Frequently Asked Questions
Barbados has a strong offshore financial services sector and an attractive corporate services sector. The country's legal system is modeled on that of the United Kingdom. Barbados possesses the second oldest parliament in the world. The many tax advantages include; no taxes on assets or capital gains; no withholding taxes on dividends, interest, management fees and royalties paid; low tax on profit and specific tax holdings and incentives.
The infrastructure and telecommunications network are excellent. With daily flights from Toronto, New York, and London, Barbados is easily accessible by air and situated in a time zone consistent with other major financial centres.
Unique in the Caribbean, Barbados is a low-tax jurisdiction with a treaty network that includes the U.S., U.K., and Canada.
What are the tax advantages?
The tax advantages of investing offshore are varied and depend on the product
and structure employed relating to individual investment scenarios.
As each client's situation is different, we strongly suggest consulting
with your own tax advisors in respect of your tax situation.
Are there any other advantages?
Clients 'go offshore' for any number of reasons. These include, among others, confidentiality, asset protection, diversification, greater investment options and possible cost advantages.
What controls are in place to ensure the safety of my deposits?
All client assets are held with a reputable, familiar custodian bank. The Bank's primary custodian is CIBC Bank & Trust Company (Cayman) Limited. Regular verification, audit and reconciliation of client assets are performed. All client accounts are segregated and not pooled (except in the case of Mutual Fund Accounts).
The International Financial Services Act further protects clients by
enforcing guidelines whereby investors' assets are required to be separate
and apart from the Bank's assets.
What security measures are in place to protect against someone accessing my account on-line?
The DGM Web Banking web server is located at the DGM Bank network center in Barbados, WI. The network center is a part of the DGM Bank offices and is secured by multiple security methods including remote monitoring and intrusion alarms. The DGM firewall is configured to encrypt all Web Banking traffic and disallow all other network traffic. DGM uses some of the highest grade of encryption available. Client authentication is performed using a UserID/Password combination, combined with a separate trading password that only you, the client, have access to. This trading password is required to initiate any trade instructions. Clients have the ability on the Web Banking site to change passwords at any time.
Do I have to come to Barbados to open an account?
No. The majority of our application forms are available on this Website (Adobe Acrobat Format). Alternatively, you can contact one of our private bankers by mail, fax, email or telephone to request a specific account application form or to discuss which DGM account fits best with your objectives or requirements.
As our accounts provide varying services, most application forms differ between account-types.
What are the business hours in Barbados?
Normal business hours are 8:30 a.m. to 5:00 p.m., Monday through Friday
(excepting public holidays). Messages can be left via voice mail or
email at any time.
Barbados shares the same time zone (Eastern Standard Time) as New York and Toronto during the spring and summer months. In the autumn and winter months, Barbados is one (1) hour ahead of EST.
Do you offer credit cards or debit cards?
At present we do not offer these services in-house. It is anticipated that we will offer secured credit cards in the future. If you would like us to contact you when this service becomes available, please sign up to be notified.
If I want to open an account in the name of a Trust or Corporation, can that be facilitated?
All DGM accounts can be opened in the name of a trust or corporation provided we are furnished with sufficient information.
In the case of a Trust, we would require a certified copy of the Trust Deed as well as personal information regarding the Settlor, Beneficiaries and Protector(s) or the Trust.
In the case of an Corporation (or IBC), we require a certified copy of the Certificate of Incorporation, the Memorandum or Articles of Association, a list of Authorized Signatories, a list of Directors and personal information regarding the beneficial owner(s) of the corporation.
If you do not have a Trust or IBC in place, DGM Bank & Trust can assist you in establishing either structure.
How do I obtain more information on your services and your fees/commissions?
Contact our Private Banking Representatives in Barbados:
Telephone:1- (246) 434-4850
Toll Free (North America): 1-(877)-360-0346
Facsimile: 1- (246) 431-3439
What are the differences between the various accounts offered by DGM Bank & Trust Inc.?
|DGM Account or Service
||Initial Minimum Balance/Investment
|Online Investment Accounts
||- Online trading and account monitoring
- Interest on overnight cash balances
|US$100,000 (or equiv.)
|DGM Web-Banking Accounts
||- Cash and Money Market Instruments only
- Online monitoring and transaction history
- Individual & IBC Web Banking
|DGM Strategic Money Market Funds
||-US or Canadian dollar money market funds
||US or CDN $ 10,000
|DGM Strategic Mutual Funds
||- Strategic Equity Fund
- Strategic US Larger Companies Fund
- Strategic International Fund of Funds
- Strategic Bond Fund
|Strategic Global Advisor Account
||-Individually customized and managed accounts
- access to over 40 leading advisory teams
- one all inclusive fee
|Discretionary Portfolio Management
||- Investment advice and management for Individuals, Trusts or Corporations
- Segregated accounts
- Web-Based account access and monitoring
|US or CDN$1 million
|Captive Insurance Asset Management
||- tailored investment programs to match the capital requirements and return objectives of your captive insurance program
||US or CDN$500,000
||-DGM Bank & Trust can assist in the establishment of your and act as Trustee
- the Bank also provides Protectorship services
|Trust Establishment is generally US$2,500-5,000.
|International Business Companies
||- DGM assists in the establishment of IBCs
- Management and nominee Directorship services are also available
|IBCs can be set up from between US$1,000-4,000 depending on the jurisdiction and structure.
What about currencies?
In the majority of our investment accounts, you can hold any securities which are listed on a major exchange as well as the cash of most developed countries. It is not uncommon for clients to have an account that holds several different currencies. We will prepare your statements in a base currency of your choosing.
What kind of reporting can I expect if I open an account with the Bank?
Client's who authorize us will be able to access their accounts on-line. On-line reports are updated daily and also provide a full transaction history.
If you require, you can also receive regular monthly, quarterly and annual reports detailing your transactions, investments and income. Our private bankers will provide you with account information to suit your requirements.
How do I deposit assets into my account?
Once your account has been established, you can deposit assets into your account in several different ways:
- Telegraphic Transfers - the most efficient method in terms of timing.
- Transfer of existing brokerage account - provide us with your most recent statement and we will assist in transfering the cash and securities.
- Bank Drafts (or cheques) - although the clearing process can take up to 10 business days, assets can be deposited to your account by cheque or bank draft.
How can I get money from my account?
Simply instruct one of our private bankers to make a payment, informing us of the amount and where the funds should be paid to. Instructions can be given by mail or fax and in certain situations, on-line through our secure web-based services.
If there is a technical difficulty, how can I facilitate a trade in my On-Line Securities Trading Account?
Should you experience any difficulty in accessing your account on-line or facilitating a transaction, you need only to contact DGM Bank by phone to facilitate a trade or account activity. Our telephone number is (246) 427-6364 and we can also be contacted toll free (from certain areas) by dialing (877) 360-0346.
Do I earn interest on my overnight cash balances?
For most major currencies, cash balances in your account will earn interest at prevailing money market rates. Certain minimum cash balances apply (e.g. US$1,000 or CDN$1,000).
Can I call (or fax) in trade orders for my account?
While DGM does have a proprietary on-line trade order and confirmation system, clients can also facilitate trades in their accounts by telephone or fax as they may prefer.
Do you have term deposits?
DGM Bank & Trust does not provide fixed term deposits. Clients interested in secure investments, with predictable investment returns have the following options:
- DGM Strategic US Money Market Fund
- DGM Strategic CDN Money Market Fund
- Purchasing individual government or corporate bond or treasury bill issues through your private banker (either in an On-Line Securities Trading Account or an Investment Administration or Management Account)
What is a Trust?
This unique arrangement allows an individual (the 'settlor') to transfer
assets to a third party (the 'trustee') to be administered for the benefit
of persons chosen by the settlor (the 'beneficiaries') strictly in accordance
with the provisions of a document (the 'trust deed') which is signed
by the settlor.
What are the Benefits of a Trust?
A trust is one of the most secure and flexible financial planning vehicles available, particularly when established offshore. It allows you to make long-term plans for the distribution of your wealth after your lifetime in precisely the manner you wish. Your trust can ensure that the management of the property in the trust will not be interrupted on your death, by probate or other formalities. The trust can be an effective tax planning tool, especially in respect of estate or inheritance taxes on assets situated outside the country of domicile. It can provide complete confidentiality and can protect assets from expropriation or from the imposition of exchange controls. A trust can also be used as a means of protecting assets from the risk of unforeseen financial difficulty.
Our trust personnel can provide for your particular needs and work with you in creating an estate plan that meets with you goals. Contact us to inquire about establishing a Trust.
Still have questions? Contact us directly for timely and personalized service.