REGULATIONS RELATED TO MONEY LOAN ACTIVITIES APPROVED
At a regular meeting of the FRC - on 13 March 2023 – drafts of five regulations were discussed, and approved according to the Law on Regulation of Money Loans Activities. Implementation of the Law followed from 1 March, 2023. The draft regulations are:
Registration and operation regulation, of entities engaged in money loan activities.
Regulation for keeping a record book of money loan activities and submitting reports.
Regulation for issuing personal numbers to entities engaged in money loan activities.
Regulation for training in money loan activities
Regulation for the Money Loans Policy Council’s activities.
The regulations defined details related to money loan activities, including:
- The requirement to register with the FRC (the governor of the province, or the capital) depending on the amount of the capital of the legal entity engaged in money loan activities
- How to register and grounds for refusal of registration.
- As part of the implementation of the Law on Combating Money Laundering and the Financing of Terrorism, entities engaged in money loan activities shall register with the relevant authority every time there is a change in the origin of the share capital (a change in shareholders, executive management, assigned name, or address location).
- The Money Loans Policy Council’s composition, functions, powers, and regulation of activities.
With the approval of these regulations, it is possible to:
- issue unified personal numbers to persons engaged in money lending activities nationwide,
- determine the requirements and conditions for training in money lending activities,
- submit relevant reports in a suitable manner, and
- create a unified database nationwide.
As soon as, the regulatory function of the Money Loans Policy Council was defined that determines to set the interest rate at the maximum loan interest rate, calculate the interest rate, and approve the calculation method such as. Also in the meeting, approval was granted to change the registration of the securities of one joint-stock company, and to extend a special license for the operation of brokers in two agricultural exchanges.
The following activities were also approved in the FRC meeting:
- Issue of special licenses (to operate as insurance agents) for two companies;
- Changes in the structure and composition of one company;
- Issue of special licenses (to engage in non-bank financial lending activities, and activity of investing in short-term financial instruments) to one company;
- Issue of special licenses (to engage in non-bank financial lending activities, providing money transfer services, and providing non-bank financial trust services) to two companies;
- Issue of special licenses (to engage as a real estate agency) to one company;
- Extension of no-limitation special licenses (to operate savings and credit cooperatives) of certain companies in accordance with the Law of licensing;
- Reinstatement of special licenses (to engage as a real estate agency) to two companies;
- Reinstatement of special licenses (to engage in non-bank financial lending activities) to five companies.