Public Instruction N.°06/2010 On the Licensing and Supervision of Other Deposit-Taking Institutions


(enacted in 2010)

The instruction regulates Other Deposit-Taking Institutions(ODTIs), which refer to any company or organizations licensed according to the terms of the instructions.

The instruction is organized as follows:

Chapter I General Provisions

ODTIs are licensed to take deposit, or accumulated Guarantee Account in excess of US $500, but with deposit less than one million US dollars. ODTIs are authorized to be only engaged in activities described in the instructions.

Chapter II Organization of ODTIs

Organized as company under Law on Commercial Companies, with five hundred US dollars minimum capital requirement. Governed by a Board of Directors. Articles of association and by-laws are required. With approval of BPA, ODTIs can setup principal office and branches. Conduct transaction with third party agencies. Qualification, disqualification and removal of administrators also included in the instructions.

Chapter III License Application and Decision

This chapter sets rules on licensing about application results, license period, revocation circumstances and application requirement for existing ODTIs.

Chapter IV Prudential Requirements

This chapter requires ODTIs of administrative and accounting procedures, minimum regulatory capital, no less than 20% capital adequacy ratio, at least 20% of total liabilities, or 30% of Deposit liabilities liquidity, exposure limits and transactions, prohibited investment restrictions, credit classification and provisioning.

Chapter V Reports and Record

Corporate records, accounts and financial statements, audit, inspection, disclosure rules are regulated in this chapter.

Chapter VI Anti Money Laundering

Chapter VII Final Provisions

This part includes disclosure of conflicts of interest and fiduciary obligations, Infractions, penalties, and remedial measures.