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Licensing Regulations for Banks in the Maldives

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The Maldives Monetary Authority Act (MMA Act) outlines comprehensive regulations regarding licensing for banks in the Maldives. Here is a summarized version of these regulations.

Section 5: Licence Applications

When applying for a licence, applicants must submit the following information:

Required Documents

  • An authenticated copy of the charter and corporate governance documents of the applicant.
  • Audited annual balance sheets and profit and loss statements for the last three years.
  • A description of proposed capital funds, sources, and amount paid in.
  • Premises and addresses where business will be conducted.
  • Names, places of residence, business and professional backgrounds, and biographical and financial data of each major shareholder and administrator.
  • An affidavit stating convictions for crimes or involvement in insolvent companies.

Additional Requirements

In the case of an application by a foreign bank or holding company, a statement from the relevant authority is required.

Section 6: Grant or Denial of Licence

The Maldives Monetary Authority (MMA) may reject applications if they are not satisfied with the applicant’s conditions. In such cases, the MMA shall publish standards for evaluating licence applications and issue a written statement explaining reasons for denial.

Criteria for Licence Granting

A licence will be granted to an applicant who meets the following criteria:

  • Financial history and status are satisfactory.
  • Major shareholders and administrators are fit and proper persons.
  • Proposed staffing, capital structure, operational resources, and financial resources are adequate.
  • Risk management policies, internal controls, audit procedures, and corporate governance practices are sound.
  • Business plan is viable and satisfactory to the MMA.

These regulations aim to ensure that banks operating in the Maldives meet high standards of financial stability, proper administration, and risk management, ultimately protecting the country’s economy.