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The following information will provide an overview of the jurisdiction, offshore banking, and the application process for a banking license in St. Vincent & the Grenadines.
COUNTRY & JURISDICTION
St. Vincent and the Grenadines (SVG) is an independent island nation located 90 miles west of Barbados. The country gained independence from Great Britain in 1979 and the country’s legal and political systems are modeled after the British systems. In addition, St. Vincent is a member of the British Commonwealth and the United Nations. The official language is English.
St. Vincent’s history as an offshore center dates back to 1976, but the need for modern, updated legislation led to the introduction of a new body of offshore laws in 1996. Included in the new body of legislation was a revised banking act, The International Banks Act, 1996.
Under the new banking act there are:
No corporation tax, no income tax, no withholding tax, no capital gains tax
No stamp duties of any kind on any transaction
No estate, inheritance, succession duties
Subject to proper due diligence, two types of banking licenses can be issued in St. Vincent and the Grenadines:
1. Class I banking license which allows offshore banking in general
2. Class II banking license which allows offshore banking with non- Resident persons named or groups specifically described in a written undertaking attached to the application. Basically, this license only allows for banking activities with a list of clients submitted at the time of application for the license.
CLASS I BANK LICENSE:
Capital Requirements
A minimum paid up capital* is required in the amount of US$ 1,000,000 or its equivalent in another currency. Of this paid up capital, US$500,000 or its equivalent in another currency must be invested or deposited in a manner prescribed by the International Financial Services Authority of St. Vincent. These funds are placed in interest bearing certificates at the National Commercial Bank of St. Vincent & the Grenadines.
Summary:
US$1,000,000 minimum capital requirement
US$500,000 of the required capital to be invested in interest bearing certificates in St. Vincent & the Grenadines
CLASS II BANK LICENSE
A minimum paid up capital* is required in the amount of US$500,000 or its equivalent in another currency. Of this paid up capital, US$50,000 or its equivalent in another currency must be invested or deposited in a manner prescribed by the International Financial Services Authority of St. Vincent.
Summary:
US$500,000 minimum capital requirement
US$50,000 of the required capital to be invested in interest bearing certificates in St. Vincent & the Grenadines
*The International Financial Services Authority may require a licensee to increase its fully paid-up capital to such greater amount as it may determine to be reasonable for the nature of offshore banking business being, or sought to be undertaken
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