Can I own a bank

Individuals who wish to own a bank are able to do so provided that they fulfill the necessary criteria outlined by the jurisdiction’s financial regulatory authority. It is imperative to conduct the necessary research and obtain the relevant type of banking license in order to legally engage in financial activity.

Bank formation procedure

The following is a step by step process of how to establish an offshore bank in your chosen jurisdiction.

  1. Select the preferred offshore location: whether you select the country based on the taxation or its privacy levels, it is important to establish your banking institution in a stable and reputable financial centre.
  2. Determine the type of banking license: once you have selected the location, the next step is to determine whether you want to obtain a class A or class B banking license. As a result, you can determine the type of clients your services will cater to. If you know your target market and your target market’s specific requirements, you will be in a position to offer a range of attractive services, depending on your specific allowance outlined within your license.
  3. Bank license application: complete your bank license application, together with the necessary documents that include the following:
  • Details of directors and shareholders
  • Minimum capital requirement
  • Business plan
  • Completed due diligence questionnaires
  • Signed indemnity forms
  • Evidence that you pass the Fit and Proper test

Once you have completed the above mentioned steps, the application can be filed to the financial regulatory body of the jurisdiction. The processing period of applications is dependent on the type of license and the specific regulations of the country; however it typically takes up to 4 weeks to process.