Regulatory Alerts2025-08-05
Regulation on Bank Licensing, 2014
The Central Bank of Somalia issued this regulation to establish the comprehensive framework for applying for, evaluating, and granting banking licenses to domestic and foreign financial institutions operating in Somalia. It mandates strict eligibility criteria, including transparent ownership structures, fit-and-proper management, adequate capitalization, and a viable three-year business plan, while setting a 90-day statutory timeline for licensing decisions. The regulation further requires licensed banks to commence operations within twelve months, adhere strictly to their approved business plans for three years, and submit annual renewal applications by October 31st to maintain their operating status.
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