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Financial Services Provider Requirements in the Republic of the Marshall Islands

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The Republic of the Marshall Islands has established guidelines for Financial Services Providers to ensure compliance with the relevant laws and regulations. This document outlines the key requirements and procedures for obtaining and maintaining a financial services license.

Section 12: Financial Service Provider License

Obtaining a License

To become a licensed Financial Services Provider, applicants must meet specific conditions outlined by the Commissioner. These include:

  • Restrictions on Names: The name of the provider may not mislead or confuse customers.
  • License Fees and Costs: Providers must pay license fees and other associated costs as specified by the Commissioner.
  • Business Restrictions: Providers are limited to engaging in financial services business within the scope of their licensed activities.

Renewal Procedures

Existing licenses can be renewed by following specific procedures outlined by the Commissioner. This includes:

  • Displaying a Copy of the License: A copy of the license must be displayed at all places of business.
  • Commissioner’s Discretion: The Commissioner has the authority to impose new or additional conditions, vary, or remove existing conditions.

Section 13: Assessment of Civil Money Penalties

Non-Compliance Penalties

Non-compliance with the Act and its regulations can result in civil money penalties. These include:

  • Maximum Fine: A maximum fine of $10,000 may be imposed.
  • Referral to Enforcement Proceedings: Violations may be referred to the Office of the Attorney General for enforcement proceedings.
  • Deposit into Banking Commission Fund: Collected monies are deposited into the Banking Commission Fund within the National Treasury.

Schedule 1: License Fees and Other Fees

Fee Schedules

The following fees apply to different types of licenses and activities:

  • Annual License Fees: Annual license fees for domestic and foreign banks.
  • Branch or Agency Fees: Fees for opening or closing branches, agencies, offices, or changing locations.
  • Acquisition Fees: Fees for acquiring business from another bank or branch.
  • Subsidiary Corporation Fees: Fees for establishing a subsidiary corporation.
  • Capital Reduction Fees: Fees for reducing paid-up capital.
  • Auditor Appointment Fees: Annual appointment of independent financial auditors.
  • Director or Officer Change Fees: Fees for changing directors or principal officers.

Purpose

The purpose of this document is to provide clear guidelines and requirements for Financial Services Providers operating in the Republic of the Marshall Islands, ensuring compliance with the Act and its regulations.