CBM Directive on Opening and Closing of NBFI branches and relocation of head-officeJune 23, 2021
The Central Bank of Myanmar (“CBM”) issued a directive on 15 June 2021 (“Directive”) to Non-banking Financial Institutions (“NBFIs”). The Directive sets out the documents that an NBFI requires to provide to the CBM as part of its application to seek approval for (i) opening or closing a branch office or (ii) relocation of it’s head office.
An NBFI seeking CBM’s approval prior to:
- opening a new branch office/relocating its head-office is required to provide documents such as an application form, resolution of its board of directors, feasibility study, photos of the location of new office etc. The NBFI also requires to provide evidence that it has paid MMK 200,000 as fee for opening a new branch office (as per Directive 3/2017 dated 26 January 2017).
- closing a branch office is required to provide documents such as a resolution of its board of directors, the cause of closing and a plan on how it intends to treat the payables and receivables of the closing branch.