More & more EMI's are popping up in Latvia, is it easy to open a financial company there?

[TurnedToRobot]

Yes we are already running a bank in Puerto Rico, so we have all tools and structure.

What bank do you run in Puerto Rico?

 

[KJK]

A huge factor of starting a bank today is getting direct access to at least one of the major currencies. This requires obtaining the banking license in a country or, in the case of EUR, the region which controls the currency. As you have noticed, a Puerto Rico banking license is effectively worthless because you end up relying on correspondent banks, which are all derisking and shutting out all but the most reputable and stable offshore banks.

All things considered, the 5 million EUR capital requirement in EU is quite modest. It is (much) higher in places like Singapore, Hong Kong, Switzerland, and even several smaller jurisdictions like Serbia and Mauritius.

You can be a bank not dealing with USD, yes it sucks and yes customers will be unhappy... but it is still possible. Some banks lose access to USD for weeks, months or even years.

I've heard it was very easy to open a bank in the Carribean in the 2000s, now it is either impossible or useless or both. And supposedly there are some alternative places suitable for your needs like Mongolia if you know the right people... But I have no details about that.

 

[Sols]

You can be a bank not dealing with USD, yes it sucks and yes customers will be unhappy... but it is still possible. Some banks lose access to USD for weeks, months or even years.

Absolutely, having direct access to USD is not as easy or attractive as before. But most people forming a bank today want access to at least one major currency, whether it's EUR, USD, GBP, CHF, or other important internationally used currencies.

My point was that a bank license in a place such as Puerto Rico and other offshore banking legislations are practically useless today. Even reputable and stable banks are losing access to correspondent accounts as the major banks derisk.

A bank license in minor jurisdictions like Mongolia would only give you access to their local currency, which most customers outside Mongolia wouldn't be interested in.

 

[Martin Everson]

What bank do you run in Puerto Rico?

EPB??????

 

[Martin Everson]

Basically opening correspondent relationships it is been impossible for our bank. When they open one, they start limiting an end up closing it. So best bet is to just create our own bank which will serve as correspondent. This is the real reason why we are looking fir a permanent and definitive solution! Any suggestions on what route to take!?

I understand your problem. But this is normal in the offshore industry I can tell you. Even in the onshore i.e BOV has LOST its last USD correspondence account (USD relationship ends December 2019) and that is the biggest bank in Malta....lol. I don't think using a sledgehammer to crack a walnut is a good idea in your case.

Like I said you need to apply for multiple correspondence accounts. Also have you tried joining Ripple?

 

[happyjohn]

Is this thread a joke? I wonder where all your experience staff is that would take care of bank relations?

 

[Bmw850]

Is this thread a joke? I wonder where all your experience staff is that would take care of bank relations?

Thank you

 

[Maguin]

One of the largest offshore company formation services in the Seychelles is owned by Russians. It seems they are all over the planet and have put their hands on all where money float from A to B to avoid the governments attention, which is cool, we need to have people around that can open doors

When it comes to EMI's there are countries where you don't really need a license but just need to be approved by the financial authority to conduct money services, they don't even require a huge share capital (paid in) but of course all legal toducments to be in place and a real setup which they physically check.

When you are talking about some countries which do not need an EMI license what countries are you referring to?

 

[clemens]

When you are talking about some countries which do not need an EMI license what countries are you referring to?

You realize it is 5 years since this has been posted right, things have changed dramatically since then

 

[Martin Everson]

@Maguin Your a new user but please pay attention to the age of the post you are replying to. Thx. As @clemens says we are in a different world now.