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In Samoa, an offshore bank, their shareholders and depositors are exempt from any income tax or other direct or indirect tax, on income derived by them from offshore banking business. Similarly, bills of exchange, and any other documentation issued or executed in connection with such offshore banking business is exempt from stamp duty. There are no exchange controls. This is not just an "offshore bank" but an international commercial bank with full banking powers. |
Products & services
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The banking services offered under this license is as follows:–
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Permits offshore deposit taking
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Consumer finance
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Merchant banking activities
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Checkbook facilities
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Deposit taking
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Syndicated loans or Eurocurrency underwriting
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Corporate loan raising
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Inter-group lending
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Foreign currency management
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Provision of confirming finance
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Lease finance
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Debt factoring
Types of licenses
Banking licenses in Samoa is divided into 3 categories, namely, Class A, Class B1 and Class B2. The bank will be able to perform many of the functions and services depending on the type of banking license secured, whether it is a Class A (or Class 1) or Class B (or Class 2) in the region. The application is processed within six weeks time.
Class A
This is an unrestricted banking license with an initial fee of $85,000 and an annual fee of $25,650.
Class B1
Class B1 license can be obtained at an initial fee of $74,000 and an annual fee of $11,150. This license restricts deposits below a certain level set by the Registrar. It cannot accept its own shares as security and cannot make unsecured advances to its directors exceeding 1% of its paid capital. Proper banking experience is required to qualify for this license.
Class B2
Class B2 license can be obtained at an initial fee of $49,000 and an annual fee of $5,650. This is a "captive" or "in-house" bank, normally used for the treasuring operation of an associated group of companies. It cannot accept deposits or offer checkbook facilities. This license is essentially a tax-planning tool whereby group funds and projects can be efficiently transferred and managed.
Set-up requirements for obtaining various licenses
Capitalization
All banks chartered in Samoa are required to maintain a net asset position at all times, being greater than the minimum capital level required for each license class. The minimum paid-up capital required for Class A is $10,000,000, for Class B1 is $2,000,000 and for Class B2 is $250,000.
Capital Reserve
The licensee is not required to maintain capital reserves other than at the level prescribed for each class of license.
Transfer net profits to reserve an account.
Retain minimum levels of liquid assets.
Observe statutory debt-equity ratios.
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