Offshore banking in paradise. Vanuatu off shore bank licenses.
Vanuatu is comprised of a group of islands in the South Pacific Ocean, about three-quarters of the way from Hawaii to Australia. The British and French, who settled the New Hebrides in the 19th century, agreed in 1906 to an Anglo-French Condominium, which administered the islands until independence in 1980, when the new name of Vanuatu was adopted. The official languages are English, French and Bislama (pidgin). (The language of the finance centre is predominantly English). Vanuatu is a Common Law jurisdiction. Its Constitution states that, until otherwise provided by Parliament, pre-independence British laws shall continue to the extent that they are not expressly revoked or are incompatible with the independent status of the Republic. There are no exchange controls in Vanuatu. All major currencies can be deposited in Vanuatu and may be repatriated in the same currency or converted freely to most other currencies.
Vanuatu is one of the few countries in the world where it is possible to establish a privately owned financial institution or private offshore bank of course subject to the satisfactory completion of a due diligence process to ensure that the principals and all those involved have good bona fides and a sound business plan.Â
Offshore banks can not offer banking services, but only to clients outside of Vanuatu. There are no shell banks possible. All of the banks must maintain a local physical office and have local personal and keep all the financial records in Vanuatu office.
Required paid up capital by all offshore banks on Vanuatu is $500,000 or in such minimum proportions in relation to its assets, liabilities or risk exposures. This capital can be held in a reputable bank or financial institution outside of Vanuatu, but this must be approved by the Reserve Bank and may be invested in approved financial instruments.
The guidelines for the issue of offshore bank licenses can be summarized as follows:
- Details of ownership, financial capacity and financial history;
- Information on major shareholders and the character and experience of senior management and board of directors;
- Details of risk management, accounting and internal control systems;
- Details of the applicant’s capital structure;
- A detail business plan outlining the types of services to be offered including a three year projections for assets, liabilities and profitability;
- A written undertaking that the applicant will provide the Reserve Bank with any information it may require to carry out its responsibilities under the acts;
If you have some additional questions about Vanuatu offshore bank licences please contact us.