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Financial Centre Madeira offers international financial institutions full EU status. Madeira welcomes international financial institutions, financial services and insurance companies to its financial centre. Regulation and supervision of all banking, financial services and investment funds activities is conducted by the Banco de Portugal - the Portuguese Central Bank. Insurance, Reinsurance and Pension Funds management operations are regulated and supervised by the Insurance Institute of Portugal. Banking As from 1st January 2001, financial activities can no longer obtain new licenses. Entities licensed prior to 31/12/2000 may continue until 2011. International and Portuguese banks may establish offshore subsidiaries or branches anywhere in Madeira to take advantage of the MIBC Legislation. Permitted activities include foreign exchange, the management of investment funds and the issuance of negotiable securities as well as a normal range of banking services. Unless a bank holds an international banking license it cannot supply financial services to Portuguese residents. The Bank of Portugal oversees and regulates all banking matters; the regulations are the same as those that apply to the establishment of financial institutions in mainland Portugal and involve prior authorisation from the Bank of Portugal or the Ministry of Finance. Capital requirements are high at 3.5 billion escudos prior to the issue of a banking license. It takes between 5-7 months for the license application to be processed and the application must be conducted by a Portuguese representative. The banks of European Union member states are subject to less stringent authorisation requirements than non European Union financial institutions, under the EU "passport" rules. Some 30 or so banks are currently licensed to operate under the Free Trade Zone Legislation. They include such household names as Chemical Bank, Citibank, Deutschebank and ABN Amro. |
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