The Financial Institutions Act 1998 (No 3 of 1998)


The “rules and regulations” for the financial sector in SI are found in the Financial Institutions Act 1998 (as amended) which provides a supervisory umbrella and addresses issues such as:

  • defining financial institutions and banking business;
  • rules regarding ownership;
  • licensing requirements;
  • minimum capital requirements;
  • restrictions of business activities;
  • definition of the roles and duties of external auditors;
  • measures to protect the interest of depositors;
  • a supervisory and examination system; 
  • situations where CBSI may intervene in the operations of a financial institution;
  • transfer of ownership or control of a financial institution; and
  • sanctions for non-compliance by financial institutions or their officers.
  • Financial Institution Regulatory Framework

A supervisory and examination system is a constant continuous and perpetual cycle that has four components:

  • CBSI’s goals and objectives,
  • monitoring and the examination planning phase,
  • on-site examination phase, and
  • reporting and corrective actions phase.

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Thursday, January 1, 1998
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