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Dominica’s Banking Regulations and Laws: A Comprehensive Guide

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The Caribbean island of Dominica has established itself as a reputable offshore banking hub, attracting clients seeking confidentiality and security for their financial transactions. The Financial Services Unit (FSU) regulates the country’s banking industry, ensuring compliance with strict laws and regulations.

Acquiring an Offshore Bank License in Dominica

To establish an offshore bank in Dominica, applicants must meet stringent requirements and undergo a thorough due diligence process. The FSU issues Full Bank licenses, equivalent to Class A in other jurisdictions, which require a minimum capital requirement of $1 million. Additionally, all connected physical persons must be approved by the FSU.

Due Diligence Requirements

Applicants must provide the following range of documents:

  • Passport copy notarized and legalized via apostille
  • Copy of national ID and driving license notarized and legalized via apostille
  • Utility bill (less than 2 months old)
  • Professional references from lawyers, accountants, and banks
  • Curriculum vitae
  • Proof and source of funds destined for capitalization

Incorporation and Business Plan

Once approved, applicants must fill out an application form or prepare a new business plan. Vardikos & Vardikos offers turnkey services to handle the formalities, including drafting the bank license application, AML and KYC manual, and business plan.

Bank Activation Process

Upon obtaining the license, banks must:

  • Rent an office
  • Employ three local staff: a director, compliance officer, and clerk
  • Fit out the office with equipment
  • Purchase bank software
  • Establish corporate bank accounts with other financial institutions
  • Acquire SWIFT membership eligibility

Local Agent Appointment

The FSU requires banks to appoint a local agent to facilitate communication and ensure compliance.

Conclusion

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Dominica’s banking regulations and laws provide a secure and confidential environment for offshore banking. With the right guidance, applicants can successfully navigate the process of acquiring an offshore bank license in Dominica.