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BELIZE
OFFSHORE BANK FORMATION
OFFSHORE BANKING LICENSES In an additional move designed to attract international banks to relocate to Belize, the Money Laundering Prevention (Act) of 1996 led to the introduction of a “know-your-client” rule and made it known to the worldwide financial community that Belize was taking a stand against international money laundering. The government’s consistent refusal to enter into treaties that would lead to information exchange on banking and fiscal matters has further enhanced Belize’s commitment to its status as a reputable offshore banking centre with the necessary laws and infrastructure that are designed to ensure privacy and protect one’s assets. An applicant for an offshore banking license can be either an International Business Company (IBC) from Belize or a local company registered in Belize. The offshore banking license application process begins with an initial introductory meeting with the Central Bank of Belize that is followed by a second pre-filing meeting that enables the application to be reviewed by the Central Bank and the Belize government. To facilitate the application process, a local representative agent along with the bank’s principal officers, are required to attend the initial introductory meeting with the Central Bank of Belize. It is mandatory that the bank principals (officers and directors) be qualified and experienced in international banking business and be of suitable character and financial status. The application should be as complete as possible and submitted with substantial documentary support for the application. The entire application process can take anywhere from six months to one year to be completed. After the approval for bank licensing is granted, the license remains valid for an unlimited period of time and enables the establishment of an office in Belize to commence operations in foreign currencies, securities and assets exclusively for any person not resident in Belize. The prerequisite for anyone wanting to establish a private offshore bank in the Belize jurisdiction would have to be its state-of-the-art communication facilities that include access to international air travel in a convenient gateway between the Americas, an efficient mail service, a reliable telecommunication systems that is supported by excellent bandwidths, a suitable time zone and an English speaking population; all factors which contribute to the feasible conducting of international banking from within Belize. Offshore banks fulfil many inter-group treasury and management functions and are often effective as part of the overall banking mechanism for international restructuring and corporate financing. The utilization of Belize as a low tax base and as a conduit for funds to pass through an offshore bank can result in the achievement of two-fold benefits i.e. (i) meeting the need for capital expenditure in a high tax jurisdiction in a form which does not give rise to tax as the funds cross frontiers and (ii) to enable the further extraction of subsequent profits in the form of dividends and interest. There are also exchange control benefits to be achieved and registered offshore banks in Belize are exempt from all forms of taxation or stamp duty on its Bills of Exchange, promissory notes, financial instruments or upon any profits or gains, interest or dividends that are earned during its ongoing banking business. TYPES OF BANK LICENSES Class “B” banking licenses are allowed to establish, maintain and operate a business office in Belize with certain restrictions that include being prohibited from issuing a check book to any depositor nor is it allowed to provide any current deposit or checking facilities for the transaction of offshore banking business. The minimum capital requirement for a Class “B” bank is US$500,000. The annual licensing fee for a Class “B” License is US$15,000. Our Firm has served as the representative processing agent for several offshore banking licenses in Belize and is well placed to take you through all the stages necessary to ensure that your application for either a Class A or Class B offshore bank is successful. Our representative services start with the consultation and vetting process and continue through to the completion of your bank’s local office set-up and the establishment of operations that include the facilitation of local management and administrative staffing and the necessary back-office support services.
REQUIREMENTS FOR DOCUMENTS REQUIRED OTHER REQUIREMENTS PROCEDURE Introductory Meeting 1 month This is to clarify any points not understood and also to name a spokesperson who will represent you in all further contacts with the Central Bank. Application Acceptance and Processing 2 months The non-refundable application fee will be due at this time The Central Bank reviews the application to ensure that all sections are completed. If it is incomplete, the spokesperson will be notified to submit any additions or corrections before the application is accepted. Failure to do this will delay the process. 2-3 months After acceptance, a thorough analysis is conducted. First: Second: if the due diligence is satisfactory, the decision to recommend approval is based on the prospects for success of the proposed bank. Organization of the New Bank 2-3 months Total Estimated Time for Processing and Completing Application FEES TO THE GOVERNMENT REPRESENTATION SERVICES Introduction and making appointments with officers of the Central Bank and Government Ministers and Officials where necessary INCORPORATION AND REGISTRATION FEES
Government/Registration Fees:
Inclusions: A Separate Retainer will be required for additional services from Attorney, CPA and disbursements for the proposed Offshore Bank Application. An Account can be set up at a local bank in the name of the proposed Company to take care of local payments. For any further questions or matter you may discuss with us, please do not hesitate to contact us with your relevant questions.
OFFSHORE INCORPORATION SERVICES FREE CONSULTANCY
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