Brokerage License
Minimum Share Capital
To apply for the Brokerage License, companies must maintain a share capital of $20,000. This is actual working capital and not a deposit. It ensures the company is financially stable and capable of fulfilling its obligations.
Corporate Structure
Applicants must be registered in Sierra Leone under The Companies Act, 2009.
A minimum of two directors is required, with at least one director having prior experience in financial markets.
You’ll also need to appoint a local compliance officer to manage anti-money laundering (AML) and counter-terrorism financing (CTF) requirements.
Office Presence
Unlike many other jurisdictions, no physical office is required to apply for this license. This means fewer initial costs and greater flexibility. However, your company should be able to demonstrate that it has secure and efficient systems for client communication and fund management.
AML and CTF Compliance
It’s essential for the company to establish a strong AML and CTF framework. Regular compliance reporting to the Sierra Leone Securities and Exchange Commission (SLSSEC) is mandatory. This ensures that your business meets international standards for financial security.
Business Plan
A comprehensive business plan is necessary to show how your company will operate in Sierra Leone.
The plan should detail your market strategy, risk management procedures, and technology platforms used for trading. This demonstrates your business’s ability to operate responsibly.
Management Team
Key personnel, including directors and compliance officers, must pass fit-and-proper checks.
You’ll need to submit resumes, police clearance certificates, and proof of financial qualifications for key staff members.
Technology Infrastructure
The use of a secure and licensed trading platform is essential. The platform should ensure transparency, provide real-time reporting, and protect investor funds at all times.
Client Fund Protection
To ensure investor protection, client funds must be segregated in separate accounts. Additionally, a compensation plan should be in place to cover clients in the event of insolvency or fraud.
Insurance
Your company must provide proof of professional indemnity insurance. This insurance protects clients from potential losses caused by negligence or fraud.
Insurance License Requirements
Minimum Share Capital
To apply for an insurance license, companies must maintain a share capital of $500,000. This capital ensures the company is financially stable and capable of fulfilling its obligations to policyholders.
Corporate Structure
Applicants must be registered in Sierra Leone under The Companies Act, 2009.
A minimum of two directors is required, with at least one having relevant experience in the insurance or financial services industry.
A local compliance officer must be appointed to oversee regulatory requirements, including anti-money laundering (AML) and counter-terrorism financing (CTF) measures.
Office Presence
Unlike some jurisdictions, no physical office is required to apply for an insurance license. However, the company must demonstrate that it has adequate infrastructure and systems to manage client communication, claims processing, and risk management effectively.
AML and CTF Compliance
The company must establish a robust AML and CTF compliance framework, ensuring it adheres to international standards. Regular compliance reporting to the Sierra Leone Insurance Commission (SLICOM) is mandatory to ensure the company operates securely and responsibly.
Business Plan
A comprehensive business plan is required to outline how the company will operate in Sierra Leone.
The plan should include details on market strategy, underwriting practices, risk management, and the insurance products being offered.
It should also describe the technology platforms and tools used to process policies and manage claims.
Management Team
Key personnel, including directors and compliance officers, must pass fit-and-proper checks.
You’ll need to submit resumes, police clearance certificates, and proof of relevant qualifications for key staff.
Technology Infrastructure
Insurance companies must have a secure and licensed system to manage policies, premiums, and claims. The platform should ensure transparency, data protection, and real-time reporting to ensure smooth and compliant operations.
Client Fund Protection
Client funds must be segregated in separate accounts to protect policyholders. Additionally, a guarantee fund or compensation scheme should be in place in case of insolvency or fraud to ensure clients are protected.
Insurance
The company must provide proof of professional indemnity insurance to cover potential claims or liabilities arising from negligence or fraud in the provision of insurance services.
Introducing Broker License
The Introducing Broker License is designed as a sub-license under the Brokerage License, offering an opportunity for individuals or firms to operate in Sierra Leone’s financial services sector without having to meet the full requirements of a Brokerage License. This type of license allows an entity to introduce clients to licensed brokers and earn commissions based on client activities, while still ensuring transparency and regulatory compliance.
License Requirements
Minimum Share Capital
To apply for the Introducing Broker License, companies must maintain a share capital of $10,000. This ensures the business is financially sound and can operate responsibly within the regulatory framework.
Corporate Structure
Companies must be registered in Sierra Leone under The Companies Act, 2009.
A minimum of two directors is required, with at least one director having experience in financial services or related fields.
A local compliance officer must be appointed to oversee regulatory obligations, including anti-money laundering (AML) and counter-terrorism financing (CTF) compliance.
Office Presence
Unlike a full Brokerage License, no physical office is required for the Introducing Broker License. However, the company must demonstrate its ability to maintain secure systems for client interaction and communication, as well as the proper handling of client referrals and commission payments.
AML and CTF Compliance
The company must establish a sound AML and CTF compliance framework, ensuring it follows both local and international regulations. Regular compliance reports must be submitted to the Sierra Leone Securities and Exchange Commission (SLSSEC) to ensure adherence to financial security standards.
Business Plan
A simplified business plan is required, outlining:
The method for introducing clients to brokers.
The commission structure or revenue model.
The marketing and communication strategies used to attract clients.
A description of the operational processes to be followed.
Management Team
Key personnel, including directors and the compliance officer, must pass fit-and-proper checks.
Submit resumes, police clearance certificates, and proof of qualifications for key team members.
Technology Infrastructure
The use of secure communication systems and CRM platforms to manage client relationships and referrals is essential. These systems must ensure data security and transparency in the referral process.
Client Protection
Although the Introducing Broker does not directly manage client funds, they must ensure that all client interactions and referrals are done ethically, transparently, and in compliance with all relevant regulations.
Insurance
Proof of professional indemnity insurance may be required to cover potential liabilities arising from negligence or breaches of regulatory obligations.
Payment Service Provider (PSP) License Requirements
Minimum Share Capital
To apply for the PSP License, companies must maintain a minimum share capital of $100,000. This ensures that the company has the financial resources to operate securely and support its payment services infrastructure.
Corporate Structure
Companies must be registered in Sierra Leone under The Companies Act, 2009.
A minimum of two directors is required, with at least one director having expertise in the financial technology (fintech) or payment services industry.
Appointment of a local compliance officer to oversee anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, ensuring compliance with local and international standards.
Office Presence
No physical office is required to apply for this license, but the company must demonstrate that it has a secure, operational infrastructure for processing payments and managing customer accounts. This includes having appropriate technology systems in place to ensure secure transactions and data protection.
AML and CTF Compliance
The company must have a robust Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) compliance framework in place. This framework should include:
Customer due diligence (CDD) procedures.
Ongoing monitoring of transactions to identify suspicious activities.
Regular reporting to the Bank of Sierra Leone and other relevant authorities.
Business Plan
A detailed business plan is required to demonstrate the company's operational approach, including:
Payment products and services offered (e.g., mobile wallets, digital payments, remittances).
Revenue model and financial projections.
Risk management procedures to ensure the security and stability of payment services.
Technology infrastructure used to process payments securely and efficiently.
Technology Infrastructure
The company must use secure payment systems and technologies, such as:
Payment gateways.
Mobile payment platforms.
Electronic wallets.
Online payment portals. The platform should provide real-time transaction monitoring, fraud detection, and robust data security measures to protect both clients and service providers.
Client Fund Protection
Client funds must be kept in segregated accounts, ensuring they are not co-mingled with company funds. This is essential to protect clients' funds in case of insolvency or operational issues with the PSP.
Insurance
The company must provide professional indemnity insurance to cover any potential liabilities arising from system failures, fraud, or negligence in providing payment services.
Additional Operational Requirements
Quarterly Reporting: Payment service providers are required to submit regular financial reports and compliance updates to the Bank of Sierra Leone and the Sierra Leone Central Bank.
Consumer Protection: The company must have mechanisms in place to protect users’ rights, ensuring fair terms of service and addressing customer complaints efficiently.
Licensing Fees:
Application Fee: $2,000 (non-refundable).
Annual License Fee: $5,000.
Renewal Fee: $3,000 per year.