Central Bank Regulates Banking Operations with New Charter

Strengthening Banking Regulation and Supervision in East Timor

The Central Payments Office has issued a new charter outlining the organizational structure and regulatory requirements for commercial banks operating in East Timor.

Key Provisions of the Charter

• Sets out minimum standards for banking operations, including:
  • Composition of the bank’s governing board
  • Administrative structure
  • Responsibilities of key committees
• Requires each bank to have a governing board comprising an uneven number of members between three and seven, appointed by the general meeting of shareholders for a period not exceeding four years
• Board is responsible for establishing policies and overseeing their implementation
• Banks must establish several internal committees, including:
  • Audit committee
  • Risk management committee
  • Credit and asset liability management committee
  • These committees will be responsible for monitoring compliance with regulatory requirements, conducting audits, and making recommendations to the governing board

Additional Requirements

• Strict guidelines for the qualifications and disqualification of bank officials
• Secrecy provisions to protect customer information
• Anti-money laundering measures, including reporting suspicious transactions to the authorities

Director General’s Statement

“Today’s charter marks an important step in our efforts to strengthen banking regulation and supervision in East Timor,” said [Name], Director General of the Central Payments Office. “We are committed to ensuring that our financial system is safe, stable, and efficient for all stakeholders.”

Applicability and Enforcement

The charter applies to all commercial banks operating in East Timor and will be enforced by the Central Payments Office.