Offshore bank accounts

Brunei Darussalam company formation

 

Basic facts regarding Brunei Darussalam

Brunei Darussalam is a sovereign state located on the north coast of the island of Borneo, in Southeast Asia. Apart from its coastline with the South China Sea, it is completely surrounded by the state of Sarawak, Malaysia, and in fact it is separated into two parts by Limbang, which is part of Sarawak. It is the only sovereign state completely on the island of Borneo, with the remainder of the island belonging to Malaysia and Indonesia. Brunei's population is around 400,000 (July 2010).

Brunei has the second highest Human Development Index among the South East Asia nations after Singapore, and is classified as a Developed Country. According to the International Monetary Fund (IMF), Brunei is ranked 4th in the world by gross domestic product per capita at purchasing power parity.

Brunei Darussalam taxation

Brunei does not levy any income tax on individuals. There are also no capital gains tax, export, sales or payroll tax in Brunei.

Offshore business in Brunei Darussalam

In 2001, Brunei established the Brunei International Financial Center (BIFC). The relevant implementing laws are: the International Business Companies Order 2003 (amended in 2005); the International Banking Order 2000; the Registered Agents and Trustees Licensing Order 2000; the International Trusts Order 2000; the International Limited Partnerships Order 2000; the Mutual Fund Order 2001; the Securities Order 2003; and, the International Insurance and Takaful Order 2002.

The BIFC offers general banking, Islamic banking, insurance, international business companies (IBCs), trusts (including asset protection trusts), mutual funds, and securities services. There are six offshore banks licensed in Brunei. Bearer shares are not permitted, but nominee shareholders are allowed for IBCs. Brunei residents are allowed to become shareholders of IBCs. As of November 30, 2009 there have been 10,066 IBCs registered in the BIFC database. Reportedly, many may be inactive. The 11 registered agents and licensed trustees are responsible for filing all IBC compliance documents and for the international trusts and asset protection trusts. The BIFC also launched a virtual Stock Exchange in 2002 that offers securities and mutual funds.

Offshore banking in Brunei Darussalam

There are currently no secrecy provisions under the Banking Act. The lack of legal protection has made financial institutions hesitant about submitting suspicious transactions reports.

[sources: United States Department of State Bureau for International Narcotics and Law Enforcement Affairs; Asia/Pacific Group on Money Laundering]

 

Bank accounts

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