What is a Financial Regulatory Body

The financial regulatory authority of a country is the body that grants and issues banking licenses to all financial entities within its governing region. This entity also outlines the legislation and policies that must be complied with in order to operate in the specific jurisdiction that its covers.

The scope of a financial regulatory body

Individuals and companies that wish to establish a bank or financial institution are required to complete an application to the financial regulatory body of their chosen jurisdiction. This entails meeting the minimum requirements as outlined by the authority, as well as operating in compliance with the legislations in the region. The regulatory body is a branch of the government that is responsible for the regulation and control of the issuance of bank licenses in a jurisdiction.

The primary purpose of this regulatory body is to act as a third party between banking entities and their client base they serve. It is the duty of this authority to ensure that all banks operating within its governing region are fully compliant and legally functional to avoid money laundering and other such crimes.

In order to obtain a banking license from a financial regulatory body, the following requirements must be met:

  • Minimum capital
  • Business plan
  • Details of directors and shareholders
  • Statutory declaration of each shareholders
  • Signed indemnity forms
  • Completed due diligence questionnaires

It is advised to enlist the services of a professional consultancy firm when making a banking license application to the financial regulatory authority. Through the advice and guidance of experienced consultants you are able to ensure that you complete the entire procedure in compliance of the law and in a professional manner.

To learn more about the different jurisdictional legislature, see our Licensing Jurisdictions.