Financial Crime World

Comoros Finance Commission Cracks Down on Regulatory Requirements for Financial Institutions

The Comoros Finance Commission (CFC) has issued a series of regulatory requirements for financial institutions operating in the Union of the Comoros. This move aims to strengthen the country’s financial sector and attract more foreign investment.

Framework for Establishing Brokerage and Clearing House License Businesses

The CFC Act number 17-008/01/CFC/AU of 2017 outlines the framework for facilitating the establishment of brokerage and clearing house license businesses from the island nation. The act provides a comprehensive guide on the requirements and procedures for obtaining these licenses.

Requirements for Brokerage Licenses

To obtain a brokerage license, applicants must meet the following requirements:

  • Have an International Business Company (IBC)
  • Provide proof of ownership by shareholders
  • Details of ultimate beneficial owners
  • CVs of directors
  • Full contact details of directors and shareholders
  • Bank references
  • Certified passport copies
  • Proof of addresses
  • Business or legal references for beneficial owners and directors
  • Legal documentation for shareholding companies

Licensing Process

The licensing process is relatively quick, with approval granted swiftly if all necessary requirements are met. Interestingly, there are no requirements for local offices or staff, although having such facilities can be arranged at minimal cost.

Annual Accounts Submission

All companies with brokerage licenses are required to submit their annual accounts to the CFC within three months of the year end. Failure to comply with this regulation may result in severe penalties, including revocation of licenses.

Impact on the Comoros Financial Sector

The new regulatory requirements are seen as a major step forward for the Comoros financial sector. With its unique blend of business-friendly policies and robust regulation, the Union of the Comoros is fast becoming an attractive destination for financial institutions seeking to establish a presence in the region.

Key Takeaways

  • The CFC has issued regulatory requirements for financial institutions operating in the Union of the Comoros
  • Applicants must meet specific requirements to obtain a brokerage license
  • The licensing process is relatively quick and streamlined
  • Compliance with annual accounts submission is mandatory
  • Failure to comply may result in severe penalties, including revocation of licenses