Privately-registered and nationally-established banking institutions essentially perform the same function: they serve individuals and commercial organizations, provide accounts, and conduct external and internal monetary operations. International banking transactions are covered by monitoring of the Inter-Jurisdictional Funds Transactions Act. Vanuatu Reserve Bank (VRB) is the authority in charge of receiving and assessing applications for international banking permits and supporting documentation, and assessing whether firms or capital-holders are fit and proper. Below we’ll look at peculiarities and conditions, and the general framework in Vanuatu.
Our team is experienced, highly-qualified experts working in the field of launching and licensing commercial structures. We’re ready to take your business-project into our professional hands and become your reliable allies in getting a banking license in Vanuatu.
Regulatory Framework for Offshore Banking in Vanuatu: Global Financial Expansion
Global expansion in banking pushed plenty of entrepreneurs to find alternative offshore destinations including Vanuatu; such options are more loyal to non-resident banking structures. It allows us to consider them as successful areas for conducting banking-activities. With the implementation of new financial institution growth strategies, registration procedure became simple, and having a permit made it possible to quickly bring a financial corporation to the international level. Offshore banks in Vanuatu meet all international transparency standards’ it’s especially significant in the era of global deoffshorization.
Until 2002, licensing of banking establishments was carried out by Financial Commission Representatives; then, to meet the demands of the international community and counteract monetary means illegal circulation, the International Banking Act was amended. It transferred the licensing function to VRB. One of its departments performs the necessary functions in ensuring the financial system’s soundness and stability. According to the local and international finance strategy, legislative acts and norms governed and applied by the VRB are: VRB Financial Act, International Banking and Financial Institutions Acts.
Local and offshore banking facilities are needed to report monthly and quarterly data on assets and liabilities, profitability, large loans and deposits, maturities of assets and liabilities, credit risks by country and partner organizations, equity adequacy, loan classification and equity investments. Additionally, local ones are needed to meet mandatory reporting norms to monitor financial basis and improve market-space discipline.
Operational Essentials: Setting Up and Managing Offshore Banking
Vanuatu offshore banking jurisdiction is suitable for launching a banking business-project. They’re distinguished by loyalty and flexibility of legislative standards. In the modern competitive global financial environment, it’s very essential to be provided with quite simple normative rules and standards. You’ll need basic data about your firm and its directors/owners; whole procedure usually doesn’t take so long.
- Certified passports’ copies.
- Certificates of no criminal records.
- Banking recommendation letter.
- Utility bills or other documentation being address’s confirmation.
- Resume and other documentation demonstrating the abilities and expertise of running entrepreneurial business-activities.
- Data about exactly services offered.
- Deposit of approximately USD 50,000 as security guarantee.
Additionally to providing the above documentation, the next-mentioned operational considerations for offshore banks are needed to be met.
- Minimum capital. VRB introduced a capital adequacy scheme satisfying the global standards set by Banking Control Commission. VRB possesses powers to require banks to maintain higher levels of capital if it considers it necessary, bearing in mind aspects such as risks and the type of business-activities it operates.
- Maximum risk limits for issuing loans. For a single client or a group of related clients it equals 25% of capital compared to ones for non-banking and non-governmental entities.
- Customer due diligence. Purpose of this recommendation is to ensure banking establishments implement customer awareness practices. It’s associated with combating the illicit funds circulation. Implementing customer insight policies is critical to effectively managing risks.
- Director needs to be appointed and physically present locally, and possess relevant expertise in international banking.
- Auditor needs to be appointed.
When all necessary data has been collected, the package of documentation is transferred to VRB. Additionally to the above-mentioned papers, you’ll need to attach an official application for the assignment of Vanuatu offshore bank license, and receipts for payment of all government fees.
Leveraging the Unique Advantages of Vanuatu Banking License
As well as being considered a low tax-rates space and appealing citizenship by investment programmes, Vanuatu offshore banking jurisdiction provides extremely competitive business-permits. Although its rules have been modified slightly, Vanuatu is still a jurisdiction offering perfect financial services worldwide, particularly for start-ups and smaller firms, and set lower initial capital norms. Other advantages of Vanuatu banking license are as next-mentioned.
- It’s long been in good standing in the field of providing offshore services; it speaks of reliability, stability and quality.
- Resilience in offshore banking. It allows you to open foreign accounts to preserve material wealth.
- Vanuatu offshore bank license allows you to cooperate with customers worldwide.
- Entrepreneurs may implement any operations with assets. It gives rights to conduct all financial activities.
- Entrepreneurs may establish a stable business-structure generating income immediately.
Our team is ready to provide you with fully-covering professional assistance in launching and licensing your company. We’ll take on all the most difficult aspects, becoming your reliable allies and comrades-in-arms along this path.
Article’s author is Denys Chernyshov – founder and CEO of the globally-famous organization Eternity Law International.