Taking into account that all residents of Timor-Leste can benefit from access to financial services, and that organizations that specialize in providing financial services to low income populations require regulation that is specific to the risks associated with those services.
Specialized regulation for Other Deposit Taking Institutions (ODTIs) will facilitate their organizational development and their ability to grow in a safe and sound manner. Specialized regulation for ODTIs helps protect the banking system against money laundering and criminal activities and provides protection to their customers and members.
In order to promote the supply of financial services to the entire population of Timor-Leste and protect the legitimate interest of the depositors, the Banking and Payments Authority (BPA) of Timor-Leste passed Public Instruction N. 06/2010.
The instruction covers the following topics:
1. Prohibition and Restrictions
2. Financial Activities
3. Organization of ODTIs
5. Prudential Requirements
6. Reports and Records
7. AML (Anti Money Laundering)
8. Disclosure of Conflicts of Interest and Fiduciary Obligations
9. Infractions, Penalties and Remedial Measures