Commissioner’s Discretionary Power Over Financial Service Business Licenses
The Commissioner of Banking has the authority to grant or refuse a license to operate a financial service business without assigning any reason for their decision. This discretionary power is outlined in Section 12 of the Banking Regulations, which sets out the terms and conditions for obtaining a financial services provider license.
Investigation Process
The Commissioner may take up to 60 days to complete an investigation into the proposed financial service business, depending on the quality of documents and information submitted by the organizers. This investigation is crucial in determining whether the applicant meets the necessary requirements to operate a financial service business in the Republic of the Marshall Islands.
License Terms and Conditions
A license granted by the Commissioner may be subject to specific terms and conditions, which must be complied with by the licensed financial services provider. These terms may include:
- Restrictions on the type of financial services that can be offered
- Requirements for maintaining a copy of the license in all places of business
License Fees
The Commissioner requires payment of a license fee and other associated fees before issuing or renewing a financial services provider license. The schedule of fees is outlined in Schedule 1 of these Regulations, which includes fees ranging from $25,000 to $50,000 depending on the type of license and purpose of the application.
Suspension, Revocation, or Variation of License
The Commissioner may suspend, revoke, or vary a financial services provider license if:
- The licensed financial services provider fails to commence operation within three months of receiving its license
- For any other reason stipulated under Section 128 of the Act
Before imposing new or additional conditions on the license, the Commissioner must inform the licensed financial services provider and afford them a period of seven days to make representations in response.
Assessment of Civil Money Penalties
The Commissioner has the power to assess civil money penalties for any contravention of the provisions of the Act or these Regulations. In accordance with Section 164 of the Act, the maximum fine for such an offense is $10,000.
By exercising its discretionary power, the Commissioner plays a crucial role in ensuring that only qualified and reputable financial services providers operate in the Republic of the Marshall Islands.