Financial Crime World

Title: Central Bank of Suriname Strengthens Financial Sector Oversight

New Legislation and Regulations

The Central Bank of Suriname (CBoS) has enhanced its role in supervising the country’s financial sector with the adoption of the Supervision of the Banking and Credit System Act 2011 and the ongoing implementation of the Supervision Money Transaction Offices Act 2012.

Supervisory Role under the Bank Act 1956

Under the Bank Act 1956, the CBoS is responsible for supervising various financial institutions, including:

  1. banks
  2. insurance companies
  3. pension funds
  4. currency exchange offices
  5. money transfer companies

Article 9, sub d., of the Bank Act outlines the duty of the bank to ensure the integrity and adherence to applicable legal provisions of these sectors.

Key Enhancements under the 2011 Legislation

The 2011 legislation introduced several improvements to the supervision framework:

  1. new licensing system
  2. fit and proper test for management and shareholders
  3. deposit insurance system
  4. administrative penalty provision
  5. power to instruct institutions on specific lines of conduct

Supervision of Money Transaction Offices

The CBoS took on the responsibility for the supervision of money transaction offices in October 2012, including currency exchange offices and money remittance companies, to combat money laundering and terrorism financing.

Guidelines for on-site inspections, review of financial statements, licensing authority, and supervision of business operations and administrative organization are currently being drafted.

Regulatory Changes

The CBoS is revising existing regulations on capital, credit classification, insider lending, and investments in fixed assets, and new regulations covering foreign exchange risk, interest rate risk, operational risk, and internal control and corporate governance are under development.

International Collaboration

The Central Bank is collaborating with international organizations such as the U.S. Department of the Treasury to strengthen the supervision department through technical assistance and training in Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations.

Progress in Compliance with CFATF Recommendations

Suriname has made significant progress in complying with the CFATF Recommendations since the last mutual evaluation in 2009. The steps undertaken by the government include:

  1. legislation regarding terrorism financing
  2. accession to the International Convention for the Suppression of the Financing of Terrorism
  3. drafting of an Act on International Sanctions
  4. reviewing transaction amount thresholds
  5. collaboration with international partners for training and guidance

Future Plans

The CBoS plans to present the draft Act on the supervision of Capital Markets to Parliament this year to continue enhancing financial sector oversight.