Regulatory Alerts2022-01-01
Circular Letter No. 7 of 2022 on Protecting Clients from Negative Practices in Fund Disbursement
The Financial Regulatory Authority issued Circular Letter No. 7 of 2022 to mandate licensed microfinance and SME financing entities, including affiliated companies, associations, and NGOs, to strictly adhere to customer protection principles and a modified repayment option designed to mitigate default risks. The directive requires these entities to implement the 2016 Client Protection Guideline, particularly focusing on professional and ethical customer interactions and installment facilitation, while ensuring board-level accountability across all service delivery channels. Additionally, it obligates financing entities to educate their staff, promptly report any non-compliance findings to the Authority, and assume full responsibility for enforcement failures.