Dominica Offshore Bank Account

Learn about the Dominica banking system and opening a Dominica offshore bank account. You will find details on the laws and regulations that govern the Dominica banking system, as well as on the Government Supervision and Regulation of the Financial Sector.

Select from the account types listed below to open a Dominica offshore bank account:

Personal Dominica Bank Account

Corporate Dominica Bank Account

Investment Dominica Bank Account

For more information on Dominica offshore banking and bank account opening, Contact Us today via our online form.

The Dominica Banking System

The financial sector in Dominica consists of three foreign commercial banks, Royal Bank of Nova Scotia, Royal Bank of Canada, First Caribbean International Bank, and one publicly owned national bank, the National Bank of Dominica, and several Dominica offshore banks.

Dominica is one of nine members of the Eastern Caribbean Central Bank (ECCB). Its conservative policy of building up exchange cover for the Eastern Caribbean dollar to a much greater extent than required by its basic Agreement has led to monetary stability for member countries and made the EC dollar one of the strongest currencies in the region.

Eastern Caribbean Central Bank

The Eastern Caribbean Central Bank (ECCB) was established in October 1983. It is the Monetary Authority for a group of eight island economies namely – Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines. The mission of ECCB is to maintain the stability of the EC dollar and the integrity of the banking system in order to facilitate the balanced growth and development of member states. The monetary arrangements are characterized by:

- the issuance of a single common currency, the flow of which is unrestricted among its members.
- a common pool of foreign exchange reserves; and
- the existence of a Central Monetary Authority which decides on the Union’s monetary policy.

The purposes of the Bank are:

- to 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 growth and development of the economies of the territories of the Participating Governments;
- to actively promote through means consistent with its other objectives the economic development of the territories of the Participating Governments.

The governing bodies of the Eastern Caribbean Central Bank are the Monetary Council and the Board of Directors. The Monetary Council is the highest decision making authority. It is comprised of one Minister appointed by each Government of the participating countries. The function of the Council is to provide directives and guidelines on matters of monetary and credit policy to the Bank. The Board of Directors is comprised of ten Directors – the Governor and Deputy Governor, and one Director appointed by each Government of the eight participating countries. The Board of Directors is responsible for policy and general administration of the Bank, while the Governor, the Chief Executive, is responsible for the day-to-day management and operations.

Onshore and Offshore Banking

An unusual feature of Dominica’s banking structure is that an applicant may obtain both an onshore and offshore license but must operate and report on them separately. In addition, an offshore bank can provide loan financing to local entrepreneurs for earmarked projects approved on a case-by-case basis with the Ministry of Finance, Industry and Planning. Under the Offshore Banking Act of 1996 amended in 1997, offshore licensees are limited to conducting banking business exclusively in currencies other than East Caribbean dollars. Licensees are exempt from all taxes and duties connected with their offshore banking business in Dominica. Trust companies formed under the act are exempt from Dominican taxation on offshore trust business carried on from within Dominica.

Minimum required paid-up capital for an offshore bank is $1,000,000 or its equivalent in convertible currency or in readily negotiable instruments, while for an onshore bank regulated by the Banking Act of 1991, it is 5,000,000 East Caribbean dollars ($1,850,000). Trust companies licensed under the Act are either a company incorporated by special Act or a company registered under the Companies Ordinance having share capital of $250,000, of which $125,000 has been paid up in cash. Annual license fees are as follows: offshore banking license, $48,000; onshore/offshore banking, $20,000; general trust, $4,000; and restricted trust, $100. In the year of incorporation, the annual license is charged on a prorated basis depending upon the month in which the license is issued.

Government Supervision and Regulation of the Financial Sector

The Government has considerable power to intervene in a licensee’s affairs. Regulation and supervision of financial institutions is carried out by:

1. The Minister of Finance, who after obtaining a Court order, has the right to initiate examination of a licensee (sometimes at the licensee’s expense) to determine whether the institution is financially sound and complying with the Act. A Magistrate may grant a search warrant authorizing inspection of the company’s premises, vehicles, vessels and aircraft and may authorize seizure of records, cash and securities.

2. The Financial Secretary, who is empowered to examine all of a licensee’s records, cash and securities. Should he suspect criminal activity, upon an order of the Magistrate he may obtain the name and title of a depositor or settlor’s account, name and title of a trust, and other necessary information. An individual who fails to comply with Government requests is subject to a $5,000 fine and six months imprisonment.

3. The Attorney General, if suspicious that an offense against the act has been or is being committed, may take action to preserve assets of trust beneficiaries, depositors, or creditors. Should the Attorney General be asked for information or assistance in connection mutual assistance or criminal matters, the Attorney General has the right to give a licensee notice to furnish the information by a stated time.

Audited financial statements, either composed in English or accompanied by a certified translation, must be submitted to the Financial Secretary and published in the Dominica Official Gazette. Quarterly reports of assets and liabilities meeting similar language requirements must also be filed with the Financial Secretary.

Banking Institutions Operating

NATIONAL BANK OF DOMINICA LTD.
ROYAL BANK OF CANADA
FIRST CARIBBEAN INTERNATIONAL BANK
SCOTIA BANK

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