Bank License: Offshore Bank License-
Licensing Requirements Cayman Islands
Bank License:
Full Bank in the Cayman Islands
(“A” Licence):
The Cayman Islands, in particular, is a worthwhile location for the
setting up of a bank with an
“A” licence. The share capital (initial capital) is just
CI$400,000.
The bank functions as a full bank in that sense and is allowed to offer
all banking services. It is subject to the supervision of the central
bank and the regulatory authority. First of all a public limited company
is set up in the Cayman Islands as a company of the bank. This public
limited company then applies to the regulatory authority (central bank/supervisory
authority for financial services, which is analogous to the
Banks and Trust Companies Law)
for admission as a bank. It is necessary to have an eligible business
establishment in the Cayman Islands. Even business premises with "teller
positions" may also be opened accordingly. Within the management area of
the bank two people are needed who have recognised training as bankers
and business experience in the banking business. A trust solution is not
possible. A law firm as an authorised agent may, in this sense, be
interposed, if necessary.
Otherwise it is a requirement that at least one
director of the bank has his usual residence in the Cayman Islands, that
is a house in his own name and who is present "for the sake of external
appearances" on the Cayman Islands for at least 51% of the year. We can
be of assistance with the search for accommodation on the Cayman Islands
incl. taking care of visa matters in return for a corresponding legal
fee. The same applies to the appropriate registered office of the
business, that is the renting of an office. We are also in a position to
make suitable people available whose usual residence is in the Cayman
Islands as directors or to search for suitable people through
appropriate job advertisements and job interviews.
Obtaining authorisation takes
approx. 6 months. The fees depend on the services. We can create an
Internet presence for the bank with online banking software. We can
arrange a suitable provider for this. In the case of the "appearance" of
the bank in Germany (representation or branch office) the provisions of
German Banking Law must be observed, in this case §53 a//FF. If the bank
is intended to function purely as an online bank, we have solutions with
regard to the skilled operation of the business. If the Cayman Island
Bank is intended to appear in other countries in the form of a
representative office or branch office, the corresponding banking laws
of the countries must be observed.
Within the “A” licence area a distinction is made
between banks which transact business in and outwith the Cayman Islands
and banks which only carry out "offshore" business operations.
Bank License:
Advantages of a Full Bank in the Cayman Islands:
-small amount of start-up capital
-no taxation, even banks do not
pay any taxes
-protection of assets
-anonymity
-legal security
Bank License:
Possible Disadvantages:
-relatively high annual state
fees, between 160,000 and 400,000 USD. However, as a counter to this,
there are no taxes
-POSSIBLY rather expensive to arrange within the
context of the usual residence of the two directors, but this can be
resolved.
Bank License:
Fees
The fees are made up as follows:
-state fees to the Cayman Islands
-ETC legal fees and a lawyer in the Cayman Islands
-fees for the authorisation
process, business plan etc.
You should expect to pay at least 49,000 euros for
these items.
-fees to a firm of auditors,
e.g. Moodys
-a proper registered office in the Cayman Iands
(office)
-POSSIBLY accommodation for directors, visa matters
etc.
