What is the fit and proper test

A fit and proper test assesses your suitability in running an offshore bank or other financial institution. It is conducted to ensure that individuals are fully capable of running an offshore bank and have the necessary knowledge and information to successfully operate a banking institution.

Fit and proper test explained

The fit and proper test is a very important part of the licensing and registration stage, as without successfully passing a fit and proper test, you will not be able to complete the licensing and registration application stages.

The fit and proper test gives your clients the confidence that you are a fully regulated, compliant and knowledgeable financial institution and entirely suitable for owning and running your own bank. It is a necessary legal stage, without which you cannot proceed in the banking license application.

Upon passing the fit and proper test and thus obtaining the relevant license and registration documents, the banking regulatory authorities in place within your chosen jurisdiction will continue to monitor your fit and proper status. This is important because if your circumstances change and you no longer meet the requirements of their money laundering and other relevant regulations, your fit and proper test certificate may be revoked. This could result in you losing your banking license and thus having to close down your financial institution.

When seeking a banking license, individuals and companies are advised to seek the assistance of a professional consultancy firm. Through the advice and guidance of consultants, you can ensure you will attain the relevant license and complete any tests in a professional and timely manner.