Thinking of using Anjouan as an offshore financial center
Below is a MRR and PLR article in category Business -> subcategory Other.
Considering Anjouan as an Offshore Financial Center?
Overview
Located in the Straits of Mozambique, Anjouan is a small island off the coast of Tanzania in Africa. Although geographically part of the Comoros Islands, Anjouan declared independence in 1997. Since the Comoros Islands gained independence from France in 1975, political turbulence has marked the region with numerous coups. Presently, each of the Comoros Islands has its own president. Anjouan is about 12 times the size of Washington, D.C., with a population of around 750,000, primarily Sunni Muslim. Despite its picturesque charm, it is one of the poorest countries globally.
Anjouan Corporations
Anjouan offers bearer share corporations, but with high costs including resident agent and nominee fees. The unfamiliarity with Anjouan as a jurisdiction poses challenges for banks in conducting due diligence on such corporations, making it nearly impossible to open bank accounts or execute real estate transactions.
Anjouan Banking Licenses
While Anjouan may offer banking licenses to those with sufficient funds, operating an international bank under such a license is fraught with challenges. Establishing a credible presence with correspondent banks in the EU or USA is daunting due to strict FATF regulations, which require physical establishments complete with infrastructure and personnel.
Correspondent bank fees can be exorbitant, potentially rendering even a legally obtained license impractical. If operational issues arise, government audits could lead to costly legal battles and potential liquidation, with depositors facing significant financial losses.
Risky Endeavors
Historically, liquidations in jurisdictions like Latvia and Grenada have left depositors with minimal returns. Grenada, for instance, shut down nearly all its offshore banks in 2003, leaving many depositors in distress without much legal recourse.
Anjouan Gaming and Insurance Licenses
Licenses for gaming and insurance are also available but carry similar risks and limitations.
Conclusion
Obtaining a banking or insurance license in a lesser-known jurisdiction like Anjouan is not straightforward. Due diligence is crucial. Testing their credibility with a simple transaction can avert future complications.
Jurisdictions selling licenses and corporations often do not have lasting credibility. Established offshore jurisdictions like Belize, BVI, and the Dominican Republic have stringent policies and have issued few licenses in recent years. Beware of potential pitfalls and remember: Caveat Emptor (Buyer Beware).
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