The Architecture of Access: Can AFG Programs Interface with Offshore Banks?

By Taimour Zaman, Founder, AltFunds Global

A question we encounter with increasing frequency is whether our consulting and educational frameworks at AltFunds Global (AFG) can be utilized by or for banks licensed in jurisdictions like the Cayman Islands or Dominica. The question itself reveals a common and critical misunderstanding about the nature of our services and the operational reality of licensed banks.

The direct answer is nuanced: While AFG’s intellectual capital and strategic models are universally applicable, a licensed bank—whether in Cayman, Dominica, or elsewhere—does not “use” an external consultant’s “program” to conduct its core banking activities.

Let’s dismantle this concept and clarify the legitimate relationship between a consulting firm like AFG and a regulated financial institution.

The Fundamental Principle: The Sovereignty of the Banking License

A bank license, from any jurisdiction, grants one primary authority: to conduct the business of banking. This is a sovereign privilege accompanied by immense regulatory responsibility. The bank’s management and board are directly accountable to their regulator—be it CIMA in Cayman or the FSU in Dominica—for every transaction, risk framework, and compliance procedure.

Therefore, a bank cannot outsource its core decision-making or regulatory compliance to an external “program.” It must have its own, internally controlled:

• Risk Management Framework
• Anti-Money Laundering (AML) & Counter-Financing of Terrorism (CFT) Policies
• Credit Committee and Underwriting Processes
• Capital Adequacy Models

The Legitimate Role of a Consultant: The Strategic Architect, Not the Engine

This is where a firm like AFG provides value. We do not offer a “program” to execute. We provide strategic advisory and educational consulting to help institutions build, refine, or access sophisticated financial architectures.

For a Cayman or Dominica-licensed bank, AFG’s role could manifest in several legitimate, non-operational ways:

1. Strategic Capital Advisory:
   • The Service: Advising the bank’s management on the structuring of its own capital and liquidity frameworks. This could include strategies for accessing private debt markets, establishing a securities lending desk, or developing a private placement capability for its clients.
   • The Distinction: AFG would help design the strategy and provide the educational framework; the bank’s own licensed personnel would execute it under their own license and regulatory oversight.
2. Structural Engineering for Clients:
   • The Service: An offshore bank might engage AFG as an external expert to design a bespoke structured finance solution for a major client of the bank. For example, creating a special purpose vehicle (SPV) for a client’s cross-border acquisition, which the bank would then finance.
   • The Distinction: AFG acts as the architect designing the blueprint. The licensed bank remains the general contractor, providing the financing and regulated services.
3. Educational Due Diligence and Training:
   • The Service: Providing specialized training to the bank’s staff on complex topics like asset-based lending, trade finance fraud detection, or the realities of institutional capital markets. This enhances the bank’s internal capabilities.
   • The Distinction: We educate and inform the bank’s decision-makers; we do not make decisions on their behalf.

The Critical Clarification: What AFG Does Not Do

To avoid any misunderstanding, it is essential to state what is not possible:

• AFG is not a “Platform”: We do not provide a “trading platform” or “program” into which a bank can plug and play. Any entity claiming to offer such a turnkey solution to a licensed bank should be viewed with extreme skepticism.
• No Bypassing of Banking Protocols: A consulting firm cannot and must not circumvent a bank’s internal credit and compliance committees. Our work is intended to support these processes, not replace them.
• No “Off-the-Shelf” Banking Programs: Banking is not a software package. Each institution’s strategy must be tailored to its specific license, client base, and risk appetite.

A Comparative View: The Right and Wrong Way to Engage

• A bank hires AFG for strategic advice on entering the private debt market.
• A promoter claims AFG has a “program” the bank can use for “PPP trading.”
• AFG educates a bank’s team on institutional due diligence processes.
• A third party suggests a bank can “outsource” its deal flow to AFG.
• Engagement is governed by a professional services agreement focused on advisory.
• The relationship is described as “utilizing a program,” implying operational control.

The Final Analysis

Can a Cayman or Dominica-licensed bank benefit from the expertise of AltFunds Global? Absolutely. Sophisticated institutions regularly engage niche consultants to enhance their strategic capabilities and navigate complex capital structures.

However, can a bank “use an AFG program” to conduct its licensed activities? Emphatically, no. This phrasing reflects a fundamental misunderstanding of both banking regulation and the role of a consultancy.

A licensed bank is a sovereign financial entity. AFG serves as a strategic architect and educator, providing the maps and the knowledge—but the bank itself must always be the one to navigate the regulated journey.

👉 Want tailored guidance? Schedule your strategy call now.

Disclaimer

The information provided in this article is for general informational and educational purposes only. It does not constitute financial, legal, or investment advice, nor does it represent a solicitation, offer, or recommendation to buy or sell any financial instruments.

AltFunds Global AFG AG (“AFG”) is not a bank, broker-dealer, or asset manager. All services are provided on a consulting and educational basis only. Any references to investment strategies, structured finance, or alternative capital programs are provided for illustrative purposes and may not be suitable for all readers.

AFG operates under Swiss law and aligns its communications with the principles set out by the Swiss Financial Market Supervisory Authority (FINMA). However, the content herein has not been reviewed or approved by FINMA or any other regulator.

Readers are strongly encouraged to seek independent professional advice (legal, tax, financial) before making any decisions. Past performance or case studies do not guarantee future results. No liability is accepted for any loss arising from the use of this material.