Banks in Vanuatu and accounts abroad: what a bank checks for a Vanuatu citizen

Vanuatu banks and accounts with the passport in brief

In short: with a Vanuatu passport you can open accounts both at banks in Vanuatu and at banks in other countries. The bank’s decision depends on tax residence, a confirmed address, the source of funds and a clear purpose for the account. The documents gathered for the citizenship programme close most of the bank’s questions.

For a bank the passport serves as proof of identity and citizenship. After that, compliance looks at the client as a whole: where they pay tax, where the money comes from, what transactions are planned. When these answers are backed by documents, a Vanuatu passport works like any other.

It is most convenient to deal with banking together with obtaining citizenship: the source of funds evidence, the background check and consistent data are already gathered. How the programme works is described in the overview of Vanuatu citizenship by investment, and the total for your family in the article the full cost of Vanuatu citizenship.

Vanuatu’s banking system

In short: Vanuatu’s banking sector is regulated by the Reserve Bank of Vanuatu. The national currency is the vatu, and the domestic banks are the state-owned National Bank of Vanuatu and the subsidiaries of ANZ, BRED and Bank South Pacific.

The Reserve Bank of Vanuatu issues licences, keeps the register of institutions and publishes the list of authorised banks. Among domestic banks it lists the state-owned National Bank of Vanuatu, three subsidiaries of foreign groups, ANZ Bank (Vanuatu) Limited, BRED Bank (Vanuatu) Limited and Bank South Pacific (Vanuatu) Limited, and a branch of a foreign bank. International banks that serve non-residents are licensed separately.

The list of licences changes, so a bank’s status is checked on the Reserve Bank of Vanuatu website before opening an account.

Domestic payments are in vatu, and for international transactions banks offer foreign currency accounts; the currencies and terms are confirmed with the specific bank. The list of licences changes: the Reserve Bank revokes licences and publishes notices about it, so a bank’s status is checked on the regulator’s official website before opening an account.

Who needs an account in Vanuatu itself

A Vanuatu bank account is needed by those who live on the islands, run a business in the country or buy property on a long-term lease. The payment to the CIIP fund also goes through a Vanuatu bank: for it the bank asks for proof of address, a statement for the payer’s account and documents on the source of funds. Each bank sets its own account opening requirements and whether remote opening is possible, so they are confirmed before documents are submitted.

A company and a business account in Vanuatu are registered together with licences; the procedure is on the page business registration in Vanuatu. How the fund payment works is covered in the article DSP or the CIIP fund.

Where a Vanuatu citizen can open an account

In short: accounts are opened where the client lives, works or does business. A bank in the country of tax residence, a bank in Vanuatu, a payment service or a company account solve different tasks, and many families use them together.

A bank in the country where the family lives and pays tax opens an account most easily: the client is clear from their address, income and tax documents. In this case the Vanuatu passport serves as a second identity document and widens the choice of jurisdictions if the family moves.

Payment services and multi-currency accounts open faster and remotely, but they have turnover limits and restrictions on transaction types. As turnover grows, the service asks for additional documents. A corporate account makes sense when there is genuine activity: the bank assesses the business, contracts and ownership structure.

It is safer not to depend on one institution: an account for everyday payments and an account for savings at different banks reduce the risk that one bank’s policy review leaves the family without access to money. There is no universal list of banks for Vanuatu citizens; the decision is always made for the specific client.

A Vanuatu passport also widens the choice of jurisdictions for those who work with banks in Asia. A financier from Almaty who manages family capital through private banks and managers in Hong Kong and Singapore obtained the passport in 53 days and travels to quarterly meetings without visa preparation: Hong Kong is open for 90 days, Singapore for 30. Details are in the case: access to banks in Hong Kong and Singapore.

What the bank checks besides the passport

In short: the bank checks the source of funds, tax residence, address and the economic sense of the transactions. The Vanuatu passport proves identity and citizenship, and the decision is made on the other documents.

• Source of funds. Where the money comes from: the sale of a business, salary, dividends, an inheritance. Contracts, statements and tax returns are needed.
• Tax residence. A Vanuatu passport does not make the client a Vanuatu tax resident. The bank records the country where the client pays tax, and account information goes there under the CRS standard.
• Address. A tenancy agreement, a utility bill, a registration certificate.
• Purpose and turnover. Sensible amounts, counterparties and activity that explain the movement of money.

Banks often ask how citizenship was obtained, and if it came through an investment programme, they look at the source of funds more closely. For the applicant this is no obstacle: the documents checked by Vanuatu’s Financial Intelligence Unit answer the same questions. How the check works when obtaining citizenship is described in the article due diligence, and what the programme expects from the applicant in the article requirements for Vanuatu citizenship applicants.

The opposite also happens, when compliance stops an application because of the country of the main passport before any discussion of documents. An entrepreneur from Beirut kept being refused at the application form stage after Lebanon’s banking crisis, obtained a Vanuatu passport in 60 days with a full source of funds pack and opened accounts at an Asian bank. How it went is described in the case: how an entrepreneur from Beirut got his banking back.

You cannot name Vanuatu as your country of tax residence without actually living there: it will raise questions from the bank and from the tax service of the country where you live. Tax residence only changes with a move; this is covered in the articles taxes in Vanuatu and Vanuatu tax residence. How account information is exchanged is described in the article confidentiality of the status and CRS.

How to prepare documents for an account

In short: first determine the purpose of the account and tax residence, then gather documents on address and source of funds, and only after that choose the bank. This order reduces the number of requests and refusals.

1. Purpose of the account. What the account is for: living, business, savings or a programme payment.
2. Residence. The country of tax residence and proof of address.
3. Source of funds. Contracts, statements and tax returns for several years.
4. Choice of bank. A bank for which such a client and such transactions make sense.
5. Bank requests. Answers with documents, not letters.

The bank is chosen to fit the client, not the other way round. Once it is clear who the client is for compliance, what their income, turnover and goals are, the application goes where such a profile is served. A refusal at one bank stays in the client’s history and can complicate later attempts, so applying to different banks one after another without preparation is a bad idea.

If the funds come from the sale of a business, property or digital assets, contracts and proof of settlement are added to the pack. How income from digital assets is proven is covered in the article source of funds from cryptocurrency. The bank’s requests about the source of funds and additional documents are part of the normal check and do not mean refusal: they are answered with documents.

What BRIDGES does

• assesses the client’s citizenship, tax residence and source of funds;
• chooses the type of account for the task: a bank in Vanuatu, a bank in another country, a payment service or a company account;
• assembles the document pack to the requirements of the chosen bank;
• helps answer compliance requests.

If an account cannot be opened at the chosen bank, we say so before filing and suggest another option.

How to pay the citizenship programme contribution

In short: the contribution under both programmes is paid after Commission approval: for DSP to the Vanuatu treasury account, for the CIIP fund to the fund’s account. Before the decision only the FIU fee leaves the applicant’s account: $5,000 for DSP or $8,000 for the fund. The payment goes from the applicant’s account at a bank that checks the origin of the funds and the purpose of the transfer.

Bank details for government payments are taken only from the official invoice issued for the application: the contribution and fees go to accounts of the Government of Vanuatu or the approved fund, not to an intermediary’s account. Before a large transfer the sending bank asks for the invoice itself, the support contract and documents on the origin of the money in the account, so the pack for the bank is assembled together with the pack for the FIU.

US dollar transfers go through correspondent banks, and each of them can ask questions or hold the payment. So the account the payment will come from is opened in advance and tested with a small transfer, such as the FIU fee. How payments are spread across stages is described in the article payments by stage, and bank charges and transfers in the article costs beyond the contribution.

Documents for the CIIP fund payment

The payment to the CIIP fund goes through a Vanuatu bank. For it, the main applicant prepares a bank statement for the last 6 months on the account the money will come from, a statement of assets in US dollars, a proof of address from the last month and documents on the source of funds. The fund covers a family of up to four, so the family composition is checked in advance; details are in the article who can be included in the application.

If the account the payment will come from was opened recently and has no 6-month statement, statements for the previous account the money came from are added to the pack. This way the Vanuatu bank sees the whole chain of funds, not just the last transfer.

A company account in Vanuatu

If after obtaining citizenship the family does business in Vanuatu, a company is registered in the country and a business account is opened at a local bank. The bank asks for incorporation documents, details of the owners, a business licence and a description of the transactions. For a foreign owner, the activity is agreed with the Vanuatu Investment Promotion Authority.

Payment services and multi-currency accounts

Payment services are convenient for payments in several currencies and open remotely, but they have turnover limits, and they check large incoming amounts in the same way as a bank. A bank account is used for the programme contribution and large transactions, and the payment service is kept for everyday spending.

Accounts and taxes: what the country of residence receives

In short: a Vanuatu passport does not change tax residence, and the bank reports the account to the country where the client lives and pays tax. Vanuatu takes part in the automatic exchange of account information under the International Tax Cooperation Act 2016.

Tax residence is determined by the country of residence, usually under the 183-day rule. Vanuatu has no personal income tax, capital gains tax or inheritance tax and charges 15% VAT, but these terms apply to those who actually live on the islands. On the form the bank asks for the country of tax residence and the tax number, and the answer must match the address documents.

For a family that is moving, the order is sequential: first the actual place of living changes, then tax residence, and only after that does the bank update the client’s details. In this chain the Vanuatu passport serves as an identity document and gives freedom to choose a country, while the tax result comes from the move.

A foreign account for a Russian citizen

In short: a Russian citizen who remains a tax resident notifies the Russian tax service when opening an account at a foreign bank and reports the movement of funds annually. These requirements do not apply to those who spent more than 183 days outside Russia in a calendar year.

A second citizenship does not change Russian currency control and tax obligations: they depend on residence, not on the passport. A bank abroad sees the dual citizenship and may ask for additional documents, so an explanation of the source of funds and address is added to the pack.

After receiving a Vanuatu passport, a Russian citizen notifies the Interior Ministry of the second citizenship within 60 days. The notification is not linked to the bank, but a copy is useful to keep in the pack: a bank in Russia or abroad may ask about the second citizenship when updating the client’s form.

Transfers from Russian banks to foreign correspondent banks often do not go through, so the account for large payments, including the programme payment, is opened in advance. All the obligations of a Russian tax and currency resident are covered in the article CFC and currency control, and the specifics of citizenship for Russian citizens in the article Vanuatu citizenship for Russian citizens.

Common mistakes when opening an account

In short: accounts are not opened when the client comes with only a passport, without a confirmed address and income documents, or applies to several banks in a row without preparation.

1. Coming to the bank with only a passport. Without address, tax residence and source of funds the bank cannot see the client as a whole.
2. Naming Vanuatu as residence without living there. The bank and the tax service of the country of actual residence will ask questions.
3. Choosing the bank before gathering documents. The application goes where such a profile is not served.
4. Treating a bank request as a refusal. Additional documents are part of the normal check.
5. Putting off the account for years after the passport. Some source of funds documents are hard to restore later.

Programmes are compared on travel, timelines and cost in the articles Vanuatu or Dominica and Vanuatu or Nauru.

BRIDGES services on the topic: Vanuatu citizenship by investment with BRIDGES support, apostille and legalisation of Vanuatu documents.