The official financial regulatory body of Vanuatu was established in 1993 and is called the Vanuatu Financial Services Commission (VFSC). Prior to this, the VFSC served as the Ministry of Finance and Economic Management following independence in July 1980 and the Registrar of Companies and Official Receivership Department of the Treasury from 1971 under the then-British Administration.
Corporate Services, Legal Enforcement & Insolvency, Supervision, and Registration make up the four departments that make up VFSC. The watchdog is in charge of running an effective and efficient Registry and overseeing the administration of laws pertaining to electronic transactions, offshore limited partnerships, personal property securities, anti-money laundering, counter-terrorism financing, business names act, and dealers in securities (licencing). Additionally, it is responsible for regulating the islands’ non-deposit-taking financial sector.
VFSC is a well-liked offshore regulator among forex brokers due to the low capital (or bond) requirements. It is true that a Forex licence governing a brokerage’s internet operations is granted in about two to three months. Additionally, there are no taxes on income, capital gains, or inheritance in the nation.