A foreigner can open a bank account in Vanuatu following the procedure established by each bank unit. Persons who want to set up their own bank account, for personal purposes, can open savings, checking or deposit accounts. Of course, foreigners representing companies can also set up a Vanuatu bank account.
The registration procedure is similar for both individuals and companies, but different documentation is required. Vanuatu is also an attractive destination for offshore purposes, therefore foreign clients may also opt to set up an offshore bank account if they want to engage in offshore activities.Our consultantscan prepare the application file as required by the bank of choice.
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What documents must corporate clients prepare for a Vanuatu bank account?
Investors who want to open an offshore bank account in Vanuatu can do so by preparing a set of compulsory documents. The documentation may slightly vary from one bank to another, but in general, all banks will ask for the following:
- the application form;
- the articles of association and the memorandum;
- the registers of directors and shareholders;
- the minutes of the meeting where the decision toopen an offshore account was made;
- KYC documentation;
- evidence of capital, audited financial reports, etc.
Documentation for individuals opening a Vanuatu bank account
All banks will ask clients who are natural persons to present several documents for the setup of the account. In all cases, the documentation for individuals is comprised of just a few documents, as presented below:
- documentation attesting the identity of the applicant (passport, ID);
- documentation concerning his/her current residential address;
- some banks may ask for bank statements issued by the banks where the persons have their current residential address.
Is it possible to open an overseas bank account in Vanuatu?
Foreigners who are located outside Vanuatu can start the bank account setup without being present in this country. However, it must be noted that one can’t open an overseas bank account at any Vanuatu bank, as, at the moment, only one bank offers this service.
This service is possible only if foreign clients will send their documentation – the notarized version, by mail. It must be noted that not all banks in Vanuatu allow foreigners to set up a bank account, therefore we advise you to address our team for advice on the banks that have such procedures in place.
Please know that the nationals of several countries may not be allowed to establish a bank account here or to have the right to start the process of offshore company formation. This can be the case of Iran, Iraq, Yemen, Pakistan and others.
The interdiction is available for any type of account, corporate or personal. In some cases, foreigners may not be allowed to open an offshore bank account if they engage in certain activities that are not allowed here (such as cryptocurrency).
Are there any minimum deposit requirements in Vanuatu?
Yes, all the commercial banks in Vanuatu require a minimumdeposit whenopening a bank account. The minimum amount depends on the type of account and the bank selected. In the list below, our consultants present some of the amounts necessary to activate a bank account:
- checking accounts for individuals – the minimum deposits charged by banks are VT 100, VT 500, VT 5,000 or VT 50,000;
- for companies, the minimum deposits for the same type of account are VT 500, VT 5,000, VT 50,000 and VT 100,000;
- savings accounts can be set up by depositing very small amounts of money – VT 100, VT 500 or VT 1,000.
Privacy rules
Many offshore jurisdictions, where foreigners can open an offshore account, have privacy rules that obligate bank institutions to not disclose information on their customers. There are, however, certain limitations from this rule, that generally refer to the legal proceedings, when banks must disclose private data on their clients’ financial situation.
Concerning privacy when opening a bank account in Vanuatu, we present the following:
- privacy rules for commercial clients are established under the rules of the Trust Companies Act (CAP 10), the International Companies Act No. 32 of 1992 (Section 125) and the Companies Act (CAP 191, Section 381);
- banking institutions operating in the Republic of Vanuatu must disclose information to foreign authorities in accordance with the rules of the Serious Offences (Confiscation of Proceeds) Act No. 50 of 1989, the Mutual Assistance in Criminal Matters Act No. 52 of 1989, the Serious Offences the Financial Transaction Reporting Act No. 33 of 2000;
- similar obligations arise from the Counter-Terrorism and Transnational Organized Crime Act No. 29 of 2005, and the Proceeds of Crime Act No. 30 of 2005.
When opening the account, clients are made aware of the above-mentioned laws as they are mentioned in the application form when applying for a bank account in Vanuatu. It is also required to state that the deposits are not obtained from unlawful sources.
When can clients close their accounts?
Clients who open an onshore or offshore bank accounthave the right to close the account. This right is granted at any given time, without providing an explanation as to why this procedure is necessary. The only requirement is to close all the transactions associated with the account and pay any fees that might be charged by the bank. Of course, it is required to transfer the deposit into another account.
The banking system in Vanuatu
Vanuatu is a small country, with a population of around 330,000 persons. Therefore, the banking industry is not as developed as in other offshore jurisdictions. Clients who want to set up an offshore bank accountshould know the following:
- the banking system employs around 700 people;
- one can set up a Vanuatu bank account at one of the 5 commercial banks;
- 7 international banks operate here;
- according to theForeign Investment Promotion Agency (FIPA), the banking system also includes 34 insurance companies and 1 pension fund.
Persons who want to set up an account here are invited to address our team for more details. You can always contact our specialistsif you want to benefit from related services, such as the setup of an offshore merchant account (required for online businesses that sell consumer goods).