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We'll examine this powerful offshore tool, using
the offshore bank formed in one of Caribbean jurisdictions
, as the most striking example.
CLASSES OF LICENSE. The "Class A" license (general license)
allows provision of international banking services to the
general public. The “Class B” license permits the applicant
to conduct business ONLY with persons listed at the time of
the application. The banks of both classes are not allowed
to have local clients.
DIRECTORS. The bank must have at least two directors. Both
must be natural persons (as opposed to corporate directors)
and one must be a local resident. We can provide a local director.
CAPITAL. The capital for a "Class A" bank is USD$1,000,000
and for a "Class B" bank is USD$250,000. Only the statutory
deposit of US$100,000 must be maintained in cash or certain
specified near-cash equivalents. The remainder of the bank's
capital can be contributed in securities, real estate or other
assets with a readily determinable value. It is however important
to note that liquidity is a key determinant in the granting
of a license (the concept being that if a bank has no cash
how will it conduct its affairs). We would recommend that
no less than 50% of the bank's capital is contributed either
in cash or in readily marketable securities.
CONFIDENTIALITY. The country's IBC Registrar only maintains
a copy of the bank's license and a copy of its Memorandum
and Articles of Association. The shareholders and directors
are known only to us and to the Director. All parties concerned
in the St. Lucia are required by law, under threat of severe
fines and penalties, to keep confidential all information
obtained whether it be during the incorporation process, ongoing
bank management or a Director's examination.
A typical offshore bank conducts the following services via
the correspondent accounts,
which may be opened by your specific request:
- wire transfers
- corporate and individual current accounts
- notice accounts with a minimum balance
- checking and savings accounts
- fixed term, interest bonds or yield enhanced deposits
- mortgages
- loans
- credit lines
- financing of projects
- factoring
Besides…
The offshore bank enjoys very low overheads thanks to exemption
from taxes in its own jurisdiction, and lack of requirements
for a "brick and mortar" office (the operational facilities
of the bank evidently may exist in the Internet). Moreover,
the customers' confidential information must not be kept
on this island in the Caribbean or be submitted to its National
Bank.
It's so customer-friendly!
Owing to the above factors the bank is quite capable to
be on the leading edge of competition attract external customers
by the fees lower than charged by onshore banks, much higher
extent of privacy, and minimum of bureaucratic hassle.
Want a captive bank?
Another option is to use the bank as a "captive" one, similarly
to a captive
reinsurance company. In this case it serves a group
of related companies (e.g. an international holding), providing
all necessary bank facilities with much lower overheads
compare to some external, especially onshore, bank facilities.
The results are considerable savings on bank expenses and
much higher privacy of internal and external financial operations
of the group.
Sweet, sweet "home"…
Utilizing the offshore bank as a tax planning and asset
protection vehicle may be beneficial for a rich individual
as well. In effect, they acquire a "home bank" where nobody
is the boss except for him/herself.
The detailed description of our fees and services regarding
an Offshore Bank establishment and its further support is
listed in OUR SERVICES-YOUR
OWN BANK.
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