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Lesotho Financial Institutions Face New Licensing Requirements

Strengthening the Country’s Financial Sector

The Lesotho government has introduced new regulations aimed at enhancing licensing requirements for financial institutions, designed to strengthen the country’s financial sector.

Immediate Compliance Required

According to the Financial Institutions (Licensing Requirements) Regulations, 2016, all financial institutions operating in Lesotho must comply with the new regulations, which come into effect immediately. This means that financial institutions must submit various documents and information to ensure compliance with the new requirements.

Key Requirements

Here are some of the key requirements under the new regulations:

• Personal Declaration Sheet: Licensed institutions must submit a personal declaration sheet for each of their appointed directors, officers, or branch managers.
• Shareholding Changes: Prior approval is required from the Commissioner for changes in shareholding:
  • 10% or more
  • 33%-50% (application supported by information in Schedules 1, 2, and 3)
• Submission of Documents:
  • Information sheets
  • Personal declarations
  • By-laws
  • Audited financial statements
• Fit and Proper Criteria: Institutions must provide evidence of their fit and proper criteria for bank shareholders.
• Comprehensive Supervision: Institutions must demonstrate their ability to exercise comprehensive supervision over their operations.

Contact

For more information on the new regulations, please contact:

Commissioner of Lesotho P.O. Box 1184 Maseru Lesotho

Phone: [insert phone number] Email: [insert email]

The new regulations are aimed at ensuring that financial institutions operating in Lesotho have strong governance structures, adequate capital base, and sound risk management practices, ultimately enhancing the stability and integrity of Lesotho’s financial sector.