This island state has undergone great upheavals during the period of its existence. In 1983, the country gained independence. As well as many other young states of the Caribbean region, Dominica has set a course for accelerated economic development. For this purpose, the country has developed a program for granting citizenship to those foreigners who will make investments in the economy.
In order for this program to work to its full potential, it was necessary to create a reliable financial system that could make life easier for foreign and local entrepreneurs. The banking system already existed in the country, but it lagged behind the requirements of the time. To create a modern banking system, specialists from abroad were invited to the country.
Dominica’s banking system
Dominica’s banking system cannot be considered in isolation from that of the Eastern Caribbean. The backward states of the region, which had recently gained independence, quickly realized the need to join forces to quickly achieve sustainable economic growth. To this end, in 1983, the island countries created the Organization of Eastern Caribbean States (OECS). It gave the citizens to freely move and trade within the states.
The creation of a single financial system has given small island states several advantages:
- help each other and endure crises more easily;
- reallocate resources more efficiently;
- maintain low inflation.
The financial system of the monetary union includes local and international banks, insurance companies. The Central Bank of the Eastern Caribbean Union is a financial regulator. It is mainly responsible for the stability of the local dollar. The Bank is governed by a Board of Directors formed by the Currency Board, which oversees the issuance of a common currency, the Eastern Caribbean Dollar. The Central Bank is responsible for maintaining and accumulating international currencies.
All commercial banks operating within the Monetary Union must have licenses from the Central Bank. Commercial institutions are to submit regular reports to the main financial institution of the region at the end of the month, quarter and year. Based on their results, the best banks of the year are determined.
Major banks of Dominica
The population of the island state is only about 80 thousand people. There is a credit institution on the island for every 800 inhabitants. There are 10 of them. Such a number of banks indicates the active entrepreneurial activity of the population and the presence of foreign investors.
Four Dominic banks are included in the Caribbean Association. Besides, six branches of major international banks operate on the island. Let’s take a closer look at the most pooular ones.
The National Bank of Dominica
The financial institution, established in 1976 by the Parliament, was first called the National Commercial Bank for Development of Dominica. In fact, it began to function only two years later, as a division of the Bank for Agriculture, Industry and Development.
Today it is the largest financial company on the island. It has been successfully carrying out banking activities for more than forty years, providing all possible financial services to the population, small and medium-sized businesses, and corporate clients.
The National Bank of Dominica is confidently keeping up with the times. Customers get the opportunity to manage their finances in online banking. They can do this anytime, anywhere, as long as the internet is active.
Republic Bank (Dominica) Limited
The headquarters of this financial company is located in Trinidad and Tobago. In addition to Dominica, the bank provides banking services to 14 other Caribbean countries. The main office of the bank in the Dominica is located in the city of Roseau at Hillsborough 28. The financial institution has 38 branches and a wide network of 127 cashpoints around the world. Annual customer service costs $20. The fee for using a cashpoint is $2. For providing services on regional and international POS- terminals charge 2% of the transaction.
First Caribbean International Bank (CIBC)
This financial institution is a subsidiary of the Canadian Imperial Commercial Bank (CIBC). The bank is one of the largest and most prestigious in Canada. Bloomberg ranked the company in May last year as the 4th largest in the world. The brand has offices in many countries around the world, and is headquartered in Chicago, USA.
Working in the Caribbean, the brand tries in every possible way to take into account the economic and cultural characteristics of the region.
RBC Royal Bank
The financial institution has a rich history. RBC Royal Bank was established in 1864 in Halifax, Canada, to provide financial support to the fishing and logging industries and enterprises that carried out import and export operations in Europe and the Caribbean.
Having gone through a long path of formation, the Royal bank became the largest in Canada in terms of capitalization. The company’s equity capital in 2024 amounted to more than 127 billion Canadian dollars. The bank is active in the stock market. It employs more than 100,000 employees who help 20 million customers around the world use banking services and products.
Scotia Bank
This international financial company, headquartered in Toronto, ranks third in Canada in terms of total capitalization. It amounted to 84 billion Canadian dollars in 2024. Scotia Bank has up to 90,000 employees.
The bank considers itself the most international. It has good reasons for this. Scotia has expanded banking activities in Latin America and the Caribbean, Europe and Asia. The company actively trades on major stock exchanges in Toronto and New York. In addition, it is a member of the Association of Precious Metals Markets in London.
Benefits of Banking in the Commonwealth of Dominica
The authorities pay special attention to the activities of financial institutions in Dominica. The country’s banking system works in close cooperation with major international financial companies. The Commonwealth of Dominica has a strong interest in developing a stable financial system in the country. It helps to attract wealthy investors to the country who are ready to help develop the country’s economy. Let’s name the main advantages of banking services in this island state:
- Confidentiality. The high level of confidentiality in the country’s banking system is due to two main factors: Dominica’s commitment to bank secrecy and the presence of international corporate structures. The laws of the country are aimed at protecting the personal and financial data of all customers, regardless of their status;
- Simplicity and convenience of doing business. The Dominica authorities have done a lot of work to facilitate the procedures for opening accounts. A favorable legal framework has been created in the banking sector. A simplified business system is beneficial for companies and individuals. If this state of affairs continues, Dominica expects GDP growth of almost 29% by 2028;
- Tax planning. An optimal tax system is one of the main factors in business development. In Dominica, there are no personal and global income taxes. The absence of inheritance and property taxes makes the island a very attractive place for investment. Dominica offshore banking enables individuals to accumulate capital quickly.
Dominic is a member of the Commonwealth of Nations, where the main language is English. Customers and managers understand each other perfectly.
How to open a bank account in Dominica
The procedure for opening a bank account in Dominica may vary depending on the size of the bank or the type of account. But there are also general provisions that are suitable for everyone who is going to start working with a financial institution:
- Collection of documents that confirm identity (passport, driver’s license), indicate the address of residence (utility bills, bank statements), confirm the origin of income (tax locations, account statements);
- Filling out questionnaires indicating information about the person opening the account and his financial situation;
- Personal presence. This is required by some banks for persuasiveness. Often, an account is opened through trusted representatives;
- Making an initial deposit;
- Verification and confirmation. The financial institution will first check the customer information. Only after confirming the correctness of the specified data, he will receive account details and other documents;
- Activation of services. If you wish, you can activate online banking services or bank cards.
The country is actively fighting against the laundering of illegally obtained money. Therefore, banks are serious about complying with the “know your customer” (KYC).
Servises offered by Dominica’s banks
Dominica banks meet all the requirements for modern financial institutions. They offer a large number of services that facilitate the work of businessmen and ordinary citizens. Here is a list of the most popular services offered by the banks in the island state:
- opening various accounts;
- providing customers with all types of loans;
- transfers to international banks;
- issuance and servicing of bank cards;
- insurance services;
- mobile and online banking.
Banks also provide investment services for asset management and financial planning.
Online and mobile banking options
These two useful services are offered to customers by almost all commercial banks in Dominica. They significantly save customers’ time and reduce travel costs. Online and mobile banking allows customers to use the following types of banking services:
- find out account balances;
- access transactions:
- make transfers to other people;
- receive the benefits of transfers to accounts in other banks;
- it is easy to pay utility bills, loans.
With online and mobile banking, you can easily and quickly make real-time payments using a credit card.
Tips for foreigners banking in Dominica
Opening an account in another country is a responsible step for a foreign citizen. He should take into account the factors on which the reliability of the bank depends. We recommend that foreigners pay attention to the following features of a financial institution when opening an account:
- Regulatory compliance. Dominica banks have a Service Assurance Authority. It is responsible for the security and stability of the bank, protects the interests of depositors;
- It is important to choose a bank with a branch in your country of residence and you will be served in the language you speak;
- Time of operation in the market. It is important that the bank has been operating successfully for at least 5 years. During this period, one can recruit a team of professional financiers and gain experience.
- Asset dynamics. Comparing the volume of current assets with past ones gives a clear idea of stability. If the dynamics are positive, you can deal with such a bank.
- There are financial experts in every country. Get recommendations from them on opening an account;
- Financial well-being. A stable financial position is a sure sign of reliability. Such a bank is less exposed to the risk of bankruptcy;
- Protection of personal and financial data is the most important task of the bank. The client can be sure that confidential information will not be disclosed;
- Release of funds. Dominican financial institutions have a system of deposit insurance in case of bankruptcy;
- Reputation, reviews. Before opening an account, study the ratings, read user reviews.
If you study this information carefully, you will be able to open an account with a reliable bank and protect your money.
