Barbados stands out in the Caribbean region for its banking sector, which boasts a significant presence of Canadian multinational banks.
The relevant presence of the Canadian multinational banks can be traced back to the historical business ties between Barbados and Canada, where numerous Canadian corporate groups have traditionally utilized Barbados as corporate headquarters for their international trading activities. Central to this relationship was the advantageous double tax treaty between Canada and Barbados, which favoured Canadian companies to establish structures in Barbados for tax planning purposes.
The banking sector in Barbados encompasses both Commercial Banks and Foreign Currency Banks and they are overseen and regulated by the Central Bank of Barbados (CBB).
Commercial Banks are authorized to transact in the Barbadian dollar (BBD) as well as other currencies, whereas Foreign Currency Banks can deal with any currency except BBD.
While banking services in Barbados are more focused in facilitating regional trading, they also cater to the needs of companies engaged in international commerce. Moreover, these banks offer comprehensive wealth management services, catering to individuals and businesses alike seeking to optimize their financial portfolios.
For companies engaging in commercial activities, banks in Barbados typically require economic substance within the jurisdiction. The extent of this substance varies depending on the nature and scale of the activities involved. Economic substance may encompass management, staff and operational infrastructure within Barbados.
Notably, for opening bank accounts in Barbados, companies with trading interests in Barbados are favoured over trading companies with no relevant nexus in the country.
In terms of banking practices, initial deposits required by banks for companies conducting commercial activities are not typically high, typically between $25,000 and $100,000.
Foreign currency banks in Barbados primarily specialize in providing foreign exchange services and managing foreign currency transactions. While they may offer some investment-related services, such as foreign currency-denominated savings accounts or foreign currency fixed deposit accounts, their focus is typically on currency exchange and international transactions rather than investment services.
Investment services, such as asset management, mutual funds, wealth management, and investment advisory services, are more commonly offered by investment companies, brokerage firms, and other financial institutions in Barbados.
In summary, Barbados' banking sector serves as a pivotal platform for Canadian multinational banks. With a focus on regional trading and a commitment to economic substance, Barbados offers a conducive environment for businesses seeking to establish a meaningful presence in the Caribbean region.
Our services in Barbados focus on assisting companies with economic substance in Barbados and individuals (residents or non-residents but have financial interest in the country, such as property ownership or investments) in opening bank accounts for both transactional banking and wealth management without needing to visit Barbados.
We work with 3 different banks in Barbados, each bank has different eligibility requirements, types of accounts available and onboarding processes.
We invite you to carefully review each banks requirements and services to better understand if their banking services meet your needs.
Barbados is one of the twelve countries that form the Caribbean Antilles. Its capital and the most populated city is Bridgetown.
Located in the Lesser Antilles, it is the most easterly of the islands, lying to the east of Saint Lucia and Saint Vincent and the Grenadines.
Spain conquered the island because that was where Columbus arrived on his first voyage in the 15th century. In the seventeenth century, the English turned the place into a colony of the United Kingdom. This situation remained until 1966, when its town declared independence on the 30 of November. That year he joined the UN and became a Commonwealth realm with Elizabeth II as Queen of Barbados and head of state, who was represented on the island by a governor-general.
On 30 November 2021, Barbados transitioned to a republic within the Commonwealth. The first and current president is Sandra Mason, who previously served as the last governor-general.
Its population exceeds 290,000 inhabitants. The official language is English and its official currency is the East Caribbean Dollar (XCD), which is pegged to the US $ at 2.7: 1 ratio.
Barbados is one of the most developed countries in the Eastern Caribbean and has one of the highest per capita incomes in America.
Although the traditional Barbadian economy was based on the production of sugar, the main export commodity, currently tourism is its main economic activity, with tourists mainly from the United States and Europe.
At present, it has partially diversified its economy with industries such as manufacturing, construction, and mining.
Barbados is a CARICOM member and has concluded trade agreements with several jurisdictions, including the U.S., Canada, and the European Union.
The international business and financial services sector are one of the most important contributors to the economy of Barbados, given its business-friendly legal framework and its low tax regime.
Our banking support service is not just a mere introduction to the bank. We assist you in filling out the business questionnaires appropriately and help you understand and provide business details, commercial information and purpose/use of the bank account that a given bank wants to know in order to approve your account application. Banks want certainty and clarity on how the account will be used. Everything must be watertight. We will work with you to make sure there is minimal 'back and forth' and a smooth account opening process.
Bank Account opening requirements are subject to change at the discretion of the bank. There might be additional fees charged by the bank itself. Bank account opening is not guaranteed and is subject to the bank policies and compliance department. There might be restrictions on UBO nationalities, business activities and/or jurisdictions. A refund is available if the account is not successfully opened subject to our terms of service (20% to partly cover service and payment processing and administrative costs apply).