The Maldives Monetary Authority (MMA) has opened public consultation on two proposed regulations covering consumer protection in the financial sector and customer identification requirements for financial institutions.
The central bank is seeking comments on the draft Financial Consumer Protection Regulation and the Simplified and Electronic Customer Due Diligence Regulation.
Members of the public and relevant industry stakeholders have until 3:00 pm on Wednesday, August 26, to submit their feedback.
The Financial Consumer Protection Regulation is intended to establish safeguards for people using financial products and services and strengthen the framework through which their rights are protected.
Consumer protection has become increasingly important as the Maldives’ financial sector expands beyond traditional banking services, with customers increasingly relying on digital banking, cards, online payments and other technology-based financial services.
The second draft focuses on how financial institutions identify and verify their customers.
The Simplified and Electronic Customer Due Diligence Regulation sets out requirements for customer identification and identity verification under the Prevention of Money Laundering and Financing of Terrorism Act.
Customer due diligence, commonly known as CDD, is a key part of the financial system’s safeguards against money laundering and other illicit financial activity. It generally requires financial institutions to establish the identity of customers and conduct appropriate verification before or while providing certain services.
The proposed regulation also addresses simplified and electronic due diligence, an area that has become more relevant as customers increasingly access financial services remotely rather than through physical branches.
The consultation comes as MMA continues to update the country’s financial regulatory framework alongside the expansion of digital financial services.
Earlier this month, the central bank also sought public comments on two draft regulations prepared under the Maldives Insurance Act: the Insurance (Risks in the Maldives) Regulation and the Insurance (General Provisions) Regulation.
The latest consultation gives consumers, financial institutions and other interested parties an opportunity to comment on the proposed requirements before the regulations are finalised.
Feedback on the Financial Consumer Protection Regulation and Simplified and Electronic Customer Due Diligence Regulation can be submitted to MMA at [email protected] before the August 26 deadline.
