Financial Crime World

Regulatory Compliance and Risk Management Strategies in Moldova: A Focus on Banking Sector Reforms

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The National Bank of Moldova (NBM) has been working to strengthen its regulatory framework and risk management strategies to ensure the stability and soundness of the banking sector. As part of this effort, the NBM has been implementing reforms aimed at aligning with European Union standards and best practices.

Key Challenges and Opportunities

According to a recent analysis by the NBM, several key challenges and opportunities have been identified in the context of regulatory compliance and risk management:

Adjustment Requirements

  • The existing legal and normative framework is largely not in accordance with current European standards.
  • This has led to a need for amendments and completions of the existing regulatory framework.

Insufficient Institutional Capacity

  • The NBM lacks necessary instruments to prevent problems in the banking system.
  • Modernization and development of supervisory instruments and techniques are not ensuring high-quality activities.

Opaque Quality and Transparency

  • The organizational structure of institutions is negatively assessed by specialized international organizations.
  • There is a need for improvement.

Implementation of Basel III Requirements

The Moldovan banking sector must implement Basel III requirements through the transposition of European Union legal provisions in this regard (CRD IV/CRR package). This includes developing a strategy aimed at identifying measures required for implementation and communicating it to the public by the NBM.

Strategy for Implementing Basel III Standards

To address these challenges, the NBM has developed a strategy aimed at implementing Basel III standards in Moldova under the legal framework of European legislation (CRD IV). The annex to this strategy provides detailed information on measures required for implementation and their communication to the public.

Next Steps

The implementation of Basel III requirements and alignment with European Union standards will require close cooperation between the NBM, banks, and other stakeholders. The NBM’s efforts to strengthen regulatory compliance and risk management strategies will contribute significantly to improving the Moldovan banking sector’s current positions.