Vanuatu Financial Services Commission
The VFSC is Vanuatu’s financial regulatory agency and was created in 1993. The commission regulates banking and financial services in the nation and is added by the Reserve Bank of Vanuatu.
The VFSC’s current commissioner, George Andrews, is responsible for overseeing the agency responsible for regulation and the supervision of investment business as well as trust and service providers.
Financial Services Growth
Concentrated in Port Vila and Luganville, financial services in Vanuatu include four investment banks, four licensed insurers, and a superannuation reserve. Of the stakeholders, only National Bank of Vanuatu provides services to lower-net-worth clients. Indigent services by the NBV are supplemented by providers such as Vanuatu Women’s Development and the Department of Cooperatives.
In 2007, when the last finance industry assessment was conducted, the robust forward motion has been seen in building an all-encompassing financial sector. The number of people able to access financial services has increased by almost 20% per year.
To grow the economy’s revenue base, the government increased VAT from 12.5-percent to 15-percent on goods and services. Additionally, the government has looked at several revenue-creating selections, and one answer evaluated was the introduction of income and corporate tax.
After the nation’s private sector rose up and pressured the government, the option to increase the VAT percentage was elected instead. It went into effect January 1, 2018.
On the final business day of December 2017, Andrew Napuat, the newly designated Minister for Internal Affairs, approved an increase in the nation’s minimum wage to 200VT/hour. This declaration came into effect on January 1, 2018, as well.
The legal infrastructure which calculates the minimum wage is designed across four areas: The worker’s needs, overall wage level, the current cost of living and variations in societal and social security benefits.
The VPF runs the Transnational Crime Unit, an agency responsible for investigating money laundering and offenses which involve terrorism financing, identification, and seizure of criminal profits and working with foreign jurisdictions in investigating crimes. The effectiveness of anti-money laundering legislation is difficult to measure as there have been no related prosecutions in Vanuatu.
The country has an encompassing legal framework to confiscate, freeze and seize under Section 15 of the Proceeds of Crime Act. A lack of coordinating responsible agencies has been hampered in the past but is being resolved now.
Creating A Business In Vanuatu
Foreign investors face seven steps in setting up a business. The process involves getting applications approved by the Government’s regulatory agencies, and if the steps are taken in order, the entire startup process is faster than many suspects.
FOREIGN INVESTMENT APPROVAL
Vanuatu Investment Promotion Authority (VIPA)
Department of Immigration and Passport Services
Department of Labour
Vanuatu financial Services Commission (VFSC)
Department of Customs and Inland Revenue (DCIR)
Department of Customs and Inland Revenue (DCIR)
Vanuatu National Provident Fund (VNPF)
Steps one through four must be completed in the order shown and one at a time. The remaining three steps may be completed concurrently. The Workman’s Compensation Act requires all employers to have workers compensation insurance.
Depending on the type and scope of business, foreign investors may be required to get additional permits and licenses from other government agencies.
Bukh Global is positioned to help in these matters.
Getting A Forex License
The national administration has recognized fiscal operations as a prime opportunity to bring investments into the nation. The enactment of flexible, yet detailed, regulations is the result. Foreign investors can be assured through legislation that their investment is appreciated and protected.
Vanuatu has become the perfect destination for a base of business operation and financial investment. The industry is managed by a constant regulator, and regulatory hassles are reduced.
Vanuatu has become a favored licensing stop for Forex Business Licenses. Licensing is fast and inexpensive. The process is divvied into three primary areas:
- Company incorporation
- Establishing bank accounts
- Securing the license and completing Financial Intelligence Unit Registration.
The Vanuatu International Company, established by the International Companies Act ensures privacy as well as tax-free eligibility.
The principal benefits of incorporating in Vanuatu are:
- Stockholders can be more than one person, and Vanuatu residence is not required,
- Executives are selected by the corporation and Vanuatu residence is not required,
- Corporate administrators and representatives may be appointed on the remittance of a modest fee
The essential step for Foreign Exchange trading is getting a Security License. The license, conferred by the Vanuatu Financial Services Commission, is administered by the Dealers in Securities Licensing Act. Applications can be filed by both natural persons and legal persons and need to be submitted with:
- A Notarial Hardcopy of the applicant’s Passport
- A Police Clearance and notarized interpretation where needed; and
- A business plan outline
- A bank recommendation memorandum revealing the evidence of origin of reserves to pay the Capital
- A Statement which explains specifically the precise project which will be conducted under the license and data on the commodities provided by the petitioner
The exact documentary mandates may vary from case to case and depend on the number of executives and key employees.
Vanuatu’s Dealers in Securities Amendment Act Number 11 of 2017 proscribed the latest requirements for compliance with international anti-money laundering standards.
Financial Intelligence Unit
New businesses must register with the Financial Intelligence Unit which ensures compliance with the island nation’s rules and regulations. Registration is compulsory and specific documents must be turned in with the application. These include:
- An AML&CTF Registration Card.
- An AML&CTF Compliancy Officer Appointment Card.
- A conformance statement.
- An anti-money laundering handbook
Once the documentation is submitted, a conformance officer will be selected, and submission may be needed on a regular basis. The method is easy and can be accomplished by Bukh Global.
Forex Trading is a comparatively new and untapped business area in Vanuatu, making the country the ideal spot for being a registered forex company. Vanuatu Unified Services can help guide a new start-up through the licensing stages.