Regulatory Alerts2025-08-09
Takaful Licensing Regulations 2025
The Central Bank of Somalia promulgates the Takaful Licensing Regulations, 2025 to establish a mandatory licensing framework for all Takaful operators, intermediaries, and digital distribution agencies operating within the jurisdiction. The regulations enforce stringent eligibility criteria, including minimum paid-up capital, security deposits, Shariah governance compliance, fit-and-proper assessments for key personnel, and comprehensive business plans, while imposing penalties of up to USD 100,000 and three years imprisonment for unlicensed activities. Existing service providers must regularize their status within six months of commencement, new entrants must secure prior approval, and all licensees must adhere to annual renewal cycles, prescribed fee structures, and mandatory disclosure of Shariah-compliant operating models.