Start a Bank Checklist

Just about everything you need to open your own bank. Complete checklist of due diligence and master requirements. There are legal requirements and responsibilities in relation to account/company / trust / other entity formations their associated financial transactions and the source and disposition of funds to/from accounts/companies/trusts/other entities.

For this, full disclosure is required. The regulators and professionals associated with starting the bank must conduct due diligence on the applicants. Accordingly the following items of information and your responses to the questions are required to start your bank. Engaging in offshore banking is one thing. Starting a new bank is another, and involved a whole new level of due diligence. After all, you will be handling other people’s money.

Checklist For Individual Applicants

(This includes the directors, shareholders, partners, own account, trustees or beneficiaries.)

1. Full name, date and place of birth, nationality, permanent address, and occupation;
2. Notarised copy of photo identification document (such as a passport or driving license);
3. Where that individual does not have the above identification document,

Checklist For Legal Entity Applicants

(This includes corporation, trusts, partnerships, or similar legal entities.)

1. Full name; and
2. The jurisdiction in which, and laws under which, that entity was incorporated or otherwise created; and
3. The jurisdiction in which, and laws under which, that entity was incorporated or otherwise created; and
4. A copy (certified by a notary, attorney or solicitor as a true and correct copy together with the certifiers contact details if authenticity is deemed required) of every document proving the incorporation or creation of that entity; and
5. A copy (certified by a notary, attorney or solicitor as a true and correct copy together with the certifiers contact details if authenticity is deemed required) of every document proving current registration of that entity, if registration is required in the jurisdiction where that entity was incorporated or created.

Note: for guidance purposes such documents (copies) would usually be Certificate of Incorporation, Trust Deed, Partnership Deed, Certificates or Letters of Good Standing, Register of Directors and Secretary, Register of Members etc.

Needed In all cases

1. Two references for each beneficial owner, preferably one from your bank. We may in limited instances waive this requirement if the introducing agent can verify the owner’s bona fides in writing.
2. Where we are opening a bank account, the two references must be addressed to the Bank
3. Name and address of your Legal Advisor/Attorney/Solicitor

Questionnaire

We need to know the nature of the business to be conducted by the accounts / companies / trusts / other entities, the parties involved, and the expected transaction patterns explaining how bank accounts (if any) / companies / trusts / other entities will operate. The principal or beneficial owner or the professional advisor must sign off on such a description. (If there is insufficient room for your answer under the question please provide the answer as an attachment)

1. 1. 1. 1. 1. What will be the nature of the business or undertakings of the accounts / companies / trusts / other entities and the likely or expected amount and source of the deposits to or payments from the accounts/companies/trusts/other entities
            2. In the case of bank accounts.
               a. how will the funds be deposited. (i.e. cash, bank draft, telegraphic transfer, travelers checks etc.)
               b. If the bank accounts to be operated are not within the banking jurisdiction, in which country will they be opened/operated?
            3. How have the funds, capital, equity (if applicable) been acquired? (i.e. from what previous business activity?)
            4. Are you as our client the beneficial owner of the funds? If not, who is the owner?
            5. How long do you expect the accounts / companies / trusts / other entities to operate
            6. What is the expected size and frequency of transactions?
            7. Which country will be the likely source of these funds?
            8. Do you anticipate making regular or frequent “cash” transactions (in particular deposits) in excess of $10, 000.00 (or foreign equivalent)? If so what will be the source of this cash?
            9. Name, address and contact telephone numbers and/or email addresses of your current bankers (can we contact this bank to obtain a banker’s opinion?)
            10. Who will be maintaining proper accounting records for the accounts/companies/trusts/other entities (please provide full name, address and contact telephone numbers and/or email addresses) ?
            11. Who will be preparing the financial statements that comply with generally accepted accounting practice for the accounts / companies / trusts / other entities (please provide full name, address and contact telephone numbers and/or email addresses)?
            12. If these are required to be audited, who will be/are the auditors (please provide full name, address and contact telephone numbers and/or email addresses)

Declaration

1. 1. 1. That to the best of my knowledge and belief the information provided to you is true and correct.
      2. That there are no pending or threatened claims or proceedings that I/We reasonably anticipate may result in a judgment against me and I/We am not named Defendant in any lawsuit or involved in any administrative proceedings as of this date, or a judgment debtor.
      3. That I/We have no intent to defraud any creditors or any potential creditors.
      4. That I/We do not contemplate filing for relief under the provisions of the applicable Bankruptcy or insolvency laws, nor am I/We involved in any situation that I/We reasonably anticipate would cause me to file for relief under the applicable Bankruptcy or insolvency laws in the future. I also understand that this a significant amount of time and expense goes into forming the company I am purchasing and that the transaction is not refundable once purchased
      5. That following any transfer of my property at this time contemplated or proposed to the account / company / trust structure which I/We propose to make, I/We will be solvent and able to pay my reasonably anticipated debts (including any claims or lawsuits against me) as they come due from the balance of my property after such transfer.
      6. That I/We have full right, title and authority to transfer the assets to the accounts/companies/trusts/other entities.
      7. That I/We understand that the law of a jurisdiction may contain legislation (the “legislation”) making it criminal for anyone to conduct or attempt to conduct certain financial activities which involve the proceeds of unlawful activities. The transfer of assets or any financial transaction may constitute a criminal activity within the scope of such legislation if the assets transferred or the source of the monies for the financial transaction were derived from any of the unlawful activities specified in the legislation. The unlawful activities under the legislation commonly consist primarily of drug-trafficking offenses, financial misconduct and environmental crimes. Drug-trafficking offenses include the manufacture, importation, sale, or distribution of controlled substances; the commission of acts constituting a continuing criminal enterprise; and transportation of drug paraphernalia. Financial misconduct includes the concealment of assets from a receiver, custodian, trustee, marshal, or other officer of the court, from creditors in a bankruptcy proceeding, or from a statutory corporation or similar agency or person; the making of a fraudulent conveyance in contemplation of a bankruptcy proceeding or with intent to defeat the bankruptcy law; the giving of false oaths or claims in relation to a bankruptcy proceeding; bribery; the giving of commissions or gifts for the procurement of loans; theft, embezzlement, or misapplication of bank funds or funds of other lending, credit, or insurance institutions; the making of fraudulent bank or credit institution entries or loan or credit applications; and mail, wire, or bank fraud or bank or postal robbery or theft. Environmental crimes include violations of statutory or regulatory laws. Other specified unlawful activities in such legislation could include counterfeiting, espionage, kidnapping or hostage-taking, the copyright infringement, entry of goods by means of false statements, smuggling, removing goods from the custody of Customs, illegal exporting of arms, and trading with a country’s enemies.
      8. That I/We have read and understand the description of unlawful activities in 7 above, and confirm and represent that none of the assets which I/We may be transacting have been derived from any unlawful activities.
      9. Any other information you consider applicable.
      10. Bank Reference Letter(s)

NOTE: Bank reference letter must have the following:

1. 1. 1. The date the account was opened
      2. A statement that the account is in good standing.
      3. This letter must be original and on the bank’s letterhead; not photocopies or faxes.

The offshore bank keeps this letter confidential but will call to be sure that the bank and referring banker exists. Your personal information is not revealed during this call.

1. 1. Business Reference Letter(s)

NOTE: Business reference letter must have the following:

1. 1. 1. Date when relationship started.
      2. A statement that your relationship with the business associate is in good standing.
      3. This letter must be original; not photocopies or faxes.

The bank will keep your information confidential in accordance with to privacy law

1. Notarized copy of passport

There will undoubtedly be more that is needed, depending on the jurisdiction. This checklist gives a basic rundown of the most common elements that are needed for bank startup.

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