On 13 July 2022, the Central Bank of Myanmar ("CBM") issued Directive No. 8/2022 ("Directive") allowing 100% foreign ownership of the non-bank financial institutions ("NBFIs"). This applies to both NBFIs operating in a Joint Venture (JV) with a Myanmar entity or 100% foreign owned NBFIs. The Directive also prescribes the requirements for a Foreign Financial Institution ("FFI") when establishing an NBFI, as well as the requirements an FFI must meet when entering into an NBFI JV.
Apart from the standard requirements of providing documentation such as financial statements, business plans and Board of Directors’ resolutions, some of the key factors that must be satisfied to operate an NBFI is that the investor must be a financial institution that has been operating for a minimum of three years and that the wholly-owned NBFI must have a minimum capital of at least US$10 million, along with documentation evidencing the transfer of capital contribution from any offshore banks to domestic banks. Once the requirements are met, CBM will issue a registration certificate allowing the FFI to operate an NBFI. The estimated timeline to be notified of the approval or rejection of the application is six months.
