Financial License - BVI vs Cayman vs Bahamas

[Rick Ross 305]

Hi guys,
Any insights on how would compare getting a financial license in BVI vs Cayman vs Bahamas? Activities at least managing investments/ securities dealing/ custody.
Main points analyzing:
- capital requirement
- physical presence
- economic substance
- time to get issued the license.

(BTW, if u might be interested, no place in the world seems to be cheaper, faster, more efficient and more reliable for that tnan Mauritius but not interested to relocate there at the moment)

Merci.

 

[Sols]

It depends on a lot of factors. Capital required, physical presence requirements, and timing have more to do with exactly what services you want to get a license for and how serious and prepared you are as an applicant than the individual jurisdiction.

But if we're just ranking them in general, I would put Caymans first, BVI second, and Bahamas third.

The interactions I've had with CIMA and BVI FSC have been good. They strike a reasonable balance between regulation and business friendliness. I can't remember having much if any direct experience with the Bahamian regulator.

 

[Rick Ross 305]

Thanks for that, have been hearing similar feedback. But then, if that is the case, why only Bahamas has been white-listed while Cayman/ BVI remain grey for so long? Also, why top Swiss/ European banks remain (heavily) only in Bahamas and none in Cayman/ BVI? That’s been a mystery for me for some time.

 

[Sols]

Those lists have had marginal impact on jurisdictions like BVI and Caymans. All they've had to do is lean on UK for support and to amend their laws to follow the bare minimum of modern compliance standards.

Whether it's for good reason or simply due to geopolitical influence, relations, and favors, BVI and Caymans have enjoyed a better reputation than Bahamas.

Each bank has had different reasons for changing how they operate in BVI and Caymans. But it has usually came down to those outposts not being profitable anymore as the banks and jurisdictions changed in line with increased efforts against tax evasion. Some are still licensed in Caymans or BVI but not as fully fledged banks. For example, UBS, Credit Suisse, Deutsche Bank, Commerzbank, and Soc Gen hold Class B licensed which are restricted licenses. This allows them to move money around internally but not take public deposits.

AFAIK, there aren't a whole lot of top Swiss or European with subsidiaries separately licensed as banks in Bahamas. Credit Suisse, Pictet, EFG, Santander, and UBP have branches, agents, or other such arrangements in Bahamas.