Regulation on Fees and Charges Payable by Financial Institution

Regulation on Fees and Charges Payable by Financial Institution Regulation Number: -80R2016 21 August 2016 (Including the First Amendment brought in March 2017, the Second Amendment brought in January 2019, the Third Amendment brought in February 2020, and the Fourth Amendment brought in October 2024)

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Regulation on Fees and Charges Payable by Financial Institutions

Introduction

1. This regulation is a regulation drafted under the authority of Article 38 of the Maldives Monetary Authority Act (Law No. 6/81), with due regard to Article 37 of that Act.

Name
2. This regulation shall be known as the "Regulation on Fees and Charges Payable by Financial Institutions".

Commencement of Application of Regulation
3. This regulation shall come into force from the date of its publication in the Gazette of the Government of the Maldives.

Entities Required to Comply with Regulation
4. This regulation shall apply to banks operating in the Maldives and non-bank financial institutions holding a license or permit issued by the Authority. This regulation shall also apply to entities applying for a banking business license and entities applying for a non-bank financial business license in the Maldives.

Application Fee
5. (a) Every entity applying for a license under the Banking Act (Law No. 24/2010) to conduct banking business in the Maldives, and every entity applying for a license under the Maldives Monetary Authority Act (Law No. 6/81) to conduct a non-bank financial business in the Maldives, shall pay the application fee specified in Schedule 1 of this regulation to the Authority in the manner directed by the Authority, along with the submission of the application for the license.

The application fee paid under paragraph (a) of this article is not a refundable amount to the entity that applied for the license in the event that the application submitted under paragraph (b) is withdrawn or the Authority decides not to grant the license.

Banks or non-bank financial institutions shall pay the participation fee specified in Schedule 1 of this regulation to the Authority in the manner directed by the Authority, along with the submission of the application to participate in the Automated Clearing House (ACH) system or the MRTPGS system or the Credit Information System.

Fees and Charges
6. (a) Banks and non-bank financial institutions shall pay the fees payable by that institution as specified in Schedule 2 of this regulation to the Authority in the manner directed by the Authority.

(b) The annual fees specified in Schedule 2 of this regulation shall be paid by July 15 of each year, unless otherwise determined by the Authority.

(c) For banks and non-bank financial institutions that receive a license after this regulation comes into force, the annual fee payable for the year the license was received shall be the proportion of the annual fee specified in Schedule 2 of this regulation payable by that institution, calculated based on the remaining months of that year out of 12 months.

(d) Banks and non-bank financial institutions shall pay the fee directed by the Authority for using the ACH system or the MRTPGS system or the Credit Information System to the Authority in the manner directed by the Authority.

Administrative Measures
7. If any bank or non-bank financial institution has not paid the fee specified in Schedule 2 of this regulation in the manner specified in Article 6 of this regulation by the date specified in this regulation or by any date directed by the Authority, that bank or non-bank financial institution may be penalized by the Authority. Furthermore, in imposing the penalty, an amount not exceeding 100,000 (One Hundred Thousand) Rufiyaa may be determined for each day that the fee remains unpaid.

Meaning of Terms and Expressions
8. Unless otherwise specified in this regulation, the following terms and expressions are given the meanings set out below:

"ACH" refers to the Automated Clearing House established and operated by the Authority.

"Annual Gross Premium" refers to the total premium received during the year. For the purposes of this regulation, the amount of the Annual Gross Premium shall be based on the audited accounts of the previous year preceding the year in which the fee is paid.

"Authority" refers to the Maldives Monetary Authority established under the Maldives Monetary Authority Act (Law No. 6/81).

"Bank" refers to a bank holding a license issued by the Authority under the Banking Act (Law No. 24/2010).

"Banking Business" refers to the meaning given in the Banking Act (Law No. 24/2010).

"Compulsory Insurance" refers to insurance covers mandated to be taken under any law.

"Compulsory Insurance Agents" refers to entities authorized by the Authority to sell, create, replace, or void contracts for Compulsory Insurance solely on behalf of an insurance company.

"Credit Information System" refers to the Credit Information System specified in Regulation No. -R2022/120 (Credit Information System Regulation).

"Financing Company" refers to a company holding a license issued by the Authority to conduct financing business in the Maldives.

"Insurance Agent" refers to an entity authorized by the Authority to work as an agent of an insurance company.

"Insurance Broker" refers to an entity authorized by the Authority to work as an agent for parties taking out insurance or intending to take out insurance.

"Insurance Company" refers to a company holding a license issued by the Authority to conduct insurance business in the Maldives.

"Remittance Business Operators" refers to entities holding a license issued by the Authority to conduct remittance business.

"Net Assets" refers to the amount of assets remaining after deducting 'depreciation' and 'loan loss provision (general and specific)' from total assets. For the purposes of this regulation, the amount of Net Assets shall be based on the audited accounts of the previous year preceding the year in which the fee is paid.

"Non-Bank Financial Business" refers to the meaning given to non-bank financial business under the Maldives Monetary Authority Act (Law No. 6/81).

"Non-Bank Financial Institution" refers to any institution holding a license or permit issued by the Authority to conduct non-bank financial business. This includes financing companies, insurance companies, insurance agents, compulsory insurance agents, insurance brokers, and remittance business operators.

"MRTPGS" refers to the Real Time Gross Settlement System established at the Authority.

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Schedule 1

1. Application Fee
   Type of License or Permit | Amount (in Rufiyaa) --- | --- License to conduct Banking Business | 150,000 License to conduct Financing Business, including Leasing Business and Housing Finance Business | 50,000 License to conduct Insurance Business | 50,000 License for Insurance Broker | 30,000 Permit for Insurance Agents other than Compulsory Insurance Agents | 500 Permit for Compulsory Insurance Agents | 200 License to conduct Remittance Business or Money Remittance Business | 30,000

2. Participation Fee for Systems
   System | Amount (in Rufiyaa)
   --- | ---
   ACH System | 50,000
   MRTPGS System | 50,000
   Credit Information System | 50,000

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Schedule 2

1. Fees Payable by Banks
   1.1 Bank Annual Fee (Collected based on the bank's total Net Assets according to the following ranges).
   Amount (in Rufiyaa) | Bank's Total Net Assets:
   --- | ---
   100,000 | Less than 500 Million Rufiyaa
   150,000 | From 500 Million Rufiyaa – Between 1 Billion Rufiyaa 300,000 | From 1 Billion Rufiyaa – Between 5 Billion Rufiyaa 500,000 | 5 Billion Rufiyaa or more

2. Fees Payable by Finance Companies
   2.1 Annual Fee for Finance Companies (Collected based on the company's total Net Assets according to the following ranges).
   Amount (in Rufiyaa) | Company's Total Net Assets:
   --- | ---
   10,000 | Less than 100 Million Rufiyaa
   20,000 | From 100 Million Rufiyaa – Between 250 Million Rufiyaa 50,000 | From 250 Million Rufiyaa – Between 500 Million Rufiyaa 75,000 | From 500 Million Rufiyaa – Between 1 Billion Rufiyaa 150,000 | From 1 Billion Rufiyaa – Between 5 Billion Rufiyaa 250,000 | 5 Billion Rufiyaa or more

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3. Fees Payable by Insurance Companies and Insurance Brokers
   Amount (in Rufiyaa) | Annual Fee
   --- | ---
   (1) General Insurance Companies (Fee collected based on the company's Annual Gross Premium according to the following ranges).
   Accordingly, the company's Annual Gross Premium:
   35,000 | Less than 100 Million
   60,000 | From 100 Million Rufiyaa – Between 250 Million Rufiyaa 100,000 | 250 Million Rufiyaa or more (2) Life Insurance Business Companies | 20,000 (3) Insurance Brokers | 5,000

4. Fees Payable by Remittance Business Operators
   Annual Fee Amount (in Rufiyaa) | 15,000

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