Financial Crime World

Macedonia’s Banking Regulations Compliance Checklist

In a bid to strengthen its financial sector, Macedonia has implemented several measures aimed at enhancing corporate governance and compliance with banking regulations. This article provides an overview of the country’s efforts and recommendations for improvement.

Recommendations for Improvement

The World Bank’s Report on the Observance of Standards and Codes (ROSC) Corporate Governance Country Assessment highlights several key recommendations aimed at bolstering Macedonia’s corporate governance framework:

  • Disclosure Framework: Overhaul the disclosure framework as part of the ongoing revision of the Securities Law, with a focus on requiring shareholders to disclose all direct and indirect ownership.
  • Macedonian Securities and Exchange Commission (MSEC): Increase the authority of MSEC by granting it more powers to impose sanctions, and develop a strategy for using its new authority to improve corporate governance and shareholder rights.
  • Corporate Governance Code: Complete the process of drafting a corporate governance code and revising listing rules in line with the Code and the new Securities Law. Consider developing a “corporate governance tier”.
  • Electronic Information Dissemination System: Implement a fully electronic system for disseminating information.

Investor Protection

Macedonia has made significant progress in strengthening investor protections, including:

  • Stricter regulations for listed companies
  • Establishment of a deposit insurance scheme

However, more needs to be done to ensure the effective enforcement of these regulations and provide greater transparency and accountability.

Recommendations for Investors

In light of these findings, investors are advised to exercise caution when investing in Macedonia’s financial markets. While the country has made significant strides in strengthening its corporate governance framework, there remains a need for greater transparency and accountability.

Conclusion

Macedonia’s banking regulations compliance checklist provides a comprehensive roadmap for enhancing the country’s corporate governance framework and investor protections. By implementing these recommendations, Macedonia can strengthen its financial sector and increase confidence among investors.

Source: World Bank Report on the Observance of Standards and Codes (ROSC) Corporate Governance Country Assessment - Former Yugoslav Republic of Macedonia