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Montenegro Now Offers Gangster-Friendly Banking

www.tenc.net
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[The following text was copied in full from http://offshore-bank-accounts.net/Offshorebank.html ]

(9-26-2000)

Your own Offshore Bank for $8,000. Everybody knows how much money there is to be made in the banking business. You've heard that money makes money... and banks make money with other people's money!

If you are looking to open a fully licensed bank which is authorised to carry on all banking business world-wide, the most attractive jurisdiction is currently the Republic of Montenegro.

Key advantages include:

Low set-up cost : just $8,000 for a fully functioning bank (plus $4,000 annual fees). Correspondent account included in package. Mailing address with forwarding, and tel/fax included in package. No large capital requirements - just $10,000 capital gets your licence Favourable tax rate of just 2.5%. May be formed by any natural person or company world-wide - no intrusive background checks. European jurisdiction. Ideal for internet or private banking operations. Fast set-up time. The country. The Republic of Montenegro technically forms part of the Yugoslav Federation and is situated on Balkans, having the seashore on Adriatic right in the heart of Europe and Mediterranean.

However, Montenegro is autonomous within Yugoslavia. Montenegro has a pro-western government and remained neutral during the recent Balkan war. Economic sanctions against Yugoslavia do not apply to Montenegro.

The capital of the Republic of Montenegro is Podgorica. The country has its own Constitution and President, as well as Government and Parliament structures.

The Government of the Republic of Montenegro has been preparing for a long time and with great care the Montenegro - Free Economic Zone, within which "Development of Montenegro as an International Offshore Centre" is one of the main sub projects. This project envisages that Montenegro shall become a new centre suitable for international business operations providing business, tourist and other services to foreign companies on top-level standards.

Legal Basis of Offshore Banking in Montenegro. The "Act on companies which are established and which conduct business activity on special terms" was adopted by the Assembly of the Republic of Montenegro July 26 1996 in conformity with the Article 88, point 2 of the Constitution of Montenegro.

This act allows for the establishment offshore banks, and also for numerous other tax advantages designed to encourage inward foreign investment. Foreign-owned companies are privileged and completely exempted from exchange controls etc. Further details of this law can be supplied on request to seriously interested parties.

According to the Article 2 of the Act one of the allowed activities is financial services. To obtain a banking license a company must be established as Joint Stock Company ("JSC") formed by at least two subscribers (as subscriber may participate physical or juridical person) and have it paid capital of US$ 10,000.

Confidentiality. All information provided to the Ministry of Finance, banks and other organizations who perform duties of registering the bank and other duties for the company, is protected by specific confidentiality laws. This includes identities of principals, financial statements etc.

Bank License. The Ministry of Finance of Montenegro is also the regulatory body which issues the bank licence.

A standard bank license allows a JSC registered under the Act the following banking operations:

Payments under client instructions and bank exchanges under correspondent banks name, cashing services, establishing of correspondent relations with foreign banks and opening of "nostro" and "loro" accounts. Opening and supervising of clients' nominee accounts in correspondent banks in foreign currencies. Acceptance of all kinds of deposits and exercising of all kinds of deposit works. Attracting and managing of new money instruments, deposits, and credits of business partners, excluding money deposits of Citizens of the Republic of Montenegro. Financing under other party instruction. Handling, buying, selling and keeping of payment documents and value papers (checks, letters of credit, shares, taxes and other documents and exercising of other legal operations with these documents. Granting of bank guaranties for third parties, which foresee payment in money. Contracting and exercising of factoring services, purchasing of the rights on goods delivery and services granting, acceptance of risks under non cumpliment of such liabilities and bills collecting. Purchasing and selling of cash currency and currency which is deposited on accounts of juridical and physical persons. Intermediary operations in trade with value papers. Purchasing and payment receiving. Attracting and investing of assets and managing of value papers according clients instructions and other persons on the market and trust representation operations. Rendering of brokerage, consultant service and leasing. Creating a reserve, insurance and other funds from own and attracted assets for guaranties and insurance and development of banking activity and investment to Montenegro, according to the law on companies established and operated under special terms. Participating as a founding party or shareholder of banking organizations in Montenegro and also abroad - in subsidiary banks, as well as in similar institutions and organizations, according to the law on companies that established and operated in Montenegro. Opening of branches and representation offices on the territory of the republic of Montenegro and abroad". Such banking license is not limited by time. Tax Regime. The bank has a duty to file a tax declaration in due time or to hand over to the competent tax authority other data necessary for calculating taxable profit. The bank pays the tax at the rate 2.5% on its declared profit. The tax base is further reduced with the amount of financial resources from income which is directed into investments within the territory of the Republic.

Annual Payments. An amount of US$ 100 is payable to the Registry for the joint stock companies annually. An annual fee of US$4000 is payable for the Registered Agent and Registered Office in the Republic of Montenegro (payable on incorporation, then annually on the anniversary thereafter). Book-keeping and accountancy costs are not included: these extra services can be provided if required.

This fee includes provision of mail forwarding and shared telephone and fax facilities. It is therefore possible to run an internet banking operation without the need to establish a physical presence in Montenegro beyond the registered office address.

Correspondent Accounts. The basic package includes opening a correspondent account at the Bank of Montenegro. This allows the new bank to use their existing correspondent network which includes Citibank, Commerzbank, Union Bank of Switzerland etc for sending and receiving payments.

For additional fee we can arrange direct correspondent accounts with banks in other countries.

Formation Time. Usually to form a new bank with the client's directors and name proposed takes 4-8 weeks. Sometimes it can be completed much quicker, especially if extra care is taken to ensure that all documents are in order.

Requirements to Commence Formation. At least three potential names of the bank, so that one can be chosen which is free. Please send them by e-mail, since all documents which we send you will bear the name of the bank. At least two founders - they can be physical persons, in which case we will require photocopies of their passports, certified with an Apostille; if the founders are legal entities, then copies of the registration papers, which must also be affixed with an Apostille. If you require nominees, we recommend you simply take two off-the-shelf Panama corporations which we have in stock with all necessary documents. Payment of USD 10,000 as founder's capital, which you must pay by wire transfer direct to the central bank of Montenegro. After formation you are free to withdraw or reallocate this capital. Power-of-Attorney to our lawyers in Montenegro to file the necessary documents. We can supply this form on receipt of your confirmed order and payment. Payment of incorporation fee ($8000) plus first year's domiciliary fee ($4000) by wire transfer. (Guaranteed refundable in the unlikely event that your banking licence is declined). A 50% deposit will be accepted to start work, with the balance payable when your banking licence has been issued and you have verified it with the government if you wish. Documents you will receive by courier on completion: Certificate of the opened foreign currency correspondent account as well as a receipt for the foreign currency account issued by MONTENEGRO BANK. Certificate of inscription in the Companies Register. Memorandum of Association of the bank. Articles of Association. Licence as proof for conducting bank and other financial activities. Certified translations of above in English and Russian with Apostille. If you have any additional question feel free to ask: simply click here!

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