Licenses library · 629
License to Operate Banking Business (For a branch of Foreign Commercial Bank)
银行业务经营许可证（外国商业银行分行）
ໃບອະນຸຍາດດໍາເນີນທຸລະກິດການທະນາຄານ (ສຳລັບສາຂາທະນາຄານທຸລະກິດຕ່າງປະເທດ)
Individuals, legal entities that intend to operate in a banking business Apply at Bank of Lao PDR.
Who needs this
Individuals, legal entities that intend to operate in a banking business
Requirements
- Operate the business for 3 consecutive years with profits and no accumulated loss
- Must have sufficient, clear, and lawful sources of funds and have at least LAK40 trillion or equivalent to USD 5 billion in the proposed fiscal year
- Must be rated BBB or higher by an international rating agency or obtained a good rating from a relevant authority
- In case the applicant is a foreign bank, it must obtain permission from the relevant authority to invest in establishing a commercial bank in Lao PDR
- Have a clear and realistic shareholder structure
- Must be a legal entity that is suitable for obtaining a business license
- Must not be on a blacklist for money laundering or terrorist financing For the applicant that is a non-commercial bank legal entity:
- Operate the business for 3 consecutive years with profits and no accumulated loss
- Must have sufficient, clear, and lawful sources of funds and have no less than twice the value of the shares of the bank in the proposed fiscal year
- Have a clear and realistic shareholder structure
- Must be a legal entity that is suitable for obtaining a business license
- Must not be on a blacklist for money laundering or terrorist financing. For the applicant that is an individual
- Must have sufficient, clear, and lawful sources of funds and have no less than twice the value of the shares of the bank in the proposed fiscal year
- In a case of being a majority shareholder, the individual must have the appropriate qualifications and experience to operate in the financial-banking business.
- Never held a criminal conviction for theft, fraud, embezzlement, forgery, bribery, corruption, money laundering, terrorist financing or other financial and monetary and monetary related crimes or drug trafficking
- Must be an individual that is suitable for obtaining an establishing license
- Must not be on a blacklist for money laundering or terrorist financing.
Documents — first application
| Document | Note |
|---|---|
| Specific Required documents for the appointed executives | 1. Curriculum Vitae in the Bank of Lao PDR specified format, qualification certificate, employment, experience, and professions certificate in the period of 5 (five) consecutive years of the executive (including the internal auditor) of the establishing bank 2. A copy of the ID card (color copy) and the original Criminal Record letter of the Lao National executive. For foreign executives, a copy of the passport (color copy) and a criminal record or similar documents (original copy) certified by the relevant authority. 3. Report on the Criminal Background or on the domestic and foreign criminals and negative information that any organization in both domestic and foreign found about the executive in the Bank of Lao PDR specified format. |
| Application form in the Bank of Lao PDR specified format | |
| Feasibility Study in the Bank of Lao PDR specified format | |
| Appointment letter for the committee in charge of the establishment. In the case of designating the representative to be in charge of the establishment, the applicant must have a power of attorney in accordance with the law | |
| Joint Venture Agreement or Bank Establishment Agreement | |
| Proof of source of registered or investment capital | |
| Letter of Consent to allow the Bank of the Lao PDR to inspect the source of funds to be invested in the establishment of the commercial bank, the financial position of the shareholders; Background Check for shareholders and executives | |
| Draft regulations in the Bank of the Lao PDR specified format | |
| Guidelines on accounting, risk management, internal audit, personnel management, product services, anti-money laundering and counter-terrorism financing, etc. | |
| Document confirming the financial position of the shareholders, which has been audited by the external audit organization for past three consecutive years | |
| Authorized letter from the relevant organization to establish a commercial bank in Lao PDR in accordance with the laws of the relevant country (for the foreign legal entities) | |
| Resolutions of the shareholders' meeting, the Board of Directors or the authorized person of the applicant for the establishment of the branch or a bank under a group of commercial banks | |
| Resolutions of the Board of Directors, shareholders' meeting or the person who has the authority of the business applicant on the approval of documents | |
| Letter of appointment for the 1st batch branch director | |
| Commitment Letter from the Bank's Head Office to fulfill its financial obligations on behalf of its branch located in Lao PDR | |
| Specific Required documents for the legal entity applicant | 1. Certified documents for the financial position of the applicant, which has been audited by the external audit organization for the past 3 (three) consecutive years 2. Proof of sources of funds to establish the bank certified by the depository bank (for monetary sources) and certified by the relevant asset management authority (for the registered sources of tangible capital) and related transaction documents (for the unregistered sources of tangible capital). 3. Letter of consent for the Bank of Lao PDR to perform a background check on the sources of funds to establish the bank. 4. Certified document on the total shareholding structure of the applicant, including the actual beneficiaries of the shareholding. 5. Copy of the enterprise registration certificate including the business operating licenses of the applicant. 6. Copy of the applicant’s regulation. 7. Resolutions of the shareholders' meeting, the Board of Directors or the authorized person of the applicant for the establishment of the branch or a bank under a group of commercial banks 8. Authorized letter from the relevant organization to establish a commercial bank in Lao PDR in accordance with the laws of the relevant country (for the foreign legal entities) 9. Certified letter on the implementation of the security regulations from the authorized organization for a period of 3 (three) consecutive years (for legal entities that are foreign banks), in case the applicant is not rated by an international rating company. 10. Report on the Criminal Background or on the domestic and foreign criminals and negative information that any organization in both domestic and foreign found about the executive in the Bank of Lao PDR specified format. |
Legal framework
- Law on Commercial Bank (Amended)
- Decisions on Commercial Bank and Branch Establishment
- Decisions on the Commercial Bank Establishment and Management Fees
How to submit
- Means of presentation
- At the Authority Offices
- Address of authority
- Bank of Lao PDR
- Processing time
- 100 The period for considering the issuance of a temporary license is within 90 days and the period for issuing the permanent license for the establishment is within 10 working days if the applicant meets the requirements.
Validity and renewal
- Has an expiry date
- NO
Additional comment
The establishment of a commercial bank's branch must have a minimum registered capital of LAK300 billion