BELIZE

OFFSHORE BANK FORMATION
INCORPORATION AND REGISTRATION
PROCEDURES

 

OFFSHORE BANKING LICENSES
OFFSHORE BANKING ACT OF 1996
As Belize’s benchmark reputation for integrity has grown and its underlying infrastructure of innovative, integrated network of professionals and legal system have expanded in tandem with each stage of its growth, the offshore banking legislation became effective with the enactment of the Banks and Financial Institutions Act of 1995 and the introduction of the Offshore Banking Act of 1996.

In an additional move designed to attract international banks to relocate to Belize, the Money Laundering Prevention (Act) of 1996 led to the introduction of a “know-your-client” rule and made it known to the worldwide financial community that Belize was taking a stand against international money laundering. The government’s consistent refusal to enter into treaties that would lead to information exchange on banking and fiscal matters has further enhanced Belize’s commitment to its status as a reputable offshore banking centre with the necessary laws and infrastructure that are designed to ensure privacy and protect one’s assets.

An applicant for an offshore banking license can be either an International Business Company (IBC) from Belize or a local company registered in Belize. The offshore banking license application process begins with an initial introductory meeting with the Central Bank of Belize that is followed by a second pre-filing meeting that enables the application to be reviewed by the Central Bank and the Belize government. To facilitate the application process, a local representative agent along with the bank’s principal officers, are required to attend the initial introductory meeting with the Central Bank of Belize. It is mandatory that the bank principals (officers and directors) be qualified and experienced in international banking business and be of suitable character and financial status. The application should be as complete as possible and submitted with substantial documentary support for the application. The entire application process can take anywhere from six months to one year to be completed.

After the approval for bank licensing is granted, the license remains valid for an unlimited period of time and enables the establishment of an office in Belize to commence operations in foreign currencies, securities and assets exclusively for any person not resident in Belize.

The prerequisite for anyone wanting to establish a private offshore bank in the Belize jurisdiction would have to be its state-of-the-art communication facilities that include access to international air travel in a convenient gateway between the Americas, an efficient mail service, a reliable telecommunication systems that is supported by excellent bandwidths, a suitable time zone and an English speaking population; all factors which contribute to the feasible conducting of international banking from within Belize.

Offshore banks fulfil many inter-group treasury and management functions and are often effective as part of the overall banking mechanism for international restructuring and corporate financing. The utilization of Belize as a low tax base and as a conduit for funds to pass through an offshore bank can result in the achievement of two-fold benefits i.e. (i) meeting the need for capital expenditure in a high tax jurisdiction in a form which does not give rise to tax as the funds cross frontiers and (ii) to enable the further extraction of subsequent profits in the form of dividends and interest. There are also exchange control benefits to be achieved and registered offshore banks in Belize are exempt from all forms of taxation or stamp duty on its Bills of Exchange, promissory notes, financial instruments or upon any profits or gains, interest or dividends that are earned during its ongoing banking business.

TYPES OF BANK LICENSES
Essentially, two types of offshore banking licenses are available in Belize. An “A’ class banking license allows you to transact offshore banking business without any type of restrictions. The minimum capital requirement for a Class “A” bank is US$3,000,000. The annual licensing fee for a Class “A” License is US$20,000.

Class “B” banking licenses are allowed to establish, maintain and operate a business office in Belize with certain restrictions that include being prohibited from issuing a check book to any depositor nor is it allowed to provide any current deposit or checking facilities for the transaction of offshore banking business. The minimum capital requirement for a Class “B” bank is US$500,000. The annual licensing fee for a Class “B” License is US$15,000.

Our Firm has served as the representative processing agent for several offshore banking licenses in Belize and is well placed to take you through all the stages necessary to ensure that your application for either a Class A or Class B offshore bank is successful.

Our representative services start with the consultation and vetting process and continue through to the completion of your bank’s local office set-up and the establishment of operations that include the facilitation of local management and administrative staffing and the necessary back-office support services.

 

 

REQUIREMENTS FOR
OFFSHORE BANKING LICENSE IN BELIZE

DOCUMENTS REQUIRED
Application for Offshore Banking License
Unrestricted 'A' Class; or
Restricted 'B' Class
Biographical Data of Directors and Officers
Financial Report of Directors and Officers
Two Character Reference for each Director and Officer
Police Report from state or country where lived last 3-5 yrs for each Director and officer
Letter of Recommendation from Banking Institution for each Director and Officer
Audited Reports of prior three years of the present Company
Application for Local Corporation for preliminary work and for submission
Application for International Business Company (optional)
Business Plan

OTHER REQUIREMENTS
Minimum Capital Requirement for Class A: not less than US$3,000,000
Minimum Capital Requirement for Class B: not less than US$1,000,000 encumbered
For both Class A and Class B, a Physical Office is required in Belize
Financial Statements are to be audited and physically verified by Officers of the Central Bank and International Auditors
A minimum of five Directors is required
Resume of proposed CEO and Directors
The CEO and minimum one Director must be qualified and experienced in Banking, International and Offshore Banking.
A Local Representative, Spokesperson will be required
You will also need a Local Attorney and CPA with Offshore Business experience (we have associates who can provide this service)

PROCEDURE
The procedure for establishing an offshore bank in Belize takes place in four basic steps:

Introductory Meeting 1 month
Interested parties can be introduced to the Manager of the Supervision Department of the Central Bank at which time they will receive the application package
Pre-Filing Meeting

This is to clarify any points not understood and also to name a spokesperson who will represent you in all further contacts with the Central Bank.

Application Acceptance and Processing 2 months
The application form along with all support documents is processed upon receipt. You will also be required to provide the following information: type of banking business to be provided, corporate information, detailed business plan with financial projections and historical and pro-forma financial statement.

The non-refundable application fee will be due at this time

The Central Bank reviews the application to ensure that all sections are completed. If it is incomplete, the spokesperson will be notified to submit any additions or corrections before the application is accepted. Failure to do this will delay the process. 2-3 months

After acceptance, a thorough analysis is conducted. First:
Due Diligence is carried out.

Second: if the due diligence is satisfactory, the decision to recommend approval is based on the prospects for success of the proposed bank.

Organization of the New Bank 2-3 months
If approval is granted by the Minister, you are expected to proceed with organizing the new bank and abiding by all the relevant laws and regulations and conditions stated with the Minister's approval.

Total Estimated Time for Processing and Completing Application
7-9 months

FEES TO THE GOVERNMENT
Application fee of US$500 (Non-refundable)
Annual License Fee for:
Unrestricted A Class: US$20,000
Restricted B Class: US$15,000

REPRESENTATION SERVICES
Some of our Services will include the following:

Introduction and making appointments with officers of the Central Bank and Government Ministers and Officials where necessary
Preparing and Filing of the Application
Preparation of Local and International Business Company
Liaison with Central Bank and Government Officials in obtaining approval of a Belize Offshore Banking License
Work with Central Bank Officials on Terms and Conditions of License
Working on a Business Plan together with the proposed CEO and Directors
Working with Offshore Attorney and CPA on legal issues and audit of accounts
Local Director Services are also available

INCORPORATION AND REGISTRATION FEES
Our Company fee structure for acting as a local representative agent in Belize is as follows:

Consultation Fee (application and vetting process)	Euro 17,500.00
Agent Fee	Euro 20,000.00

Government/Registration Fees:

Unrestricted “A: Class offshore bank license	US$20,000.00
Restricted “B” Class offshore bank license	US$15,000.00
Courier Fees	Euro 75.00

Inclusions:
Out of pocket costs including telephone, fax, e-mail, photocopy, courier, secretarial and accounting services and office supplies will also be billed monthly.

A Separate Retainer will be required for additional services from Attorney, CPA and disbursements for the proposed Offshore Bank Application.

An Account can be set up at a local bank in the name of the proposed Company to take care of local payments.

For any further questions or matter you may discuss with us, please do not hesitate to contact us with your relevant questions.