Obtaining a banking licence in Saint Vincent and the Grenadines
The independent State of Saint Vincent and the Grenadines has created a good economic climate for international financial organizations. The Banks Act of 2004 and Regulations control the opening of international institutions and their operation is monitored by the Financial Services Authority.
The Authority provides international licenses of two classes for banks:
- Class A;
- Class B.
Each of these licenses has its own features, advantages and disadvantages and provides different opportunities for the owner.
Features of Class A international permit:
- Class A financial institution must establish and maintain a minimum paid-up capital of $1 million or equivalent in another currency;
- class A bank undertakes to maintain a deposit or investment of $500,000 or equivalent in another currency as specified by the Authority;
- A registered agent must be appointed and notified to the Authority.
Features of Class B license:
- The bank of the respective class undertakes to create and maintain a paid-in capital of $500,000 or its equivalent in another currency;
- Class B financial institution must hold a deposit or make an investment of $100,000 or its equivalent in another currency, as required by the relevant authorities;
- A registered agent should be appointed and reported to the Office;
- A second-class banking authorization allows for offshore banking activities with non-residents or groups that are specified and indicated in the commitment attached to the application. The availability of such a permit allows carrying out banking activities only with the list of users that are presented at the time of application for a license.
Before issuing a license, the following criteria are checked:
- The personal integrity of each shareholder;
- Shareholders' inability to finance the bank in such a way that it remains liquid;
- Experience and competence of directors and senior officers;
- To obtain a bank license, a local director must be appointed, who may also act as a bank manager.
The bank should conduct an annual audit. The bank does not pay taxes or file a tax return, but must pay an annual fee to the regulator to maintain the license.
To learn more about the nuances of obtaining a banking license for St Vincent and the Grenadines, please contact our specialists at IT-OFFSHORE.