MICROFINANCE

CHAPTER 46:08
MICROFINANCE

ARRANGEMENT OF SECTIONS

    SECTION

PART I
PRELIMINARY

    1.    Short title

    2.    Interpretation

    3.    Application

    4.    Exemptions

PART II
REGISTRATION AND LICENSING

Division I
Microfinance Service Providers

    5.    Prohibition against carrying on microfinance business without certificate or licence

    6.    Registration or licensing under the Financial Services Act

    7.    Products and services under other laws

    8.    Issue of certificate, etc.

    9.    Business to be conducted in approved premises

    10.    Restriction on transfer, etc. of certificate, etc.

    11.    Expiry of a certificate, etc.

    12.    Suspension or revocation of certificate, etc.

    13.    Registered, licensed or approved person, etc. to honor obligations

Division II
Microfinance Institutions

    14.    Primary business of microfinance institution

    15.    Microfinance institution may offer services through an agent

    16.    Prudential regulation of non-deposit-taking microfinance institution

    17.    Microfinance institution not limited by shares to prioritize creditors

Division III
Deposit-taking Microfinance Institutions

    18.    Deposit-taking microfinance institutions to be limited by shares

    19.    Inspections of premises

    20.    Deposit-taking microfinance institutions to operate in designated places

PART III
MICROFINANCE REGISTER

    21.    Register

    22.    Inspection of Register

    23.    Evidence in Register

PART IV
GOVERNANCE OF A MICROFINANCE INSTITUTION

Division I
Microcredit Agencies

    24.    Minimum governance standards for microcredit agencies

Division II
Microfinance Institutions

    25.    Board of a microfinance institution

    26.    Actions requiring prior approval

    27.    Management of a microfinance institution

    28.    Disqualification from appointment

    29.    Internal control systems

    30.    Inconsistency with other laws

Division III
Deposit-taking Microfinance Institutions

    31.    Ownership

    32.    Control of a deposit-taking microfinance institution

PART V
MICROFINANCE OPERATIONS

Division I
Microfinance Service Providers

    33.    Conduct of business

    34.    Disclosure of terms of credit and savings products

Division II
Microfinance Institutions

    35.    Display of information

    36.    Minimum and other capital requirements

    37.    Additional directives for microfinance institutions

    38.    Insider lending

    39.    Limits on loans

Division III
Other Licensed Financial Institutions

    40.    Separation of operations and portfolios

    41.    Divisions I and II to apply to other licensed financial institutions

PART VI
ACCOUNTS AND AUDIT

Division I
Microfinance Service Providers

    42.    Financial year

    43.    Accounts

Division II
Microfinance Institutions

    44.    Auditors of a microfinance institution

PART VII
REGULATION AND SUPERVISION OF MICROFINANCE INSTITUTIONS

Division I
Microcredit Agencies

    45.    Information disclosure by microcredit agencies

Division II
Licensed Microfinance Institutions

    46.    Reporting requirements for microfinance institutions

Division III
Other Licensed Financial Institutions

    47.    Section 40 to apply to other licensed financial institutions

PART VIII
REMEDIAL MEASURES AND WINDING-UP OF MICROFINANCE SERVICE PROVIDERS

Division I
Microfinance Service Providers

    48.    Remedial measures

Division II
Non-deposit-taking Microfinance Institutions and Microcredit Agencies

    49.    Winding-up of non-deposit-taking microfinance institution or microcredit agency

Division III
Prudentially Regulated Microfinance Institutions

    50.    Winding-up of prudentially regulated microfinance institutions

PART IX
MISCELLANEOUS PROVISIONS

    51.    False documents

    52.    Confidentiality

    53.    Money laundering transactions

    54.    Obstruction of the Registrar, etc.

    55.    General offences and penalties

    56.    Regulations

    57.    Directives and guidelines

PART X
TRANSITIONAL PROVISIONS

    58.    Compliance by existing microfinance service providers

21 of 2010
G.N. 15/2010

An Act to provide for the regulation and supervision of microfinance services and to make provision for matters connected therewith or incidental thereto

PART I
PRELIMINARY

1.    Short title

    This Act may be cited as the Microfinance Act.

2.    Interpretation

    (1) In this Act, unless the context otherwise requires—

    “bank” has the meaning ascribed to it in the Banking Act;

    “branchless service” means any microfinance service, as defined in this Act, which is offered by a microfinance service provider or an agent on behalf of a licensed financial institution, where the licensed institution is authorized to provide the service and is wholly responsible for its lawful provision to the same extent as if offering the service directly;

    “capital” includes paid up capital and unimpaired reserves;

    “certificate” means a certificate of registration issued under this Act;

    “company” has the meaning ascribed to it in the Companies Act;

    “compulsory savings” means a sum of money which is paid as security, as a partial guarantee or as a precondition for a loan granted or promised at a future date to be granted to the person making the payment;

    “de facto control of a microfinance institution” means direct or indirect influence that results in the person having predominant decision-making power over the business or financial operations of the microfinance institution and includes powers exercisable over another microfinance institution by virtue of such influence;

    “de jure control of a microfinance institution” means beneficial ownership of more than 50% of any class of the issued voting shares of a microfinance institution;

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