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Updates from the Liberian Corporate Registry |
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We would like to share with you a summary of the current situation regarding data typically reviewed by banks when evaluating the acceptability of a particular jurisdiction's corporate entities in regards to the opening of bank accounts.
We encourage you to share this message with your favorite banker.
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Time for Banks to Reassess Liberia
There has been a rising stream of good news coming out of the Republic of Liberia. The country recently celebrated a ten year milestone of peace. President Ellen Johnson Sirleaf, elected in 2005 as the first elected female head of state in Africa was re-elected to a second term in 2011. The President was jointly awarded the Nobel Peace Prize in 2011. Other Liberian accomplishments include:
- Election to the UN’s IMO (International Maritime Organization) council
- White listed by OECD Global Forum
- Leading country in extractive industry transparency Initiative
- World’s largest quality Ship Registry
The treatment of Liberian business entities has not always kept pace with the changes in the country. There is a misconception internationally that there are sanctions against Liberia. There are no International nor US Treasury sanctions against Liberia. UN, EU and US Sanctions all specifically target the associates of former President Taylor and his administration. In fact, US Treasury sanctions state:
Title 31 Part 593 of the U.S. Code of Federal Regulations:
“The sanctions set forth in E.O. 13348 and implemented in the Regulations are targeted sanctions directed at the regime of former President Charles Taylor. The sanctions are not directed against the country of Liberia, the Government of Liberia, or the Central Bank of Liberia.They do not prohibit the provision of banking services to Liberia, including the maintenance of correspondent banking relationships with Liberian banks, unless the bank in question is a person whose property and interests in property are blocked pursuant to the Regulations.” (Link: PDF Sanction Overview)
International and US Treasury sanctions do not target Liberian corporations. In fact there are no sanctioned Liberian nonresident corporations or Liberian-flag vessels.
In addition, please note:
- FATF - Liberia is not listed as a High-Risk or non-Cooperative jurisdiction
- US INCSR Report - Liberia is not listed as a jurisdiction of Primary concern or a Jurisdiction of Concern
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“There are no confirmed cases of money laundering or terrorist financing in the Liberian banking sector.” – June 2013 Report
- Extractive Industries Transparency Initiative (EITI)
- Liberia was the first African country to achieve EITI compliance (2008)
- Liberia was the first country to include timber revenues in EITI
- Largest Quality ship Register
- Qualship 21 - US Coast Guard
- White List - Paris MOU
- Low Risk Flag - Tokyo MOU
- Top Ranking in Flag State Performance Tables:
- BIMCO
- INTERCARGO
- INTERTANKO
- International Chamber of Shipping
- International Shipping Federation
- OCIMF / SIRE
- RIGHTSHIP (Highest possible score +5)
- Over $240 Billion in vessel assets secured by active mortgages
The Registry is operated by LISCR, LLC, a US-owned and operated company under an exclusive agreement with the Government of Liberia. LISCR and its international regional offices all comply with the requirements of US and UN sanctions policies. This includes screening against the OFAC SDN List as well as blocks against targeted countries (i.e., Cuba, Iran, North Korea, Sudan, Syria, etc.).
One issue concerning some users of Liberian corporations are encountering is the occasional difficulty in opening bank accounts. The reasons cited in relation to the jurisdiction of the corporate applicant are often out of date and incorrect. In some cases the same banks that have advised our clients that they do not accept account applications from Liberian corporations are the same banks that actively loan billions of dollars to Liberian corporations operating in the shipping industry.
Given the dramatic changes taking place in Liberia over the last decade, we hope this article will prompt a reassessment of the acceptability by banks of clients using Liberian corporate entities.
You can find additional details in the recently completed Registry due diligence self-assessment Please click this link (PDF Link) or the below image to view the report.
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Please contact the Registry for any additional information or with any questions that you may have.
Stephen Frey
Director
Liberian Corporate Registry
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Banks that will Accept Applications from Liberian Corporations
Recently, the Registry has been receiving an increasing number of requests for recommendations and referrals for banks that open commercial (corporate/Business) bank accounts for Liberian non-resident corporations. Banks are invited to confirm that a Liberian nonresident corporation that applies for an account will be accepted provided that the applicant meets all of your due diligence and account opening requirements.
Please confirm that we can add your bank to our referral list, including relevant contact details.
Corporations seeking a list of banks that have confirmed to us that they will accept applications from Liberian nonresident corporations are welcome to contact us through their Address of record / Billing Address.
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An existing foreign entity that was formed in another jurisdiction may re-domicile to Liberia for free. This process enables the foreign entity to retain its business history and maintain its legal identity while also reaping the benefits of becoming a Liberian entity. In essence, re-domiciliation is a continuation of the existing foreign entity as a Liberian entity. Re-domiciliation does not create a new legal entity nor does it constitute dissolution of the existing entity.
Since 2002, Corporations and LLCs have redomiciled from the following jurisdcitions: Anguilla, Bahamas, Bermuda, Cyprus, Gibraltar, Liechtenstein, Marshall Islands, Panama, Seychelles. Other jurisdictions also possible.
Please refer to our website here for instruction forms and sample articles.
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Share Certificates, Corporate Kits and Legal Opinions
The Liberian Corporate Registry receives requests for various types of corporate services, including:
- Share Certificates and Corporate Kits
- Legal Opinions
- Assistance in the Opening of Bank Accounts
Clients are invited to contact the Registry for assistance in obtaining these services.
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Basic Facts concerning the Liberian Corporate Registry
The following are some basic facts concerning the Liberian Corporate Registry:
- Founded in 1948 – 60+ year history
- Commercially tested jurisdiction
- Corporate Law and LLC Law based on corporate laws of Delaware
- Worldwide recognition for professionalism and expertise
- Accepted by all major financial institutions
- 24/7 service through the world’s premier electronic registry
- Same day incorporation and document issuance
- No annual reporting or audits
- No requirement to file the names of Directors, Officers or Shareholders
- Statutorily exempt from Liberian income and withholding taxes
- Free Apostilles and acknowledgements
- Exclusive Registered Agent for filings and Service of Process
- No local physical presence requirement for Incorporating Agents
- OECD White Listed
- Independent and neutral domicile for parties in multiple jurisdictions
- Dual language filings
Corporate Registry brochures are located on the Resources page (link) of our website.
Please contact us for hard copies of our brochures as well as for additional information.
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The next issue of
Corporate@ is scheduled for the end of Spring.
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Feel free to contact us using the following email addresses below.
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A Liberian LLC can 'Check the Box' For US Tax purposes
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The Registry is often asked whether for United States income tax purposes, a Liberian limited liability company (LLC) may elect to be treated as an entity other than a corporation (that is, as a partnership or ‘disregarded entity’) so that it can take advantage of the pass-through of business gains and losses permitted by the US Tax Code. The Liberian LLC is not designated as a per se corporation on the list attached to Regulation 301.7701-2(b), thus it is eligible to check the box, and specify non-corporation when completing Form 8832. Read more.
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eCorp Client Website
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eCorp© is the Corporate Registry’s state-of-the-art web-based client interface that provides clients with secure, convenient, real-time, 24/7 access to their accounts. More details available here.
Please contact Corporate to obtain log-in credentials to access eCorp.
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