Commissioner Set to Grant or Deny Financial Service Business License
The Commissioner is expected to make a decision on granting or denying a license to proposed financial service businesses within two months, pending the quality of documents and information submitted by organizers.
License Terms and Conditions
According to Section 12 of the Regulations, the terms of the license may be specified by the Commissioner. The following conditions apply:
- The license will not be issued in a name that is likely to mislead or confuse individuals for whom it intends to provide services.
- No license will be granted unless the license fee and other associated fees are paid.
Scope of Business
A licensed financial service provider shall only engage in the business specified in the license, unless otherwise approved by the Commissioner. The Commissioner may specify types of businesses allowed in addition to those proposed by organizers.
Permitted Businesses
- Businesses specified in the license
- Additional businesses approved by the Commissioner
License Renewal
The application for license renewal must be made prior to expiration of the current license along with the license fee as specified in Schedule 1 of these Regulations. Payment of license fees should be made consistent with instructions under Part II Section 6 of these Regulations.
Requirements for Renewal
- Application must be made prior to expiration of the current license
- License fee payment as specified in Schedule 1
- Payment instructions: Part II Section 6
Display of License
A copy of the license shall be kept displayed conspicuously in all places of business of the financial services provider. The Financial Service Business may duplicate copies of the license for this purpose.
Display Requirements
- Copy of license must be kept displayed in all places of business
- Duplicate copies allowed for convenience
Imposition of Conditions
The Commissioner may impose new or additional conditions of license, vary or remove existing conditions, or add to any such conditions. The licensed Financial Services Provider shall be informed of its intention to impose new or additional conditions and afforded a period of seven days in which to make representations.
Notification Period
- Seven days’ notice before imposing new or additional conditions
Suspension, Revocation, and Varying of License
The Commissioner may suspend, revoke, or vary the license for reasons stipulated under Section 128 of the Act or if it fails to commence operation after three months of receiving its license.
Reasons for Suspension/Revocation
- Failure to comply with Section 128 of the Act
- Failure to commence operation within three months
Assessment of Civil Money Penalties
In accordance with Section 164 of the Act, every person who contravenes or fails to comply with a provision of the Act or any rule, regulation, order, direction, or requirement made or given in the Act shall be guilty of an offense and liable to a fine not exceeding $10,000. The Banking Commissioner shall refer all violations under the Act to the Office of the Attorney General for enforcement proceedings in the High Court of the Republic of the Marshall Islands.
Penalties
- Fine not exceeding $10,000
Schedule 1 - License Fees and Other Fees
The schedule outlines the license fees and other fees payable by licensed reporting entities, including banks (domestic and foreign), as specified in Section 111-119 of the Act.