The International Banking Act 2003 is an integral part of the legislation passed
in June 2003 by the government of the Somali Democratic Republic, which aims
to develop the financial and business services infrastructure and to stimulate
foreign investment in Somalia.
The Regulatory Environment
Main Advantages of Somalia
Basic Requirements
Schedule of Fees
Opening Representations in Europe
The Regulatory Environment
Somali
offshore banks operate in a liberal, proactive business environment which is
regulated by the SIFC. There are few restrictions on day-to-day operations.
The government recognises that most of these banks will do business "offshore"
with sophisticated investors and as such self-regulation is preferable.
At the same time, the authorities do act to protect the good name of the Somali
International Financial Centre by conducting due diligence on prospective bank
owners (in absolute confidence) This ensures that criminals and dirty money
are kept away. One of the major advantages of Somalia is that it does not appear
on any of the various global blacklists. The authorities intend to keep it that
way by running a clean and transparent operation.
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Main Advantages of Somalia
- Reputable jurisdiction, not blacklisted, former British colony
- Free European correspondent account when you use Star Trust Company
- Fast registration, usually within 48 hours of completed application
- Ready made banks available
- Availability of Apostille
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Basic Requirements
You can probably qualify to run your own bank if you can meet the following
conditions:
- Clean certificate of no criminal record issued by your local police
- Notarised passport copy certified with apostille
- Provide a reference from a reputable international bank, accountancy or
law firm
- Guarantee of EURO 100,000 in the form of either a cash deposit or a guarantee
from a foreign financial institution (credit insurance to cover this guarantee
can be arranged by the Star Trust Company)
Acceptance is not guaranteed. The final decision rests with the Somali International
Financial Centre and can only be given following receipt of a formal aplication.
However it is possible to obtain pre-approval in principle on receipt of faxed
or emailed documents.
Of course, buying a bank is a complex process and each client will have differing
requirements. You are therefore invited to take professional advice. In the
first instance contact one of our consultants.
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Schedule of Fees
Registration of a new banking company, obtaining unrestricted offshore bank
licence, including all first year's fees, taxes etc and professional consultancy
thereto: Euros 25.000
Credit insurance (not necessary if you have a EURO 100,000 bank guarantee or
deposit)
Cost will be quoted by underwriters. In the region of Euros 2.000 - Euros 5.000
per year.
Business Plan (optional) Professional assistance of Star Trust Company in preparing
a detailed business plan and cash flow forceast Euros 1.500 approx.
(Note: a discount is available for existing banks redomiciling to the Somali
Democratic Republic. Contact Global Money
Consultants for details.)
FREE CORRESPONDENT ACCOUNT! Purchase your bank through Global Money Consultants
and for a limited time we will guarantee to open a multi-currency correspondent
account in a European bank at no extra charge. This offer is not available elsewhere.
Order today!
READY MADE BANKS It is also possible to purchase ready-made banks with existing
correspondent accounts, subject to availability of stock. This could allow you
to start business within as little as 24 hours. Ready-made banks are individually
priced depending on the package. Contact us for details.
Contact us to make the first move.
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Opening Representations in Europe
Although your bank will of course have its registered office in our capital
Mogadishu, it is often helpful for internationally-oriented banks to maintain
a verifiable presence in another country. To this end, Global Money Consultants
is able to guarantee opening of a representative subsidiary which is fully authorised
to use the full title of the company including the word bank for all operations
within the European Union.
Therefore you can legally open an office and display the full bank name within
the European Union. You will have a verifiable local presence through an incorporated
subsidiary which can obtain a local credit/finance company licence (of course
not a full bank licence) subject to status.
If you are interested in this possibility please contact one of our representatives
for an individual consultation.
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