Comoros, a small group of islands in the Indian Ocean, was a little-known country until a recent surge of interest in its licenses. The matter is that it offers really affordable forex, banking, crypto, and gambling licenses you can take advantage of. Why not get a license in other places that offered them before Comoros came to the limelight? Well, the answer is simple: the conditions have changed, and we will briefly discuss it in this post. Comoros is currently one of the most viable jurisdictions where you can get the above licenses, and we highly recommend taking the opportunity. Click on the link to learn more about Comoros offshore forex licensing or talk to an expert using a live chat.
Comoros: Reasons for Sudden Popularity
On January 6, 2023, the Financial Services Authority of St. Vincent and the Grenadines signed a Memorandum and sent it out to all companies that have the country’s forex license. The message was clear: all such businesses had to get a license elsewhere and do so quickly! As a result, entrepreneurs had to look for other existing possibilities to obtain a document in a matter of two months, and that’s when Comoros suddenly caught the attention of international entrepreneurs.
Vanuatu is another jurisdiction whose licenses were very popular with entrepreneurs globally, but they have lost their appeal due to changes in the policy. The country introduced new substance requirements, which made its forex license really overpriced. A great number of Chinese-based companies that used to be loyal to Vanuatu are now switching to Comoros as they need a more affordable solution.
Comoros License
The holders of St. Vincent companies had to solve the problem unbelievably quickly. Let’s look at the alternatives they could potentially consider:
- Vanuatu has become a complicated choice due to new substance requirements, as was mentioned earlier.
- If you have a small brokerage company, Cyprus’ CySEC and UK’s FCA will be too expensive for you (though they are a great choice if you need a premium solution).
- Seychelles, Dubai, and Mauritius are good options, but they will hardly issue a license quickly enough to solve emergency problems.
It means that there is only one alternative left, and it has a number of benefits to take advantage of:
- Comoros is not blacklisted by the EU and FATF, and it is on friendly terms with the middle eastern states.
- The license it offers is affordable even for small businesses.
- There are no substance requirements in Comoros, which considerably saves time and costs.
- You will be able to take advantage of light touch regulation in the country while remaining a legally regulated company.
- On the whole, the licensing process in Comoros is quick and easy.
As you see, the country has it all to become a real haven for forex-related businesses, especially if their size is modest and they are just starting their way in the market.
Not a Premium License
We highly recommend obtaining a Comoros license if you have a startup or a small brokerage company.
You should know, however, that it will not be a high-class respectable license like the one issued by the UK or Cyprus. In fact, it is a third-tier document ranked below Seychelles and Mauritius, and it stands approximately on the same level as St. Vincent’s license.
While the Comoros forex license may be less prestigious than other available options, the country compensates for this fact by offering a quick, cheap, and hassle-free license acquisition process. If your business partners deal with you online and pay little attention to your regulation, there is no reason to choose a more regulated jurisdiction and pay more.
How to Obtain a Comoros Brokerage License
Comoros issues licenses to local IBCs or foreign companies. If you have no company, you may consider Comoros as setting up an IBC here does not take more than 24 hours.
As for due diligence requirements, they are more stringent in Comoros as compared to St. Vincent. However, this is easy to explain as St. Vincent just turned a blind eye to unlicensed businesses working on the island and did not make much effort to regulate them in any way. There were a lot of established practices that helped them operate over the Internet without much regulation and provide forex brokerage services from St. Vincent to many countries (they tried to avoid major jurisdictions, though, like the USA, the UK, and the EU – just to be on the safe side). However, it would be logical to expect that your company will be regulated if you obtain an official International Brokerage License that entitles you to engage in different kinds of activities.
Here are the requirements for Comoros license applicants:
- A business plan
- A financial guarantee
- Personal KYC with regard to all company owners and directors (professional and bank references, proof of residence address, and passport copies)
- A duly completed application form
- A bank reference on the company if it has been operating for some time
- AML Manual that includes the company’s main compliance policies
You can provide a financial guarantee in three ways:
- An international financial guarantee is usually provided by a bank or any other recognized solvent third party in another country.
- A local financial guarantee can be issued by an insurance company, and you usually have to pay 10% for the service on an annual basis. You will have to provide your business plan to the insurance company to obtain an exact offer.
- A cash deposit that you make with the relevant authority.
The amount of the required financial guarantee is usually 250,000 euros, but the Regulator may demand a larger guarantee after studying the business plan.
Conclusion
You may feel uneasy venturing on your own. In this case, we strongly recommend that you click on the above link to get more information or contact an expert. Provide the details of your company if you have one or specify your plans, and you will receive professional advice at no charge. If you have any questions, feel free to ask them.
