ADGM Digital Banking License - Category 1 License - 10 Leaves


Presentation Description

10 Leaves are the Registered Corporate Service Providers at ADGM. They Provide the services like ADGM Digital Banking License. For Deatails, Mail us at:[email protected]


Presentation Transcript

slide 1:

ADGM DIGITAL BANKING LICENSE - FSRA - CATEGORY 1 LICENSE - 10 LEAVES The ADGM is an upcoming financial centre in the MENA region for business and fintech. The quality of ADGM’s independent regulator the prevailing common law framework excellent infrastructure and tax efficiencies make it the perfect base to take advantage of the rapidly growing demand for financial and business services in Abu Dhabi and the greater MENA region. Why setup a financial services firm in the ADGM The ADGM is one of two onshore financial centres in the UAE. Established in 2015 it quickly rose through the rankings and is now counted as one of the top 25 financial centres in the world. ​ADGM’s innovative SPV regime ​ its initiatives in the fintech space and its issuance of the region’s first cryto-asset regulatory framework have all contributed to its success. Specific Advantages: Here are some specific advantages of establishing in the Abu Dhabi Global Market. LEGAL AND REGULATORY FRAMEWORK: ·​ ​Legal framework supports cross-border activities ·​ ​100 foreign ownership permitted ·​ ​No restriction on foreign talent or employees ·​ ​No restrictions on capital repatriation TAX BENEFITS: ·​ ​Zero tax for 50 years on profits capital or assets from 2004 ·​ ​Zero tax on employee income COUNTERPARTY CONFIDENCE: ·​ ​Well regarded independent regulator ·​ ​Independent English-speaking

slide 2:

Common law judicial syst ​Distinct from the UAE legal system ·​ ​Risk-based regulatory approach DIVERSE ECOSYSTEM: ·​ ​Central to regional deal making · ​High concentration of international firms investment funds wealth management firms banks and financial institutions · ​World-class regional and international law and auditing firms and other professional services ·​ ​A growing fund domicile in the region GEOGRAPHIC EPICENTRE: · ​Management offices holding companies and family offices are located closer to the assets they own or manage · ​The Middle East Africa and South Asia MEASA is increasingly the centre of gravity for the global economy · ​The UAE plays a central role in the growing South-South trade principally between Asia and Africa ·​ ​Well-positioned to harness the potential of emerging markets. ADGM Digital Banking License ​: The ADGM recently announced its intention to accept applications for digital banking licenses. A digital bank accepts deposits provides credit and engages in related financial services activities. This is done primarily through online digital or electronic means in contrast to physical interaction with customers as in the case of conventional banks. Digital banks are financial institutions that seek to provide novel customer and transactional solutions. The Financial Services Regulatory Authority or FSRA reviews applications from firms who wish to carry out financial services from the ADGM. For the ADGM digital banking

slide 3:

license the regulators aim to accept applications from existing banking institutions and from firms with innovative value propositions. ADGM Capital requirements: The category of licence determines the amount of base capital required. The capital requirement for a ​Category 1 Digital Banking License is 10 million. This is the base capital – It is likely however that the Risk-Based Capital Minimum will apply as the higher requirement. This is calculated on the basis of the totality of risks the digital bank will face in the course of its business and operations and includes core Tier 1 CET1 and Tier 1 capital adequacy ratios of 6 and 8 respectively with a Capital Conservation Buffer of 2.5 along with a minimum leverage ratio of 3. ADGM Authorisation Process: Applications for Digital Banking licenses will go through a rigorous process of authorisation. Applicants will have to demonstrate a credible comprehensive and sustainable business plan adequate control mechanisms and robust compliance processes. The following are mandatory appointments: Licensed Directors – the FSRA will review the composition of the Board Senior Executive Officer – Must be UAE resident Compliance Officer – Must be UAE resident Money Laundering Reporting Officer – Must be UAE resident Finance Officer Senior management positions – Business Heads Chief Risk Officer Chief Technology Officer Costs: Setting up an AGDM Holding Company ​ involves the following interactions:

slide 4:

Financial Services Regulatory Authority FSRA Application fee – from US 30000 Annual fee – from US 30000 Registration Authority RA: The RA helps to set up the legal structure of the ADGM Firm. In most cases this would be a Private Company Limited by Shares. Shareholders can be individual or corporate. The costs for setting up such a company are: Application ​ for ​reserving a name ​: ​US 200 Application ​ for ​Incorporation ​ of a Private Company Limited by Shares: ​US 1500 Commercial License ​ on Incorporation: ​US 4000 ​ annual fee Business ​ ​Activity ​ fees: ​US ​ ​9000 ​ annual fee Data Protection: The data protection notification is part of the process of registering a new entity in the ADGM. The costs involved are as follows: Registration - ​US 300 Annual renewal – ​US 100 Office spaces: Every entity registered in the ADGM is required to lease a physical office. You can choose from business center options or physical spaces within the ADGM. Here is an indication of the prevailing rates: Business Centre ​ – from a one-desk office at ​US 19000 ​. Fitted Offices ​ – from ​US 55 ​ per square foot.

slide 5:

Visas: Establishment ​ ​Card ​ Application – US 273 E-channel ​ – US 1100 one-time E-channel deposit ​ – US 1360 Visas ​ per visa – from US 1500

authorStream Live Help