Thinking Of Using Anjouan As An Offshore Financial Center

Thinking of​ using Anjouan as​ an​ offshore financial center?
Anjouan - This is​ a​ little island country located off the coast of​ Tanzania which is​ Africa .​
The Island is​ in​ the Straits of​ Mozambique .​
It is​ part of​ the Comoros Island geographically but in​ 1997 Anjouan broke away from the Comoros Islands and declared independence .​
Since the Comoros Islands independence from France in​ 1975 there have been 19 coups or​ attempts in​ the Comoros Islands .​
In 2018 they held elections and each of​ the 19 Comoros Islands has its own President .​
The country is​ 12 times the size of​ Washington, D.C .​
Their population is​ about 750,000 .​
98% of​ the people are Sunni Muslim .​
Alcohol is​ forbidden .​
Mosques are plentiful .​
They have four airports, five Internet providers .​
This is​ one of​ the poorest countries in​ the world.
Anjouan Corporations - They seem to​ have bearer share corporations .​
Their prices are very high when you get finished with resident agent, nominees, etc .​
It is​ unclear as​ to​ where they stand on cooperation .​
It is​ going to​ be extremely hard if​ not impossible to​ open a​ bank account with such a​ corporation .​
For one the banks will not know how to​ do the due diligence on the corporation.
Secondly this is​ not a​ recognized offshore jurisdiction, which will scare the bank.
Thirdly it​ would be most difficult if​ not impossible to​ execute a​ real estate transaction using such a​ corporation for reasons of​ due diligence and the general unfamiliarity with Anjouan as​ an​ offshore jurisdiction.
Anjouan Banking Licenses - No doubt Anjouan will sell you or​ anyone else with the requisite funds a​ banking license .​
Trying to​ operate an​ international bank with this license would be extremely difficult if​ not impossible in​ our opinion, we lean towards impossible .​
How are you going to​ get correspondent banks in​ the EU for Euro transactions, in​ the USA for USD transactions etc? FATF regulations call for the bank to​ have a​ brick and mortar presence .​
This means the bank needs to​ have offices with tellers, employees, guards, vault etc .​
It is​ doubtful that you would set up such an​ operation in​ Anjouan even if​ they even let you do so.
Next what bank is​ going to​ act as​ your correspondent and what would they charge you if​ they even accepted you? Correspondent fees can easily be $200,000 for the annual fee plus a​ percentage of​ the transactions, wire fees, etc .​
a​ correspondent bank can lose its banking license for allowing you to​ commit violations .​
So after a​ large expenditure of​ money you will have a​ banking license that you can probably do nothing practical with.
But consider what would happen if​ you actually got going and had $25,000,000 in​ deposits and the Anjouan government banking commissioner conducted an​ audit and found violations of​ their banking laws and practices, inconsistencies, loans they were not comfortable with, deposits where they did not like the due diligence and source of​ funds documentation, etc .​
Why they might have no choice other than to​ put your bank into receivership, appointing an​ accountant or​ lawyer on the island to​ liquidate the banks assets .​
This means close your bank, seize the assets, possibly investigate the source of​ funds, maybe charge you, and so forth .​
The legal fees might run into many millions of​ dollars .​
The depositors would do well if​ they got any money back.
One liquidation in​ Latvia a​ few years back netted the depositors 2% of​ their deposits .​
Bank liquidations in​ Grenada more recently got even less than 2% of​ their money back and in​ some cases the bank that was closed by Grenada had several hundred millions of​ dollars .​
If you did not know this Grenada shut down all of​ its offshore banks except for one in​ 2018 .​
Your former depositors will get all sorts of​ international orders calling for all sorts of​ things to​ happen to​ you and your assets .​
Life might not be pleasant for the next five or​ ten years and there is​ no one to​ run to​ for help since this would be considered an​ Anjouan affair.
Anjouan Gaming and Insurance Licenses Are Also Available - See above.
Conclusion - Getting a​ bank or​ an​ insurance license is​ not so easy .​
If it​ were many would do it .​
Before you believe any of​ these obscure jurisdiction banks are real have them send you a​ wire for $50.00 .​
First send them the wire .​
Make sure you understand wiring instructions .​
Do not be confused between having a​ regular bank account at​ a​ bank and a​ correspondent banking relationship .​
Trying to​ operate a​ bank through a​ regular bank account will be over in​ a​ few days or​ weeks at​ most and then the account will be closed and you may have trouble with the return of​ funds for pulling a​ move like this on a​ bank .​
The correspondent banks will surely complain and that will be the beginning of​ the end.
Over the years numerous jurisdictions have popped up selling all sorts of​ licenses, corporations etc .​
None of​ them survive .​
The real offshore jurisdictions are extremely tight regarding the issuance of​ banking licenses .​
Belize, BVI, Dominican Republic together have not issued any banking licenses in​ the last five years .​
Caveat Emptor.

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