How are the financial systems in the Caribbean navigating the challenges posed by derisking, the COVID-19 pandemic, sanctions, and the current energy crisis? Which banks in the Caribbean will be optimal for opening accounts for non-resident individuals and foreign corporations in 2025? Is it still possible to establish an account in the Caribbean as a non-resident individual, company, or trust? We will address these questions and more in detail in this newly updated Offshore Pro Guide to the leading banks in the Caribbean.
The past decade has presented significant challenges and transformations to the Caribbean banking system, particularly concerning the opening of bank accounts for non-resident clients. Some banks in the Caribbean islands, unfortunately, lack the ability to process wire transfers or issue credit cards due to complete disconnection from the financial system. This situation results from the correspondent account derisking that occurred between 2015 and 2020.
Compounding the issue, some banks are on the verge of bankruptcy, especially following substantial disruptions in Puerto Rico and Sri Lanka (impacting one Nevis-based bank) in 2022. Therefore, meticulous consideration is crucial when selecting a Caribbean bank. How can one find a financially stable Caribbean bank with excellent customer service and open an account remotely?
As we will outline in this guide, it remains entirely feasible to open accounts remotely in A-list Caribbean countries, including some of the region’s top banks. You can still establish Caribbean bank accounts remotely for typical offshore structures such as those in Nevis, Antigua, St. Lucia, and Belize. Notably, some of the world’s best banking countries are located in the eastern Caribbean islands: a group of English-speaking, British Commonwealth countries collectively known as the “British West Indies.”
Table of contents:
- Which Caribbean Nation is an International Finance Centre?
- How Does the Financial System of the Caribbean Banks Work?
- How to Open an Account Remotely in a Caribbean Bank
- Banks in Antigua and Barbuda
- Banks in Belize
- Banks in Dominica
- Banks in St Kitts and Nevis
- Banks in St Lucia
- Are Caribbean Banks Crypto Friendly?
- Obtain Citizenship to Access Even More Caribbean Banking Services
- Consult Our Experts on Opening a Bank Account in the Caribbean
Which Caribbean Nation is an International Finance Centre?
The allure of the Caribbean extends beyond its picturesque palm-fringed beaches and secluded bays to its status as a conglomerate of independent nations with shared heritage. Each nation in the Eastern Caribbean islands boasts a unique yet interconnected culture, history, and financial system. This collection includes banks in Dominica, Antigua and Barbuda, St. Lucia, Nevis and its sister island St. Kitts, as well as Belize. Belize, while not geographically part of the eastern Caribbean islands, borders the Caribbean Sea and shares much of its cultural heritage, making it a significant part of the Caribbean financial landscape. Each island operates its own financial system, qualifying each as a distinct Caribbean International Financial Centre. Confused? Allow us to clarify…
How Does the Financial System of the Caribbean Banks Work?
Understanding the Caribbean banking system requires an explanation of the dual financial systems present in the Caribbean islands.
There is a unified financial system linking accounts across the Eastern Caribbean, regulated by the Eastern Caribbean Central Bank (ECCB), headquartered in St. Kitts and Nevis. The ECCB’s primary function is the issuance of the regional currency, the Eastern Caribbean dollar (XCD), which has been pegged to the US Dollar at a rate of USD 1 = XCD 2.70 since 1976. The Eastern Caribbean dollar is available in both paper currency (banknotes) and coins, now featuring the image of King Charles III of England. The ECCB also oversees an Automated Clearing House system facilitating inter-regional clearance of checks and transfers in both USD and XCD. Recently, the ECCB launched its own Central Bank Digital Currency, which has become the primary digital currency of the Caribbean islands.
However, most Caribbean banks dealing with non-residents are not part of the ECCB system. This separation underscores why each island’s banking sector is an International Financial Centre in its own right.
Why Fortunately or Unfortunately?
If Caribbean international banks were integrated into the ECCB system, transaction processing would be streamlined with easy access to regional and international financial systems such as the US Federal Reserve. However, this integration would compromise the privacy and independence highly valued by the top banks in the Caribbean. Banks specializing in private banking or non-resident banking have long preferred to engage with local regulators on their respective islands, rather than ceding control to the central bank in St. Kitts and Nevis. Consequently, the Caribbean islands operate dual financial systems—one managed by the ECCB and another managed by local regulators in each Financial Centre island.
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How to Open an Account Remotely in a Caribbean Bank
Establishing an account with a Caribbean bank is relatively straightforward and can typically be accomplished without traveling. In theory, you simply need to select your preferred financial institution from a list of Caribbean banks, contact the bank via email to request their application forms, and return the completed forms along with the necessary documents via courier.
In practice, however, there are additional “insider tips” that can facilitate the process—hence this article.
Following years of pressure from the United States, OECD, European Union, and other regulatory bodies, banks in the Eastern Caribbean have become highly stringent on compliance. Contrary to what you might see in films, you cannot simply arrive with a suitcase of cash and open an account. Nowadays, you must navigate a series of compliance requirements, providing everything from bank references to source of funds documentation.
If your time is valuable, one of the first essentials in opening a Caribbean bank account is a reliable intermediary. This intermediary, who works on your behalf (and is compensated by you), should also be recognized and trusted by the specific Caribbean bank where you are applying. The bank prefers dealing with a known entity, such as a local professional lawyer, accountant, or trustee.
Why do banks prefer not to engage directly with clients? Primarily, a trusted intermediary mitigates risk for them. If the relationship deteriorates, the intermediary is accountable, allowing the bank to tell regulators that the source was trusted. Additionally, intermediaries are well-versed in the bank’s specific requirements, even knowing what needs to be entered in particular sections of the application form that may not be clear to outsiders.
The intermediary can guide the account holder on obtaining bank references, certifying company documents, and addressing queries related to banking services, CRS, FATCA reporting, and more. This saves the bank considerable time during the onboarding process. By certifying company documents themselves, the intermediary can also save you significant costs on notary fees, translations, and similar expenses.
Therefore, your initial step, even before selecting a Caribbean bank from the list of Eastern Caribbean banks, should be to find a suitable trusted intermediary with expertise in remotely opening accounts in Caribbean banks. Shameless plug: the publishers of this portal provides this service. Our staff includes trusted ex-compliance officers from Caribbean banks who will guide your application through the account opening process and assist you in selecting the best banks in the Caribbean based on your specific needs and requirements. This service will pay for itself in the time and stress it saves you.
Read on to discover more about opening an account in a Caribbean bank and the various Caribbean financial centers.
Banks in Antigua and Barbuda
How does the island of Antigua rank among Caribbean banks? What is the operational framework of Antigua and Barbuda’s banking system? How dependable are Antiguan banks? These are crucial questions to consider before establishing a bank account in Antigua and Barbuda.
The first offshore bank, Swiss American Bank, was established in Antigua and Barbuda in 1983. Following a change in ownership, it was rebranded as Global Bank of Commerce. Despite facing a significant challenge with the collapse of Stanford International Bank in 2009, Antigua’s banking system has evolved since then.
In response to this setback, the offshore banking sector in Antigua underwent significant reforms. In 2013, the banking system was fortified by the enactment of the Financial Services Regulatory Commission Act No. 5 of 2013 (“the FSRCA”). This legislation established the Financial Services Regulatory Commission, which has effectively regulated Antigua’s offshore banking sector. Since then, Antiguan banks have operated discreetly within a stable Caribbean banking environment.
As of late 2022, there are eight international banks in Antigua, currently licensed by the Financial Services Regulatory Commission and operating within Antigua and Barbuda. This sector remains a cornerstone of Antigua’s banking system. The eight Antiguan banks are:
- BOI Bank Corporation
- BRS Banque SA
- D Bank Limited (formerly Davos International Bank)
- Global Bank of Commerce
- International Investment Bank
- North International Bank
- Tolomeo Bank
- Unicorp Bank Overseas
Many of these Antiguan banks operate within specialized niches and are selective about their clientele. For instance, North International Bank operates from an office building in Caracas, Venezuela, primarily serving Venezuelan clients and rarely responding to communications from others. This selectivity can be viewed positively or negatively, depending on your perspective.
Fortunately, our affiliated office in Antigua maintains regular contact with all the international banks on the island. We are well-positioned to match clients with the appropriate bank based on their specific needs. If you are interested in opening a bank account in Antigua, feel free to reach out to us for guidance on the best Antiguan or Caribbean bank for your requirements.
Banks in Belize
Offshore banking in Belize is regulated by the Central Bank of Belize, the government entity responsible for publishing the definitive list of banks in Belize.
Belize is a stable Central American country bordering the Caribbean, sharing many cultural traits with the Eastern Caribbean islands, making it a relevant inclusion in this banking guide. Belize’s international banks provide foreign currency services exclusively for non-residents and do not offer Belize Dollar accounts. Their services include mortgages and loans, brokerage services, foreign exchange, credit cards, savings, demand, and time deposits.
Currently, only three banks are on the list of licensed banks in Belize:
- Belize Bank International Limited
- Caye International Bank Ltd.
- Heritage International Bank & Trust Limited
Among these, only Caye International Bank is active in the international banking sector. Belize Bank and Heritage Bank are subsidiaries of local banks that focus primarily on Belize’s domestic banking market and rarely accept non-resident clients. Belize Bank is owned by Lord Ashcroft, a British politician.
Despite its small size, or perhaps because of it, we consider Belize a well-regulated banking haven. At Caye Bank in Belize, you can open not just personal accounts but also accounts for Belizean and foreign IBCs, LLCs, and trusts, with the added benefit of very quick onboarding. Caye Bank offers private banking services at a fraction of the cost compared to countries like Switzerland or Singapore. Belize also benefits from its strategic geographic location, providing easy access to the USA and Latin America.
We genuinely regard Belize as one of the premier banking destinations in the world, particularly for small to medium-sized clients seeking private banking services.
Banks in Dominica
Are you considering opening a bank account in Dominica? Dominica is globally recognized for its welcoming stance towards foreign investors. The international financial center of Dominica, one of the smaller ones in the Eastern Caribbean, is regulated by the Financial Services Unit (FSU) of the Dominica Ministry of Finance.
It is essential to clarify that we are referring to the financial system of the Commonwealth of Dominica, the English-speaking country in the Eastern Caribbean, pronounced “dom-uh-nee-kuh.” This should not be confused with its much larger neighbor, the Dominican Republic, which has a completely separate banking system and list of banks.
The FSU is responsible for supervising international or offshore banks in Dominica and facilitating and overseeing offshore and international business activities on the island. They currently license the following banks:
- 1Click 2Go Bank and Trust Ltd
- Activa Bank & Trust Corporation
- Asprofin Bank Corporation
- BANFERS Bank
- Barnett Capital Bank
- Big 1 Bank Ltd.
- Cathedral Investment Bank (CIB) Americas Bank Inc
- Commonwealth Bank
- Finext Eastern Bank Corporation (formerly Digi Bank Corporation, formerly Arton Bank Corporation)
- iBank Corporation
- EQIBANK Limited (formerly Interoceanic Bank of the Caribbean Inc)
- Paxum Bank Limited
- Prudential Bank Corporation
- Standard Commerce Bank Ltd.
- Zuma Bank Corporation
- The Kingdom Bank Corporation
- Growmore International Bank & Trust Inc.
- AXIA Capital Bank Ltd.
- Guardian International Bank & Trust Corporation
Unfortunately, the list of licensed banks in Dominica frequently changes, which is concerning. Some recently defunct offshore banks include Migom Bank, Asa Bank & Trust, FGC Bank & Trust, Brilla Bank & Trust Corporation, Banco Transatlantico, and Griffon Bank.
At Q Wealth, we have extensive experience opening bank accounts in Dominica for our international clients. Unfortunately, the experience has been unsatisfactory. With so many banks licensed and a troubling history of revoked or non-renewed licenses, we find it too risky to do business with banks licensed in Dominica. Therefore, we do not recommend it.
Additionally, Dominica closed its International Business Company (IBC) sector in 2021, further undermining its credibility as an International Financial Centre. While Dominica once held promise, it is no longer a reliable option.
Banks in St Kitts and Nevis
The twin-island nation of Saint Kitts and Nevis, also known as St. Christopher and Nevis, is often mispronounced. Locals pronounce Nevis as “nee-vis” with a long e, not to be confused with Ben Nevis, Scotland’s highest mountain.
Of the two islands, Nevis is renowned as the International Financial Centre and hosts all three international banks in the Federation of St. Kitts and Nevis. Nevis enjoys an excellent reputation as one of the premier asset protection and trust jurisdictions globally. Additionally, it serves as a retreat for the affluent and notable, attracting visitors such as Bill Gates and the British Royal Family.
Unfortunately, as of 2022, the banking system in Nevis is experiencing some instability.
There are three offshore or international banks in Nevis:
- Bank of Nevis International Limited
- Hamilton Reserve Bank
- International Merchant Bank
Bank of Nevis International, previously a subsidiary of the local Bank of Nevis, an island-based community bank within the Eastern Caribbean Central Bank’s financial system, was sold to a private buyer and is no longer associated with the local Bank of Nevis. It has faced legal issues recently and has lost most of its correspondent bank relationships.
Hamilton Reserve Bank, formerly known as Nevis International Bank, is a relatively new offshore bank in Nevis, not part of the ECCB financial system. Despite its claims of being one of the top banks in the Caribbean and offering an attractive range of services, many clients reported issues with fund withdrawals in late 2022, necessitating legal intervention to recover their funds. The bank has received significant negative press and suffered a $250 million loss from investments in Sri Lanka just before its financial collapse.
Finally, there is the International Merchant Bank, the newest of the three licensed banks in Nevis. It appears professionally managed and is recommendable, although it maintains a conservative approach to the business it accepts, such as being not crypto-friendly. For those needing to open a bank account in Nevis, International Merchant Bank is the only bank we can confidently recommend. For a crypto-friendly bank account, consider utilizing a Nevis trust structure.
Banks in St Lucia
The island of St Lucia is home to 14 banks, ranking it as one of the major international financial and banking centres of the Eastern Caribbean.
The largest, best-known, and oldest bank in St. Lucia is undoubtedly Proven Bank, formerly known as Boslil Bank. Boslil derived its name from the initials “Bank of St. Lucia International Limited.” Similar to the situation in Nevis with the Bank of Nevis, the locally focused Bank of St. Lucia established an international subsidiary bank that was later sold. Today, Proven is a prominent financial group based in Jamaica, with another bank in the Cayman Islands. Proven Bank has an impeccable reputation and efficient wire transfers, earning our strong recommendation.
The only drawback of banking with Proven Bank is their slow and somewhat conservative onboarding process, typically taking weeks or months to open an account in St. Lucia. If you require a swift account opening, Proven may not be the ideal choice.
Other banks on the official St. Lucia regulator’s list include:
- Amerigo Banking Corporation
- Atlantic Financial Limited
- First Citizens Financial Services (St. Lucia) Limited
- Strategic Bank Limited (dissolved)
- First Citizens (St. Lucia) Limited (dissolved)
- Via Bank Limited (license revoked by FSRC)
- Statetrust Bank & Trust Ltd.
- Hermes Bank Limited
- Sovereign Bank Inc. (dissolved)
- Berkeley Bank & Trust Limited (formerly Britannia Merchant Bank & Trust (St. Lucia) Ltd.)
- Petrus Private Bank Limited
- Arbiter Bank International (St. Lucia) Ltd. (formerly DeVere Bank Limited)
- Euro Exim Bank Ltd.
Some of these banks provide high-quality private banking services from St. Lucia, while others remain minimally active despite being listed by the official regulator.
Are Caribbean Banks Crypto Friendly?
Many of our readers and clients inquire about the crypto-friendliness of Caribbean banks. Indeed, there are some highly crypto-friendly banks in the Eastern Caribbean, with St. Kitts and Nevis and Antigua standing out as particularly accommodating islands.
However, Caribbean international banks are generally small and have limited access to the global financial system, often relying on correspondent accounts with larger institutions. This constraint impacts their ability to handle crypto transactions effectively. Currently, there are no fully crypto-friendly banks in the Caribbean comparable to Signature Bank in the USA or Solaris Bank in Germany. Nonetheless, the situation is evolving rapidly, and we anticipate more crypto-friendly banks will soon emerge in the region. Stay tuned for updates, as we will inform you about new crypto-friendly banks or existing banks that become crypto-friendly.
If you need to conduct crypto transactions with a Caribbean bank, the best approach is to discuss your requirements in advance with your consultant or intermediary. They should provide clear guidance on what crypto transactions are feasible at which bank. It largely depends on the circumstances: for instance, P2P crypto transactions might be allowed, or wire transfers to and from exchanges like Coinbase, Kraken, or Binance. If your source of funds is crypto, that should also be manageable. However, if you aim to run a crypto exchange or open a bank account for an ICO, Caribbean banking might not be suitable.
Obtain Citizenship to Access Even More Caribbean Banking Services
In this article, we’ve primarily discussed bank accounts for non-residents of the Caribbean, but there’s another crucial point to consider. Why not become a citizen of an Eastern Caribbean country? This would allow you to access a broader range of services typically reserved for locals, including transactions in Eastern Caribbean dollars, cheque cashing, and credit cards.
Five Eastern Caribbean countries offer the opportunity to obtain passports through their Citizenship by Investment programs: Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, and St. Lucia. For further details, click here: how to obtain a Caribbean passport.
Consult Our Experts on Opening a Bank Account in the Caribbean
Are you interested in opening a bank account with a Caribbean bank? Would you like to receive our expert recommendations and insider tips at no cost? Our company maintains regular contact with all reputable banks in the Caribbean and is ideally positioned to assist you in opening your account. We act as your trusted intermediary, guiding you through each step of the process. Simply send us an email with your requirements or reach out to us via instant messenger.
13 September 2022 