Financial Crime World

Regulatory Guidelines for Licensed Financial Institutions

Introduction

The following guidelines outline key aspects of operations that Licensed Financial Institutions (LFIs) must adhere to. The Central Bank has issued these regulations to ensure LFIs maintain transparency, fairness, and ethics in their activities.

Key Points

Advertising and Marketing

  • Deceptive Practices: LFIs must not engage in deceptive, misleading, fraudulent, or unfair advertising.
  • Clear Visibility: All text and numbers in advertising materials must be clearly visible and understandable.
  • Plain Language: Advertising materials must use plain and easily understandable language.

Institutional Oversight

  • Governance Structure: LFIs are expected to maintain a strong governance structure with clear policies and procedures.
  • Management Oversight: The Central Bank requires LFIs to have robust management oversight and responsibility structures in place for their activities, including design, development, promotion, sales, and distribution of products and/or services.

Governance of Retail Operations

  • Consumer Protection: LFIs must ensure that Consumer financial assets, information, and data are secure and protected.
  • Effective Management: The Central Bank requires LFIs to have strong governance and effective management oversight in place over the design, development, promotion, sales, and distribution of Financial Products and/or Services.

Market Conduct

  • Market Integrity: LFIs must uphold the integrity of the financial Market through responsible Market activities that contribute to the overall stability of and confidence in the financial system.
  • Abusive Practices: LFIs must monitor and prevent abusive sales, marketing, and pricing practices.

Conclusion

The Central Bank expects LFIs to maintain a high level of transparency, fairness, and ethics in their operations to promote Consumer trust and confidence in the financial system. By adhering to these guidelines, LFIs can ensure compliance with regulatory requirements and contribute to the stability and integrity of the financial system.