Forex License in Anjouan

The Anjouan International Brokerage and Asset Management License is issued by the Anjouan Offshore Financial Authority (OFA). The authority of this official regulatory body is inscribed in law by the Offshore Finance Authority Act of 2005. The same authority oversees other financial licenses in Anjouan: crypto license, gambling license, insurance license and banking license.

Anjouan is an island in the Comoros, an archipelago located East of Africa. Anjouan is considered an offshore jurisdiction and a tax haven, but also a growing HQ for providers of financial services worldwide. Despite this, the Forex license in Anjouan is notofficially recognised by the Union, which can lead to significant legal risks. If you still want to proceed with authorisation, we strongly advise contacting the LegalBison expert team for personal guidance.

There is a single type of Forex license in Anjouan, under the official designation of International Brokerage and Asset Management License. This license covers a very vast amount of business activities. Below is a non-exhaustive list of possible activities with the Anjouan brokerage license:

• Forex Trading Platform Operation
• Securities Trading
• Asset Management Services
• Forex Trading
• Commodities Trading
• Mutual Fund Management
• Investment Fund Establishment
• Wealth Management Services

It stands noting that despite being a Forex license, this license allows for investment and asset management services as well.

The Anjouan International Brokerage Framework

The Anjouan International Brokerage and Asset Management License provides a regulatory structure for entities to facilitate financial trading and investment services. The scope of this authorization includes the operation of platforms for currency trading (Forex), as well as margin and leveraged trading. This framework covers common financial instruments, including Contracts for Difference (CFDs), commodities, and stocks.

Asset Management and Investment Portfolios

Under this licensing regime, registered companies are permitted to provide asset management services. This involves the constitution and management of investment portfolios on behalf of clients. The structure is often utilized for establishing investment funds, including those that incorporate emerging technologies like cryptocurrency and decentralized finance (DeFi).

Issuance of Securities and Derivatives

Authorized entities have the right to issue financial instruments, such as securities and derivatives. These products can be offered over-the-counter (OTC) to the company’s client base. The framework specifically recognizes the issuance of crypto derivatives as a subset of permitted investment products.

Lending and Margin Provisions

The authorization includes provisions for lending and borrowing activities within the context of the brokerage platform. This typically manifests as providing leverage to clients, where the end-user borrows funds from the entity to increase their market position. Standard operational procedures generally include the use of software-based margin calls to mitigate the risk of client debt exceeding account balances.

Custodial and Safekeeping Services

Entities holding this authorization are permitted to provide custodial services for client assets. This includes the safekeeping of securities and other financial instruments managed or traded through the firm’s systems.

Private Banking Elements

The framework allows for the provision of basic private banking services, specifically focused on account and asset management for high-net-worth individuals. It is important to note that certain supplementary services, such as daily retail banking or insurance, require separate, specific authorizations within the jurisdiction.

Regulatory Framework for Brokerage in Anjouan

The Anjouan Offshore Financial Authority manages a single classification for these activities known as the International Brokerage and Asset Management License. This authorization is intended to cover a range of financial services, though the regulator requires a detailed business plan during the application process to confirm that the proposed operations align with the defined scope.

Administrative Process and Company Formation

To apply for this license, an entity must first be registered as an International Business Company (IBC) in Anjouan. The standard procedure for obtaining the license includes:

• Documentation: Preparation of corporate records, personal due diligence for directors, and a technical description of the trading platform.
• Timeline: The review process typically spans one to two months, depending on the complexity of the application and the promptness of document submission.
• Capital: While there is often no strictly mandated physical injection of capital, a minimum authorized capital (frequently cited at $50,000) must be declared in the corporate memorandum.

Taxation and Ongoing Obligations

Anjouan operates an offshore tax regime where IBCs are subject to a 0% corporate income tax rate, provided they do not provide services to residents of the island. Maintaining the license involves two primary responsibilities:

1. Annual Renewal: Submission of a renewal file and payment of an annual fee to the authorities.
2. Compliance: Implementation of internal AML/KYC policies that adhere to the regional AML statutes.

Obligations to fulfill with an Anjouan Forex license

Typically, Anjouan Forex licensed companies have two main obligations to take into account: annual renewal and compliance.

The license must be renewed every year with a file (carried out by LegalBison as part of our services) and a fee. The fee may be subject to change by the OFA and will be communicated to you by our consulting team in the planning stage.

Compliance means having basic AML-KYC policies and procedures drafted out, complying with the Anjouan AML law.

Recent updates on Anjouan’s regulatory framework for Forex licensing

According to the latest legal memorandum and regular internal compliance research by LegalBison lawyers, Anjouan’s autonomous administration does not hold sufficient authority to license and oversee financial, crypto, or iGaming activities independently. While the Anjouan-issued licenses are not officially recognised by the Union government, they continue to be used in practice, which does not provide legitimacy and can incur significant legal risks. 

We strongly recommend entrepreneurs interested in Anjouan licensing to refer to the LegalBison team for detailed consultations and professional advice as to the current legal status of this authorisation.