Published on and written by Cyril Jarnias
Relocating to the Solomon Islands means accepting a radical change of scenery… and a different relationship with money. A tropical archipelago, a largely informal economy, payments still predominantly in cash, low bank density, strict foreign exchange regulations: the financial framework has nothing in common with that of Europe or Australia. For an expatriate, the question is not just “which bank to choose,” but more importantly “how to structure my financial setup between local and international accounts to live, invest, and repatriate my funds safely.”
On-site financial management relies on the local banking system, digital services that are still developing, and a specific regulatory framework for foreign exchange and investments. It is essential to understand these aspects well before moving abroad.
Understanding the Economic and Banking Landscape in the Solomon Islands
Before opening an account or organizing transfers, you need to understand the context. The Solomon Islands form an archipelago of over 900 islands in the Pacific, only about 300 of which are inhabited. The population is around 740,000 to 750,000, widely dispersed across nearly 1,500 kilometers of ocean, with about three-quarters living in rural areas.
The economy is modest, with a GDP per capita lower than the average for small Pacific island states. Agriculture (coconut, palm oil, root crops…) and primary industries account for more than half of GDP, while services represent about 40 to 47%. The country remains one of the least developed in the region, and informal employment dominates, at nearly 70%.
In 2020, 80% of retail payments in the Solomon Islands were still made in cash, illustrating the heavy reliance on cash.
A Reduced and Concentrated Banking Infrastructure
Four commercial banks dominate the landscape:
– Bank of South Pacific (BSP)
– Australia and New Zealand Banking Group Limited (ANZ)
– BRED Bank Solomon
– Pan Oceanic Bank (POB)
Together, they have only about 15 branches across the entire territory, with a large majority in Honiara. The ATM network is just as limited: 59 ATMs total, with the vast majority in the capital. The density indicator is around 14 ATMs per 100,000 adults, well below Fiji or Samoa.
Electronic Funds Transfer at Point of Sale (EFTPOS) terminals are present, but also predominantly concentrated in Honiara. Of about 423 terminals, over 70% are in the capital, as are more than three-quarters of merchants authorized to accept card payments. In other words, outside the capital and certain provincial centers (Auki, Gizo, Noro, Munda…), the bank card quickly becomes just a withdrawal card.
For an expatriate, effective banking management relies on two key elements: anticipating cash needs to avoid difficulties, and choosing a place to live while considering its impact on the accessibility and convenience of daily banking services.
A Very Low Level of Financial Inclusion
Statistics from the central bank and financial inclusion programs paint a clear picture: more than half of the adult population has neither a bank account nor access to digital financial services. According to recent estimates, only about a quarter of residents have a bank account, most being formal sector employees.
A significant proportion – around 35% – still relies on informal mechanisms like rotating savings and credit associations (ROSCAs), individual lenders, traders, or community savings clubs. Women, rural areas, and the poorest households are particularly disadvantaged.
For an expatriate, the main consequence is that many daily payments, including with local partners or employees, will be made in cash, and the banking relationship of their counterparts will often be non-existent or limited.
Key Banks and Financial Institutions for an Expatriate
Even though the system is restricted, it is structured. The Central Bank of Solomon Islands (CBSI) regulates all financial institutions: commercial banks, development bank, credit institutions, pension funds, insurers, money changers, etc. Several players can be useful to an expatriate, depending on whether they are an employee, entrepreneur, or investor.
Major Commercial Banks
The four international or regional commercial banks form the core of services for expatriates, particularly for checking accounts, cards, transfers, and foreign currency products.
| Bank | Country of Incorporation | Major Owner | SWIFT | Address (Honiara) |
|---|---|---|---|---|
| ANZ Solomon Islands | Australia | Australia | ANZBSBSB | PO Box 10 |
| Bank South Pacific (BSP) | Papua New Guinea | Papua New Guinea | BOSPSBSB | PO Box 37 |
| BRED Bank Solomon | Vanuatu | France | BREDSBSB | PO Box 1639 |
| Pan Oceanic Bank (POB) | Solomon Islands | Singapore | POBBSBSB | PO Box 2294 |
ANZ and BSP have the most developed networks, with several branches and ATMs outside Honiara (Auki, Gizo, Noro, Munda, a few other provincial locations). ANZ, for example, has six branches and around twenty ATMs, including Henderson International Airport, some provincial centers, and locations like Tulagi or Lata.
Major banks offering essential financial services, including Solomon Islands Dollar (SBD) accounts, debit cards, and online services.
Offers SBD accounts, debit cards, online banking, and international transfers. Stands out with strong regional integration in Australia, New Zealand, and Asia.
Provides SBD accounts, debit cards, online services, and international transfers. A historical presence in the Pacific with developed rural and digital banking solutions.
Other Useful Institutions
Other players operate alongside the commercial banks:
Overview of major financial and insurance institutions available in the Solomon Islands for businesses and expatriates.
National development bank financing mainly agricultural projects, SMEs, or infrastructure.
BSP Finance, Credit Corporation (Solomon Islands), and Solomon Finance Limited offer credit or leasing solutions.
National pension fund, which some expatriates on local contracts may be affiliated with.
International or regional insurers (QBE, Tower, Capital Insurance) and local brokers, useful for health, home, or business coverage.
Even if an expatriate doesn’t deal directly with all these players, it’s important to know about them to understand the credit, insurance, or pension offers they may encounter.
Opening a Bank Account in the Solomon Islands: Procedures and Requirements
Opening an account is a necessary step for any expatriate staying more than a few weeks. But the conditions are stricter than in other developing countries, especially regarding identification and fund justification, due to anti-money laundering rules.
General Identification Requirements (KYC)
Banks are legally required to verify the identity of each client when establishing a relationship. This involves collecting and retaining:
– Full first and last name
– Date and place of birth
– Residential or business address
– Nationality and citizenship
– Occupation or activity
– Signature specimen
For an expatriate, the passport is the central document. Some banks also require a residence or work permit, a valid visa, or even proof from the local employer. Proof of address (electricity, water bill, rental contract) is systematically required to establish the address.
Example of Account Opening Conditions at ANZ
ANZ, which explicitly targets expatriates and investors, asks for a personal account:
To open a bank account, it is necessary to provide several documents: a copy of the passport, the latest payslip or a letter from the employer, the local driver’s license (if any), a utility bill (water, electricity, or phone) to prove the address, as well as a modest minimum deposit of about 20 SBD.
For a business account, the following are added: services tailored to businesses, social media management tools, and advanced marketing features.
– Company registration certificate
– Articles of Incorporation (Memorandum & Articles)
– Board resolution authorizing the account opening
– For each signatory: passport or permit, proof of address and income
Opening is generally done in-branch, requiring physical presence, although some preparatory steps (forms, document collection) can be done remotely.
Specifics at BRED and POB
BRED Bank Solomon applies a structured grid of documents by category (photo ID, non-photo ID, official reference letters). Additional documents may be required, such as marriage certificates or birth certificates to link different identities or prove a name change, or a reference letter issued by a pastor, lawyer, judge, or consular officer.
To open an account at Pan Oceanic Bank, non-citizens must specify the purpose (salary, investment, retirement…), indicate the main source of funds, and provide a passport, address, contacts, and employer. Additional documentation on the origin of funds may be requested.
Importance of Source of Funds
Authorities and banks place great importance on the traceability of initial deposits. For any transfer of a certain amount to a Solomon Islands account, the following will often be requested:
– Source bank attestation
– Transfer statement or proof
– Tax documents (e.g., tax clearance certificate for certain repatriations of profits or dividends)
– Explanation of the link between the expatriate, their structure (company or employer), and the transferred funds
For a salaried expatriate, a letter from the employer, attached to an employment contract, greatly simplifies KYC analysis. For an entrepreneur or investor, it’s best to arrive with a well-prepared file (articles of incorporation, business plan, licenses, registration certificates, possibly foreign investor registration certificate).
Daily Banking Services: Cards, Cash, and Payments
Once the account is open, the question becomes very practical: how to pay rent, buy groceries, pay employees, or settle electricity bills in an environment where scriptural money is in the minority?
Central Role of Cash
The Solomon Islands dollar (SBD) is the only payment currency truly accepted in the country. Circulating banknotes are generally issued in denominations of 5, 10, 20, 50, and 100 dollars, complemented by coins of 10, 20, 50 cents, and 1 and 2 dollars.
Foreign currencies (Australian dollar, New Zealand dollar, US dollar) are not accepted in everyday transactions. They must be exchanged at banks or foreign exchange bureaus. For an expatriate, keeping a small reserve in AUD, NZD, or USD can be useful as a safety cushion or indirect repatriation method, but day-to-day, everything is settled in SBD.
Despite digitalization, the reliance on cash remains massive. In Paris, many businesses, public services, and private landlords accept only cash. In the provinces, card usage is often limited to ATM withdrawals, as it is rarely accepted for everyday purchases, illustrating the persistence of a cash-based economy.
Bank Cards: Useful, but within a Limited Scope
The three main banks (BSP, ANZ, BRED) issue debit cards, some linked to the Visa network (so-called “open-loop” cards), others usable only within the local network (“closed-loop” cards). In 2023, there were fewer than 100,000 cards in circulation in the entire country, the majority being closed-loop cards.
Most card transactions – over 90% – occur at ATMs, as cash withdrawals. EFTPOS terminal payments represent a much smaller volume, with a high average ticket (over 800 SBD per transaction), showing that card payments are rather reserved for large expenses (hotels, airline tickets, major supermarket purchases).
At international hotels and high-end dive centers, Visa cards are generally accepted. However, at small guesthouses, markets, local clinics, or for transportation, it is essential to have cash. Therefore, plan withdrawals in advance and do not count on widespread card payment acceptance.
Paying Bills and Expenses
Major banks allow payment of certain bills (water, electricity, telecommunications) via Internet banking or sometimes by standing order. But a significant proportion of payments are still made by check or in cash at the counter.
Many local employers themselves organize the payment of certain expenses for their employees, directly from the company account, to limit travel and cash handling by employees.
For an expatriate, negotiating with their landlord or main suppliers for a banking payment method (transfer, direct deposit into their account) can save time, provided these counterparts are also banked.
Digital and Mobile Services: Promises and Limits for Expatriates
Despite the dominance of cash, the Solomon Islands have embarked on a transition towards digital financial services, driven by the central bank, donors like Australia, New Zealand, or the UN, and a few private operators.
Online Banking and Mobile Applications
The four major banks now offer online banking services. Concretely, an expatriate can:
– Check balances and transaction history
– Make transfers between local accounts
– Pay certain bills
– Set up standing orders or deferred payments
– For ANZ, access international features (overseas transfers, exchange rate control, secure messaging, etc.)
BSP offers 24/7 online banking services, but their actual accessibility depends on often slow, costly, and unequal connectivity, and can be affected by service interruptions.
Mobile Wallets and Local Electronic Payments
Three mobile wallets coexist: Ezi Pei, Iumi Cash, and M‑Selen (operated by the telecom Our Telekom). These solutions theoretically allow storing value on a mobile account, transferring money between individuals, paying certain merchants or bills, and topping up phone credit.
In practice, the number of mobile accounts remains low (about 13,400), with a low activity rate (only 10 to 15%). There is no interoperability between wallets, further fragmenting the market. Nevertheless, these tools could become useful for an expatriate who employs local staff or needs to send small amounts to villages without banks.
These wallets do not replace traditional bank accounts and their acceptance by merchants remains limited. For significant or international transactions, recourse to a bank is necessary.
Modernization of Payment Systems: A Structural Shift
The central bank has initiated a deep reform of the payment infrastructure, with the adoption of a national payment systems law and the implementation of an Automated Transfer System (SOLATS).
This real-time gross settlement system should replace the old manual check clearing mechanisms, which could take two to three days to settle a simple interbank transfer. In the long run, this will enable near-instant interbank transfers, better transaction security, and a solid foundation for developing new services (instant payments, integration with mobile wallets, etc.).
For an expatriate, this means that in the coming years, domestic transfers should become more reliable, faster, and potentially less costly. However, this does not solve the connectivity problems in the most isolated areas or the low digital literacy of part of the population.
Foreign Exchange, International Transfers, and Capital Controls
In a small island economy environment, exposed to external shocks and dependent on imports, authorities closely monitor foreign currency flows. An expatriate arriving with income in AUD, NZD, EUR, or USD and wanting to convert it to SBD, or conversely repatriate savings, must integrate this regulatory framework.
Foreign Exchange Controls and the Central Bank’s Role
The Central Bank of Solomon Islands controls foreign currency operations. The main implications are:
– Transfers of significant amounts abroad are subject to authorization or reporting, especially beyond certain thresholds.
– Opening foreign currency accounts in the Solomon Islands is strictly regulated and requires approval.
– Repatriation of capital, dividends, or profits of non-resident companies often requires a tax clearance certificate before validation by the central bank.
Most requests for legitimate transfers (salary payment to a foreign account, dividend repatriation after tax, repayment of international loans) are approved, but they are subject to a certain documentary formalism and may involve delays.
Choosing Transfer Channels
Several options are available to an expatriate for sending or receiving money internationally:
– Classic bank transfers (Swift) via ANZ, BSP, BRED, or POB
– Specialized transfer services (Western Union, MoneyGram, some online providers activated from abroad)
– International cards linked to offshore accounts or neobanks, used for withdrawals at local ATMs
Local banks offer transfers via telegraphic transfer (T/T) in a range of common currencies. Reliability is good, but costs can be high, with fixed commissions, margins on the exchange rate, and sometimes correspondent bank fees at the receiving end.
A common strategy to optimize money transfers to the Solomon Islands involves using a bank account in a third country like Australia, New Zealand, or Singapore. This account serves as a pivot to centralize funds (salaries, investments) before transferring them to the Solomon Islands, thereby allowing you to benefit from better rates and reduced fees offered by specialized providers, whose direct connectivity with Solomon banks may be limited.
Managing Exchange Rate Risk
The Solomon Islands dollar is not a widely traded currency on international markets. Access is limited, and exchange spreads can be significant. For an expatriate paid in a strong currency and covering daily expenses in SBD, the issue is mainly about timing and volume of conversions:
– Convert small amounts regularly, to limit exposure to sudden movements
– Or make larger transfers occasionally, trying to take advantage of favorable rate variations
Local banks provide daily information on SBD/AUD, SBD/USD, SBD/NZD rates, etc. Some, like BSP, offer monitoring and alert tools for rates. But there are no widespread, sophisticated hedging products for individuals (options, forwards for small amounts). Managing exchange rate risk therefore remains largely manual.
Taxation, Investments, and Expatriate Status
Even if the primary goal is often to manage daily life, many expatriates consider local investments: company creation, participation in an agricultural or tourism project, purchase (or rather long-term lease) of real estate, etc. This is where Solomon Islands taxation and investment law take on a strategic dimension.
Main Taxation: Companies and Individuals
The tax system is territorial in nature, but with a nuance: resident companies are taxed on their worldwide income, while non-resident ones are taxed on their locally sourced income. Important rates to know are:
| Tax Type | Indicative Rate |
|---|---|
| Corporate Tax – Resident Companies | 30% |
| Corporate Tax – Non-Resident Companies | 35% |
| Maximum Marginal Personal Income Tax Rate | 40% |
| Withholding Tax on Dividends (Non-Resident) | 30% |
| Withholding Tax on Interest (Non-Resident) | 15% |
| Withholding Tax on Royalties (Non-Resident) | 15% |
Personal income tax scales are progressive, with a maximum rate of 40% beyond a certain threshold. Dividends paid by a local company to a non-resident are subject in principle to a withholding tax of 30%, interest and royalties 15%. Various other payments to non-residents (technical fees, rents, management fees, etc.) are subject to specific withholdings.
Local taxation must be combined with the tax residency rules of the expatriate’s home country. The Solomon Islands have concluded only a very limited number of double taxation treaties. In many cases, unilateral foreign tax credit mechanisms provided by the home country will need to be used.
Investing as a Foreigner: Registration and Constraints
Any individual or foreign company wishing to invest in the Solomon Islands must register with the Foreign Investment Division and obtain a Foreign Investment Registration Certificate. The Foreign Investment Act governs this process, with advertised processing times of a few days for a complete application.
This registration is necessary before signing major contracts, acquiring land rights (via leases), or starting a commercial activity. It aims in particular to ensure the project is not in an activity reserved for nationals or prohibited.
For an expatriate, obtaining this certificate conditions many other subsequent steps:
– Opening a business bank account
– Applying for an investor or work permit
– Signing long-term land leases
Real Estate and Land: A Highly Regulated Terrain
Almost all land (about 87%) is customary land, held collectively by clans or communities, and in principle inalienable. The rest (registered land, called Perpetual Estate) is held by the State or individuals and can be subject to long-term leases (Fixed Term Estate, up to 75 years) for the benefit of foreigners.
An expatriate therefore cannot become a landowner in the classic sense. However, they can lease land or a building for several decades, subject to compliance with:
– Land legislation (Land and Titles Act)
– Lease registration procedures at the land registry
– Foreign investor registration requirements
Transaction costs (legal fees, registration duties, possible stamp duty, various fees) can represent 5 to 15% of the property’s value. Tax-wise, there are property taxes and stamp duties, but no real capital gains tax for individuals, which can make certain structures attractive, subject to the home country’s taxation.
Practical Financial Management Strategies for Expatriates
Once this landscape is mapped out, how can an expatriate organize concretely? Several strategic directions emerge, depending on the length of stay, status (employee, self-employed, investor), and risk appetite.
Combine a Local and an Offshore Account
In most cases, it is relevant to:
– Maintain one or more accounts in an external financial center (Australia, New Zealand, Singapore, Europe), serving as a base for long-term savings, investments, and income repatriation.
– Open at least one SBD checking account with a local bank (ANZ, BSP, BRED), for daily needs, payment of local salaries, bills, and current expenses.
This architecture helps isolate exchange rate and sovereign risk, while benefiting from the convenience of a local bank. The offshore account can be funded by periodic transfers to and from the Solomon Islands.
Balancing Cash and Card
Given the heavy reliance on cash, the expatriate must build a “safety cushion” of SBD banknotes, while avoiding amounts that are too high and risky to keep at home. A pragmatic rule is to:
For optimal cash management, it is advisable to carry a small amount for daily expenses. At the same time, keep at home an intermediate stock equivalent to one or two weeks of needs. For replenishment, use your bank card to make regular withdrawals in urban areas, being mindful of the per-withdrawal fees and daily withdrawal limits set by your bank.
For long stays in remote rural or island areas, it is prudent to plan withdrawals in Honiara or major towns before leaving, as it is common for provincial branches to run low on cash or ATMs to be out of bills.
Using Digital Services Without Overestimating Them
Mobile wallets, banking apps, and new payment infrastructures like SOLATS are growing assets, but they cannot yet fully replace cash and direct contact. An expatriate can:
Activate online and mobile services as soon as you open the account. Use ANZ or BSP apps to track balances, schedule transfers, and set up alerts. For certain domestic transfers (like paying small providers or helping relatives), you can cautiously test local mobile wallets, after being well-informed about their fees and limitations.
As internet access is unequal, it is important to keep alternatives: being able to go to a branch, having phone contacts, and keeping a checkbook if the bank still provides one.
Anticipating Taxation and Regulatory Requirements
An expatriate who creates a company, invests in a project, or holds significant assets in the Solomon Islands should quickly consult a tax advisor, ideally familiar with both local law and international taxation. Points of attention include:
– Personal tax residency: length of stay, primary residence location, family and economic ties
– Potential double taxation on salaries, fees, or dividends
– Withholding taxes on outgoing flows, and possibility of foreign tax credit in the home country
– Reporting obligations for foreign assets (for tax residents of Europe, Australia, Canada, etc.)
In addition, a good understanding of foreign exchange rules, authorization thresholds, and tax clearance procedures for large transfers helps avoid unnecessary blockages.
Living with a Still Very Cash-Based, But Evolving System
The Solomon Islands offer a unique living environment: low density, omnipresent nature, proximity economy, strong importance of community ties. For an expatriate, this context translates into a banking experience opposite to that of major cities: few cards, a lot of cash, sometimes long trips to access an ATM or a branch, relatively heavy identification procedures.
At the same time, the country is engaged in a transition towards more digitalization and financial inclusion, with:
National initiatives to develop access to financial services through digital means and modern infrastructure.
A national financial inclusion strategy focused on digital services.
The implementation of a modern payment infrastructure (SOLATS, real-time settlement systems).
The progressive deployment of mobile wallets and agency banking services for rural areas.
Financial and digital literacy initiatives, targeting especially women and rural populations.
For the expatriate, the challenge is to integrate into this system in a realistic and pragmatic way, without mechanically transferring the habits of a highly banked country. Preparing the move, diversifying accounts, understanding foreign exchange constraints, equipping with digital tools while keeping a cash buffer: these are the keys to peaceful financial management in the Solomon Islands.
Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
