CREDIT REFERENCE BUREAU: SUBSIDIARY LEGISLATION
CREDIT REFERENCE BUREAU (LICENSING, SUPERVISORY AND OPERATIONAL REQUIREMENTS) REGULATIONS
under s. 33
ARRANGEMENT OF REGULATIONS
REGULATION
1. Citation
2. Interpretation
3. Eligibility for a licence
4. Application for a licence
5. Minimum capital requirements
6. Validity of a licence
7. Granting of licence
8. Permissible activities
9. Obligations of Credit Reference Bureaus with respect to operations
10. Obligations of Credit Reference Bureaus with respect to customer data
11. Obligations of Credit Reference Bureaus with respect to authorized users
12. Obligations of Credit Reference Bureaus in relation to data providers
13. Users access of the Credit Bureau Database
14. The right to inspect credit information
15. Right to challenge incorrect credit information
16. Process of dealing with challenges to incorrect credit information
17. Recording of challenges to incorrect information
18. Fee for a credit report
19. Penalties
20. Public awareness
Schedule
G.N. 41/2011
These Regulations may be cited as the Credit Reference Bureau (Licensing, Supervisory and Operational Requirements) Regulations.
In these Regulations, unless the context otherwise requires—
“Act” means the Credit Reference Bureau Act;
“borrower” means a natural person or a legal person, and any other party to the credit, who has obtained a credit from the lending institution as a result of a legal agreement signed with them;
“credit agreement” means the contractual agreement between the lender and the borrower that sets out the rights and obligations of parties on the disbursement and the repayment of the credit;
“permissible purposes” means users allowed to obtain information from a credit reference bureau only for the following purposes—
(a) in compliance with a court order;
(b) in accordance with the written instructions of the consumer to whom it relates and as it relates to any type of credit transaction; or
(c) in accordance with the written request of the subject of a credit report in order to obtain a copy of their personal credit report;
“Registrar” means the Registrar of Financial Institutions appointed under the Financial Services Act;
“search inquiry” means a request, made by a user, for information from the credit reference bureau database.
(1) Application for a credit reference bureau licence shall be restricted to limited liability companies.
(2) The licence shall not be transferred or sold.
(1) An application for a credit reference bureau licence shall be made in a form as prescribed in the Schedule.
(2) An applicant shall pay a non-refundable application fee of MK100,000 in a form of a bank certified cheque, payable to the Reserve Bank of Malawi.
5. Minimum capital requirements
(1) A minimum start-up capital for a credit reference bureau business shall be an equivalent of Malawi Kwacha of US$50,000.
(2) The capital must be domiciled in Malawi.
(3) In case of a foreign investor, the capital shall be registered with Exchange Control Department of the Reserve Bank of Malawi.
(1) A credit reference bureau licence shall be valid for a period of two years.
(2) An applicant for a renewal of a licence shall pay a non-refundable fee of MK100,000 in a form of a bank certified cheque, payable to the Reserve Bank of Malawi.
Registrar may grant a credit reference bureau licence if he is satisfied that the following conditions exist—
(a) applicants, owners, directors, executive officers and senior management—
(i) have never been declared bankrupt by a court of law;
(ii) have not defaulted on any credit obligation;
(iii) have never been convicted of any criminal offence for the past seven years which affects their financial integrity;
(iv) have never been refused any licence under any financial service laws;
(v) have never been subjects of supervisory actions (cease and desist orders, licence suspensions or revocations, etc.); and
(vi) have never been liable of any breach in connexion with credit or credit reporting business;
(b) the applicant has human, technical, financial and operational resources that will enable the credit reference bureau to function effectively and efficiently;
(c) the applicant has put in place concise and detailed policies and procedures for the storage and use of credit data that would include ensuring the security, confidentiality and integrity of the credit data;
(d) the applicant has put in place detailed policies and procedures to ensure—
(i) the provision of accurate credit information and that it is only accessible by authorized users;
(ii) that access of credit information from the credit registry database is conducted in a secure and confidential manner;
(iii) the provision of robust consumer rights and protection related to their personal credit information;
(e) the credit reference bureau has certified hardware and software for its…
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