Friday, 30 July 2021
Banks in Dominica. Offshore accounts in Dominica
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Dominica's financial sector consists of three foreign commercial banks - Royal Bank of Nova Scotia, Royal Bank of Canada and First International Bank Karibian - and one state bank - National Bank of Dominica, as well as several offshore banks. Dominica is one of the nine members of the Eastern Caribbean Central Bank (ECCB). The Conservative policy of the bank, is to strengthen the Eastern Caribbean dollar to a much greater extent than is required by the basic agreement, led to the stability of the currency of the participating countries and made the Eastern Caribbean dollar is one of the strongest currencies in the region.

The Eastern Caribbean Central Bank

The Eastern Caribbean Central Bank (ECCB) was established in October 1983, this bank for a group of eight island economies: Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines. Appointment of ECCB is to maintain the stability of the Eastern Caribbean dollar and the integrity of the banking system with the aim of balanced growth and development of member states. Monetary policy is characterized by:

- The issuance of a single common currency, whose movement between member countries is not limited to;
- A common pool of foreign exchange reserves, and
- Existence of a Central Monetary Authority which decides on the Union's monetary policy.
The objectives of the Bank are:
- Regulate the availability of money and credit;
- To promote and maintain monetary stability;
- To promote credit and exchange conditions and a sound financial structure conducive to the balanced economic growth and development of territories of the Member States of the Union;
- Active economic development of territories of the Member States of the Union with measures that are consistent with other objectives of the Bank.

The governing bodies of the Eastern Caribbean Central Bank are the Monetary Council and Board of Directors. The Monetary Council - the supreme decision making body, composed of one minister from each government participating countries. Council is to provide guidelines and recommendations to the Bank on matters of monetary and credit policy. The Board of Directors consists of ten directors, the chairman and deputy chairman, and one director from each of the eight participating governments. The Board of Directors is responsible for policy and general administration of the Bank, while the chairman and chief executive officer responsible for operational management.

Traditional and offshore banking

A characteristic feature of the banking structure of Dominica is the fact that an applicant may receive both traditional and offshore license, but must operate and report on their activities separately in these areas. Coma, the offshore bank can provide loans to local entrepreneurs for the implementation of government projects that have received the approval of the Ministry of Finance, Industry and planners. In accordance with the Law of the Offshore Banking Act of 1996, the offshore license limited to the conduct of banking business exclusively in other currencies except for the Eastern Caribbean dallara. License holders are exempt from all taxes and liabilities in connection with their offshore activities in Dominica. Established in accordance with the Act trust companies are exempt from tax in Dominica Offshore Trust transactions carried out in Dominica.

The minimum required paid-up capital of the offshore bank must be one million dollars or the equivalent in convertible currency or in legkooborotnyh financial instruments, while the offshore bank, regulated by the Banking Act 1991 the above capital should be five million Eastern Caribbean dollars (1.85 million U.S. dollars). Licensed in accordance with the Act trust companies are either company, formed a special legislative decree or a company registered in accordance with the Regulations on the companies, and having a share capital of 250,000 dollars, of which 125 thousand dollars paid in cash. Annual License Fee is: a license for offshore banking - 48 000 dollars, the license for the traditional and offshore banking - $ 20 000, a license for a general trust business - 4 000, and a license for a limited trust business - $ 100 . In the year registering an annual license will be charged on a pro rata basis, depending on the month of licensing.

Control and financial sector regulation with hand Government

The Government has broad powers to interfere in the affairs of the licensee. Regulation and supervision of financial institutions are carried out:

1. Minister of Finance, who received a court order, has the right to initiate an investigation of a licensee (sometimes at the expense of the licensee) in order to establish the fact whether the establishment of stable financially and whether it is fulfilling the law. Magistrate may issue a warrant to search the company's premises, vehicles, ships and aircraft, and can produce a seizure of the records, cash and securities.


2. Secretary of Finance, which has the power to examine all records the license holder, cash and securities. In the presence of the Secretary of the suspicion of criminal activity, he has the right to warrant the magistrate read the names and positions of the depositor or the settlor, account name and the name of the trust and other necessary information. An individual, not complied with the government, subject to a fine of $ 5 000 and six months' imprisonment.


3. In the event the Attorney General may have violated the law, he can take steps to preserve the assets of the trust beneficiaries, depositors or creditors. If you need the Attorney General for information or assistance in order for mutual assistance or criminal investigations, the Attorney General has the right to notify the licensee to provide such information to a specific time.


Audited financial reports prepared in either English language or with the application a certified translation must be submitted to the Financial Secretary and published in "Offishial Gazette Dominica. For quarterly reports on the status of assets and liabilities imposed the same requirements in terms of language, such reports are also submitted to the Secretary of Finance.


Functioning financial agencies

NATIONAL BANK OF DOMINICA LTD. (NATIONAL BANK OF DOMINICA LTD.)
Royal Bank of CANADA (ROYAL BANK OF CANADA)
KARIBIAN First International Bank (FIRST CARIBBEAN INTERNATIONAL BANK)
BANK IA Nova Scotia (BANK OF NOVA SCOTIA)

 
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