Financial Crime World

Regulations for Financial Services Providers in the Marshall Islands

===========================================================

Licensing Requirements

The Marshall Islands has established regulations for financial services providers to ensure transparency, fairness, and compliance. According to Section 12 of these Regulations, licensing requirements are outlined to protect customers from misleading or confusing business names.

No Misleading Business Names

  • Section 12: Prohibits granting licenses to individuals with names that may mislead or confuse customers.
  • Protection for Customers: Ensures transparency and fairness in the financial services industry.

License Renewal

To maintain a valid license, Financial Services Providers must renew their licenses before the expiration date. This includes paying the specified license fee as outlined in Schedule 1 of these Regulations.

Renewal Requirements

  • Section 12(6): Requires licensed providers to renew their licenses and pay the required fee.
  • Schedule 1: Outlines specific fees for different types of financial services providers.

Fees Associated with Financial Services Providers

The schedule outlines various fees associated with operating a financial service business in the Marshall Islands. These fees are intended to regulate the industry and ensure compliance.

Fee Structure

  • Domestic Banks: Pay an annual license fee before September 30 each year.
  • Foreign Banks: Pay a $25,000 fee for establishing a main branch in the Marshall Islands.
  • Acquiring Banks: Domestic banks must pay a $50,000 fee for acquiring another bank or its branch.

Penalties for Non-Compliance

Section 13 outlines civil money penalties for contravening or failing to comply with provisions of the Act or any rule, regulation, order, direction, or requirement made or given in the Act.

Civil Money Penalties

  • Assessment: Section 13 states that civil money penalties will be assessed for non-compliance.
  • Regulatory Compliance: Ensures that financial services providers adhere to the regulations and guidelines.