The Maldives Monetary Authority (MMA) has reinforced its stringent three-stage framework for granting banking licences, stressing that approvals are issued exclusively to financial institutions that have satisfied all legal requirements. This clarification follows public discourse surrounding banking licence procedures, reflecting the central bank's firm stance on regulatory integrity and financial sector oversight.
Bank licensing in the Maldives operates under a structured, multi-phase process outlined in the Maldives Banking Act, MMA asserted in a statement. Institutions seeking authorisation must navigate three distinct stages: obtaining initial information, undergoing a comprehensive evaluation, and securing final approval.
Each application, according to the central bank, is subject to rigorous scrutiny, ensuring that prospective banks meet stringent financial and operational benchmarks. Among the criteria assessed are the applicant's financial strength, verification of capital sources, a "fit and proper" evaluation of shareholders and senior management, and a detailed examination of the proposed business model.
Review procedures, according to the central bank, commence with an initial assessment by the MMA's Licensing Section before applications advance to the Advisory Committee on Financial Institution Licensing for further examination. The final determination, whether to grant or deny a licence, rests with the MMA Board.
For successful applicants, the board initially issues a "conditional" licence, MMA explained, allowing time for essential preparatory steps. These include formal company registration, development of IT infrastructure, and operational readiness. Once all regulatory requirements are met, the MMA conducts a final review, granting full authorisation for banking activities, it added.
The central bank also clarified that applicants who are denied a licence are not subject to a mandatory "cooling-off period". Institutions may submit a fresh application at any time, the MMA noted, with each submission undergoing a complete reassessment under standard licensing protocols. Reaffirming its commitment to robust financial governance, the MMA underscored that licences will be granted strictly to institutions that fully comply with statutory obligations, safeguarding the stability and integrity of the banking industry in the Maldives.