Financial Crime World

Regulations for Financial Service Providers in the Marshall Islands

The Marshall Islands have established comprehensive regulations for the licensing and operation of financial service providers. This article outlines the key points of these regulations to ensure compliance and protect customers.

Licensing Requirements

Section 12: Financial Service Provider License

Terms of License

  • The Commissioner may specify terms of the license when issued, which must be complied with.
  • No person can be granted a license with a name that might mislead or confuse customers.

Fees and Payments

  • A license fee and other associated fees (as specified in Schedule 1) must be paid before issuance or renewal.
  • Licenses remain valid unless revoked, suspended, or varied in accordance with Section 128 of the Act.

Business Operations

  • A licensed Financial Service Provider can only engage in the business specified on their license, unless additional types of businesses are approved by the Commissioner.
  • Applications for license renewal must be made prior to expiration and accompanied by the required fees.
  • A copy of the license must be displayed conspicuously at all places of business.

Suspension, Revocation, or Variation

  • The Commissioner may impose new or additional conditions on a license or vary existing ones by notice in writing, allowing the licensee 7 days to make representations.
  • Licenses can be suspended, revoked, or varied for reasons stipulated under Section 128 of the Act or if the licensee fails to commence operation within 3 months.

Assessment of Civil Money Penalties

Section 13: Assessment of Civil Money Penalties

Fines and Enforcement

  • Any person who contravenes or fails to comply with provisions of the Act may be liable to a fine not exceeding $10,000 upon conviction.
  • The Banking Commissioner shall refer all violations under the Act to the Office of the Attorney General for enforcement proceedings.

Fees for Financial Service Providers

Schedule 1: License Fees and Other Fees

The following fees are outlined in the schedule:

  • Annual license fees
  • Fees for opening or closing branches, agencies, or offices
  • Fees for acquiring business of another bank or branch
  • Fees for establishing a subsidiary corporation
  • Fees for reducing paid-up capital
  • Fees for annual appointment of independent financial auditors
  • Fees for changing directors or principal officers

These regulations aim to provide a framework for the licensing and operation of financial service providers in the Marshall Islands, ensuring compliance with laws and regulations and protecting customers.