Forex Ban on St. Vincent and the Grenadines
While St. Vincent and the Grenadines (SVG) used to be convenient for forex enthusiasts because brokers did not have to be licensed, everything changed in 2023. Brokerage companies are still not given a permit. Additionally, there is a ban on forex in St. Vincent and the Grenadines for brokers who are not licensed in the jurisdictions where they operate. The fact that supporting documents must be submitted to the FSA by March 10 also came as a shock. The company will be fined and sanctioned if the requirement is not met.
Brokerage activity on the SVG
The registration on the SVG for brokers was beneficial because the Financial Services Authority (FSA) did not control their work. There are other perks, for example:
- LLC registration takes 1 business day;
- The amount of the authorized capital starts from $1;
- LLC can operate in any country. The main thing is to have a local representative in the FSA;
- High confidentiality - data about shareholders and founders is not put in the public register;
LLC, which does not operate in St. Vincent and the Grenadines, is exempt from taxes;
- Annual financial reports may not be filed;
- No specialized education requirements for employees.
All these advantages and the ability to trade forex without official permission have attracted many scammers to the island. As a result, the prestige of the jurisdiction went down. To remedy the situation, the FSA addressed the brokerage area closely, issuing a requirement called "The prohibition of forex in St. Vincent and the Grenadines. That's not exactly true.
Features of the new ban
The SVG regulator has required companies registered on the island to submit papers proving they have a license to trade forex in their jurisdiction. The papers must be submitted within 45 days after the FSA requirement was made public - until March 10.
The regulator mentioned that people dealing with a St. Vincent and the Grenadines forex broker must ensure it has all the necessary permits before entering into a contract. It includes a license issued by the jurisdiction's regulator where they trade (not registered). The regulator itself has once again emphasized that it does not give permission for forex activities.
Ban on existing companies: what's next
In fact, such a requirement showed that the FSA is interested in large brokers whose work is officially regulated in other jurisdictions. Such companies can easily submit copies of the necessary papers to the FSA.
But the brokers whose work is regulated only in the SVG are in a difficult situation. They need to get a permit in the jurisdiction where they operate, which is not always quick, easy, or inexpensive (e.g. the UK). Failure to do so can result in fines and additional penalties.
Where can you get a forex license quickly and without problems? Experts name the following jurisdictions:
- Seychelles Islands;
Getting a permit in Vanuatu is also possible, but the requirements there have recently become stricter. For example, it is required to have a local office equipped with all the tools necessary for brokerage work.
Brokerage company registration in SVG in 2023
Beginning in 2023, when registering an LLC, a broker must submit a certified copy of all required licenses and permits from the authorities of the jurisdictions where they plan to operate. If the required documents are not provided, the application for registration of the LLC will be rejected.
How to Get a Forex License Promptly in 2023
Contact IT-OFFSHORE experts to legally obtain a St. Vincent and the Grenadines 2023 forex license.