Regulatory Alerts2016-10-27 | Direction No. 5 of 2016Microfinance Act Directions No. 05 of 2016: Assessment of Shareholders
The Central Bank of Sri Lanka issued Microfinance Act Directions No. 05 of 2016 to regulate the assessment of significant shareholders in Licensed Microfinance Companies. The directive prohibits individuals with criminal records for fraud, dishonesty, or moral turpitude, as well as bankrupts, from holding significant shareholding status. Licensed Microfinance Companies are required to obtain and submit a statutory affidavit from these shareholders to the Department of Supervision of Microfinance Institutions to verify compliance with these criteria.
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