National Bank Gains New Powers to Regulate Banks and Fight Money Laundering
The National Bank has been granted significant new powers to regulate banks and fight money laundering, according to a recent amendment to the Law on Banks. The changes aim to increase efficiency in detecting and preventing financial crimes.
Increased Regulatory Powers for the Governor of the National Bank
Under the new law, the governor of the National Bank can take a range of measures against banks that violate regulations, including:
- Issuing recommendations and warnings
- Imposing administrative sanctions
- Revoking operating permits
- Withdrawing permits in cases where a bank is found to be involved in money laundering or other criminal activities
Misdemeanor Sanctions Without Court Ruling
The law also introduces the possibility for the National Bank to pronounce misdemeanor sanctions without the need for a court ruling, allowing it to respond more quickly and effectively to financial crimes.
Expanded Coverage to Savings Banks and Foreign Banks
In addition, the new law applies to 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.
Decision on Bank Programmes for Preventing Money Laundering
To strengthen the fight against money laundering and financing terrorism, the National Bank has adopted a decision outlining the procedures for establishing and implementing bank programmes for preventing these crimes. The decision requires banks to:
- Create risk profiles of their clients and business relationships
- Implement enhanced client due diligence and business relations with high-risk clients
Amendments to Law on Fast Money Transfer
The law amending the Law on Fast Money Transfer has also been updated to strengthen criteria for licensing providers of fast money transfer services. The governor can now withdraw licenses from providers that violate regulations or fail to implement programmes for preventing money laundering and financing terrorism.
New Decision on Currency Exchange Operations
A new decision has been adopted defining the conditions, procedures, and documents required for obtaining a license for currency exchange operations. Authorized entities are obliged to possess a programme for preventing money laundering in accordance with regulations defining prevention of money laundering and financing terrorism.
The National Bank’s governor has also issued guidelines for implementing the decision on currency exchange operations, outlining the necessary elements that such programmes must contain. Failure to comply with these requirements can result in withdrawal of the license or revocation of currency exchange operations.
Conclusion
These changes aim to increase the efficiency of the National Bank in detecting and preventing financial crimes, ensuring a safer and more stable banking system for the Republic of Macedonia.