The Maldives Monetary Authority (MMA) has stated that financial institutions are licensed to operate in the Maldives only after completing all legally required procedures. In a statement issued by the MMA in response to information circulating in the media regarding the procedures for issuing banking licenses, it was explained that under the Maldives Banking Act, the Authority follows a three-stage process in issuing licenses to operate a bank. These stages include providing information to the party seeking a license, evaluating the application, and issuing the license.
The MMA said that there are key aspects considered when evaluating a license application. These include the financial capability of the applicant, the source of capital, fit and proper assessments of shareholders and senior management, and the proposed business plan.
Before issuing a license, after the Licensing Section of the MMA evaluates the application, it is forwarded to the Authority’s Advisory Committee on Financial Institution Licensing. The final decision is made by the MMA Board. If the Board decides to grant a license, the applicant is first issued a “conditional” approval. During the conditional approval period, time is given to register the company, establish IT infrastructure, and operationalize the premises. If all requirements for bank operations are completed within this period, the MMA assesses the institution and issues a license to commence operations.
The MMA noted that even if the Board decides not to issue a license, since the law does not mandate a cooling-off period, there is an opportunity to reapply for a license. If such an application is received, the entire evaluation process will be conducted again as a new application, according to the statement issued by the MMA. The MMA continues to work towards strengthening the financial sector and ensuring it is an area where integrity is established. Therefore, the MMA stated that a financial institution will only be licensed to operate in the Maldives after fulfilling all legal requirements.”
