The Maldives Monetary Authority (MMA) has confirmed that it recently issued pre-operational permits to two parties in full compliance with established regulations. The statement came in response to unverified reports circulating in the media, which suggested that the permits were granted unlawfully and in a manner inconsistent with MMA’s procedures.
In a press release issued yesterday, the Authority firmly denied these claims, stating that such misinformation undermines the credibility and integrity of its banking licence issuance process.
According to MMA, they adhere to a rigorous three-stage process when considering applications for banking licences, in compliance with the Banking Act of 2010:
- Informing the Applicant – The Authority outlines the regulatory requirements that must be met.
- Application Evaluation – The Authority conducts a thorough assessment of the applicant’s financial capacity, capital sources, the suitability of shareholders and senior management, and the proposed business plan.
- Final Licensing – Following due diligence, the Authority makes a formal decision on whether to issue a licence.
The Licensing Section conducts the initial evaluation and forwards successful proposals to the Advisory Committee on Financial Institution Licensing. If endorsed, the proposal moves to the Governor and finally to the Board of the MMA, which makes the ultimate licensing decision.
Where approved, the Authority first issues a conditional licence, allowing applicants to complete preparatory work such as company registration, IT setup, and office readiness. Only after verifying that all requirements are fulfilled does the MMA issue a full licence to commence banking operations.
In the cases under discussion, the Board ultimately opted not to grant full licences. However, the MMA clarified that there is no legal requirement for a ‘cooling-off period’, and applicants may reapply at any time. Any reapplication will be treated as a new submission and undergo the full evaluation process.
The MMA reiterated its commitment to maintaining a transparent and robust financial regulatory framework. It emphasised that banking licences will only be issued once all legal and regulatory conditions are fully met, ensuring the continued integrity and effectiveness of the Maldivian financial sector.
