Fit and Proper Person Requirement for Financial Services in Bhutan
In an effort to strengthen the financial sector of the country, the Financial Services Act of Bhutan 2011 has introduced a new requirement for individuals seeking to hold positions or status in the industry. The act states that such individuals must be deemed “fit and proper” before being granted permission to engage in financial services.
What is a Fit and Proper Person?
According to the law, a fit and proper person is one who possesses:
- Honesty
- Respect for law
- Integrity
This means that anyone seeking to work in the financial sector must demonstrate these qualities and be found suitable by the relevant authorities.
Background Checks and Due Diligence
To determine whether an individual is a fit and proper person, authorities will conduct thorough background checks and due diligence investigations. This includes:
- Reviewing personal and professional history
- Conducting interviews with relevant parties
- Requiring detailed information about business dealings and financial transactions
- Disclosing any previous legal issues or financial irregularities
Consequences of Non-Compliance
Failure to comply with the fit and proper person requirement can result in severe consequences, including:
- Revocation of licenses and permits
- Fines
- Criminal charges
The Importance of Transparency and Accountability
The Financial Services Act of Bhutan 2011 aims to promote transparency and accountability in the financial industry. By requiring individuals to demonstrate honesty, respect for law, and integrity, the law aims to ensure that only trustworthy and responsible individuals are allowed to operate in this sector.
What This Means for You
If you are seeking to work in the financial services industry in Bhutan, it is essential to understand the fit and proper person requirement. This means:
- Being prepared to undergo thorough background checks and due diligence investigations
- Providing detailed information about your personal and professional history
- Ensuring that you have a clean record of no criminal convictions or financial irregularities
- Demonstrating honesty, respect for law, and integrity in all your dealings
By understanding the requirements of the Financial Services Act of Bhutan 2011, you can ensure that you are compliant with the law and can work towards building a successful career in the financial services industry.