Compliance Risks for Financial Institutions in Kiribati

The Kiribati Financial Supervisory Authority (KFSA) has been established to regulate and oversee financial institutions within its jurisdiction. As part of its efforts to safeguard consumer interests and maintain a robust financial system, the KFSA has outlined three key functions: regulation and licensing, consumer protection, and supervision and monitoring.

Regulation and Licensing

The KFSA establishes and enforces regulations for financial institutions such as:

• Banks
• Insurance companies
• Investment firms
• Other financial service providers

The authority may grant licenses to these institutions subject to compliance with specific requirements.

Consumer Protection

Ensuring the well-being and protection of consumers is a primary objective of the KFSA. It establishes and enforces rules and guidelines that govern the conduct of financial institutions to:

• Prevent unfair practices
• Promote transparency
• Safeguard consumer rights

The authority investigates complaints and takes appropriate action to address any violations.

Supervision and Monitoring

The KFSA monitors the operations and activities of financial institutions to ensure compliance with relevant laws and regulations. It conducts regular inspections, audits, and risk assessments to:

• Identify potential weaknesses or irregularities that could pose risks to the financial system
• Ensure the integrity and stability of the financial market

Kiribati’s Commitment to a Robust Financial Landscape

The establishment of the new Financial Service Authority signifies Kiribati’s commitment to maintaining a robust and well-regulated financial landscape that promotes:

• Consumer protection
• Market integrity
• Economic growth

Getting in Touch

For further information or inquiries, please visit the Ministry of Finance & Economic Development (National Economic Planning Office) at www.mfep.gov.ki.

Contact: Email: sectoreconomist@mfep.gov.ki Phone: 740 21806