Regulatory Framework for Banking and Financial Services in the Marshall Islands
Overview
This document outlines the key points related to the regulatory framework for banking and financial services in the Marshall Islands. It covers the conditions for obtaining a license, suspension or revocation of licenses, civil money penalties, and fees associated with licensed reporting entities.
License Conditions
Section 8: License Conditions
The Banking Commissioner has the authority to impose conditions on licenses granted to Financial Services Providers, including:
- Imposing new or additional conditions: The Commissioner can require a licensed provider to meet specific requirements.
- Varying or removing existing conditions: The Commissioner can modify or eliminate existing license conditions.
- Suspending, revoking, or varying a license: The Commissioner can temporarily suspend or permanently revoke a license.
Before imposing any changes to a license, the Commissioner must inform the licensed provider and give them 7 days to make representations.
Suspension, Revocation, or Variation of License
Section 9: Suspension, Revocation, or Variation of License
The Banking Commissioner can suspend, revoke, or vary a license for various reasons, including:
- Failure to commence operations within 3 months: A licensed provider must start operating within the specified timeframe.
- Non-compliance with the Act or any regulations made under it: Licensed providers must comply with all applicable laws and regulations.
Civil Money Penalties
Section 10: Civil Money Penalties
Any person who contravenes or fails to comply with the provisions of the Act is liable to a fine not exceeding $10,000. The Banking Commissioner will refer all violations to the Office of the Attorney General for enforcement proceedings.
License Fees and Other Fees
Schedule 1: License Fees and Other Fees
The schedule outlines various fees payable by licensed reporting entities (banks) in the Marshall Islands, including:
- Annual license fees: An annual fee is required for maintaining a license.
- Fees for opening or closing branches, agencies, or offices: A fee is required for establishing or discontinuing any business operations.
- Fees for acquiring businesses or substantial interests in banks: A fee is required when acquiring a significant interest in another bank.
- Fees for establishing subsidiary corporations, reducing paid-up capital, and appointing independent financial auditors: Various fees are associated with these activities.
The fees are used to fund various purposes, such as regulating the banking sector, promoting financial stability, and enforcing compliance with the Act.