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Bermuda Banking License

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Bermuda Banking License: BMA Authorisation Under the Banks and Deposit Companies Act 1999

The Bermuda Monetary Authority (BMA) regulates deposit-taking institutions under the Banks and Deposit Companies Act 1999. Bermuda is a British Overseas Territory in the North Atlantic Ocean with a world-class international business centre, globally recognised for its insurance and reinsurance market and its long-established tradition of sophisticated financial regulation. The BMA is an internationally respected supervisory authority that participates in the Basel Committee on Banking Supervision's consultative group and applies Basel III capital standards to Bermuda-licensed institutions.

Bermuda's banking licence framework is designed to accommodate a spectrum of deposit-taking activities, from full retail and corporate banking operations to restricted intragroup treasury and finance platforms. The island's proximity to the United States and its long-established correspondent banking relationships make it a practical offshore jurisdiction for North American financial groups and holding structures.

Licence Categories

Class A: Full banking operations with no restrictions on the class of depositor. Minimum paid-up capital USD 5 million. Class B: Restricted deposit-taking, typically limited to affiliates or approved persons. Minimum paid-up capital USD 1 million. Class C and D cover further restricted categories for specialised deposit-taking.

BMA Fit and Proper Assessment

All directors, the chief executive, and shareholders holding 10% or more are subject to BMA fit and proper assessment covering professional competence, integrity, and financial soundness.

Local Presence Requirements

At least two directors are required, at least one of whom must be ordinarily resident in Bermuda for Class A licensees. A physical office in Bermuda is required for Class A; management company arrangements are available for Class B restricted institutions.

AML/CFT Programme

A comprehensive AML/CFT programme compliant with the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 is required. Annual BMA prudential returns and audited financial statements must be submitted.

Tax Position

Bermuda has no corporate income tax, no personal income tax, no capital gains tax, and no withholding tax on dividends or interest for standard banking entities. A 15% corporate income tax applies from January 2025 only to multinational groups with global revenues exceeding EUR 750 million (OECD Pillar Two threshold). Smaller institutions retain the 0% rate.

Neptune Fiduciaries: Bermuda Banking Licence Support

Neptune Fiduciaries provides Bermuda banking licence advisory including BMA pre-application assessment, business plan preparation, shareholder and director vetting coordination, and ongoing compliance with BMA prudential and AML/CFT reporting requirements.

Get in Touch

Contact Neptune Fiduciaries at info@neptunecorporate.com or sales@neptunecorporate.com or visit our Contact Us page.

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