License to Establish a Custodian Bank

Any domestic or foreign commercial bank with the purpose of operating as a custodian bank, to act as a custodian and managing investor's assets, clearing and settling securities transactions in the Lao PDR.

1. Must be a domestic commercial bank or a branch of a foreign commercial bank
2. Must be in a stable financial position in accordance with the related regulations under the Bank of Lao PDR
3. Must have the asset management system, internal audit, and risk management including secured and flexible bank accounts & securities accounts monitoring system.
4. Have a secured and flexible securities transaction clearing-settlement system for both domestic and overseas.
5. Have an Information Technology system that links with stakeholders and ensure high-level security.
6. Have a mutual agreement with Lao Securities Exchange's (Securities Depository Centre) and Securities company
7. Must have qualified executives and employees with at least a bachelor's degree level or above in Financial-Banking, Accounting, or other related areas. And have experience in such a field for 3 years or above, have never been convicted on criminal offenses such as fraud, embezzlement, forgery, bribery, corruption, or money laundering, and have never committed any offense in the securities business sector.
8. Have a Division or Unit for Safekeeping and Managing investor's assets or act as an agent to protect the rights and benefits of the investors. And have an appropriate number of employees in the relevant position.
9. For the foreign commercial bank that intended to operate as a custodian bank in Lao PDR, other than the conditions mentioned above, the applicant must also have a joint agreement with a domestic commercial bank located in Lao PDR to act as a correspondent bank for monetary or securities payment. The foreign commercial bank must come from a country where the securities regulators in Lao PDR have tied cooperation with by signing a memorandum of understanding.
10. Other conditions stipulated by the LSC

• Regulation on Custodian Bank 010/LSCO · 07.05.2014
• Law on Securities 21/NA · 10.12.2012

Means of presentation

At the Authority Offices

Address of authority

Lao Securities Commission Office, Bank of Lao PDR

Processing time

45

Has an expiry date

NO

Renewal process

No renewal requirement but the applicant shall pay the Annual Management Fee

After receiving this Formality, the Custodian Bank shall publicise the approval through mass media at least for 5 consecutive working days.