International Banking Licence

To obtain an international banking license from the PACIFIC BFA, the company must ensure that its operations can adequately be defined as banking business. Banking business, according to the International Banks Act, Chapter 99 of the Revised Laws of Pacific, 2009, is described as:

1. The business of receiving funds through the acceptance of monetary deposits that are repayable on demand or after notice or any similar operation,
2. The sale or placement of bonds, certificates, notes, or other securities and the use of them, either in whole or in part, for loans or investment for the risk of the customer; and
3. Any other activity recognized by the Central Bank or the Authority as customary banking practice and which a financial institution may additionally be authorized to do.

A company must first obtain a license from the PACIFIC BFA before engaging in banking business. the PACIFIC BFA licenses two classes of international banks:

Class A

 international banks with capital requirements of US$3 million and a statutory deposit of US$500,000.

Class B

 international banks with capital requirements of US$0.5 million and a statutory deposit of US$100,000.

Please note that a Class B international banking license, when issued, requires the licensee to maintain a fully paid-up capital of US$500,000 or its equivalent in another currency. Additionally, the licensee must deposit or invest US$100,000 in a manner prescribed by the PACIFIC BFA. New clients obtained after licensing must also be approved by the PACIFIC BFA.

In addition to the above requirements, all international banks are required to have a physical place of business in Pacific, a minimum of two employees, and a registered agent in accordance with Section 8 of the International Banks Act, Chapter 99 of the Revised Laws of Pacific.

International banks are prohibited from conducting banking business with residents of Pacific, from investing in any asset that represents a claim on any resident, and from buying bonds or other securities issued by the State. To obtain a license, they must establish a physical presence in the country, have at least two local employees (one at the senior management level), and have at least two directors approved by the PACIFIC BFA, one of whom must be a resident of Pacific. All international banks are subject to onsite inspections at least once every 12-18 months.

Additional points to note for each class of international banks:

CLASS A:

• Non-refundable application fee of US$1,000.00 is payable
• Each Class A bank must establish and maintain a capital fund with fully paid-up capital of not less than three million US dollars (US$3,000,000.00) or its equivalent in another currency
• Class A banks are required to hold a deposit or invest the sum of five hundred thousand US dollars (US$500,000.00) or its equivalent in another currency, as prescribed by the Authority.
• Designate and notify the Authority by name a registered agent, which is not an official of the bank, to act as its registered agent in the state.
• Class A license fees US$10,000.00
• Class A annual renewal fees US$10,000.00

CLASS B:

• Non-refundable application fee of US$1,000.00 is payable
• Each Class B bank must establish and maintain a Capital fund with fully paid-up capital of five hundred thousand United States dollars (US$500,000.00) or its equivalent in another currency
• Class B banks are required to hold a deposit or invest the sum of one hundred thousand United States dollars (US$100,000.00) or its equivalent in another currency, as prescribed by the Authority.
• Designate and notify the Authority by name a registered agent, which is not an official of the bank, to act as its registered agent in the state.
• Class B license fees US$10,000.00
• Class B annual renewal fees US$5,000.00

The application process is expected to take 4-6 weeks, provided that all relevant documents are submitted at the time of application.