The aim of the ‘fit and proper test’ is to prevent unsuitable people from running a bank. All jurisdictions regulate banks and issue banking licenses have designated regulatory body that carries out these tests as part of the registration and bank licensing process.
Once regulatory authorities receive the application for a test they will carry out various checks to make sure the information that was provided by the applicant is correct. They will check the applicant’s information against their own records and against records kept by other regulatory authorities, government and law enforcement agencies and commercial organizations.
The fit and proper test is an important part of the registration and bank licensing process. Failure to pass such tests by the key personnel of the banking license applicant may result in declining of bank license application. Even if you pass the fit and proper test successfully, banking regulatory authorities will continue to monitor your fit and proper status in case your circumstances change and you no longer meet the requirements of their money laundering and other relevant regulations.
The Starting Business team can provide international and offshore bank guidance and advice on what shall be required in order to pass the ‘fit and proper test’ successfully in all major jurisdictions that regulate banks and issue banking licenses.
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