Financial Crime World

REGULATORY COMPLIANCE FOR BANKS IN TAJIKISTAN: A LOOK AT THE NATIONAL BANK’S ROLE

In the Republic of Tajikistan, regulatory compliance for banks is overseen by the National Bank, which plays a crucial role in ensuring that financial institutions operate within the framework of applicable laws and regulations. According to Article 1 of the National Bank’s Resolution No. 28, dated September 30, 1998, the bank is responsible for implementing single state policy in the field of currency circulation, crediting, calculations, and currency transactions.

Departments of the National Bank

The National Bank has several departments that are responsible for various aspects of regulatory compliance, including:

  • Supervision: Supervising commercial banks and their branches to ensure they comply with regulations.
  • Financial Market Analysis: Conducting analysis of financial market trends and providing recommendations for improvement.
  • Currency Circulation: Preparing and implementing measures to strengthen currency circulation and stabilize the national currency rate.
  • Foreign Economic Relations: Ensuring coordination of activities of authorized banks in foreign economic relations.

Responsibilities of the National Bank

The National Bank has a range of responsibilities, including:

  • Conducting Checkups: Conducting checkups on commercial banks and their branches to ensure compliance with regulations.
  • Applying Penalties: Applying penalties against banks that violate bank laws, regulations, and instructions.
  • Receiving Reports: Receiving reports and other materials from commercial banks to create forecast calculations of cash turnovers and credit resources.
  • Settlement-Cash Servicing: Providing settlement-cash servicing of commercial banks and other credit institutions through correspondent accounts opened for them in organizations of the National Bank.

Regulatory Framework

The regulatory framework in Tajikistan is designed to ensure that financial institutions operate within a stable and secure environment. The National Bank’s Resolution No. 28 sets out the framework for regulatory compliance, including the powers and responsibilities of the bank’s departments.

Conclusion

In conclusion, the National Bank plays a critical role in ensuring regulatory compliance for banks in Tajikistan. Its departments are responsible for various aspects of financial regulation, including supervision, analysis, and settlement-cash servicing. The bank’s responsibilities include conducting checkups on commercial banks, applying penalties against non-compliant institutions, and providing reports to create forecast calculations of cash turnovers and credit resources.