MMA: Amendment gives regulatory and supervisory power over financial institutions

The purpose of amending Maldives Monetary Authority Act was to make Maldivian financial industry more efficient by empowering MMA with authority and responsibility to regulate and supervise financial institutions other than banks, said MMA.

The amendment proposed by Central-Fuvahmulah MP Ali Fazaad on behalf of the government has now secured the needed votes.

According to the amendment, MMA will have the authority to store the minimum reserve money at any other institution at their discretion so that banks can enjoy more flexibility.

Main amendments proposed in the bill:

• Regulating and supervising financial institutions in Maldives other than banks to make Maldivian financial industry more efficient and stable.

• All financial institutions in Maldives other than banks need to be licensed by MMA.

• Making running financial institutions in Maldives other than banks without license a crime.

The amendment also empowers MMA to collect, compile, analyze and publish statistics; and running projects to develop financial industry and make financial services available across the country.

In addition to this, it also empowers MMA to establish a payment system to make it easier to carry out financial transactions and make payment system more efficient.

Where in the past MMA was required to secure president’s approval before publishing annual report and guidelines, MMA have now been empowered to publish them right after gaining approval from Board of Directors.