Operational Risk: A Top Priority for Macedonia’s National Bank
Skopje, Macedonia - The National Bank of Macedonia has taken a significant step forward in strengthening its operational risk management framework, with a focus on preventing money laundering and financing terrorism.
Enhancing Operational Risk Management Framework
According to international standards, operational risk includes risks arising from money laundering and financing terrorism. To mitigate these risks, the National Bank has introduced new measures aimed at promoting sound supervision and monitoring practices.
Key Changes
- The enhancement of criteria for licensing and strengthening of corrective measures
- The new Law on Banks provides a significant level of strengthening of the criteria used to assess the adequacy of shareholders with qualified participation in banks.
- This includes assessing the risk that can be encountered by persons wishing to gain qualified participation in a bank, including risks related to money laundering and financing terrorism.
- A grading system for measures that can be taken towards banks
- From issuing recommendations to withdrawing permits for taking up and pursuing business activities
- In cases where there is evidence of violation of regulations related to preventing money laundering, the Governor of the National Bank has the right to take corresponding measures, including withdrawing permits.
- The power to pronounce misdemeanour sanctions without mediation of a court
- Increasing the efficiency of the bank’s supervision and monitoring activities
Additional Measures
- A Decision on the Manner and Procedure for Establishment and Application of the Bank’s Program for Prevention of Money Laundering and Financing Terrorism
- Provides for strengthening of the efficiency of application of programs for preventing money laundering and financing terrorism, including enhanced client due diligence and business relations with high-risk clients.
- New measures aimed at improving the prevention of money laundering and financing terrorism in the area of fast money transfer services
- Amendments to the Law on Fast Money Transfer have strengthened the criteria for licensing providers of fast money transfer services and specified cases where the Governor can withdraw licenses.
Conclusion
The National Bank’s efforts to strengthen its operational risk management framework demonstrate its commitment to maintaining financial stability and preventing illicit activities in Macedonia. By implementing these measures, the National Bank is working to ensure that the country’s banking system remains safe and secure for both domestic and international transactions.