New Zealand Online Banks, A.K.A. New Zealand Offshore Finance Companies, are authorized to provide banking services under New Zealand law. With very little or no restrictions on the number of customers, deposits, amounts or currencies, the entity can provide individuals and commercial organizations banking services, worldwide. A New Zealand Offshore Finance Company (OFC) can be used to offer financial and investment services to customers worldwide. Your OFC can offer almost anything a fully licensed bank can offer. The word “bank” cannot be included in the name of the bank or OFC, however there are acceptable alternatives that you may use with your bank or OFC, such as “Bancorp” and “Bankgroup”. Activities of an OFC can include but are not limited to:

Deposit taking & lending

Debit and credit card services

Issuing of financial guarantees and instruments

Cash management services

Current accounts

Checking accounts

Savings accounts

Term deposits

Issuing of CDs

Wire transfer services

Payment processing services

Fund management

Marketing of investments

A New Zealand OFC does not need a capital reserve account. A bank, for example, a bank will often need a $1 million to $30 million reserve account before licensure. The OFC does not require this. Directors and shareholders can be of any nationality and they can also be a resident anywhere that they so desire.

OFC Package Features

The New Zealand OFC package offers everything you need as a turn-key service to get you organized and operational. This complete service includes:

Organization of your New Zealand Company Panama holding company

Assistance establishing a bank account

Ability to send and receive wires online

New Zealand Offshore Financial Services Company Formation

Formation of your OFC which includes all of the organizational formalities, documents and government liaison facilitation. Your financial entity will be formed professionally and quickly through our offshore consultants. We will provide all of your documentation, notary and licenses to operate as a bank. A corporate kit and seal will be included with your OFC formation. Registered office with a physical address and onsite agent is included and necessary to maintain your operational entity and is used to assign your status as registered issuer. This service ensures that your offshore financial company is in compliance with local regulations and requirements. Normal setup of such entities by other providers, may cost upward to 1.2 million dollars or more. Our price is only a mere $140,000.00 per bank, and is only available to responsible clients, and investors, as many people use these for Hedge Fund Accounts. You will also receive with this price, your own online banking software to perform all of your banking activities. If you are interested, please contact us through one of our certified resellers or call us toll free at: (800) 922-5170.

Frequently Asked Questions:

1. Can I have a local location in my city and operate branches like U.S. banks do? 

Answer: Not as the bank or it would require U.S. Banking licensing very expensive and takes a great deal of time to acquire, in addition to the even more expensive part, having a capital reserve account, which is required by all Federally insured banks. However, you can be a broker for an independently run bank, similar to being a broker for an insurance company. So in other words, do not advertise yourself as a major U.S. bank, but rather advertise yourself as the broker of an independent bank. It is all in how you do it that makes the difference.

2. How much money can you make doing this venture? (estimated figures), and how do I attract customers?

Answer: You can earn as much money as you would like. I currently have existing clients that are making a great deal of money (over millions per year) doing this exact thing. You have to be creative, market to the right investors and clients to fund your bank, and get it up and generating a profit for you. Putting together a proper business plan, marketing strategy, and investing money into good programs, that you won’t lose money on, are a good plan to start with. The banking program and hedge fund program is for the serious investor or client that has the ability to do this, and succeed. 

3. Where does the money come from to fund the bank?

Answer: The monies will either come from you or people depositing funds into your bank. This could be a group of investors, those that have hedge funds setup, or clients that simply want to do business with your bank, provided that you offer compeditive programs and interest rates. 

4. Does the FDIC secure the peoples deposits?

Answer: No. Since you are in full control of your customer deposits, you will probably want to get some sort of funding insurance to cover the security of the deposits. Insurance is available, called bonded insurance. There is also information listed below that explains from the government website, about how strict compliance is where your OFC is setup. See the information provided Below. 

5. Will the united states come after me for taxes or shut my bank down?

Answer: U.S. people are taxed on worldwide income by the U.S. government. However they have no jurisdictional or legal power in New Zealand to shut down a bank there. As with any business, you should faithfully pay your taxes, and also pay your personal taxes as well, that is the law. Anyway, you wouldn’t want to be arrested for tax evasion, or have all of your Assets seezed would you?

6. Can I develop retirement products such as annuities, IRA programs, Etc?

Answer: Yes, you can offer what any bank can offer. 

7. Is the bank regulated by how much interest we can charge the customer?

Answer: No, however you would want to be competitive to attract both investors and customers alike.

 Deposit guarantee programme introduced

Finance Minister Michael Cullen has announced that, using his powers under the Public Finance Act, the government is to introduce an opt-in retail deposit guarantee programme.

“The programme will cover all retail deposits of participating New Zealand-registered banks and retail deposits by locals in non-bank deposit-taking entities. This would include building societies, credit unions and deposit-taking finance companies,” he said.

The deposit guarantee programme does not include related party liabilities.

The new programme is an opt-in programme and would take the form of a bilateral contractual agreement between the Crown and the individual institutions which take up the guarantee.

The programme will be free for institutions with total retail deposits under $5 billion. A fee of ten basis points per annum will be charged on total deposits above $5 billion. This means that a bank with $20 billion in retail deposits would pay $15 million in fees per annum.

The government is offering this deposit guarantee to address the current situation of international financial market turbulence and it will be for a two-year term in the first instance. This will give time to see how well international financial markets stabilise in the months ahead.

“The deposit guarantee is designed to give assurance to New Zealand depositors. The New Zealand banking system remains sound. We want to ensure that ordinary New Zealanders feel that their deposits are safe in the current uncertain international financial market conditions,” Dr Cullen said.

Bank deposits guaranteed for 3 yearsOctober 12, 2008

Update  Australia will guarantee all bank deposits for three years and guarantee wholesale funding to Australian banks in an attempt to combat the global credit crisis, Australian Prime Minister Kevin Rudd said.

He said the Australian government was in close contact with other countries, including the G-20, and coordinated action was crucial. A government spokesman later said the Australian move was being coordinated with New Zealand, comments later confirmed by New Zealand media.

”The measures I have announced today are part of also international measures designed to unclog the arteries of the global financial system,” Rudd told reporters.

”The government is reassuring Australians that their credit union, building society or bank is a safe haven for their savings,” Louise Petschler, chief executive of Abacus – Australian Mutual, an industry group, said in a statement, according to Bloomberg News.

Opposition Leader Malcolm Turnbull welcolmed the move to guarantee all deposits in Australia, regardless of size.

”It’s a very important step and we will undertake to give the government every assistance in insuring that the necessary legislation will pass through the parliament promptly,”  Mr Turnbull told reporters.  

This information was taken from the website to which helps investors and customers alike, understand clearly, that their deposits are extremely safe, and well protected in one of these OFC Offshore Finance Company bank programs. This is one of the most safe banking programs offered, and its security is as good as the U.S. FDIC.

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