Beyond the picturesque sun-soaked beaches and crystalline waters, the Caribbean harbors a thriving offshore banking sector. In this detailed guide, we navigate the complex nuances of Caribbean banking. We delve into the impact of various factors such as derisking, COVID-19, sanctions, and the energy crisis on the region’s financial landscape. Moreover, we’ll unveil the top banks for non-residents in 2023 and address a burning question: Can non-residents still open Caribbean bank accounts?

Sailing the Seas of Caribbean Banking

Over the past decade, Caribbean banking has encountered significant hurdles, especially in serving non-resident clients. Correspondent account derisking, which transpired from 2015 to 2020, severely constrained the global financial access of some Caribbean banks. Nevertheless, opportunities for remote account openings in select countries within the Caribbean still endure. If you seek to save time and effort, connecting with a reliable representative can prove instrumental. It could be a local attorney, an accountant, a trustee, or a professional consultant. Do not hesitate to reach out to us at International Wealth for further assistance. Why is this step crucial? Because it not only streamlines the process but also engenders a relationship that Caribbean banks often find more reassuring.

The British West Indies: A Nexus of Global Finance

One distinct facet of the Caribbean is the ensemble of independent nations, often collectively referred to as the “British West Indies.” These nations, while sharing cultural affinities, each possess unique histories, populations, and financial ecosystems. This diversity extends to the realm of banking, with numerous banks operating across nations such as Dominica, Antigua and Barbuda, St. Lucia, Nevis, St. Kitts, and even Belize.

Deciphering the Dual Financial Realities

To comprehend the intricacies of Caribbean banking, it’s imperative to grasp the existence of dual financial systems. The Eastern Caribbean nations operate under a unified financial system regulated by the Eastern Caribbean Central Bank (ECCB), headquartered in St. Kitts and Nevis. This system employs the Eastern Caribbean dollar (XCD) as its currency, pegged to the US dollar since 1976.

However, most banks that cater to non-residents in the Caribbean prefer to operate outside the ECCB system. They favor dealing with local regulators rather than relinquishing their independence to the ECCB. This duality begets two parallel financial ecosystems within the Caribbean, each presenting its own array of advantages and challenges.

Initiating a Caribbean Bank Account from Afar

Commencing your journey with a Caribbean bank is a relatively straightforward process, albeit laden with compliance requisites. Due to international pressures, Caribbean banks have significantly elevated their compliance standards. As a result, applicants must furnish extensive documentation, including bank references and verification of the source of funds.

To expedite the process and ensure a smoother experience, it’s prudent to enlist the services of a trustworthy intermediary. These intermediaries, often local professionals like lawyers, accountants, or trustees, are well-versed in the specific requirements of banks and can bridge the gap in communication. They facilitate applicants in navigating complexities such as obtaining bank references and certifying company documents, potentially saving costs and time.

Before cherry-picking a Caribbean bank from the list of options, it’s pivotal to secure a suitable intermediary with experience in facilitating remote Caribbean account openings. Trusted intermediaries significantly facilitate the onboarding process, culminating in a more efficient experience.

Banks Across the Caribbean Landscape

Each Caribbean nation extends unique banking opportunities:

• Antigua and Barbuda: The banking sector of Antigua and Barbuda gained momentum following the enactment of the 2013 Financial Services Regulatory Commission Act. Prominent names among the eight licensed international banks in the country include BOI Bank Corporation, D Bank Limited, and Global Bank of Commerce. These banks cater to niche markets and may be discerning in their selection of clients.
• Belize: Belize’s offshore banking sector operates under the purview of the Central Bank, with Caye Bank International Limited emerging as a prominent international bank. Belize offers foreign currency services for non-residents, rendering it an attractive destination for private banking.
• Dominica: Dominica’s offshore banking sector falls under the supervision of the Financial Services Unit (FSU) within the Dominica Ministry of Finance. While the nation boasts several licensed banks, the banking industry has witnessed some turbulence, warranting caution when considering banking here.
• Kitts and Nevis: Nevis, in particular, is renowned for its asset protection and trust jurisdictions. In 2022, the Nevis banking system confronted challenges. Among the three offshore banks in Nevis—Bank of Nevis International Limited, Hamilton Reserve Bank, and International Merchant Bank—the latter emerges as the most recommended option, though it is not crypto-friendly.
• Lucia: St. Lucia accommodates 14 banks, with Proven Bank (formerly Boslil Bank) standing as the largest and most reputable. While Proven Bank extends robust services, its onboarding process may exhibit a sluggish pace. Other banks, such as Amerigo Banking Corporation, Strategic Bank Limited, and Euro Exim Bank Ltd., serve various niche segments.

Caribbean Banks and Cryptocurrencies

The stance of Caribbean banks on cryptocurrencies is marked by variation. While some banks are crypto-friendly, most grapple with constraints emanating from their modest scale and limited access to the international financial ecosystem. Presently, there are no 100% crypto-friendly banks in the Caribbean, but this landscape is in a state of evolution.

For crypto transactions with Caribbean banks, it is judicious to engage with your consultant or intermediary. They can provide insights into the specific transactions feasible with particular banks, dependent on your unique circumstances.

Citizenship by Investment: An Augmented Spectrum of Services

Consider securing citizenship in an Eastern Caribbean nation to access an expanded array of banking services earmarked for locals. Five Eastern Caribbean nations, including Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, and St Lucia, offer citizenship through investment programs. This can grant you access to a wider range of services, encompassing transactions in Eastern Caribbean dollars, cheque cashing, and credit cards.

In sum, the Caribbean unfurls a diverse tapestry of offshore banking prospects. The choice of destination should be informed by your unique financial objectives and preferences. Collaborating with a seasoned expert can streamline the process and guide you towards selecting the most fitting Caribbean banking option tailored to your needs.