Offshore Bank Formation

Offshore bank formation is an activity that is highly regulated through governments, central banks and financial supervisory authorities. Offshore bank formation has been at the centre of international financial activity in most financial centers due to the importance of offshore banks in facilitating global trade, diverse offshore banking and investment transactions.

This is the right place to start for finding the right offshore plan which combines a second citizenship for greater access to international investments. Well put together offshore planning tools can be combined with a second citizenship for more business and employment opportunities. To learn how offshore company formation, a second citizenship and offshore business tools, can benefit contact us.

Offshore bank formation is reserved only to foreign nationals who do not reside in the jurisdiction where the offshore bank is intended to be established. Offshore bank formation can be initiated through an offshore service provider in order to obtain essential information on offshore bank formation procedures, requirements and contact information.

Bank formation offshore is very popular in countries such as The Bahamas, Cayman Islands, Bermuda and Panama. While there are offshore banks set up in these countries, a significant portion of offshore banking operations is conducted through branches and subsidiaries of major international banks originating from Switzerland and other major European financial centers.

Applications for offshore bank formation must be forwarded to the relevant authorities. These authorities that deal with offshore bank formation applications include financial service authorities/commission/supervisory bodies, central banks and specified government ministers. In many cases, applications undergo a very thorough review process whereby they are sent to the Central Bank, the relevant government minister and then the financial services authority for final processing. In the West Indies for example, applications for offshore bank formation must be sent and undergo an initial processing phase at the Easter Caribbean Central Bank which conducts due diligence and other background investigations.

It is necessary for offshore bank formation applicants to be thoroughly investigated. The reputation that a bank has built over the years is a crucial part of granting authorization to offshore banks to operate. Capital adequacy is essential as well, as various tests are applied to ensure that applicants for offshore banking formation meet minimum threshold levels, which usually may vary for offshore bank subsidiaries and banks that are incorporated in the jurisdiction.

Supervisory systems and networks are important for overseeing the practices of offshore banks and ensuring that offshore banking formation procedures are upheld and followed. Specific details on supervisory requirements to be upheld on both the financial authorities and applicants for offshore bank formation are made available on websites. In addition to offshore banking formation requirements and due diligence investigations, an offshore bank must upon being approved accept to undergo regularly scheduled on-site and off-shore inspection. Offshore bank formation is heavily regulated and supervised to protect the general public and clients in general.

Bank formation offshore may take anywhere from several months to one year or more depending on how efficient application systems are and the time required to thoroughly process an application for offshore bank formation. Offshore bank formation is a major activity in many countries, as mentioned earlier, which has led to many offshore bank accounts being held by individuals and corporations around the world. Some countries have as many as over 200 offshore banks. Offshore bank formation continues to play an important role in shifting capital from one region to the other, creating employment and stimulating global economic activity.

scroll back to top