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New Law on Banks Empowers National Bank to Take Stricter Measures Against Financial Crimes
Overview
The newly adopted Law on Banks has introduced significant modifications granting the Governor of the National Bank greater authority to take measures against banks and financial institutions involved in money laundering and other criminal activities.
Enhanced Authority for the National Bank
The law accepts a grading system of measures that can be taken towards banks, ranging from:
- Issuing recommendations and warnings
- Concluding protocols
- Imposing interdictions or limitations on certain activities
- Withdrawing permits for taking up and pursuing business
The Governor has the right to take corresponding measures in cases where there is a violation of regulations related to preventing money laundering.
Strengthening Prevention of Financial Crimes
The law enables the National Bank to withdraw permits for taking up and pursuing business if evidence suggests that a bank is involved in money laundering or other criminal offenses. This provision aims to strengthen the prevention of financial crimes and ensure the stability of the banking system.
New Sanctions and Penalties
The Law on Banks also introduces the possibility of imposing misdemeanour sanctions without the need for court mediation, allowing the National Bank to take swift action against banks and individuals involved in financial crimes.
Extending Provisions to All Financial Institutions
The law extends its provisions to cover savings banks and branches of foreign banks operating in the Republic of Macedonia. This ensures that all financial institutions operating in the country are subject to the same regulations and standards.
Enhanced Measures Against Money Laundering
Decision on Establishing Bank’s Program for Preventing Money Laundering
The National Bank has adopted a decision setting out the manner and procedure for establishing and applying a bank’s program for preventing money laundering and financing terrorism. This includes:
- Enhanced client due diligence
- Business relationships with high-risk clients
- Permanent training of employees
- Cooperation with the Internal Audit Office
- Creating risk profiles based on relevant information and data on clients and business relations
Strengthening Criteria for Licensing Providers of Fast Money Transfer
Amendments to the Law amending the Law on Fast Money Transfer
In May 2007, amendments were adopted strengthening criteria for licensing providers of fast money transfer services. The Governor can withdraw licenses if evidence suggests non-compliance with laws related to preventing money laundering and other proceeds of crime.
New Decision on Currency Exchange Operations
Definition of Conditions and Procedure
A new decision on currency exchange operations was adopted in February 2009, defining the conditions, manner, procedure, and documents needed for obtaining a license for currency exchange operations. Authorized entities are required to possess a program for preventing money laundering, as regulated by the Law on Foreign Exchange Operations.
Withdrawal of Licenses
The National Bank has the right to withdraw licenses if authorized entities do not possess such programs or if their programs do not contain all necessary elements. This decision aims to ensure that currency exchange operations are conducted in accordance with regulations and standards.