New Law on Banks Strengthens Measures Against Money Laundering and Financing Terrorism
Skopje, [Date] - The new Law on Banks has introduced significant changes aimed at strengthening the measures against money laundering and financing terrorism in the country.
Robust Framework for Assessing Shareholder Suitability
The law provides a more robust framework for assessing the suitability of shareholders with qualified participation in banks. This includes an assessment of the risk related to money laundering and financing terrorism. The criteria for assessing suitability are identical regardless of whether the assessment is performed during the establishment of a new bank or changes in the ownership structure of an existing bank.
Key Changes
- A more comprehensive assessment of shareholder suitability
- Risk-related assessments for money laundering and financing terrorism
- Uniform criteria for all assessments
System of Graduated Measures
The law introduces a system of graduated measures that can be taken by the Governor of the National Bank against banks. These measures include:
- Issuing recommendations
- Warnings
- Protocols
- Interdiction
- Withdrawal of permits
Consequences of Non-Compliance
In cases where there is evidence of violation of regulations related to money laundering, the Governor has the right to take corresponding measures.
Increased Efficiency and Simplified Misdemeanor Sanctions
The law provides for the possibility of pronouncing misdemeanor sanctions without mediation of a court. This allows the National Bank to increase its efficiency in taking measures against banks that fail to comply with regulations.
Benefits
- Faster and more efficient handling of non-compliance cases
- Increased ability to take corrective action
Application to Savings Banks and Foreign Branches
The Law on Banks is also applied to savings banks and branches of foreign banks operating in Macedonia. The Council of the National Bank has adopted decisions on the manner and procedure for establishment and application of bank programs for preventing money laundering and financing terrorism, as well as guidelines for implementation of these programs.
Impact on Foreign Branches
The law’s provisions apply equally to foreign branches operating in Macedonia, ensuring a consistent regulatory environment.
Amendments to Law on Fast Money Transfer
Amendments to the Law on Fast Money Transfer have strengthened criteria for licensing providers of fast money transfer services. These changes include:
- Specifying cases where the Governor can withdraw a license
- Providing for misdemeanor sanctions for non-compliance with regulations related to preventing money laundering
Increased Transparency and Accountability
The law’s amendments aim to increase transparency and accountability in the fast money transfer industry.
New Decision on Currency Exchange Operations
A new Decision on Currency Exchange Operations has been adopted, defining conditions, manner, procedure, and documents needed for obtaining a license for currency exchange operations. The authorized currency exchange entity is obliged to possess a program for prevention of money laundering in accordance with regulations defining the prevention of money laundering and financing terrorism.
Consequences of Non-Compliance
The National Bank will revoke a license for currency exchange operations if an authorized currency exchange entity does not possess such a program or possesses a program that does not contain all necessary elements.