Regulatory Alerts2018-05-09
Prudential Regulations No. CBL/RSD/007/2017 Concerning Related Persons Transactions
The Central Bank of Liberia issued Prudential Regulations No. CBL/RSD/007/2017 to replace prior rules and establish minimum standards for related person transactions, requiring licensed banks to conduct credit facilities, management fees, and resource sharing on an arm’s length basis. The regulations mandate written board-approved policies, strict exposure limits, mandatory disclosure of interests by directors and officers, and quarterly reporting to ensure transparency and prevent preferential treatment. Non-compliant institutions face administrative sanctions including fines up to L$200,000, imprisonment, and mandatory restitution.
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