14. BUY OFFSHORE BANK
Kw: BUY OFFSHORE BANK
Kw: OFFSHORE BANK FOR SALE, OFFSHORE BANK,
OFFSHORE BANK LICENSE
BUY OFFSHORE BANK: What are the things to consider?
you plan to BUY OFFSHORE BANK, you need to do some research to gain some valuable knowledge on
the topic. There are various factors to consider during the investment process.
Since it involves a complex procedure, you need to hire a good and experienced consultant.
With their years of expertise, knowledge and experience, they can provide
sufficient guidance. Thus, the bank setup procedure becomes easy, quick and
hassle-free. Reputed consultants having global exposure can help clients to
invest in different countries. They specialize in international banks, licensed
in countries like the UAE, Panama, Belize, New Zealand, etc. They are involved
in both the sale and purchase of licenses of an offshore bank while
boasting of successful transactions.
Know the different levels of offshore and international banking
bank license (necessary permit to operate)
Permit for Organizing purpose
operating bank having basic correspondent accounts
international bank having US FedWire account or top-tier correspondent account
operating bank having basic correspondent accounts
having operations, books of business (accounts, loans, etc.) and quality
The regulators issue a Permit for Organizing an international
bank. This is usually done after your business plan is reviewed thoroughly. it
also includes employees in your bank along with the available capital. The
Permit allows incorporating a company having the term ‘Bank’. The government
will then provide the ‘green light’ to initiate the bank in the respective
This is the next step to follow after getting hold of the Permit
to Organize. Establish your core hardware and software, develop your office and
perform things essential to start the bank. The very initial step of the
licensing process includes ‘Permit to Organize’. However, it can be a
It is generally undertaken if the buyer is interested to visit the
market quickly and avoid spending a fortune. This way, he can make the bank
fully operational. This stage will also allow potential strategic investors to
take a keen interest in the bank. The bank is free to sell an investment
scenario or a convertible bond to raise capital. The ‘Permit to Operate’
generally sells approximately $1-1.5 million.
BANK LICENSE is the next option to
choose. In this case, only a paper license is offered by the seller. The bank
will not have any employee, softer, operations or corresponding accounts. Getting
hold of a pure bank license can be tough for sale from several reputed
jurisdictions like Switzerland, Luxemburg, Panama or Puerto Rico. But in lesser
countries like Dominica, it is quite common. Here, the government issues a license,
being aware that the licensee is likely to flip it to the investor.
Pure banking license can be noticed for sale from the reputed
offshore jurisdiction. This is when the license is derived by a bank that is
licensed in another jurisdiction. Belize-based banks, for instance, may
establish a bank in the jurisdiction of Puerto Rico. In this case, the Belize
bank is out of business, while Puerto Rico based license is put up for sale.
The license of OFFSHORE BANK FOR SALE
from the Cayman Islands or Puerto Rico may sell for about $2+ million. Mexico,
Panama or Switzerland license can sell for approximately $10 million. But this
is merely the paper, while the bank not having any physical operations.
Operating bank’s license is the next level to purchase with basic
correspondent accounts. You can also choose to invest in an international bank
having a top-US FedWire account or level correspondent account. The operating
bank is likely to have its core systems, 4-5 employees and a physical office. An
operating bank when invested upon can be termed to be a turn-key solution.
In this particular case, all operational assets, the software and
bank license are taken into consideration. It also includes correspondent bank
quality. The offshore bank having top tier correspondent like automated FedWire
or HSBC is likely to be held valuable.
Next to consider is the international bank having manual FedWire or
mid-sized correspondent. However, the least valuable is considered to be the
bank having a lesser wire-service provider or money service correspondent.
US FedWire is
made available only to those international banks that are allowed to operate in
Puerto Rico (US territory).
In some cases, the primary shareholder may move on taking along
the clients or the bank loses its strong client base. In such a case, the
operational bank is ready for purchase. Such banks are termed to be fully
operational, however, lack a book of business. Operational banks generally sell
for approximately $3.25 million - $4.5 million. You can BUY OFFSHORE BANK
at about $3 million if a shareholder runs out of favor with the regulators or
vice versa. The operational bank having FedWire is likely to sell for about
Taking the help of the industry experts, you can come across OFFSHORE
BANK FOR SALE without much difficulty. The
operational bank is likely to boast of having a solid business book. The value
of such banks is likely to be the same as that of any fully operational bank. It
also includes the cash flow of the client base or NVP. Often, business value books
are paid over a specific period, thereby ensuring all clients stick to the bank
even after the sale.
are specific aspects to consider while considering OFFSHORE BANK LICENSE.
The main among them is the sale of the offshore bank having basic and advanced
correspondent accounts. However, it is not common for a bank having a large
business book to be put up for sale. Even selling of the license is said to be
a rare case. It also includes selling of Permit to Organize.
you plan to BUY OFFSHORE BANK, the very first step should be to hire a consultant. They
should be experienced in the domain with decent exposure. They also are to have
ample knowledge of dealing with international and offshore banks for sale. When
contacted, they are to offer valuable input on the banking setup process as
well as negotiate the purchase. This way, it becomes much easier to obtain a banking
license to start a successful operation.