Obtaining a New Banking License

By that resolution unanimously adopted on July 29, 2010, the Governing Board of the PFSR lifted the moratorium on issuance of new banking licenses  The moratorium on the establishment of new banks in Palau became effective on February 19, 2003 by PFSR Resolution No. 02-2003-03 dated the same in order to allow the Commission time to adopt and fully implement its prudential and administrative regulations as promulgated under the Financial Institutions Act. The PFSR is prepared to accept any and all completed bank license application packets.

Make sure all items on the Banking Application Submission checklist are fulfilled and/or complete.

 

  • Complete, sign, and notarize the Application form.
  • Make payable to “National Treasury” Banking License Processing Fee of Two-thousand Five-hundred dollars ($2,500)
  • Complete Biographical data form for each applicable individual
    • A confidential biographical data report must be completed and filed by each person proposing to acquire a “significant interest” in a Palau financial institution and each “principal shareholder,” “director,” and “executive officer” proposed in connection with an application for a license to establish a new Palau financial institution.
  • Complete Personal Financial Statement for each applicable individual.

    • A confidential personal financial statement report must be completed and filed by each person proposing to acquire a “significant interest” in a Palau financial institution. A “significant interest” means owning or controlling, directly or indirectly, twenty percent (20%) or more of the outstanding equity or any class of shares with voting rights of a financial institution. “Person” includes an individual, two (2) or more individuals acting in concert, any type of partnership, corporation, syndication, trust, or any other organization, or any combination of the forgoing, and the information required in this application is required for each member of the group. A confidential personal financial statement report must also be completed and filed by each “principal shareholder,” “director,” and “executive officer” proposed in connection with an application for a license to establish a new Palau financial institution.
  • Completed, signed by all applicable individuals, and notarized Directors Acceptance & Oath of Office.
  • All other documentation and requirements as mandated or directed by the Palau Financial Services Regulation

Required Quarterly Reports

Due No Later Than Thirty (30) Days After Each Quarter
(Ending on March 31st, June 30th, September 30th, and December 31st)

  • PFSR Prudential Return Form 1 (Balance Sheet)
  • Form 1 Schedule 1 to Form 1 Schedule 8
  • PFSR Prudential Return Form 2 (Consolidated P&L)
  • PFSR Prudential Return Form 3 (Risk-Based Capital)

Required Annual Reports

  • Due On January 30th Every Year
    1. List of all Shareholders
    2. List of all Board of Directors & Administrators
    3. List of all Subsidiaries, Affiliates & Related Companies
    4. List of all Shareholders who own less than 20% of outstanding shares (Foreign Banks)
    5. List of all Branch Administrators and Branch Overseers at Main Office (Foreign Banks)
    6. List of all Subsidiaries, Affiliates and Related Organizations that conduct operations in Palau.
  • Due March 1st Every Year

    Statement of Financial condition in PFSR specified format prepared as of the close of business December 31st

    • Certified copies of Balance Sheet and Statement of Income included
    • Certified copies of Balance Sheet and Statement of Income on consolidated basis for entire Foreign Bank and Stand-Alone basis for Palau branch
    • Media Publication and Branch Posting of required Statements
  • Due April 30th Every Year

    Audited Financial Statements on consolidated basis

    • Complete Audit Report with Opinion of the Auditor
    • Auditor’s Letter to Bank Management
    • Separate Balance Sheet and Income Statement of Palau Branch on Stand-Alone basis (Foreign Banks)

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