Clear and Accountable: MMA Reinforces Rigorous Banking License Process

To strengthen public trust and reassure both local and international investors, the Maldives Monetary Authority (MMA) has reaffirmed its rigorous, legally grounded three-stage banking licence process. This follows recent public and media discussions surrounding the legitimacy of newly issued pre-operational permits, which the Authority firmly clarified were granted in full compliance with existing regulations under the Maldives Banking Act of 2010.

In an official press statement, MMA denied unverified media reports suggesting that recent permits had been issued unlawfully or in contradiction to proper procedure. The Authority emphasized that such misinformation risks undermining the credibility of its regulatory processes and the overall stability of the nation’s financial sector.

The central bank’s licensing process is designed to ensure that only institutions fully meeting strict regulatory requirements can operate within the Maldivian banking system. According to the MMA, this framework comprises three key stages:

1. Initial Information Disclosure – The Authority informs the applicant of all legal and operational requirements they must satisfy.

2. Comprehensive Evaluation – A detailed assessment is conducted to examine the applicant’s financial soundness, capital source verification, the fitness and propriety of major shareholders and senior management, and the soundness of the proposed business model.

3. Final Licensing Decision – Following thorough due diligence, a formal licensing decision is made by the MMA Board.

The process begins with the Licensing Section’s preliminary evaluation. Applications that meet baseline standards are then forwarded to the Advisory Committee on Financial Institution Licensing. If further endorsed, the application is reviewed by the Governor and presented to the MMA Board, which makes the final decision on whether to grant a licence.

In cases where approval is granted, the Board first issues a conditional licence. This allows the applicant to complete necessary preparatory work, including official company registration, development of IT systems, and finalization of physical office space. Only after confirming that all regulatory and operational requirements are fulfilled does the MMA issue a full licence permitting the institution to commence banking operations.

Importantly, the MMA clarified that applicants who are denied a full licence are not subject to a mandatory waiting or “cooling-off” period. These institutions may reapply at any time, with each application reviewed afresh under the full regulatory procedure.

Reiterating its commitment to transparency and regulatory integrity, the MMA stated that no banking licence will be granted unless all legal and prudential requirements are met. The central bank’s stance ensures continued confidence in the financial system, protects economic stability, and supports a secure environment for international financial cooperation and investment.

The Authority also confirmed that it has recently issued pre-operational permits to two institutions, stating these were granted lawfully in accordance with established licensing protocols. This clarification reinforces the MMA’s ongoing dedication to responsible governance and the credibility of its financial regulatory framework.