Some Aspects of Caribbean Offshore Banking Legislation
Physical
Banking
OFC
Description
Tax Benefit
Reserve
Capital
Banking
Presence/
Requirement
Requirement
Restriction
License Fee
International
NO income tax,
A Banking
Class 1- General
May engage in
Class 1-
Banking is the
capital gains tax,
corporation is
Banking License. No
generally
US$25,000
carrying on from
or other direct tax
not subject to
less than US$3
accepted banking
within Antigua and
may be levied
any reserve
million, of which
activity but shall
Class 2
Barbuda banking in
upon profits or
requirement
US$500,000 is
not knowingly
US$15,000.
any currency that is
capital gains.
(239)
deposited with
accept deposits
foreign in every
(272)
Antigua Financial
in legal tender of
International bank
Services Regulatory
any CARICOM
must own a
Commission (FSGC).
country. (240)
separate office,
country of the
Antigua
CARICOM region.
Tax exemption
(4-2)
shall continue for
open every day
a period of at least
Class 2-Has a
Monday to Friday,
50 years from the
restricted list of
with at least one
date of
customers approved
full-time
incorporation.
by FSGC. Holds no
employee.
(276)
less than US$500,000,
of which US$100,000
is deposited with
FSGC
(238)
Non-Resident
$25,000
Renewal- $25,000
Non-resident
Banks- can
Banks should
operate freely in
have have an
Capital adequacy
foreign currency,
office with
requirements do not
but need
electronic
apply to foreign
permission from
correspondence
banks.
the central bank
and file keeping
to conduct
capabilities. Some
business on
foreign branches
Bahamian dollar.
are given
Banking activity in
currencies other than
The
Bahamas
the currency of the
country in which the
bank accounts are
No direct tax on
NO reserve
capital gains,
requirement for
sales, or profits.
foreign banks.
held
exemption to
continue business
without a physical
presence.
Barbados
Off-shore Banking is
No income tax,
receiving or using
capital
Licensee must
Capital of the
maintain a
company must be
foreign funds for
gains tax or other
reserve fund and
banking activity (4)
direct tax or
must contribute
The licensee
No specific
shall not
amount quoted
US$500,000 if
knowingly
within the act.
controlled by local
accept any
A fee is impoed
impost shall be
25% of net
residents,
levied in
profits to
$2million if controlled
Barbados upon
reserves if
by foreign residents.
reserves are less
(22.1, 22.2)
the profits or
gains of a
licensee. (102.1)
than paid-up
deposits from, or
for the issuance of
accept as a
license or
customer of any
registration
of its services,
(109.2)
residents of
capital.
Barbados. (16.c)
(23.1)
Regressive tax
rate starting at
2.5% on profits up
to B$10 million,
down to 1% on
profit in excess of
B$30 million.
(106.1)
Must have a
physical Place of
Business with at
License B banks
The
Banking Business
No income,
Cayman
conducted with non-
capital gains, or
Islands
residents
corporation tax.
No reserve
requirement.
Capital adequacy ratio
of no less than 10%
(10.1)
shall not
undertake
banking business
with residents.
(6)
least two residents
to act as agents.
(6.2)
Category B
License
Application fee of
$70,000. Annual
Renewal fee of
$57,000
Must transfer to
Dominica
St. Kitts
and
Nevis
Offshore banking
No income tax ,
business is
capital gains tax,
exclusively in the
or other direct tax
currencies other than
may be levied
East Caribbean
upon profits or
Dollar. (2)
gains. (57.1)
Offshore bank
reserve fund not
Total paid up capital
written approval,
must have a
less than 25% of
together with is
offshore banks
representative
profit in cases
reserves of
shall not accept a
office (6a)
where the
accumulated net
resident of
reserve fund is
profits amount to no
Dominica as a
Annual License
less than the
less than US$1
customer for any
renewal of
issued paid up
million. 14 (2)
offshore banking
US$8,000
capital. 15(1)
services. (20.1d)
No income tax, or
Must keep a
Offshore banks
Must have a
will not
registered office
knowingly
and agent present,
accept deposits
and one director
or keep as a
who is resident.
customer of any
(5.2)
capital gains or
reserve fund not
“Offshore Banking”
other direct taxes ,
less than 25% of
is receiving foreign
no dividends tax
profit in cases
funds through
(88.1)
where the
normal banking
activity. 4(1)
Except with
reserve fund is
Tax on profits and
less than the
gains up to twenty
issued paid up
million, 1% on
capital. 23(1)
Capital of at least
US$2 million and paid
up capital must be
deposited and
maintained at the
ECCB. (22.1)
of its services a
resident of St.
Offshore banks
Kitts and Nevis
must have at least
profits exceed $30
(16.1)
million (91.1)
one who is a
citizen of St. Kitts
and Nevis
Banking license
fee Class 1
$25,000,
Class 2
US$15,000
A physical place
of business with at
least two
management
International
banking is banking
St. Lucia
business that does
not involve
accepting deposits or
holding claims on
May choose to be
exempt from taxes
No stated
or be subject to a
requirement
1% tax rate.
Class A- not less than
International
US$1million.
banks cannot
Class B US$250,000
accept deposits
in paid-up capital.
or issue loans to
11(b)
residents (2)
residents. (2)
employees. (8.1)
International Bank
License Annual
Fee
Class A
US$25,000
Class B
US$15,000
Cannot accept
Banking business
St.
Vincent
that does now
involve residents
2(1)
No income ,
capital, or other
direct taxes (20.1)
Class A- paid up
deposits from
capital of not less than
residents or
No stated
US$500,000
invest in any
requirement
Class B- paid up
asset that
capital of not less than
represents a
US$100,000 (10.a)
claim on any
resident. 2(b)
Class A- Annual
Fee US$10,000
Class B- Annual
Fee US$5,000
List of Local Commercial Banks (2009)
Barbados
The Bahamas (2005)
Jamaica
Trinidad & Tobago
Bank of Baroda (Trinidad and
BNS
Barbados National Bank
Bank of The Bahamas
Citibank
BNS Ja ltd
Tobago) Limited
First Caribbean International
Citibank (Trinidad and Tobago)
(Jamaica)
Limited
First Caribbean International
Butterfield Bank (Barbados)
Ltd.
Bank (Trinidad and Tobago)
Commonwealth Bank Ltd.
Citibank
Limited
(Barbados) ltd.
Fidelity Bank Bahamas Ltd.
National Commercial Banks
First Citizens Bank Limited
First Caribbean International
Finance Corporation of The
ltd. (Regional Head Office)
Bahamas Ltd.
First Global Bank
Intercommercial Bank Limited
First Caribbean International
First Caribbean International
RBTT Bank Jamaica
RBTT Bank (Barbados) Ltd.
Bank (Bahamas) Limited
Limited
RBC Royal Bank of Canada
BNS
Republic Bank Limited
Pan Caribbean Bank
Limited
RBTT Bank Limited
BNS of Trinidad and Tobago
Royal Bank of Canada
Dominican Republic
Haiti (2006)
Limited
Antigua & Barbuda
Dominica
ABI Bank Ltd
BNS
Banco de Reservas de la
Banque Nationale de Cr´edit
Republica Dominicana
(BNC)
Banco Popular Dominicano
(BPH)
Banco Dominicano del
Banque de l’Union Ha¨ıtienne
Progreso
(BUH)
Bank of Antigua Ltd.
Ltd.
Banco Multiple Leon
Capital Bank
BNS
Royal Bank of Canada
Banco Multiple Caribe
et Commerciale S.A.
Internacional
(Promobank)
Caribbean Union Bank Ltd.
Soci´et´e Cara´’ib´eenne de
First Caribbean International
Banco BHD
Banque S.A. (SOCABANK)
Bank (Barbados) Ltd.
Banco Multiple BDI
Socabel
RBTT Bank Caribbean Ltd.
Banque Populaire Ha¨ıtienne
First Caribbean International
Antigua Commercial Bank
Bank (Barbados) Ltd.
National Bank of Dominica
Banque de Promotion Industrielle
Soci´et´e G´en´erale Ha¨ıtienne de
Banco Multiple VIMENCA
Banque S.A. (SOGEBANK)
Banco Multiple Santa Cruz
Sogebel
Royal Bank of Canada
Banco Multiple Lopez de
Haro
Unibank
Citibank
Citibank
BNS
BNS
Grenada
St. Kitts & Nevis
BNS
Bank of Nevis Ltd.
St. Lucia
St. Vincent & the Grenadines
1st National Bank St. Lucia
Ltd.
BNS
First Caribbean International
First Caribbean International
Bank (Barbados) Ltd.
BNS
Grenada Co-orperative Bank
First Caribbean International
BNS
Ltd.
Bank (Barbados) Ltd.
Bank (Barbados) Ltd.
National Commercial Bank
Bank of St. Lucia Ltd.
Republic Bank (Grenada)
(SVG) Ltd.
First Caribbean International
Ltd.
RBTT ( St. Kitts) Bank
Bank (Barbados) Ltd.
RBTT Bank (Grenada)
Royal Bank of Canada
RBTT Bank Caribbean Ltd.
RBTT Bank Caribbean Ltd.
St. Kitts- Nevis-Anguilla National
Bank Ltd.
Royal Bank of Canada
Number of Offshore Business (2003)
Jurisdiction
Offshore Banks
International Business Companies
Anguilla
2
3,041
Antigua & Barbuda
15
13,500
Aruba
2
4,320
Bahamas
301
47,040
Barbados
56
4,673
Bermuda
N
13,337
British Virgin Islands
13
360,000
Cayman Islands
580
30,000
Dominica
1
8,601
Grenada
2
2,293
Montserrat
11
22
Netherland Antilles
39
18,750
St. Kitts and Nevis
1
13,800
St. Lucia
2
1,052
St. Vincent & the Grenadines
10
6,342
Turks and Caicos
8
13,952