English 
Chinese Bank Licensing - Dominica
About Dominica
Dominica’s financial sector is primarily handled by commercial banks and insurance businesses. Dominica’s beneficial offshore financial services legislation fosters the formation of quality offshore banks and international enterprises, and presents chances for new and creative investments in all aspects of Dominica’s financial services sector.
Dominica is a reputable jurisdiction in which to establish an offshore bank. It has a great reputation for protecting consumer privacy due to strict confidentiality rules, and as a result, it draws a large number of international clients who go on to open a bank account.
Dominica is a Lesser Antilles island republic in the eastern Caribbean Sea. It is located between Guadeloupe and Marie-Galante in the north and Martinique in the south. Since its independence in 1978, the country has been a member of the Commonwealth.
Dominica had a total population of 72.9 thousand people in January 2023. Dominica’s population increased by 275 (+0.4%) from 2022 and 2023, according to data.
Dominica’s national and official language is English, however French and a local French Creole dialect are commonly spoken.
Dominica is a credible jurisdiction for establishing an offshore bank. Furthermore, Dominica has a great reputation for protecting consumer privacy due to stringent confidentiality rules, which is what draws many clients to this country to open a bank account. The Financial Services Unit regulates the Dominica banking industry. Offshore bank licences in Dominica are governed by the Offshore Banking Act 1996 and the Offshore Banking Act 1997, as amended and supplemented throughout time.
1. Offshore Financial Centres
Dominica is recognised as an offshore financial centre, attracting international clientele looking for offshore banking services. This status can give clients with benefits such as tax planning, asset protection, and privacy.
2. Positive Regulatory Environment
Dominica has put in place a regulatory framework that encourages a healthy and secure banking system. Dominica’s Financial Services Unit (FSU) regulates and supervises banks to guarantee compliance with international standards such as anti-money laundering (AML) and know-your-customer (KYC).
3. Economic and political stability
Dominica boasts a growing and resilient economy as well as political stability. This stability can instill trust in consumers and investors, as well as create a favourable atmosphere for banking operations.
4. Geographical Area
Dominica’s strategic location in the Eastern Caribbean allows it to serve as a gateway to both regional and international markets. This can improve trade and investment opportunities for Dominican banks.
5. Access to Global Financial Networks
Dominican banks can form correspondent partnerships with reputable international banks. This facilitates cross-border transactions, access to global financial networks, and increased trust in the international banking sector.
6. Tax Environment That Is Favourable
Dominica has a competitive tax framework, including tax breaks and exemptions for offshore banking. This can attract international clients and help the banking sector grow.
7. Banking Services of Various Categories
Dominican banks can provide a wide range of financial services, such as retail banking, international banking, trade finance, wealth management, and more. This variety enables banks to meet a wide range of client needs while also diversifying their revenue streams.
8. Supportive Government Initiatives
Dominica’s government has shown its support for the development of the financial services industry, particularly banking. They might launch measures to attract investment, improve infrastructure, and expedite regulatory processes, so creating a favourable atmosphere for banks.
General
| License: | International Bank License |
|---|---|
| Timeframe for Approval: | 4 to 5 months |
| Regulator: | Financial Services Unit |
Company Structure
| Local Director: | At least one director |
|---|---|
| Local Shareholder: | At least one shareholder |
| Local Registered Office: | Required |
| Local Staff: | Required |
| Compliance Officer: | Required |
| AML/KYC: | Required |
| Audit: | Required |
| Economic Substance: | Required |
| Corporate Tax Rate: | 25% |
| Currency: | Dominica's official currency is the East Caribbean dollar (XCD), which is linked to the US dollar. US dollars, euros, and British pounds are all widely accepted on the island, but change is typically given in EC dollars. |
| Minimum Paid-up Capital: | No minimum capital |
| Capital Requirement: | US$1,000,000 |
| Tax Structure: | Zero (0%) Percent Tax on Offshore Profits |
- Submitting the necessary paperwork for the formation of a local firm that will apply for a Banking Licence. Following Financial Service Unit approval, the company can be established.
- Gathering and completing the required Application paperwork for acquiring a Banking Licence.
- Submitting forms for shareholders’ and directors’ due diligence procedures.
- The process of document verification begins with submission of all Application documents. Documents are sent to the Ministry of Finance after they have been verified. The government normally takes three months to review an application after it is submitted.
- Obtaining government confirmation that clearance will be granted.
- Obtaining the Banking Licence that has been issued.
- Retail Banking Services
- International Banking
- Correspondent Banking
- Trade Finance
- Payment Services
- Wealth Management and Private Banking
- Investment Banking
- Treasury Services
- Fiduciary Services
Documents required by all involved individuals
(including but not limited to directors, shareholders and beneficial owners)
- Passport copy (Notarised)
- Utility Bill issued within the last 3 months (Notarised)
- CV or Resume for each involved individual
- Two professional reference letters
- Qualifications (Notarised)
- Business Plan
- Statements Of Physical Presence
- Statement Of Financial Relationships
- Declaration Of Legal Representative
- Statement On Bank’s Proposed Online Presence
- Marketing Material Disclosure
For Corporate Shareholders
- Articles of Association in English
- Registered office address documents (Notarised)
- Company Register of director/s
- Company Register of UBOs (shareholder register, or incumbency certificate, or share certificates)
- Formation of Dominica International Business Corporation
- Preparation and drafting of shareholder and officer agreements.
- Preparation and drafting of narrative business plan.
- Prepare five year financial projections.
- Preparation and drafting of current financial statements
- Preparation and drafting of personal financial statements for owners.
- Identification and draft letters naming principal representative and auditor.
- Draft and prepare required bank charter and prospectus
- Preparation and drafting application with Dominica Financial Services Unit
- Respond and draft responses to FSU application inquiries
- Facilitate and consummate bankcard relationship with Visa & Mastercard
- Preparation and drafting of policy agreements and related documents.
- Facilitate and consummate IBAN/SWIFT and correspondent bank relationship
- Provide for required physical presence and local director
- Preparation and review of bank deposit, loan and related agreement