Antigua & Barbuda, License, Privacy, Confidentiality

by Mariska Clark on March 25, 2009

In general the offshore banking Antigua & Barbuda can be characterized as being a small one. Offshore banking units in Antigua and Barbuda may be legally created under the International Business Corporations Act of 1982 (hereinafter IBC Act). Any entity wishing to conduct offshore banking Antigua & Barbuda activity needs to be incorporated under the IBC Act. According to the IBC Act only any 2 citizens of Antigua and Barbuda who reside in the country can apply for incorporation.

Offshore banking unit operate as corporations licensed to carry out banking business. There is a minimum capital level requirement and a state fee for the license which authorizes to carry on offshore banking activities. The legal minimum capital level which has to be maintained constitutes US $ 5 million dollars. Of this amount, US $1.5 million must be deposited and kept in a bank which is licensed in Antigua. In addition, when applying for a license which authorizes offshore Offshore Banking Antigua & Barbudabanking services there must be included information on shareholding, shareholders, directors, and officers with satisfactory proof that the latter have necessary and relevant education and accordingly experience. Moreover, at least one of the directors must be a citizen and resident of Antigua and Barbuda. The applicant has to provide financial information as well.

Offshore banks are regulated by the Supervisor of Banking and Trust Corporations and the Ministry of Finance. In addition, offshore banks must submit quarterly i.e. one per 3 months financial returns. Also an annual audit must be submitted to the Inspector of Banks in the Ministry of Finance. The last one has the ability to carry out inspections.

Referring to the tax privileges for the offshore banking units in Antigua and Barbuda it has to be mentioned that they are granted 50 years exemption from tax on profits. Also there is no income, capital gain, or other wealth taxes on individuals.

The IBC Act provides for strong confidentiality provisions. Thus, any customer information disclosure by an offshore banking unit is possible only in the circumstances related to an allegation of a criminal offence which is triable under the penal laws of Antigua and Barbuda or would be triable if it would have been committed under its jurisdiction. In other words, the customer of an offshore bank in Antigua and Barbuda does not have to bother with offshore banking privacy. His or her banking information is fully confidential unless it can be established by a court or any other competent authority that a criminal act has been committed.

Comments on this entry are closed.

Previous post:

Next post: