Most Nevis banks selling their ownership?

[dav19e]

Hi everyone,

I just formed a Nevis LLC, and i am now looking for the most reputable bank to open a corporate bank account. Therefore, i noticed that RBC, CIBC, Scotiabank and the Bank of Nevis sold the majority of their shares if not all. Any reason for that? It seems as all of these transactions occurred in the past 6 months. Any reason to be skeptical about this?

Thank you, Davis

 

[Sols]

It's not just Nevis. These banks are folding or selling for cheap. Offshore banking is a dying industry. With derisking (correspondent banks throwing out low-revenue, high-risk banks) and increased transparency under initiatives such as FATCA and CRS/AEOI, it's increasingly difficult to operate any meaningfully profitable offshore bank.

 

[clemens]

it's increasingly difficult to operate any meaningfully profitable offshore bank.

Thanks to the Panama Papers and the greedy governments loosing money because of mismanagement !

 

[aage]

hmm not really, it's a anonymous source which most probarly has worked for Mossack Fonseca that contacted a German journalist Bastian Obermayer who got the Pulitzer Prize for investigative journalists.

He is wokring for Süddeutsche Zeitung so I don't believe it is the governments that filtratet anything. If you read the papers or the book you will see that many governments and dictators actually are the biggest crime riders here.

 

[tevalerie]

Hi everyone,

I just formed a Nevis LLC, and i am now looking for the most reputable bank to open a corporate bank account. Therefore, i noticed that RBC, CIBC, Scotiabank and the Bank of Nevis sold the majority of their shares if not all. Any reason for that? It seems as all of these transactions occurred in the past 6 months. Any reason to be skeptical about this?

Thank you, Davis

Those banks were never set up for offshore transactions they were set up for trade in goods, trade in goods in the region has dropped so now regional banks are buying them. Back in the day, the Canadian Banks were the only ones generating over 20% in interest rates when in their home market in Canada, interest rates were like 3-5%. So the economies have kinda slowed, it is more costly for them to do business because they never invested in technologies or processes to cut down their overheads. Still draconian and old school. So they sold to focus on the existing markets and certain locations that have very strong capital markets.

 

[tevalerie]

Hi everyone,

I just formed a Nevis LLC, and i am now looking for the most reputable bank to open a corporate bank account. Therefore, i noticed that RBC, CIBC, Scotiabank and the Bank of Nevis sold the majority of their shares if not all. Any reason for that? It seems as all of these transactions occurred in the past 6 months. Any reason to be skeptical about this?

Thank you, Davis

You can open one at Capital Security Bank in the Cook islands no problem or one of the many banks in St. Kitts and Nevis.

 

[FinTech Avenger]

hmm not really, it's a anonymous source which most probarly has worked for Mossack Fonseca that contacted a German journalist Bastian Obermayer who got the Pulitzer Prize for investigative journalists.

He is wokring for Süddeutsche Zeitung so I don't believe it is the governments that filtratet anything. If you read the papers or the book you will see that many governments and dictators actually are the biggest crime riders here.

I'm not a very big fan of conspiracy theories, but the publication of Panama Archives is a highly sophisticated intelligence op In my opinion, with clear beneficiaries (and its not general public). Remember that the whole thing was under patronage of ICIJ, which is a controversial US non-profit.

Regarding sell-off of Nevis banks, you may notice that three out of four banks mentioned by TS belonged to major Canadian banking groups. They've pulled out not only from Nevis, but practically from all Caribbean Commonwealth island nations where they were present because of 1) deriskyfying - they are not able to further support tax evasion without damage to their reputation (and Canada is notoriously known for lax AML enforcement in many aspects), 2) those subsidiaries do not generate sufficient volume of legitimate local business to keep their maintenance rational. Bank of Nevis was another story, catering mainly to the needs of offshore corporate services industry, so its fate of being sold (probably to some Chineses investors?) was more or less expectable.

 

[hernanday]

Hi everyone,

I just formed a Nevis LLC, and i am now looking for the most reputable bank to open a corporate bank account. Therefore, i noticed that RBC, CIBC, Scotiabank and the Bank of Nevis sold the majority of their shares if not all. Any reason for that? It seems as all of these transactions occurred in the past 6 months. Any reason to be skeptical about this?

Thank you, Davis

Three of those are Canadian banks. they "derisked" by pulling out of those markets.
De-risking is a process where banks drop risky clients due to facing massive fines for getting caught. This was made worse by a series of major leaks like Panama papers, etc.
When there is public pressure where it looks like you are facilitating tax evasion, banks are large public institutions, they really can't hide it from investors because they are publicly traded, every email and memo can be obtained by any shareholder prying enough.

Let me know where you open your account.

 

[unicorn]

You can open one at Capital Security Bank in the Cook islands no problem or one of the many banks in St. Kitts and Nevis.

CSB bank : sent them an email, 2 weeks later no reply ...

 

[jakonda]

It's not just Nevis. These banks are folding or selling for cheap. Offshore banking is a dying industry. With derisking (correspondent banks throwing out low-revenue, high-risk banks) and increased transparency under initiatives such as FATCA and CRS/AEOI, it's increasingly difficult to operate any meaningfully profitable offshore bank.

Alright, if offshore banking is a dying industry what is next? No more offshore banks? Full control and "big brother" like dictatorship? How will African dictators, Panamanian drug kings, CIA agents, Russian KGB Oil barons work, & ecommerce /p***O business enthusiasts work ? By using EMIs and shady crypto exchanges...sad if true

 

[Sols]

Alright, if offshore banking is a dying industry what is next? No more offshore banks? Full control and "big brother" like dictatorship? How will African dictators, Panamanian drug kings, CIA agents, Russian KGB Oil barons work, & ecommerce /p***O business enthusiasts work ? By using EMIs and shady crypto exchanges...sad if true

If you're a dictator, you usually control a country and its currency, so problem solved. You'll be on sanctions lists anyway so no EUR, USD, GBP, CHF, and so on for you. Just have your not-yet-sanctioned ministers and family members open accounts that you effectively control.

Drug lords usually bank with the likes of HSBC, Standard Chartered, and Citibank through bogus (or even real) companies. They'll be fine.

CIA agents usually get their salary paid to their personal bank accounts in the US. Payroll is payroll.

Russian KGB oil barons who are friendly with Putin bank in Russia (or not in Russia if you're not on good terms with Putin), and/or have enough money to deposit with big foreign banks. You wouldn't have seen any Russian oil oligarchs banking with National Bank of Anguilla or Loyal Bank before anyway. At least not any meaningful amounts of money.

Ecommerce: depends on your business type but banking or EMI.

Adult: usually has accounts with banks or EMIs through marketing or consulting businesses.

Regulators know small-time criminals are flocking to EMIs but for now, EMIs are so numerous and diverse it's a cat and mouse game. The EU for example is also hesitant to overregulate EMIs for fear of playing right into the big banks' hands and stifle the EU's precious fintech baby. But we can expect EMIs to start behaving more and more like banks when it comes to KYC. Those who don't will end up suffering.

 

[CSB]

CSB bank : sent them an email, 2 weeks later no reply ...

Hello, Apologies that we did not respond to your email, please feel free to email me directly with any queries.

 

[hernanday]

If you're a dictator, you usually control a country and its currency, so problem solved. You'll be on sanctions lists anyway so no EUR, USD, GBP, CHF, and so on for you. Just have your not-yet-sanctioned ministers and family members open accounts that you effectively control.

Drug lords usually bank with the likes of HSBC, Standard Chartered, and Citibank through bogus (or even real) companies. They'll be fine.

CIA agents usually get their salary paid to their personal bank accounts in the US. Payroll is payroll.

Russian KGB oil barons who are friendly with Putin bank in Russia (or not in Russia if you're not on good terms with Putin), and/or have enough money to deposit with big foreign banks. You wouldn't have seen any Russian oil oligarchs banking with National Bank of Anguilla or Loyal Bank before anyway. At least not any meaningful amounts of money.

Ecommerce: depends on your business type but banking or EMI.

Adult: usually has accounts with banks or EMIs through marketing or consulting businesses.

Regulators know small-time criminals are flocking to EMIs but for now, EMIs are so numerous and diverse it's a cat and mouse game. The EU for example is also hesitant to overregulate EMIs for fear of playing right into the big banks' hands and stifle the EU's precious fintech baby. But we can expect EMIs to start behaving more and more like banks when it comes to KYC. Those who don't will end up suffering.

What are the current loopholes in emi?