The Banking Act 1975 governs banking business in Nauru and provides far two types of licenses, namely - resident and non-resident. Licenses are renewable annually. A resident license permits the bank to carry on a banking business within
The Republic Of Nauru, whereas a non-resident license allows the bank to carry on a banking business outside Nauru.
The Republic Of Nauru is absolutely the easiest jurisdiction in the world to get a banking license. The fact that Lloyd's Funds work directly with the government itself to file and register offshore bank enables us to complete incorporations there very rapidly.
The low capitalization, non-interference in operations, minimum administrative expenses and simplicity of the banking laws, rules and regulations provide enough incentives to genuine entrepreneurs to seek banking licenses under the laws of Nauru.
The Republic Of Nauru is a former Australian territory. It became fully independent in 1968. There is NO risk of political instability because of its constitutional government and the lack of an adversary political party.
The annual license fee is just US$1,500, plus a US$500 local agent's fee, making it the lowest in the world. The banking legislation was written by an attorney who specializes in tax havens. This makes the banking legislation expertly suited for private international banking.
The capital requirements for an in-house bank are low - USD 100,000 - and the time scale is in the order of one to three months. Nauru has excellent telex and fair telephone connection with the rest of the world. It is a relatively desirable vacation spot.
Nauru has no taxes on all types of income. There is minimal red tape to acquire a banking license, provided the minimum capital requirement can be satisfied. Finally, Nauru has a good international banking infrastructure, an excellent bank secrecy law and the government welcomes banks owned by non-bankers. Given these factors, Nauru is currently our top choice for a non-banker looking to establish an offshore banking operation in the Pacific region.
Nauru Banks Secrecy
Nauru exercises stricter secrecy than even the well known Swiss bank accounts enjoy. The Nauruan legislation, upon which these policies are based, was passed in the 1970's. Nauru was not included in the U.S. Department of State's 1996 money laundering trouble spots list. In fact, Nauru was just admitted as a member of the United Nations on September 14, 1999. To add to their credibility, the manager of the Nauru Agency Corp., an agency of the Nauruan government and the group that registers off-shore accounts, points out that the extreme secrecy is a matter of law. In addition to this, the Agency exercises, on its own, rigorous documentation to insure that they are conducting business with only reputable and honest people.
The tiny Pacific island of The Republic Of Nauru has enjoyed extraordinary wealth over the past few decades exploiting a precious natural resource: fossilized bird droppings. But these phosphate deposits are nearly depleted, and strip mining has turned most of the island's 8 square miles into an arid, pitted desolation. Nauru now is cultivating a new source of income.
It is reinventing itself as an offshore banking center and selling foreigners the means to cloak transactions.
Over the past two years, tens of billions of dollars appear to have flowed from Russia's troubled economy through banks and other companies registered in Nauru, Russian and U.S. government officials said.
From 1998 until end of 2000, $870 billion was transferred from Russian banks to accounts of banks chartered in Nauru, primarily to evade taxes, Victor Melnikov, deputy chairman of the Russian central bank, said September 2000.
To the frustration of international law enforcement, the Republic of Nauru provides even stricter secrecy than such legendary havens as Switzerland and the Cayman Islands.
"Nauru's current offshore banking regime . . . is an open invitation to financial crime and money laundering," the State Department said in a 1998 report published in February. While Nauru's banking-secrecy legislation has been in place since the 1970s, Nauru was listed in 1996 as having "no priority" on the State Department's annual list of money-laundering trouble spots.
The general manager of the Nauruan agency that registers the offshore businesses said secrecy is a matter of state policy. But S.B. Hulkar said the Nauru Agency maintains "very rigorous documentary requirements" and "that in itself ensures that responsible, reliable people apply."
Asked if the Nauru Agency verifies the information submitted by applicants, managing director Kelly Emiu answered, "No comment."
Less than one-seventh the size of Washington, D.C., in land area, with a population estimated last year at 10,850, Nauru might seem an unlikely focal point for global finance. The coral atoll, admitted to the United Nations, is one of the smallest nations in the world. It's near the equator, between Australia and Hawaii.
Nauru's economic diversification is a lesson in the ways of offshore finance, a vast, far-flung industry routinely used to hide ill-gotten gains, dodge taxes and shield assets from creditors.
Unlike the rock that made Nauru rich, this export is ethereal - a corporate name, an out-of-the-way mailing address, the aura of legitimacy.
Nauru's total profit from the enterprise is undisclosed. "It's a significant contribution . . . to the national revenue," said Mathew Batsuia, chief secretary of the Republic of Nauru.
Lloyd's Funds also can expanded Your Banking License
(Charter) to include an insurance license. The minimum capital, which can be subscribed over a period of two years, is $100.000 which does
NOT have to be in cash, or equivalent in any major currency. Application can be processed in 4-8 weeks.
