Financial Crime World

Title: Liberia’s Regulation & Supervision Department: Ensuring Compliance and Financial Stability

The Regulation & Supervision Department (RSD) of the Central Bank of Liberia (CBL) is a vital player in safeguarding the authenticity and stability of Liberia’s financial system. Adhering to relevant laws and international standards, this department creates policies, frameworks, and guidelines that control the actions of financial institutions and maintains conformity with these rules.

Objective

  • Empowered by the new Financial Institutions Act of 1999, the RSD aims to be an effective, efficient, and dependable regulatory and supervisory arm of the CBL.
  • The ultimate goal? Achieving financial stability for Liberia’s economy.

Mission

The RSD seeks to establish a stable and sound financial system through rigorous and proactive regulation and supervision in accordance with the FIA and international standards.

Core Functions

With a focus on financial system safety, the RSD has four primary objectives:

  1. Ensuring financial stability
  2. Enforcing FIA and regulations, international standards, and best practices
  3. Implementing distress bank resolution strategies
  4. Nurturing an environment conducive to a robust financial system

Core Values

The RSD upholds the following values:

  • Professionalism and integrity
  • Transparency and accountability
  • Teamwork and cooperation
  • Confidentiality
  • Critical thinking and objectivity
  • Dependability and creativity
  • Commitment and dedication
  • Vigilance

Strategic Goals

To further its objectives, the RSD aims to:

  1. Effectively license, supervise, and survey financial institutions in accordance with international standards
  2. Ensure regulatory consistency, accountability, and transparency while fostering competition
  3. Promote sound risk management practices, adequate disclosure, and good corporate governance
  4. Enforce banking laws and regulations, as well as other national laws for licensed financial institutions
  5. Foster public understanding and confidence in the financial system
  6. Maintain a strong working relationship with local, regional, and international regulatory bodies
  7. Invest in staff development and capacity building to create a competent supervisory authority
  8. Contribute to Liberia’s economic development through financial inclusion and effective intermediation

Structure and Organization

The structure of the RSD is designed for maximum efficiency. Divided into three sections — Regulation & Policy, Supervision & Surveillance, and Insurance — this department remains committed to staff development, promotion, and productivity.

Tools and Infrastructure

Risk-Based Supervision is a core component of the RSD’s strategy. Financial institutions’ reporting requirements include International Financial Reporting System (IFRS) standards. Additionally, the RSD requests stress testing and micro-prudential analysis, as well as providing housing for the Collateral Registry and Credit Reference System to enhance operating conditions and financial sector performance.