The Maldives Monetary Authority published a clarification of its framework for issuing banking licences under the Maldives Banking Act (Law Number 2010/24), in response to misleading media reports about its procedures. Licensing follows a three-stage process covering (i) providing information on requirements for prospective applicants, (ii) evaluation of submitted applications, and (iii) granting the licence. The evaluation assesses the applicant’s financial capability, source of capital, fitness and propriety of shareholders and senior management, and the business plan, and proceeds from the Licensing Section to the Advisory Committee on Financial Institution Licensing, then to the Governor and finally the Board for the decision. Where the Board approves, the applicant first receives a conditional approval to meet specified pre-operational requirements such as company registration, IT infrastructure and operational premises, after which the Authority assesses readiness before issuing an operating licence. If an application is not approved, the Authority noted there is no legally required cooling-off period before reapplying, but any resubmission is treated as a new application and re-evaluated through the full process.
Maldives Monetary Authority 2025-06-02
Maldives Monetary Authority clarifies three-stage banking licence process and use of conditional approvals
The Maldives Monetary Authority clarified its banking licence issuance framework under the Maldives Banking Act, addressing misleading media reports. The process involves three stages: information provision, application evaluation, and licence granting, assessing financial capability, capital source, and management fitness. Conditional approval requires meeting pre-operational requirements, and reapplications are treated as new submissions without a cooling-off period.