Financial Crime World

Greenland Takes Steps to Regulate Banking Compliance Procedures

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Copenhagen, Denmark - In a move to ensure the stability of its financial system, the Systemic Risk Council in Greenland has made recommendations to regulate banking compliance procedures. This article outlines the latest developments and how they impact the country’s banking sector.

Background on the Systemic Risk Council

The Systemic Risk Council is responsible for identifying and monitoring systemic financial risks in Greenland, including those related to banks. The Council can make recommendations on macroprudential initiatives targeted at banks in the country, which are then addressed to the Minister for Industry, Business and Financial Affairs.

Implementation of Danish Financial Regulations

Greenland has implemented Danish financial regulations, including EU directives, through decrees that take into account special circumstances in the country. These decrees aim to ensure a stable financial system while considering Greenland’s unique economic conditions.

  • A decree regarding the Systemic Risk Council took effect on January 1, 2016.
  • Another decree concerning countercyclical capital buffer rates also came into force on the same date.

Recommendations from the Latest Meeting

In its latest meeting, the Council recommended maintaining a countercyclical capital buffer rate of 0% for Greenland. This decision was made following a discussion on the country’s economic and financial situation, with representatives from the Greenlandic self-government participating in the debate.

Data Publication

The Systemic Risk Council also publishes data related to its assessment of the countercyclical capital buffer rate in Greenland, which is based on its general method of assessing the buffer rate. The data are made available after each quarterly meeting, providing a snapshot of the information basis used for the assessment.

Impact on Banking Compliance Procedures

Greenland’s banking compliance procedures are thus closely monitored and regulated by the Systemic Risk Council to ensure the stability of the country’s financial system.