|
Offshore
banking licenses - Offshore Banking Act of 1996
As Belize’s benchmark reputation
for integrity has grown and its underlying infrastructure of innovative,
integrated network of professionals and legal system have expanded
in tandem with each stage of its growth, the offshore banking
legislation became effective with the enactment of the Banks and
Financial Institutions Act of 1995 and the introduction of the
Offshore Banking Act of 1996.
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 center 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 (250 onshore 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 fulfill 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.
Essentially, two types of offshore
banking licenses are available in Belize. An “A’ class
banking license allows you to transact offshore banking business
without any type of restrictions. The minimum capital requirement
for a Class “A” bank is US$3,000,000. The annual licensing
fee for a Class “A” License is US$20,000.
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.
Georgetown Trust, Ltd. 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 continues 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.
When you are ready to precede with an offshore banking license
registration, please download and complete the application
form. Ensure that all forms are completed in full, signed
where requested and are accompanied by the necessary supporting
documents. Send by fax to +501 223-2497. |
The Georgetown Trust, Ltd. fee
structure for acting as a local representative agent in Belize
is as follows:
| Consultation Fee (application and vetting
process) |
US$12,500.00
|
| Agent Fee |
US$17,000.00 |
Government/Registration Fees:
| Unrestricted “A: Class offshore bank
license |
US$20,000.00 |
| Restricted “B” Class offshore bank license |
US$15,000.00 |
| Courier Fees |
US$ 50.00
(within USA) |
| Courier Fees |
US$ 75.00
(outside USA) |
All other incidental fees not
recognized above will be agreed upon by mutual assent between
Georgetown Trust, Ltd. and the parties being served.
Order
an OffshoreBank
| 
