An Offshore Bank with European or Swiss Bank capabilities

How can an offshore bank rival the capabilities of a European or Swiss bank?

An Offshore Bank with SEPA Ibans and office in Switzerland. What if it was possible to structure an offshore bank in such a way that it can offers to its clients EU or CHF Iban, SEPA payments (in addition to swift), multicurrency’s accounts and an office to receive its clients in Switzerland while retaining all the benefits of operating offshore bank. For more information do not hesitate to contact us at connect@swissfintechpro.com

Before presenting our solutions, we will have a look at the benefits and drawbacks of operating an offshore bank.

Offshore Bank Benefits

Among the benefits of operating an offshore bank are the following

• Lower acquisition or set up costs. Buying an offshore bank license costs peanuts in comparison to acquiring a small European bank.
• Lower capital requirement. Offshore banks capital requirement is from 1,000,000 USD to,2,200,000 USD vs at least a minimum capital of 5,000,000 Euros for EU banks, 10,000,000 CHF for Lichtenstein Banks and 20,000,000 CHF for Swiss Banks.
• Opportunity to buy a bank license: In offshore jurisdictions it is possible to purchase ready made bank license instead of a full operating bank (lowering acquisition costs) This is not possible in EU or Switzerland.
• Offshore jurisdictions often have a streamlined regulatory process, making it easier and faster to establish and operate a bank or financial institution or to transfer a bank license.
• Offshore banks often provide a higher degree of financial privacy and confidentiality compared to onshore banks. This can be appealing to individuals or businesses seeking to keep their financial affairs private.
• Offshore banks will have lower operating expenses than European or Swiss banks. Indeed, everything is more costly in EU whether, office costs, staffing costs, higher technology-related costs because EU banks generally operate in advanced and highly regulated financial markets, requiring sophisticated technological infrastructure to meet compliance standards and customer expectations.
• Offshore banks have lower monthly operating expenses. For a small Swiss bank operating expenses will be around 500,000 CHF per month. Small EU banks will incur from 200,000 to 400,000 Euros monthly expenses. Small offshore banks by comparison may cost from 25,000 to 50,000 Euros per month to operate.

Offshore Banks Issues

Offshore jurisdictions

• are not part of the Iban system therefore offshore banks cannot issue Ibans to their clients and have instead to use issue plain account numbers.
• are not part of SEPA, therefore the banks and their clients cannot benefit from the Single Euro Payments Area benefits.
• Only have a brick-and-mortar office in the offshore jurisdiction. Complicated for clients who wants to do cash deposit or withdrawal, or for example deposit physical gold with the bank.

How to Set Up an Offshore Bank that can provide Ibans, Sepa payments and an office to receive its clients in central Europe?

Choice of an offshore jurisdiction

The first step will be to choose the appropriate offshore banking jurisdiction for the banking license.

Firstly, you need to reject fake offshore bank licenses such as Comoros offshore bank license and Gambia offshore bank licenses. In both jurisdictions the local Central Banks have confirmed several times that there was not a registry for offshore bank licenses and that offshore bank licenses in those two jurisdictions are fake.

Offshore possible jurisdiction.

If you want to start a new license, then we recommend Commonwealth of Dominica for two reasons as follows:

1. We can guarantee the issuance of the license.
2. Obtaining a license can be done in around 3 months.
3. In addition to covering all banking services such as commercial banking, retail banking, merchant banking, investment banking etc…. the license also covers crypto banking activities.

In other jurisdictions, such as Seychelles, Saint Lucia, or Caymans it will take from 8 to 10 months to obtain the license and we can only commit to exercising our best endeavors to obtain the license does not guarantee the result.

When it comes to ready made license, we never seen one on the market for Caymans, from time to time in St Lucia or Commonwealth of Dominica. The difference being that bank licenses when available are cheaper in Commonwealth of Dominica than in Saint Lucia where price for a license often reach the 2 million USD mark vs around 800,000 USD in Commonwealth of Dominica.

Corresponding Bank Accounts Solutions

Now an offshore bank is of no use to you if you cannot open corresponding bank accounts.

Here again we recommend Commonwealth of Dominica as a jurisdiction because we have a European Bank and a Swiss Bank that will onboard them. We cannot offer the same for other offshore jurisdictions. The possibility to open corresponding accounts for offshore banks is also important with regard to Swift application. Indeed, Swift will not receive an offshore bank application if said bank does not have a corresponding account.

An Offshore Bank that can issue Offshore Bank with SEPA Ibans and office in Switzerland and CHF Iban and offer SEPA payments solution.

We propose to assist you to apply for a bank license or purchase a readymade bank license in Commonwealth of Dominica. For the rest of this presentation, we will call the Commonwealth of Dominica Bank: Infinity Capital Bank.

Once you have purchased or received Infinity Capital Bank license, we will assist you with the opening of corresponding account in Europe and Switzerland. Because Infinity Capital Bank has corresponding accounts in both Europe and Switzerland, Infinity Capital bank will be able to offer to its clients:

• European Iban Accounts
• Swiss Iban Accounts
• Sepa payments solutions

In addition, both banks are offering up to 25 currencies including, Euro, CHF, USD, CAD, SD, Yen, HKD, AUD etc…. The Swiss corresponding banks offering multi currencies corresponding bank accounts.

How to legally set up a European Central office for the Offshore Bank.

The trick will be to set up a two tiers structure.

The first set is to purchase a Swiss Shelf Company that will own the majority of the capital of Infinity Capital Bank. We will call this company Infinity Capital (Switzerland). Then we apply for SRO/Finma permission for this company (takes 2 months)

Financial Business Capabilities of Swiss SRO Finma companies are as follows:

They can provide services as follows:

• Financial Advisor
• Payment Transactions Services
• Currency Exchange
• Crypto Exchange and Wallet Services
• Credit Transactions
• Gold, Precious Metal, and Commodities Trading
• Securities Management
• Operational Scenarios:

Once the SRO is Ready

Once you have completed this process you will be able to receive the banks clients in Switzerland. Technically the client will be received in the offices of Infinity Capital (Switzerland) not the offices of Infinity Capital Bank and will deal with employees of Infinity Capital (Switzerland) not Infinity Capital Bank but at the end of the day the client will be able to

• deposit cash in Switzerland with Infinity Capital Switzerland that will then transfer the client cash from its Swiss account to the Client Account with Infinity Capital Bank. As Infinity Capital Bank has corresponding accounts with EU and Swiss Bank the transfer of client funds from the Infinity Capital (Switzerland) account to the client account with Infinity Capital Bank will be an instantaneous SEPA transfer.
• Withdraw cash in Switzerland (the process is the same as described above but reversed)
• Receive financial advice.
• Deposit or buy physical gold.
• bring cash to Infinity Capital Switzerland to buy Crypto that are then transferred to his wallet with Infinity Capital Bank, or he can transfer crypto from his wallet with Infinity Capital Bank to the wallet of Infinity Capital Switzerland and come to pick up cash in Switzerland.

Here again all those transactions all happen in Switzerland but are totally legal and overboard.

Remark: Switzerland has no limits on the amount of cash you can bring into or take out of Switzerland as long as you can justify the provenance of the cash. Switzerland does not apply custom taxes or VAT on gold bullion.

How Much Would It Cost.

 In addition, you will need to pay up the capital of an amount of 1,000,000 USD (the capital will remain with your bank)

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 Conclusion

This solution not only streamlines offshore banking operations but also offers significant cost savings. With the right setup and management, an offshore bank can rival the capabilities of a European or Swiss bank.

I encourage you to carefully review this proposal and consider its potential benefits for your clients. Feel free to reach out for any clarification or additional information. For more information on Offshore Bank with SEPA Ibans and office in Switzerland do not hesitate to contact us at connect@swissfintechpro.com