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Banking Security Regulations Tighten in Northern Mariana Islands

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The Department of Commerce has released a quick guide for entities looking to engage in banking business within the Commonwealth of the Northern Mariana Islands (CNMI). The guide provides an initial reference for CNMI Banking Requirements, which can be viewed in their entirety by referring to Commonwealth Code Division 6.

Incorporation Requirements

• Incorporated by three or more persons acting on their behalf, or an attorney licensed to practice in the Commonwealth.
• Notice of intention to organize a Commonwealth Bank must be filed with the Secretary of Commerce, outlining specific details of the proposed bank.

Charter and Licensing Process

1. Once the capital structure has been fully subscribed, incorporators can apply for a charter with the Secretary of Commerce.
2. Following approval of the charter, a banking license application must be made, accompanied by:
   • An initial application fee of $5,000
   • A banking license fee of $1,000 upon approval

Capital and Deposit Insurance Requirements

• Maintain paid-in-cash capital of at least $500,000 at all times.
• Obtain deposit insurance from the United States or any agency thereof prior to conducting banking business. Alternatively:
  • Acquire membership in the Federal Reserve System Deposit Insurance.
  • Demonstrate, through independent reasonable authentication, that it has assets exceeding $100 billion (waives deposit insurance requirement).

Lending Requirements

• At least 50% of all loans annually must occur within the CNMI.

Contact Information

CNMI Department of Commerce Banking Division P.O. Box 5795 CHRB Saipan, MP 96950

Phone: (670) 664-8020/3000 Fax: (670) 664-8074 Email: cnmi.banking@commerce.mp.gov

The Banking Division of the Department of Commerce is available to provide additional information and assistance on these regulations.