Financial Supervision & Regulation

Supervision and Regulation of Samoa's Financial System

Mission: To maintain a sound and reputable financial system

Objectives of Supervising the Financial System:

The Financial Supervision Department is responsible for executing one of the Central Bank’s Statutory roles of regulating, licensing, and supervising the financial system with the aim of:

Prudential Supervision Approach

Prudential supervision concentrates primarily on detecting early signs of weaknesses in financial institutions performances and their overall financial conditions. Through regular on-site reviews and analysis of financial information and reports provided, financial institutions performances are measured against the Bank’s prevailing prudential standards and requirements and reflecting on any significant trends or issues of concern in their financial positions.

The Bank’s Supervisory Framework:

1. The Central Bank of Samoa Act 2015
2. The Financial Institution Act 1996 [Consolidated version as of December 2016]
3. The Insurance Act 2007
4. The Money Laundering Prevention Act 2007

Licensed and Supervised Financial Institutions and Intermediaries

As of 31 January 2018, Sāmoa’s financial system consists of the following:

1. The banking industry; this comprises of 4 commercial banks (2 locally incorporated foreign companies, 2 local companies).
2. The insurance industry; this is made up of 6 insurance companies, 4 brokers and 17 insurance agents.
3. The Non-Bank Financial Institutions; which includes the Samoa National Provident Fund (SNPF), the Samoa Housing Corporation (SHC), the Development Bank of Sāmoa (DBS) and the Unit Trust of Samoa (UTOS)
4. The Foreign Exchange Industry; this includes twelve (12) Money Transfer Operators /Restricted Foreign Exchange Dealers and one (1) Money Changer.