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Question Is it difficult to get a banking license from offshore jurisdictions for high risk clients?

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Hi there

I was thinking the following:

If a lot of banks rejects forex trading because it is set as a high risk business then why I don't get a banking license in a jurisdiction like Puerto Rico, Cayman, St Lucia and be my own client and other people I work with in this as well ? :rolleyes:

I don't mention Switzerland because cost of operation are pretty high and not worthy, unless I have 1 billion under management, lol.

Now, it is important to mention I am not looking to run the bank myself because of time so I should hire a professional team to make things right 100%, not 99%.

So I don't have any experience or knowledge in banking but can all the people with those requirements so regulator will see we are prepared to run the business.

I may work as a corporate board member, you know.

Minimum Assets under Management: 100M USD

I also will need to do my transactions very good to avoid get flagged myself, that is wy I always consult my professional team before I did a mistake.

What do you think?

Please, write in a respectful way and don't make laugh of this question.

Thank you
 

CaptK

Nominee Company Bank Account Real Estate Passport
Mentor Group Gold
It will be very difficult to set up the bank because you would require a massive amount of infrastructure or if you found a bank willing to be your back office.

Not totally impossible but you would be better of setting up a Forex company in Mauritius, Seychelles or UAE where the banking is more hospitable to Forex companies.
 

Sols

Mentor Group Gold
You can get a banking license with relative ease in offshore jurisdictions but that doesn't actually solve anything. To actually make transactions, you need access to currencies. You access currencies through direct licenses with the relevant central bank or equivalent authority or — since that's not an option for an offshore banks — by partnering with other banks, usually other commercial banks that offer correspondent accounts.

And that is where your business is going to fail. It's extremely difficult for existing offshore banks to maintain or get new correspondent accounts. Deutsche Bank used to be a major correspondent bank but these types of banks but they have thrown out nearly everyone.

Nowadays, many offshore banks use correspondent subaccounts of other banks' correspondent accounts, or use EMIs to process transactions. Fees are huge and there is very little stability.

The only meaningful "backdoors" for now are Puerto Rico (Federal Reserve give direct access to USD sometimes) and Bank of Lithuania (for access to SEPA/EUR only, and even they require an EU licensee as an intermediary).

You'll have more luck buying an existing bank or investing a large enough part in an existing bank that you can influence their decision making to favour you.

Don't bother getting an offshore bank license today. It's a doomed industry.
 

Sir Gelato

New member
Hi there

I was thinking the following:

If a lot of banks rejects forex trading because it is set as a high risk business then why I don't get a banking license in a jurisdiction like Puerto Rico, Cayman, St Lucia and be my own client and other people I work with in this as well ? :rolleyes:

I don't mention Switzerland because cost of operation are pretty high and not worthy, unless I have 1 billion under management, lol.

Now, it is important to mention I am not looking to run the bank myself because of time so I should hire a professional team to make things right 100%, not 99%.

So I don't have any experience or knowledge in banking but can all the people with those requirements so regulator will see we are prepared to run the business.

I may work as a corporate board member, you know.

Minimum Assets under Management: 100M USD

I also will need to do my transactions very good to avoid get flagged myself, that is wy I always consult my professional team before I did a mistake.

What do you think?

Please, write in a respectful way and don't make laugh of this question.

Thank you
It is cheap to get an EMI license and accept high risk clients. Less capital requirments and infrastructure (depend on the type of service you want to provide).
 
You'll have more luck buying an existing bank or investing a large enough part in an existing bank that you can influence their decision making to favour you.
Yes, I forgot to say I could buy an exisiting bank in Puerto Rico, i have some options, not too expensive.
Investing enough part in existing bank will be more complicated lol but you're right.
Lithuania won't work because SEPA network will not fit my payment patners, only SWIFT.
Thank you so much for your advice.
 
It will be very difficult to set up the bank because you would require a massive amount of infrastructure or if you found a bank willing to be your back office.

Not totally impossible but you would be better of setting up a Forex company in Mauritius, Seychelles or UAE where the banking is more hospitable to Forex companies.
I think UAE may be my partner soon, as long as the new leader doesn't affect too much the law about this industry.
 

CaptK

Nominee Company Bank Account Real Estate Passport
Mentor Group Gold
I think UAE may be my partner soon, as long as the new leader doesn't affect too much the law about this industry.
Right now they are proactive even Abu Dhabi are becoming more linient on a lot of things.
Crypto is growing and is becoming more acceptable at government level. They are implementing things now but of course to benefit themselves first.
 

Nicholas Van Orton

Silver Member
I've got a contact in Switzerland (head of a law firm, in fact) who offered me a bank in Puerto Rico (not EPB!!!;)),for $12.5MM, with $4MM in share capital and around $1MM in net operating profit. This came while we were discussing the acquisition of a financial intermediary in Switzerland (aged 15 years, impeccable track record and banking relationships), which he specializes in.

Not sure if this is what is targeted in this thread, but just fyi in any case.

NVO
 
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