Financial Institutions in American Samoa Must Meet Stringent Regulatory Requirements

To operate in American Samoa, banks must comply with a series of regulatory requirements designed to ensure the stability and security of the financial system.

Key Conditions for Operating in American Samoa

According to local laws, any bank seeking to conduct business in the territory must meet six specific conditions:

• Corporate Structure: Banks must be corporations organized under the banking laws of the United States or a state, or under the general corporation laws of American Samoa, with the exclusive purpose of engaging in general banking business.
• FDIC Membership: They must be members of the Federal Deposit Insurance Corporation (FDIC), which provides deposit insurance coverage to protect consumers.

Additional Requirements for National and State Banks

• National Banks: Must receive approval from the Comptroller of the Currency and the FDIC before commencing operations in American Samoa.
• State Banks: Require approval from the proper official of their home state.

Authorization and Licensing

All banks seeking to operate in American Samoa must:

• Obtain authorization and a license from the Economic Development Commission and Governor of American Samoa.
• Have their charter, statutes, rules, and regulations examined and deemed adequate by the commission and governor before commencing business.

Purpose of Stringent Regulatory Requirements

These stringent regulatory requirements are designed to ensure that financial institutions in American Samoa operate in a safe and sound manner, protecting both consumers and depositors.