Rajah & Tann Regional Round-Up
your snapshot of key legal developments in Asia
 Issue 2 - Apr/May/Jun 2021
 

CBM Directive on Non-Banking Financial Institutions on Opening or Closing of Branch Office and Relocation of Head Office

On 15 June 2021, the Central Bank of Myanmar ("CBM") issued a directive to Non-Banking Financial Institutions ("NBFIs") in relation to seeking approval on the (i) opening or closing of a branch office; and (ii) relocation of their head offices.


a.   Opening a new NBFI branch office/ relocating an NBFI head office


CBM requires the NBFI to provide (i) a completed application form for the opening of a new branch office or relocation of its head office; (ii) a Board of Directors ("BOD") resolution approving the opening of a new branch or the relocation of its head office; (iii) a feasibility study; and (iv) photos of the new office/branch office. 


The NBFI is also required to provide evidence that it has made a fee payment of MMK 200,000 in the case of opening a new branch office. Relocating an NBFI head office requires no further fee payment.


b.   Closing a branch office of an NBFI


CBM requires the NBFI to provide (i) a BOD resolution approving the closure of the branch office; (ii) the reasons for the closure; and (iii) its plan of action regarding the payables and receivables of the closing branch.



Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.

 

Rajah & Tann
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Yangon, Myanmar
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Contacts:

Dr Min Thein
Managing Partner
D +951 9345343
F +951 9345348
min.thein@rajahtann.com

Chester Toh
Director
D +65 62320220
chester.toh@rajahtann.com

Jainil Bhandari
Director
D +65 62320601
jainil.bhandari@rajahtann.com

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