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Regulatory Requirements for Financial Services Providers in the Republic of the Marshall Islands

Licensing and Operating Requirements

The Republic of the Marshall Islands has established regulatory requirements for financial services providers. This document outlines the key points to consider when applying for a license and operating a financial services provider in the country.

Section 11: Application for License

  • The application process may take up to 60 days or two months.
  • The Commissioner will review the quality of documents and information submitted by organizers.
  • A license is only issued upon payment of the license fee and other associated fees specified in Schedule 1.

Section 12: Financial Service Provider License

  • Terms of the license are specified by the Commissioner when a license is issued.
  • No person can be granted a license with a name that may mislead or confuse customers.
  • A licensed financial services provider cannot engage in any business other than what is specified in the license, except with the Commissioner’s approval.
  • The license remains valid unless revoked, suspended, or varied according to Section 128 of the Act.

Section 13: Assessment of Civil Money Penalties

  • Anyone who contravenes or fails to comply with provisions of the Act may be liable for a fine not exceeding $10,000.
  • Violations will be referred to the Office of the Attorney General for enforcement proceedings in the High Court of the Republic of the Marshall Islands.

Schedule 1: License Fees and Other Fees

  • The schedule outlines various fees that must be paid by licensed reporting entities, including banks (domestic and foreign), for different activities such as:
    • Annual license fee
    • Opening or closing a branch
    • Changing location of place of business
    • Acquiring another bank’s business
    • Establishing a subsidiary corporation
    • Reducing paid-up capital
    • Appointing an independent financial auditor
    • Changing directors or principal officers

Conclusion

Overall, this document outlines the regulatory requirements for operating a financial services provider in the Republic of the Marshall Islands, including licensing fees and penalties for non-compliance.