory services
  • Crypto Currency Banking: One of the few jurisdictions that currently allows it, this license permits banks to engage in cryptocurrency-related activities
  • Restricted Territory and Nationals: Applies to CARICOM countries and their nationals

Minimum Capital Requirement

The minimum capital requirement for an offshore bank license in Dominica is $1 million USD, which can be deposited in a bank account outside of Dominica.

Director and Shareholder Requirements

To obtain an offshore banking license in Dominica, applicants must meet the following requirements:

  • A minimum of one director and one shareholder must be approved by the FSU
  • Directors must be physically present in Dominica
  • Compliance officers must also be approved by the FSU

Due Diligence Process

The Government of Dominica conducts enhanced due diligence on all applicants, which includes submitting documentation and completing forms to process offshore banking licenses.

Required Documentation

To apply for a bank license in Dominica, applicants must submit:

  • Disclosure form
  • Consent form
  • Legislation:
    • Offshore Banking (Amendment) (No. 2) Act, 2019, ACT 4 of 2019
    • Offshore Banking (Amendment) Act 2019, ACT 1 of 2019
    • Offshore Banking (Amendment) Act, 1997, Act 2 of 1997
    • Offshore Banking (Amendment) Act, 1999, Act 18 of 1999
    • Offshore Banking (Amendment) Act, 2000, Act 16 of 2000
    • Offshore Banking (Amendment) Act, 2008, Act 16 of 2008
    • Offshore Banking (Fees) Regulations, 1996, SRO 58 of 1996

How to Obtain an Offshore Bank License in Dominica

To obtain an offshore bank license in Dominica, applicants must undergo a strict and exhaustive due diligence process, which includes submitting documentation and completing forms. The FSU assesses the eligibility of the applicant before issuing a license.

For more information on establishing an offshore bank in Dominica, contact:

The Dominica Consulate Athens Greece

4 Koumbari Street, Kolonaki Square, Athens, 10674 Greece