Regulatory Alerts2018-01-25
Regulation on Transactions with Related Persons
The Maldives Monetary Authority issued this regulation to govern transactions between licensed banks and related persons, ensuring such dealings occur on arm's length terms without compromising bank solvency. It mandates board-approved policies, interest declarations, and prior approval for transactions exceeding MVR 250,000 while prohibiting the transfer of low-quality assets or value below market rates. Non-compliance triggers corrective measures and sanctions ranging from warnings and capital injection requirements to license suspension or revocation.
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