Vanuatu Banks

Vanuatu's Banking System

Vanuatu is an independent state in the South Pacific, located in Melanesia. The operations of local banks (both commercial and state-owned) are overseen by the Reserve Bank of Vanuatu. Its internal policy is aimed at achieving price stability, a sustainable balance of payments, and economic growth.

This bank is responsible for issuing, reissuing, withdrawing, and destroying the national currency.

Vanuatu's currency is called the vatu. There are no coins - only paper banknotes circulate in the country. The smallest denomination is 1 vatu, and the largest is 10,000 vatu. This currency does not hold a strong position on the world stage: as of May 1, 2023, 1 vatu equaled $0.0085.

National Bank of Vanuatu is the country's largest commercial bank, with more than 25 branches opened outside the major cities.

The most reliable bank in the country is ANZ Vanuatu Bank. It was opened in 1971, and today it operates two branches in Vanuatu: one in Port Vila and the other in Luganville.

On average, the cost of account maintenance at local banks ranges from $2 to $8.

How to Open a Bank Account

To open an account, a foreign national must visit a bank branch in person. Only ANZ Vanuatu offers the option of opening an account remotely.

In this case, the remote format means sending notarized documents by mail. There is no opening an account through a mobile app, as Russians are used to.

Vanuatu's banks do not follow a unified policy on serving foreign clients. For example, National Bank of Vanuatu and Bred Bank readily open deposit and settlement accounts for citizens of other countries. Their staff, in most cases, speak several languages.

What Documents Are Needed to Open an Account?

We are used to Russian banks opening accounts based on two documents: a passport and a tax ID. Vanuatu operates under a different system. To open an account at a local bank, an individual must provide the following documents:

• an account-opening application;
• a valid international passport;
• a statement of income, as well as a document confirming the funds were earned and obtained legally;
• client information (residential address, phone number).

The list of documents required for legal entities is significantly broader. This category of clients must also provide the bank officer with the company's articles of association, registration details, license information confirming the right to conduct the chosen line of business, and permission to open the account signed by all founders (issued as a formal resolution).

It is best to fill out the application at home. The required form can be downloaded from the chosen bank's official website. Before visiting the financial institution, it is recommended to review its internal policies. If the applicant has no difficulty with foreign languages, it is best to call the bank officer and confirm the current list of documents required to open an account.

Can an Investor Open Their Own Bank in Vanuatu?

Yes. To do so, they need to obtain a license. Today, the country issues two categories of licenses: an international one, and one that allows conducting banking business within the country.

Foreign investors most often prefer licenses for international banks. Let's look at the terms for obtaining one in more detail:

• cost: $8,000;
• minimum authorized capital: at least $500,000;
• processing time: 3 to 4 months;
• renewal cost: $8,000.

A license allowing banking activity within the country costs more. In this case, the investor would need to pay $10,000.

License applications are submitted to the Reserve Bank of Vanuatu. In addition to the main package of documents, the investor needs to prepare a detailed business plan (ideally developed by the legal entity's chief accountant).

Choosing a bank is a complex decision that affects not only the investor's potential expenses but also the ability to secure a high level of deposit confidentiality. When you reach out to us, you get a full picture of how negotiations with financial institutions work. We are also ready to take on document preparation and analysis of account servicing terms.