Provision of Financial Services – Formation of a Bank – Bank License

Formation of a Bank – Bank License -Offshore Bank License

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Provision of Financial Services – Formation of a Bank – Bank License – Asset management company

Bank License – Asset management company

Our Law Firm incorporates banks, financial services institutes in the EEC (Germany, Switzerland and Liechtenstein), USA and Offshore (Cayman Islands, Belize and St. Vincent). Further we set up New Zealand financial services institutes with licence to operate bank business (OFC). For a SWIFT connection you always need an A-licence-bank.

On your request we can offer a broad list of services needed to set up a bank with SWIFT:

Incorporation of the company of the bank
Apply for admission to hold an A-licence
Setup of a place of business at the jurisdiction of your bank
Recruiting of fit & proper personnel for the management of the bank according to international banking law
Connecting to a rating agency (Rating, Basel II), e.g. Moodys, S&P
Connection to Society for Worldwide Interbank Financial Telecommunication (SWIFT, appointments at SWIFT), Swift-Code and IBAN
Connection to deposit guarantee fund
Banking Law (general terms and conditions of the bank, credit agreements, due diligence, compliance, etc.)
Representative offices or branches in other countries
Tax planning and routing of dividends e.g. by setting up a holding

The licensing prerequisites differ greatly from country to country, in particular with regard to required capital stock of the bank and/or asset management company. The basis is, as a rule, the installation of a stock corporation according the respective laws of the country in which the company is registered, in addition the installation of an ordinary company seat in the country in which the company is registered. This stock corporation applies for a financial service provider and/or bank license. An excellent alternative can be a New Zealand Bank. A New Zealand Online Bank (correct term: New Zealand financial service provider with a banking license) both private persons and companies can offer bank services via the Internet without any restriction on customer numbers, deposit amounts or the number of currencies.

The fees for the foundation of a bank and/or asset management company are based on the country in which the entity is registered and the type of services. To learn more please refer to the individual web pages.

Tax Structure

In addition, in the formation of a bank or asset management company tax structuring plays an important role. We take over tax structuring within the scope of the „affiliated companies“, for example foreign parent company and domestic subsidiary, formation of a foreign holding to collect domestic dividends exempt from taxes and many more.

The Correspondent Bank (Correspondent Bank Account)

We are the only provider in Europe to provide a connection to correspondent banks in Liechtenstein, Switzerland, Singapore or UAE.

Banking Software Online Banking

We offer our clients NexorOne online banking software for example: within the scope of the formation of a New Zealand financial services provider company with a license for banking services, installation of an asset management company and/or Swedish Credit Union. The full version of the software provides complete online banking services, it is however only available in English.

-Bank License USA and Switzerland:

License fees, attorney fees: approx. 150,000.00 Euro/ USD

Capital Stock: approx. 5 Mil USD/CHF, depending on the country in which the company is registered. USA: 10 Mil. USD at the FED.

The formation of a US INC and/or Swiss AG as the bank company with the capital stock of the bank is required.

The directors/general manager must have an education in banking (for example: banker) and experience in the management of a bank. A nominee director is not possible, accordingly the client would have to move his principal residence to the country in which the company is registered and/or hire a Director who resides in the country in which the company is registered. Further license requirements are similar to those in Germany, this includes among other things a viable business plan, profit and loss calculation for the first three years, General Terms and Conditions of the bank according to the statutory provisions, becoming a member of the investment guarantee funds, required insurances etc.

In addition to the basic foundation and license fees, the following costs can also be relevant:

Preparation of the General Terms and Conditions (T&Cs), agreements between customers and bank, credit agreements
Homepage of the bank, Online-Banking-System
SWIFT Code, IBAN, international payment transactions, electronic communication channels and interfaces
Connection to credit card providers, Visa-MasterCard etc.

-Securities Brokerage Bank/Investment Bank/ Full Service Bank Germany:

The basis is the German Banking Act Section 32 Article. 1 et seqq. [KWG, German Banking Act]. We accompany our clients from conception to the licensing of the bank (Federal Financial Supervisory Authority, Bafin). The fees are based on the „type of financial services“ and the required services we provide. Accordingly we provide the formation of „the company of the bank“, as a rule a German AG [Inc.], the provision of banking software and „tax optimization“ measures.

In addition to the basic foundation and license fees, the following costs can also be relevant:

Preparation of the General Terms and Conditions (T&Cs), agreements between customers and bank, credit agreements
Homepage of the bank, Online-Banking-System
SWIFT Code, IBAN, international payment transactions, electronic communication channels and interfaces
Connection to credit card providers, Visa-MasterCard etc.

-Financial Service Panama:

We offer you the company form of a Panama S.A. with a license to collect and administer (invest) customer assets.
With this servicewe make it possible for you to offer classic asset management or financial services without banking hours and teller’s windows, with all licenses for trustee management of client moneys.

-Swiss Credit Union:

A Swedish Credit Union can legally offer services in the EU, which can normally only be offered by fully licensed banks, such as accepting deposits, making loans, etc., as long as these services are provided exclusively to members of the Credit Union. A potential customer can become a member automatically, if he/she wants to open an account, applies for a loan or take advantage of any other service provided by the Credit Union. However the legal situation has changed in Sweden due to EU level provisions: Members of a Swedish Credit Union must now belong to one specific profession / group of professions and may only be natural persons.

-New Zealand Financial Service Company with Bank Services License

A New Zealand financial services company with license for bank services can offer services to private persons and companies globally without restrictions on the number of clients, the deposit amounts or the number of currencies. However the laws of countries, in particular the German Banking Act [Kreditwesengesetz (KWG)], must be observed under this constellation.

The New Zealand Bank can provide almost all services, which can be offered by banks with A License, however the word „Bank“ may not be apart of the name. The service activities of a financial company are as follows, but are not restricted to the same:

Deposits and Loans
Debit Cards and Credit Cards Services
Issuance of Financial Guarantees and Financial Instruments
Service in the Area of Cash Management
Bank Accounts
Check Accounts
Saving Accounts
Time Deposit Account
Issuance of CDs
Bank Transfers
Payment Processing
Fund Management
Investment Marketing

The company is not subject to the provisions regarding the creation of capital reserves. Directors and shareholders can have any nationality their residence can be in any country.

–Offshore-Banks Belize and Cayman Islands

Offshore Bank Cayman Islands

The Cayman Islands, in particular, is a worthwhile location for the setting up of a bank with an “A” licence. The share capital (initial capital) is just CI$400,000. The bank functions as a full bank in that sense and is allowed to offer all banking services. It is subject to the supervision of the central bank and the regulatory authority. First of all a public limited company is set up in the Cayman Islands as a company of the bank. This public limited company then applies to the regulatory authority (central bank/supervisory authority for financial services, which is analogous to the Banks and Trust Companies Law) for admission as a bank. It is necessary to have an eligible business establishment in the Cayman Islands. Even business premises with „teller positions“ may also be opened accordingly. Within the management area of the bank two people are needed who have recognised training as bankers and business experience in the banking business. A trust solution is not possible. A law firm as an authorised agent may, in this sense, be interposed, if necessary.

Otherwise it is a requirement that at least one director of the bank has his usual residence in the Cayman Islands, that is a house in his own name and who is present „for the sake of external appearances“ on the Cayman Islands for at least 51% of the year. We can be of assistance with the search for accommodation on the Cayman Islands incl. taking care of visa matters in return for a corresponding legal fee. The same applies to the appropriate registered office of the business, that is the renting of an office. We are also in a position to make suitable people available whose usual residence is in the Cayman Islands as directors or to search for suitable people through appropriate job advertisements and job interviews.

Obtaining authorisation takes approx. 6 months. The fees depend on the services. We can create an Internet presence for the bank with online banking software. We can arrange a suitable provider for this. In the case of the „appearance“ of the bank in Germany (representation or branch office) the provisions of German Banking Law must be observed, in this case §53 a//FF. If the bank is intended to function purely as an online bank, we have solutions with regard to the skilled operation of the business. If the Cayman Island Bank is intended to appear in other countries in the form of a representative office or branch office, the corresponding banking laws of the countries must be observed.

Within the “A” licence area a distinction is made between banks which transact business in and outwith the Cayman Islands and banks which only carry out „offshore“ business operations.

Offshore Bank Formation Belize

We can realize bank formation (A-License) in Belize by means of our cooperation law firm in Belize. Information can be requested from the competent government agencies / central bank:

BELIZE

Central Bank of Belize
http://www.centralbank.org.bz/

Attorney General Ministry
http://www.belizelaw.org/

In this case a stock corporation with a place of business in Belize is formed as the company of the bank. The formation fees are based on the services, they amount to approx. 70,000.00 Euro plus government fees. Upon request we can provide full services in collaboration with the cooperation law firm located in the country in which the company is registered:

Formation of the company, entry into the commercial registry, domiciliation, opening of a bank account
Bank license application, submission of all applications to the competent authorities, direct communication with the competent government agencies
Homepage of the Bank
Online Banking Software
Pre-selection of suitable offices space
Visa application, residence permit

Our Law Firm incorporates banks, financial services institutes in the EEC (Germany, Switzerland and Liechtenstein), USA and Offshore (Cayman Islands, Belize and St. Vincent). Further we set up New Zealand financial services institutes with licence to operate bank business (OFC).

ETC Law Firm: Incorporation of the company of the bank, Apply for admission to hold an A-licence, Setup of a place of business at the jurisdiction of your bank, Recruiting of fit & proper personnel for the management of the bank according to international banking law, Connecting to a rating agency (Rating, Basel II), e.g. Moodys…

S&P, Connection to Society for Worldwide Interbank Financial Telecommunication (SWIFT, appointments at SWIFT), Swift-Code and IBAN, Connection to deposit guarantee fund, Banking Law (general terms and conditions of the bank, credit agreements, due diligence, compliance, etc.