This Bill is assumed to be submitted by the Ministry of Planning and Finance and posted on the website of Pyidaungsu Hluttaw on 16th of October 2019.
Current status (29.10.2019) – pending to send to the floor of Hluttaw
Bill in brief
The bill includes how Microfinance Supervisory Committee and Microfinance Working Committee are formed, and eligible organisations for microfinance and their permitted works.
Summary of main provisions
The objectives are -
- to support financial sector of a level playing field
- to enrich its custormers’ socio-economic, education and health
The Microfinance Supervisory Committee will be formed by the Ministry of Planning and Finance and chaired by Deputy Minister. In the formation of the committee, two experts of microfinance business has to be included.
The Microfinance Working Committee will be formed at the level of Region/State and Naypyidaw Council, comprising related Minister for Planning and Finance as a chair and relevant departmental representatives.
The organisations which wish to run microfinance business must be those established with Myanmar Companies Law and Partnership Law. Issuing or suspending or revoking licence for the microfinance organisation has to be announced in the Myanmar Gazette.
Permitted works for the microfinance organisation are -
- issuing micro-credit or micro-business credit
- receiving the deposit
- remittance of money
- acting as an insurance delegate
- conducting the hire purchase
- applying the digital financial service in line with Central Bank’s regulation
- carrying out other microfinance business allowed by Supervisory Committee
There is a fine of not more than 150 million MMK or an imprisonment of not more than 5 years or both for running microfinance business without licence, and specific penalties for violating other restrictions.
Other relevant Laws
The Partnership Act 1932
Money Laundering Eradication Law 2014
Anti-terrorism Law 2014
Competition Law 2015
Myanmar Companies Law 2017
Hla Myo Kyaw, The Ananda, email@example.com