What happened
The Central Bank’s Banking Supervision Committee reviewed 41 issues in its November meetings. The focus was on registration procedures, personnel appointments in commercial banks, the financial condition of credit institutions, and compliance with financial crime prevention requirements.
Due to non-compliance with prudential regulations, non-compliance with legal requirements, as well as violations identified during inspections, the Central Bank issued a warning to apply measures and sanctions to one microfinance organization and one payment institution.
Also, for violation of the requirements of the Central Bank, revealed during inspections, as well as for violation of the rules for combating the legalization of criminal proceeds, the financing of terrorism and the proliferation of weapons of mass destruction, penalties were applied to four banks.
Why is this important
Regular supervision allows for maintaining the stability of the banking sector, ensuring the protection of clients’ rights, and preventing risks associated with financial abuses. The application of sanctions signals an increased focus of the regulator on the implementation of prudential standards, the quality of corporate governance, and compliance with AML/CFT regulations.
Numbers and facts
- 41 issues were considered at Banking Supervision meetings.
- 31 issues related to registration and permits, including:
— 5 — registration of amendments to the charters;
— 5 — registration of new microfinance and credit organizations;
— 1 — exclusion of MFO from the register;
— 4 — permits for the acquisition of shares in the authorized capital;
— 4 — issuance of audit certificates;
— 12 — consideration of candidates for the governing bodies of banks. - 10 questions — financial analysis, inspection results, consumer rights protection, AML/CFT questions.
- Sanctions: warnings — 1 MFO and 1 payment organization; fines — 4 banks.
Context
The Central Bank is consistently strengthening supervision over the banking sector, paying attention to the quality of risk management, transparency of operations, and compliance with international standards for combating money laundering and terrorist financing. The measures taken reflect the course towards increasing the responsibility of financial institutions and preventing systemic risks.
