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FINANCE
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To obtain an offshore banking license in Yap State, your financial institution must adhere to a well-defined set of requirements and processes. The Yap State offers a full-unrestricted Universal Banking License (Class B), which allows for extensive banking and investment services beyond its borders. This license enables operations in all major foreign currencies and covers a range of activities including fund administration, custodial services, trusteeship, international portfolio management, money market operations, and other treasury services.
Formation and Financial Planning
Establishing an offshore bank in Yap State is notably efficient due to minimal bureaucratic procedures. Begin by obtaining an International Business Company (IBC) through the Registrar of International Businesses. Following this, submit a detailed application to the Yap State authorities. While local offices and staff are not mandatory, having a local presence is recommended for operational effectiveness and can be arranged at a relatively low cost.
Required Financial Documentation
Your application must include a thorough business plan outlining the bank’s proposed financial activities, target investment markets, ownership structure, and detailed information on ultimate beneficial owners (UBOs). Required documents include CVs of all directors, complete contact details of directors and shareholders, bank references, certified passport copies, proof of addresses, legal documentation for shareholding entities, and recent audited financial statements. Additionally, a certificate confirming that UBOs do not have a criminal record is required.
Due Diligence and Compliance
Compliance with KYC and due diligence requirements involves submitting certified identification documents, proof of residential addresses, and original bank references for all key individuals. For corporate entities, provide certificates of incorporation, the latest audited financial statements, a certificate of good standing, and a certified board resolution authorizing transactions on behalf of the company. Due diligence fees, which are non-refundable if the application is not accepted, should be factored into your financial planning.
Ongoing Obligations
Once granted the license, the bank must submit annual financial accounts to Yap State authorities. Adhering to these financial reporting requirements and maintaining regulatory compliance is essential for the ongoing validity of the license.