Regulatory Alerts2025-07-04
Licensing Regulations for Non-Deposit Taking Microfinance Institutions, 2025
The Central Bank of Somalia has issued the 2025 Licensing Regulations to establish a comprehensive framework for licensing and supervising non-deposit taking microfinance institutions (NDMFIs). The regulations categorize applicants into NDMFI-1 and NDMFI-2 tiers, mandating minimum capital of US$100,000 and US$500,000 respectively while restricting operations to short-term financing without accepting public deposits. Licensees must comply with strict application procedures, maintain periodic reporting and AML/CFT standards, adhere to defined permissible activities, and face biennial renewal or revocation based on operational compliance.
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