How to obtain an offshore banking license

How to obtain an offshore banking license?

Offshore banking licenses are becoming increasingly popular these days. Not only traditional corporations, small firms and big companies, but also the wealthy individuals are seeking to use the advantage of offshore banking establishments because there are less stringent requirements for issuance of offshore banking licenses. This feature allows you to increase business opportunities at minimum costs.

There are a number of offshore service providers that mainly have expertise in setting up offshore, international and restricted license banks. Setting up an offshore bank may require relatively low capital investment but the banking regulators in every jurisdiction are very strict to ensure only viable banks with serious and professional management do function. A small offshore bank license will basically require $1million to $7 million capital investment. You also need to have a good understanding of many jurisdictions before applying for license to get a desired outcome. Each jurisdiction specializes in different types of international banking licenses and has its own requirements.

Offshore banking licenses are generally categorized into two classes: Class A- This class of banks are typically full scale international banks that are licensed to take deposits and do business with any client from anywhere across the world. These types of banks act as any other bank entity. They are established with a view of providing commercial banking services in an offshore regime.

Class B- This class is generally identified as restricted license offshore banks. These banks are licensed to do business only with named individuals, companies or groups. In most of the cases, the bank cannot accept deposits from public and it can deliver its services only to those entities that are listed in bank license. These are established for internal company operations or for private wealth management. One can easily get the license to open these types of banks in contrast to full license banks. However, if you have maintained a good track record, it could be relatively easy for you to apply and upgrade to a full unrestricted offshore banking license.

In most cases, the countries or jurisdictions that offer offshore banking license require an annual fee and a paid in capital. Along with this, these licenses should only be obtained from respected government authorities. Most of the holders of an offshore banking license are not

interested in running a bank. They are interested to operate a bank that solely exists to handle the finances of their business.

At the end, obtaining an offshore banking license is quite easy but requires a complete understanding of the industry and the country that will issue it. If you wish to obtain an offshore bank license you can contact a professional service provider to help you in getting the license more easily. They will also help you if you want to set up check 21 processing or high risk credit card processing services for your business.

TRIGGER YOUR SALES AT A HIGHER RATE WITH ACH CHECK PROCESSING For a merchant who is conducting an online offshore business, it is essential to have a bank that can process ACH transactions. ACH processing facilitates allow your company to accept check payment transactions in real time. ACH check processing can help in increasing the sales by up to 20% and thus triggers growth of your sales at a faster rate.

Banks or financial institutions in various jurisdictions classify ACH merchant accounts mainly in two categories based on the risk profile. First is the normal account in which merchant directly accesses the card ensuring that he is a legitimate customer. The risk involved in it is very low or minimal. The other is high-risk ACH merchant account in which it is not possible to visually testify the customer. These accounts include adult entertainment merchants, replica merchants, online tobacco merchants, and simply any transaction in which the customer is physically not present. Thereby, these accounts are classified as “high risk� ACH accounts and it is highly recommended to consult a company that specializes in this. All banks have strict guidelines when it comes for high-risk merchant accounts and are even much harder in adult oriented merchants.

Lastly, ACH is a very popular payment method for online pharmacies and payday loans companies.