Offshore Banking Vanuatu
An island nation, the Republic of Vanuatu, is situated in the South Pacific Ocean. Informally called Vanuatu, the island archipelago (made up of over 80 islands) is considered a tax haven and is an offshore financial service center. The official languages of the island nation are both English and French.
There is no income tax, no capital gains tax, no withholding tax and no inheritance tax in Vanuatu, nor are there exchange controls. As a result many international companies register in Vanuatu to benefit from the highly favorable tax laws. Further, there are no existing tax treaty agreements between Vanuatu and other nations which mean accounts will not be taxed according to local legislation, additionally no information will be disclosed to agencies or government of any other country.
Offshore banks in Vanuatu (also referred to as external banks) are licensed with a Financial Institution License which permits most banking activities, but in most cases prohibits the operation of checking accounts. Offshore banking in Vanuatu is offered in several international banks, including ANZ bank, Vanuatu Limited, National Bank of Vanuatu and the Westpac Banking Corporation. Accounts in these offshore banks in Vanuatu can be opened in any currency.
Offshore banking in Vanuatu is as accessible as in most other jurisdiction with internet and online banking available through most international offshore banks. The range of online services and the fees may be varied and it is wise that anyone considering offshore banking in Vanuatu get as much information on the bank rates prior. Rates are determined by the currency of deposits and are subject to change. Most critics of Vanuatu banks account find the interest rates of Vanuatu bank to be a set back as they are often on the piffling range.
Offshore bank Accounts can be opened in any major currency and there are no exchange controls in Vanuatu. The opening balance on the account is determined by the currency of the account, the same applied to the interest rates applied to the account.
To open a bank account in Vanuatu (locally called an Investment Call Account) the banks requires:
Any offshore bank account opened must conform to the prudent due diligence requirements as issued by the Reserve Bank of Vanuatu. The offshore bank will conduct a due diligence and other activities which will support the KYC (know your customer) rules. A corporate bank account can only be established once an international company has been formed. Section 125 of the International Companies Act titled Secrecy provides protection for all banks in Vanuatu. Under this act, no information can be passed onto or obtained by overseas authorities unless an order is obtained from the Supreme Court of Vanuatu after first establishing that there is a case to answer concerning serious crime e.g., drug dealing or money laundering.