Vanuatu Forex Brokerage License

Vanuatu Forex Regulation

The Vanuatu Financial Services Commission (VFSC) has been the main regulator of the financial sector since 1993 (since its foundation):

• reviews applications for a Vanuatu financial dealer license (FDL);
• ensures compliance with AML/KYC by all licensees;
• in conjunction with the Financial Intelligence Unit, monitors suspicious transactions and imposes sanctions and fines when discrepancies are detected;
• interacts with the FATF and other international organizations to identify new threats, work with digital assets, and implement new regulations.

The Financial Centres Association (FCA) , established in 1993, does not have regulatory authority; its main role is to attract investors and promote a secure business environment.

The VFSC forex license requires compliance with the following legislative acts:

• Law No. 13 of 2014 on Combating the Financing of Terrorism is a key law, as failure to comply with its provisions by licensees affects the reputation of the jurisdiction and can result in it being blacklisted or gray-listed by the FATF. That is why the regulator strictly requires CDD/KYC compliance, transaction monitoring, and reporting.
• The Financial Dealers Licensing Act [CAP 70], as amended, requires a forex license to operate in the jurisdiction, initial capital (guarantee deposit), compliance with company structure and reporting requirements, and payment of fines in case of violations.
• The Companies Act No. 25 of 2012 and the International Companies Act [CAP 222] established rules for the registration and operation of companies.

Regulatory Requirements for a Forex License in Vanuatu

The simple and accessible conditions for obtaining a Vanuatu FSC license consist of the following points:

• Application from a legal entity. Company registration in Vanuatu is mandatory to obtain an offshore forex license.
• Organizational structure. The company must be managed by a manager with 5 years of experience in the economic sphere and confirm their professional reputation (no criminal record, no bankruptcy proceedings).
• Permanent physical office. Since 2022, the VFSC has tightened its requirements for applicants, so confirmation of local presence, a physical office where company documents will be stored, and a permanent employee is required.
• Deposit guarantee. The company must deposit VT 5 million (approximately USD 50,000) into a dedicated VFSC account (clause 5, Part II, Financial Dealers Licensing Act) in the event of bankruptcy, payable to the liquidator. In addition, professional liability insurance and an indication of the source of funds are required.
• 3-year business forecast. The VFSC must review the company's development strategy for the coming years, its main target markets, and the services the applicant plans to provide.
• Compliance with FATF recommendations. The implementation of AML/CFT procedures, the hiring of a separate MLRO employee, and the reporting of transactions by March 31 are key conditions for operating in the local market (in case of violations, the license will be revoked).
• Audited reports. The licensee must start operations within 6 months of receiving approval, undergo an annual audit by a certified specialist, and update information about management and beneficiaries.

Overview of Forex licenses in Vanuatu

Types of Forex Licenses in Vanuatu

Until the fall of 2021, Vanuatu forex licenses were divided into two main types of permits requiring annual renewal. Since July 2021 a licence remains in force until it is revoked, but since 4 December 2024 licensees must pay an annual licence fee of VT 500,000 on or before the anniversary date of their incorporation (Financial Dealers Licensing (Amendment) Act No. 5 of 2024); late payment attracts a penalty of 10% per month, up to 50% of the fee. It should also be noted that the regulator reserves the right to revoke licenses in case of violation of the jurisdiction's rules.

At the moment, depending on the model and needs of your business, you can open one or more licenses of 4 types:

A – intended for transactions with debt currency instruments.

B – for transactions with stocks, precious metals, etc.

C – for companies working with CFDs.

D – authorization of virtual assets after obtaining A, B, and C.

Please note that if you plan to work with digital assets in Vanuatu, your company will need to obtain a Class D license. To obtain this type of license, a company must confirm that it has a risk management system in place, has a registered capital of $500,000, rents a local office, hires a local employee, etc. Otherwise, you will not be allowed to hold digital assets.

Comparison of Vanuatu, Seychelles, and Mauritius

Conclusion

For investors, Vanuatu is a reliable platform for legal and effective capital management with minimal administrative barriers, tax costs, and no currency controls. The regulator allows various operations on the forex market, including working with currencies, stocks, commodities, futures, and virtual assets (upon obtaining Class D). However, the VFSC may revoke the license or impose substantial fines if a licensee fails to comply with legal requirements, provides false information, or breaches AML/CFT policies.