What is a class A banking License

Individuals and companies that wish to establish an offshore bank are required to obtain the relevant banking license from their desired jurisdiction’s financial regulatory body. A class A banking license enables the bank or financial institution to conduct financial activity with offshore clients without any particular restrictions.

Class A banking license explained

A class A banking license allows the bank or financial institution to engage in banking activity with an unrestricted and undetermined list of clients offshore. The type of license a bank acquires determines the client base for the bank and who they will offer their services to. A class ‘A’ banking license will only allow the banking institution to offer their services offshore.

Individuals and companies who seek to set up an offshore bank are required to fulfill a number of requirements, including capital, shareholders and license. These requirements include a minimum amount of capital which varies from one jurisdiction to another. In addition, there are certain documents that need to be administered and filed with the official bank licensing application, including statutory declaration and CVs of the shareholders.

The process of obtaining the banking license is often complex and lengthy therefore it is advised to enlist the services of a professional consultancy firm. It is important to establish which type of license your specific banking institution needs to obtain in order to begin the process of acquiring it. Through obtaining the advice of knowledgeable consultants, individuals are able to ensure that they complete the bank licensing application in a professional and timely manner, as well as in compliance with the jurisdictional regulations.