Financial Services Act of Bhutan, 2011
The Act states that no person may offer financial services as a business without obtaining the appropriate license under the Act or any of the regulations under it, nor shall any individual fulfill a function on behalf of a financial services business without the license or registration, if any, required under the Act or any of the regulations under it.
The Act defines financial services as business related to banking, insurance, securities and all other services designated in a regulation adopted by the Royal Monetary Authority as a financial service. It prescribes the rules, regulations, requirements and procedure on:
- The procurement of licenses prior to the offer of financial services as a business
- Ownership and control of financial institutions including ownership restrictions, corporate governance, financial requirements, records and audit
- Head offices and branches
- Subsidiaries and representative offices
The Act further prescribes the regulatory measures to ensure the effective implementation thereof through the power of the Royal Monetary Authority to obtain information, examine and investigate financial services. Notably, a Financial Intelligence Unit was established under the Royal Monetary Authority for the purpose of investigating and receiving reports on financial crimes, money laundering and financing of terrorism.