The Central Bank of Samoa (CBS) is seeking the public’s input on two important draft Legislation, the Samoa Moneylenders Bill and the Samoa Microfinance Bill. These two Bills are critical pieces of legislation designed to ensure fair practices, protect consumers, and promote financial stability.
The objectives of the Moneylenders Bill are to: (1) protect borrowers from exploitative and deceptive lending practices; (2) regulate moneylenders including monitoring and ensuring interest rates are reasonable and consistent with prevailing monetary conditions; (3) minimise the administrative costs associated with loan defaults, address borrower complaints, and reduce indebtedness caused by excessive loan costs; and (4) establish a fair lending environment by promoting equity and transparency in moneylending transactions.
For the Microfinance Bill, its main purposes are to: (1) license and regulate microfinance institutions; (2) promote good governance; (3) safeguard member deposits by restricting their use; (4) mandates transparency and accountability through regular reporting to the CBS; and (5) establish clear guidelines for loan agreements and prevent unauthorized microfinance activities.
“Your comments and suggestions are invaluable in shaping the final versions of these bills and in ensuring that these important legislative measures are well-rounded, effective, and in line with the needs of the Samoan public,” CBS appealed in a statement.
“We encourage all interested parties to participate in this consultation process by sharing their comments, suggestions, and concerns.”
The deadline for submitting comments is Monday, 30 June 2025 at 11:45pm.