Commissioner says he’ll keep close tabs on Colorado’s first foreign capital depository

State Bank Commissioner Richard Fulkerson promised lawmakers Monday he’ll be keeping close watch on Colorado’s first foreign capital depository when he formally issues the first charter.

By John J. Sanko, Rocky Mountain News

He told members of the legislative audit committee the charter will be granted within days to a new bank to be called American International Banc & Trust. He’ll be reporting on its progress regularly, he said.

He made the comments as auditors raised questions about the 1999 law that created a foreign capital depository where noncitizens of the United States will have a place to keep their funds.

There is no previous experience with such a depository since this is the first one, Fulkerson explained.

The law allows only nonresident aliens to deposit funds and tangible assets, such as gold, diamonds and works of art, and they must be worth at least $200,000. The law sharply restricts disclosure of financial records and customer identities.

The institutions were designed to protect foreign depositors who want to guard assets from civil actions in their home countries. The state gets a percentage of the deposits as a fee.

Colorado and Montana are currently the only states that allow for foreign capital depositors. There is none chartered in Montana.

The auditors noted that Colorado has received two applications for charters,and the Colorado Banking Board approved an application for a charter last month.

Auditors estimated that the state could collect an average of $5 million annually in the first three years of the depository’s operation in Colorado, based on projections provided in the charter that was approved and will be issued shortly.

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