The Maldives Monetary Authority (MMA) has formally addressed the circulation of unverified claims regarding the procedures it follows in issuing banking licences.

It has condemned the dissemination of misinformation, noting that such narratives risk undermining both the transparency and the credibility of the regulatory framework it administers.

In response to these concerns, the MMA has clarified that its licensing procedures are governed by the provisions of the Banking Act and are implemented through a structured three-stage process. This framework begins with the provision of guidance to prospective applicants concerning the necessary criteria and documentation. It proceeds with the formal assessment of submitted applications, culminating in the potential issuance of a banking licence.

During the assessment phase, the Authority considers a range of critical factors. These include the financial capability of the applicant, the origin and sufficiency of capital, the propriety of shareholders and senior executives, and the soundness of the proposed business model. The Licensing Section conducts the initial review. Should the proposal meet the required standards, it is referred to the Advisory Committee on Financial Institution Licensing. Upon endorsement by this committee, the application is escalated to the Governor and subsequently to the Board of the Authority, which holds the final decision-making responsibility.

If the Board decides to approve the application, it initially grants a conditional licence. This permits the applicant to undertake preparatory tasks such as registering the business, establishing appropriate IT infrastructure, and setting up operational premises. MMA has stated that a full licence will be issued only upon verification that all legal, structural, and technical obligations have been fulfilled, including a satisfactory assessment of the institution’s readiness and facilities.

The Authority has also addressed the process for reapplication in instances where a licence is not granted. Although the Board may choose not to consider a resubmission at the same stage, the regulatory framework does not impose any mandatory interval before a new application can be submitted. Any such reapplication is treated as a fresh submission and is subject to the same comprehensive review process.

In reaffirming its regulatory stance, MMA has emphasised that safeguarding the robustness and integrity of the financial sector remains its foremost priority. The Authority reiterated that licences are granted exclusively when all statutory and procedural conditions have been met in full.