Financial Institutions Act (Tonga)
The Act states that no person shall conduct banking business or any of the financial activities as defined in Section 27 therein, unless he has been issued with a license under the Act or regulation. It expressly prohibits and penalizes pyramid schemes.
The Act provides the requirements, procedure and rules with respect to the application and issuances of licenses in favor of the banking business and other financial activities. It also provides for the requirement with respect to capital and reserves, as well as controllership and receivership. The Reserve Bank is mandated to supervise licensed financial institutions.