Regulatory Alerts2018-01-01
General Authority for Financial Supervision Board of Directors Decision No. (121) of 2018 Regarding the Conditions, Rules and Procedures for Licensing Companies Engaged in Microfinance Activities
The General Authority for Financial Supervision issued Board Decision No. (121) of 2018, amended by Decision No. (92) in April 2023, to establish the conditions, rules, and procedures for licensing microfinance companies. The regulation mandates preliminary approval for company establishment, outlines specific capital adequacy and liquidity requirements, and details the licensing fees, supervisory cost coverage, and ownership controls for entities holding 50% or more of capital. Furthermore, it grants the Authority discretion to extend compliance periods for up to two years based on justified applications from licensees.
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