The Central Bank of Samoa (CBS) is calling on the public and stakeholders to review and provide feedback on two proposed bills: the Moneylenders Bill 2025 and the Microfinance Bill 2025. These bills aim to regulate lending practices in Samoa, ensuring responsible financial services, protecting borrowers, and promoting a more transparent and accountable financial system.
The consultation period is open until 30 June 2025, at 11:45 PM, and CBS encourages all interested parties to participate.
The proposed laws focus on distinct aspects of financial services. The Moneylenders Bill 2025 aims to regulate moneylenders by enforcing strict licensing requirements, capping interest rates, and ensuring fair lending practices. The Microfinance Bill 2025 establishes a governance framework for microfinance institutions (MFIs), setting licensing conditions, deposit protection rules, and loan agreement standards.
The Moneylenders Bill 2025 introduces several key provisions. All moneylenders must be registered and regulated by CBS. Loans must adhere to CBS interest rate policies to prevent predatory lending. The bill prevents excessive fees, hidden charges, and misleading lending practices. Loan agreements must be in writing and meet CBS standards. CBS also has the power to inspect, penalize, and revoke licenses of non-compliant moneylenders.
Similarly, the Microfinance Bill 2025 includes several regulatory measures. All microfinance institutions must obtain a CBS license to operate legally. A microfinance institution must have at least ST$1 million in capital. CBS will set limits on interest rates and penalties to protect borrowers. The bill ensures depositor funds are protected and used appropriately. MFIs must follow strict audit requirements and maintain transparent operations.
While the bills introduce necessary safeguards, several areas need further clarification and refinement. Interest rate limits need to be clearly defined as the current linkage to CBS policy does not specify a maximum cap. There is no formal process for moneylenders or MFIs to appeal CBS decisions regarding license revocation. The requirement for ST$1 million in capital may limit smaller lenders from entering the market. The bills should explicitly outline protections against excessive fees and unauthorized deductions. Many lenders operate informally, and stronger measures are needed to bring them into compliance. CBS should also educate the public on their rights and the protections available under these laws.
CBS has made the draft versions of the bills available online for public review. The Moneylenders Bill 2025 can be accessed at https://qrco.de/moneylenders2025, and the Microfinance Bill 2025 at https://qrco.de/microfinancebill2025. Feedback can be submitted via the Moneylenders Bill Feedback Form at https://forms.office.com/r/W3jCPRxuZS and the Microfinance Bill Feedback Form at https://forms.office.com/r/VbNG8LGcwM.
CBS emphasizes that the input from the public, businesses, and financial institutions is crucial in refining these laws to ensure they serve the best interests of Samoa’s financial ecosystem.
For more information, contact the Financial Supervision and Regulatory Services Department at the Central Bank of Samoa. You can reach Siavata Nofoaiga at [email protected] and Alofaifo Seleni at [email protected].
The consultation period closes on 30 June 2025. Now is the time for the public to have their say on how financial services should be regulated in Samoa.
