Auckland, New Zealand (PressExposure) May 15, 2009 -- New Zealand legislation enables the creation of an offshore finance company, which can offer banking services to both private individuals and corporations worldwide, with no limitations on the number of customers, amounts on deposit or number of currencies. There are no regulations controlling the transfer of funds to and from New Zealand and funds can be transferred in any currency. An offshore finance company can legally accept global deposits, and will typically payout higher interest rates. Only New Zealand resident companies and individuals cannot be accepted as clients. Instead of the non-resident withholding tax rate, only 2% tax is deducted on interest paid to non-residents.
An offshore finance company can offer virtually anything a fully licensed bank can offer, yet is not subject to capital reserve requirements; nor is it subject to Central Bank supervision and regulation, and thus cannot be called a Bank. The banking system is controlled and regulated by the Reserve Bank and only those operations properly licensed are permitted to operate in New Zealand. In order to be issued with a license, banks must meet strict criteria and controls. The vast majority of New Zealand banks are owned by European, US or Australian banks who typically have an AA credit rating or better.
An offshore finance company can legally engage in the following:
* Deposit taking & lending * Providing checking, savings, and current accounts * Issuing of CDs * Providing term deposits * Offering debit and credit card services * Issuing of financial guarantees and instruments * Offering cash management services * Wire transferring services * Payment processing services * Marketing of investments * Offering fund management
When a New Zealand Finance Company is formed; it will operate under New Zealand corporate governance. You can view the New Zealand Corporate Governance report at:
Additionally, you may order a hard copy from the New Zealand Securities Commission by calling 04 472 9830 and requesting a copy.
In comments from Commerce Minister Lianne Dalziel, she expressed concern that some critics seem to think the sector is currently completely unregulated. However, her response was that the sector is regulated, but it will remain important for investors to do their homework before making any investment decisions.
Offshore finance companies activities are regulated by several acts:
* Bills of Exchange Act 1908 * Cheques Act 1960 * Companies Act 1993 * Consumer Guarantees Act 1993 * Credit Contracts and Consumer Finance Act 2003 * Electronic Transactions Act 2002 * Fair Trading Act 1986 * Financial Transactions Reporting Act 1996 * Investment Advisers (Disclosure) Act 1996 * Personal Property Securities Act 1999 * Proceeds of Crime Act 1991 * Property Law Act 1952 * Reserve Bank of New Zealand Act 1989 * Securities Act 1978 * Unclaimed Money Act 1969
Additionally, offshore finance companies are required to be audited annually, must have a locally registered office and agent, and are required to pay tax on company profit; currently the rate is 33%, making them very similar to other corporations in New Zealand.
About Global Reserve and Finance:
Global Reserve and Finance Ltd. is headquartered and incorporated under the laws of New Zealand. In accordance, Global Reserve and Finance must comply with the Companies Act 1933, the Fair Trading Act 1986, the Financial Reporting Act 1993, as well as other consumer protection legislation. The company offers CDâs, savings accounts, commercial lending, estate planning, and access to hedge fund and trading platform services.