Copy right  2015 Central Bank of Somalia, All Rights Reserved.
Central Bank of Somalia Central Bank of Somalia provides the nation with safe, flexible and stable monetary & financial system.”

         Supervision and Licensing

1- Introduction

The   Licensing   and   Supervision   Department   of   the   Central   Bank   of Somalia    has    the    overall    responsibility    of    supervising    the    Somali banking   and   non-banking   financial   institutions,   under   the   provisions of   the   Banking   Regulation   Act,   2012.   Additionally,   the   Department   is guided   by   the   Financial   Institutions   Act   and   the   Central   Bank   Act, 2011. The main objective of the Department is to ensure financial stability in the country through the regulation and supervision of its financial institutions, aligned with the Central Bank of Somalia’s strategic goals. The Department is fully staffed with a fully trained and dedicated team. In accordance to the Financial Institutions Act and CBS Act, 2012, the CBS is responsible of licensing, supervision, and regulation of all commercial banks, and money transfer bureaus (MTB) or Hawalas, and other financial entities. In addition to banks and MTBs, the CBS also has oversight responsibility for other areas in the Somali financial sector and these include insurance forex, microfinance, insurance, mobile money transfer and credit Associations. 2- Organogram of the Licensing and Supervion Department     3- How we work Objectives of the Licensing & Supervision Department (LSD) Under the authority of the Central Bank, one of the prime objectives of the LSD, in its oversight function, is to protect the depositors, remitters, creditors and the financial system. The aim is to ensure the integrity of the banking industry and the financial system as a whole. The licensing and supervision Department under the authority of the Central Bank of Somalia, is to promote and maintain the safety, soundness, and integrity of the banking industry and the financial system as a whole. Since the passing of the Banking Regulation Act of 2011, the CBS has assumed its traditional roles and responsibilities of a central bank, including most importantly the supervision and licensing of banks and NBFIs.    The above objectives are achieved through: I . Receiving   and   processing   applications   for   banks   and   Money Remittance   Providers   (Hawalas)   Licensing   by   means   of   the established procedures I I . Ensuring   effective   compliance   with   international   standards   and norms; I I I . Establishing    an    effective    systems    for    on-site    and    offsite supervision of banks and Money Remittance Providers; I V . Ensuring    timely    supervisory    action    and    compliance    with financial    institutions    and    other    legislations    governing    the operations of financial institutions; V . Promulgating   and   enforcing   of   regulations   and   directives,   and finally; V I . Reorganizing or taking-over of troubled financial institutions.
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Copy right  2015 Central Bank of Somalia, All Rights Reserved. Central Bank of Somalia
“Central Bank of Somalia provides the nation with safe,       flexible and stable monetary & financial system.”

         Supervision and Licensing

1- Introduction

The   Licensing   and   Supervision   Department   of   the   Central   Bank   of   Somalia   has   the   overall responsibility   of   supervising   the   Somali   banking   and   non-banking   financial   institutions,   under the   provisions   of   the   Banking   Regulation   Act,   2012.   Additionally,   the   Department   is   guided by the Financial Institutions Act and the Central Bank Act, 2011. The main objective of the Department is to ensure financial stability in the country through the regulation and supervision of its financial institutions, aligned with the Central Bank of Somalia’s strategic goals. The Department is fully staffed with a fully trained and dedicated team. In accordance to the Financial Institutions Act and CBS Act, 2012, the CBS is responsible of licensing, supervision, and regulation of all commercial banks, and money transfer bureaus (MTB) or Hawalas, and other financial entities. In addition to banks and MTBs, the CBS also has oversight responsibility for other areas in the Somali financial sector and these include insurance forex, microfinance, insurance, mobile money transfer and credit Associations. 2- Organogram of the Licensing and Supervion Department     3- How we work Objectives of the Licensing & Supervision Department (LSD) Under the authority of the Central Bank, one of the prime objectives of the LSD, in its oversight function, is to protect the depositors, remitters, creditors and the financial system. The aim is to ensure the integrity of the banking industry and the financial system as a whole. The licensing and supervision Department under the authority of the Central Bank of Somalia, is to promote and maintain the safety, soundness, and integrity of the banking industry and the financial system as a whole. Since the passing of the Banking Regulation Act of 2011, the CBS has assumed its traditional roles and responsibilities of a central bank, including most importantly the supervision and licensing of banks and NBFIs.    The above objectives are achieved through: I . Receiving   and   processing   applications   for   banks   and   Money   Remittance   Providers (Hawalas) Licensing by means of the established procedures I I . Ensuring effective compliance with international standards and norms; I I I . Establishing   an   effective   systems   for   on-site   and   offsite   supervision   of   banks   and Money Remittance Providers; I V . Ensuring   timely   supervisory   action   and   compliance   with   financial   institutions   and   other legislations governing the operations of financial institutions; V . Promulgating and enforcing of regulations and directives, and finally; V I . Reorganizing or taking-over of troubled financial institutions.
CONTACT INFORMATION P.O Box 11, 55 Corso Somalia Mogadishu, Somalia Tel/Fax: +2521241152, Tel: +2521866131 Tel: +2521866151 Email: it@centralbank.gov.so
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         Supervision & Licensing