Regulatory Requirements for Financial Services Providers in the Marshall Islands

Licensing and Operational Requirements

The Banking Act (2020) governs the banking sector in the Marshall Islands, outlining licensing and operational requirements for Financial Services Providers. This document provides a summary of key points related to these requirements.

Section 12: Financial Service Provider License

• The Commissioner may specify terms of the license, including conditions that must be complied with.
• No person can be granted a license with a name that might mislead or confuse customers (e.g., “Quick Loan Insurance Agency”).
• A license fee and other associated fees (as specified in Schedule 1) must be paid before issuance.
• A licensed Financial Services Provider cannot engage in business outside of the type specified on their license, unless approved by the Commissioner.
• Licenses are valid until 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 the provisions of the Act is liable to a fine not exceeding $10,000 (Section 164).
• The Banking Commissioner will refer all violations to the Office of the Attorney General for enforcement proceedings.

Schedule 1: License Fees and Other Fees

The following fees are associated with different types of licenses:

• Annual license fee: Domestic and foreign banks ($25,000)
• Branch opening or closing fees (various amounts)
• Agency or office opening/closing fees (various amounts)
• Representative office opening fees (various amounts)

These fees are intended to cover the costs associated with regulating and supervising Financial Services Providers in the Marshall Islands.