National Bank Gains New Powers to Regulate Banks
The National Bank has received new powers to regulate banks and prevent money laundering, according to a newly adopted Law on Banks.
Enhanced Regulation of Banks
Under the new law, the governor of the National Bank has been granted the authority to take various measures against banks, bank groups, or banking authorities that violate regulations. These measures include:
- Issuing recommendations, warnings, or concluding protocols with non-compliant banks
- Limiting certain activities or withdrawing a bank’s permit to operate in severe cases
Prevention of Money Laundering and Terrorist Financing
The law places great emphasis on measures related to preventing money laundering and terrorist financing. The governor has the right to take corresponding measures when there is evidence of violations of regulations related to these issues. In cases where a bank is involved in money laundering or other criminal offenses, the governor can withdraw its permit to operate.
Improved Efficiency
One significant innovation under the new law is the possibility for the National Bank to impose misdemeanour sanctions without mediation by a court. This will increase the efficiency of the National Bank’s actions and improve conditions in the banking system.
Extended Scope of Sanctions
The law also provides for the possibility of sentencing misdemeanour to:
- Banks
- Responsible persons
- Shareholders with qualified participation
- Brokerage houses
- Audit companies
- Other legal entities that are obliged to act in accordance with the law
Application to Savings Banks and Foreign Branches
All previously listed provisions of the Law on Banks apply equally to savings banks and branches of foreign banks operating in the Republic of North Macedonia.
Strengthening Prevention Measures
The National Bank has adopted a Decision on the Manner and Procedure for Establishment and Application of the Bank’s Program for Prevention of Money Laundering and Financing Terrorism. This decision strengthens the efficiency of application of programs by banks to prevent money laundering and financing terrorism, particularly in the area of enhanced client due diligence.
Amendments to Laws
The law also provides for amendments to the Law on Fast Money Transfer, which aims to strengthen criteria for licensing providers of fast money transfer services. The governor can withdraw a license if there is evidence of non-compliance with laws related to money laundering and terrorist financing.
New Decision on Currency Exchange Operations
A new Decision on Currency Exchange Operations has been adopted, defining conditions, manner, procedure, and documents required for obtaining a license for currency exchange operations. Authorized currency exchange entities are obliged to possess a program for prevention of money laundering in accordance with regulations.
Withdrawal of Licenses
The National Bank can withdraw a license if an authorized entity does not possess such a program or possesses one that does not contain all necessary elements. The bank will also revoke licenses in cases where currency exchange operations are being performed contrary to regulations.
Conclusion
These changes aim to strengthen the National Bank’s powers and improve its ability to regulate banks and prevent financial crimes.