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15.08.2017

Regulation of Requirements to Bank Administrators, approved by the DEB of the NBM no.203 of July 27, 2017

Note: The translation is unofficial, for information purpose only

NATIONAL BANK OF MOLDOVA

Registered
with Ministry of Justice
of the Republic of Moldova
Vladimir CEBOTARI
no.1245 of 4 August 2017

EXECUTIVE BOARD
OF THE NATIONAL BANK OF MOLDOVA

 

DECISION No.203
of 27 July 2017

On the Approval of the Regulation of Requirements to Bank Administrators

Pursuant to Articles 5(1) letter d), 11(1), 27(1) letter c) and 44 letter a) of the Law no. 548-XIII of 21 July 1995 On National Bank of Moldova (republished in the Official Monitor of the Republic of Moldova, 2015, no.297-300, Article 544), with further amendments and addenda, Articles 19, 21 and 382 of the Law on Financial Institutions no.550-XIII of 21 July 1995 (republished in the Official Monitor of the Republic of Moldova, 2011, no.78-81, art. 199), with further amendments and addenda, the NBM’s Executive Board

DECIDES:

  1. To approve the Regulation of Requirements to Bank Administrators, as attached.
  2. To cancel the Regulation of Requirements to Bank Administrators, approved by the decision of the Executive Board of NBM no.134 of 1 July 2010, Official Monitor 2011, no.91-94, art.619), with further amendments and addenda.
  3. The requests and the documents regarding the confirmation/appointment of administrators submitted to NBM and non-resolved until the enforcement date of this decision shall be reviewed and settled in accordance with the provisions of the regulation referred to in the annex to this decision. For this purpose, banks shall submit the needed documents for completing the requests and the non-settled sets of documents in line with the requirements of the regulation attached to this decision, except the document specified at paragraph 38, item 4) of the regulation. Examination of requests shall be suspended until the submission of full sets of documents.

Chairman
of the Executive Board 

Sergiu CIOCLEA

 

Annex no.1
to the Decision of the Council of Administration
of the National Bank of Moldova
no.203 of 27 July 2017

 

REGULATION
ON REQUIREMENTS TO BANK ADMINISTRATORS

 

Chapter I
GENERAL PROVISIONS

1. The Regulation on Requirements to Bank Administrators (hereafter referred to as the Regulation) is meant to set the fit criteria, assessment conditions, documents needed, and procedure of confirmation or appointment of persons proposed as bank administrators and the obligation of filing a notification.

2. The notions and definitions used in this Regulation have the same meaning as those used in the Law 550-XIII of 21 July 1995 on Financial Institutions, Law 142-XVI of 7 July 2005 on the Approval of the Nomenclature of Professional Training Areas and Majors Offered by Higher Education Institutions for the First Cycle of Studies (Official Monitor 2005, no. 101-103, art. 476), the Guidelines on the Approach to the Compilation of the Monetary Statistics Report by the Licensed Banks, approved by the Decision of the Supervisory Board of the National Bank of Moldova no. 255 of 17 November 2011 (Official Monitor 2011, no. 206-215, art. 1833).

3. The provisions of this Regulation shall apply to the following administrators:
1) bank administrators:
a) members of the bank’s Board;
b) members of the Board of Auditors of a bank;
c) members of the bank's management, including the Chairman, the Deputy Chairman;
d) chief accountant of the bank, deputy chief accountant of the bank in case the latter is exercising duties of the chief accountant of the bank;
e) manager of the branch bank, deputy manager of the branch bank in case the latter is exercising duties of the manager of the branch bank;
2) administrator of a foreign-based branch bank:
a) manager of a foreign-based branch bank, deputy managers of the foreign-based branch bank;
b) chief accountant of the foreign-based branch bank, deputy chief accountant of the foreign-based branch bank in case the latter is exercising duties of the chief accountant of the foreign-based branch bank;
3) the liquidator of a bank undergoing windup.

4. The bank has the primary responsibility to carry out the fit and proper assessment of the candidate for the administrator position. To that end, the bank shall assess whether the reputation, qualification and experience of the person proposed for the administrator position and the information to be submitted by him for assessment meets the requirements set forth herein.

5. The assessment under paragraph 4 shall be finalized prior to taking the decision by the bank to appoint or elect the person as administrator, and in the case of the members of the bank's Board - prior to proposing that the matter be included on the agenda of the General Assembly of Shareholders.

6. Whenever the bank concludes that a person proposed for an administrator position is not fit and proper for the job, pursuant to the assessment conducted as provided at paragraph 4, that person must not be proposed, appointed or elected as administrator.

7. The bank must reassess whether the administrators are fit and proper, in order to ensure that they continue to be fit and proper as per this regulation, and to identify the collective fit and proper framework by continuous self-assessment of administrators and at ensuring their overall correlation.

8. Whenever the bank concludes, pursuant to a reassessment conducted as provided at paragraph 7, that an administrator has ceased to be fit and proper for the job, the bank must take the necessary action to remedy the situation, and inform the National Bank of Moldova on the matter.

9. The needed measures mentioned in paragraph 8 shall be selected depending on concrete circumstances of the case, and shall include at least one of the following:
a) adjusting the (distribution of) responsibilities between administrators;
b) replacing some administrators;
c) providing training to some administrators.

10. The fit and proper assessment of the persons proposed for administrator positions and of the administrators of a bank/branch of a foreign-based bank shall be conducted in the following situations:
a) when a bank / branch of a foreign-based bank applies for licensing;
b) when a person is proposed/appointed as administrator, in line with the requirements set forth herein, except situations envisaged in paragraph 16.

11. As bank administrators for the positions envisaged by paragraph 3, item 1) letters c), d), and e) shall not be the persons who hold or held in the last 3 years a significant share in bank’ (or banks’) equity, or if their related persons hold or held in the last 3 years a significant share in bank’ (or banks’) equity.

12. Any person appointed as administrator shall start carrying out his duties only after having been confirmed by the National Bank. The National Bank of Moldova shall assess the fit and proper quality of administrators in the cases specified at paragraph 10, in conformity with the assessment criteria specified in Chapter II hereof.

13. At least one of the members of the Administrative Board, one of the Members of the Executive Board or one of the managers of the foreign-based branch bank should have knowledge of the state language.

14. Any person assigned to act as administrator cannot concomitantly exercise the function of an administrator in a bank/branch of a foreign-based bank in the Republic of Moldova, except for the function of liquidator that could combine the competencies of a liquidator in 2 banks or more.

15. Most members on the bank's board must be individuals not affiliated to the bank, except for affiliation through board membership. Most members of the Board of Auditors shall not be employees of the bank.

16. There is no need for a repeated confirmation and the person shall be considered confirmed as of the date of being appointed for the respective position:
a) the administrator, who during 12 months from the date of obtaining confirmation for the function held has been appointed within the same bank / foreign-based branch bank, to take another function of an administrator with the same requirements to be met;
b) the administrator assigned at the same bank/ branch of a foreign-based bank to a lower-level administrator position, in which he is expected to meet the same requirements or less strict requirements;
c) the manager of a branch bank, his deputy, confirmed by the National Bank assigned within the same bank to take similar function of administrator.

17. A person, appointed by the National Bank to act as bank liquidator in the bank undergoing windup, within 12 months from the date of revoking /withdrawal from the position may be appointed by the National Bank to act as liquidator of a bank undergoing windup without repeatedly stating compliance of the latter with the qualification,  experience, and reputation criteria set forth herein and shall be deemed appointed as of the date of issuance of decision/ ordinance concerned, provided that he/she complies with the requirements related to conflicts of interests envisaged by article 382 of the Law on Financial Institutions no. 550-XIII of 21 July 1995.

18. Liquidator of a bank undergoing windup appointed by the National Bank may be appointed to take the same function with another bank also undergoing windup without the need of repeatedly stating liquidator’s compliance with the qualification,  experience, and reputation criteria set forth herein and shall be deemed appointed as of the date of issuance of the decision/ ordinance concerned, provided that he/she complies with the requirements related to conflicts of interests envisaged by article 382 of the Law on Financial Institutions no. 550-XIII of 21 July 1995.

 

Chapter II
CRITERIA OF ASSESSMENT FOR THE PERSON PROPOSED FOR ADMINISTRATOR POSITION

19. The person proposed for an administrator position must meet the requirements of article 21 of the Law on Financial Institutions, meeting in this regard the qualification, experience, and reputation criteria provided for by the present Regulation, to ensure prudent sound administration of the bank.

20. Administrator’s qualification and experience must be evaluated taking into account size of the bank, nature and complexity of its operation, as well as the responsibilities of the job position concerned. At the same time, the administrator must in any situation have a sound reputation, regardless the bank’s size, nature and complexity of its operation.

21. The National Bank of Moldova shall carry out an individual assessment of each person proposed for an administrator position and conclude whether he meets the requirements set out at paragraph 19, judging by the available information related to the assessment criteria, as well as taking into account any other relevant circumstances.

22. Any person advanced to take position of a liquidator of a bank undergoing windup, in addition to the criteria of qualification, experience and reputation set forth herein, should also comply with the requirements provided for in Art. 382 of the Law on Financial Institutions no. 550-XIII of 21 July 1995.

23. To meet the reputation criterion, the person must have a good reputation, irrespective of the position to which he is proposed. The person shall be deemed not to have a good reputation if he does not have a good reputation in business circles, has a criminal record, there is evidence proving that financial and administrative problems at his earlier jobs have occurred because of him, there is evidence with regard to financial misappropriation and tax evasion. When evaluating the reputation, the National Bank of Moldova may also take into account other circumstances which are relevant for the case concerned.

24. Good reputation in business circles shall be considered the bulk of official information concerning the person corroborating his professionalism, good will, integrity, as well as other characteristics that give reason to believe that the person, in his quality of bank administrator, will comply with the law and will not act in ways threatening the bank's soundness and credibility.

25. Documented facts confirming the enforcement of sanctions for appropriation/acquisition of the assets owned by another person through theft, appropriation, deceit, embezzlement, abuse of office, abuse of trust, as well as tax evasion are considered evidence of financial fraud and tax evasion.

26. The National Bank of Moldova will take into consideration cumulative effects of a number of factors, which, when examined separately, do not affect the person’s reputation, but in total may have a significant impact.

27. When assessing the reputation of the person, at least the following situations/circumstances that have occurred during the last ten years need to be taken into consideration, to the extent they are relevant:
1) availability of evidence that the person proposed for an administrator position has not been transparent, open and cooperative in relations with supervisory authorities in Moldova or abroad;
2) the person proposed to an administrator position has been refused the issuance of an authorization (approval, permission, confirmation) by a supervisory authority in Moldova or abroad, or the person has been in another situation that might have negative consequences, with regard to relevant matters, for the image of the bank where the person will take an administrator position if confirmed;
3) the person has held, without the authorization of the authority referred to at item 2), a position for which, pursuant to applicable legal provisions, it was compulsory to get such authorization;
4) when acting as administrator at a legal entity or at the subsidiary of such, the person has failed to execute the responsibilities stemming from such quality or has participated in taking and/or enforcing certain decisions on its activity that aimed at serving the interests of an individual or group of individuals, to the detriment of the legal entity;
5) the person is under criminal prosecution or is a charged person/offender in a criminal/civil case, a subject of proceedings related to the enforcement of tax or disciplinary sanctions;
6) the legal entity at which the person proposed to an administrator position is or has been a member of the board or management, or is or has been exercising control, has and/or has had a negative financial performance unjustified by external reasons, in particular paying attention to reorganization, bankruptcy and windup, as well as whether and how the person proposed to an administrator position has contributed to the situation that has led to such proceedings;
7) the legal entity or its subsidiaries that is supervised by a financial sector supervisory authority in Moldova or abroad, at which the person proposed to an administrator position was or used to be a member of the administrative board and/or management, or in whose capital he holds or used to hold a substantial stock has been in one of the following situations:
a) was the object of sanctions, including license withdrawal, and/or
b) had resolution action enforced by the supervisory or resolution authority.
8) there is a civil, administrative or criminal case, investments/exposures and large debt, including past maturity, whenever they have a significant impact on the financial soundness of the person proposed to an administrator position and/or the legal entities he controls or where he has held the position of administrator, or where the person has significant holding in the share capital;
9) availability of internal audit reports of a legal entity, or external audit reports, concluding that the person assigned as administrator had been acting inappropriately;
10) the person was responsible for the emergence of financial and administrative problems at his/her previous jobs, that being documented by:
a)  disciplinary sanctions enforced towards the person concerned, in case if the validity term of these sanctions has not expired;
b)  issuance by an authority of sanctions in the form of a fine or ban on holding some position or performing some activity, or in the form of an arrest, or being imposed to clear some material prejudice;
11) The person who had his/her confirmation for administrator position withdrawn by the National Bank of Moldova or other financial sector supervision authority from Moldova or abroad.

28. To meet the qualification criterion, the person proposed to an administrator position must prove that he has knowledge appropriate for the nature, size, extent and complexity of the bank's activity and responsibilities assigned to ensure the bank's prudent healthy management - at least a degree in law or economic science (including a major in accounting, marketing and logistics, business and administration, finance and banks, world economy and international economic relations, statistics and economic forecasting, cybernetics and informatics for economics, or commodities science and trade), which will be taken into consideration when assessing the person proposed to an administrator position, depending on relevance, as follows:
1) for the position of member of the board – higher education, provided that most members hold degrees in law or economics;
2) for the position of member of management, including those of chairman and deputy chairman, head and deputy head of a subsidiary of the foreign bank – higher education degrees in areas associated with economic science or law, provided that most members have degrees in economics;
3) for the position of head or deputy head of the bank’s subsidiary, liquidator of a bank undergoing windup – higher education degrees in areas associated with economic science;
4) for the position of member of the Board of Auditors, chief accountant and deputy chief accountant of the bank, chief accountant and deputy chief accountant of the branch of a foreign-based bank – higher degrees in areas associated with economic sciences, majors in accounting and audit.

29. For the purposes of paragraph 28, items 1) and 2), ‘higher education in economic science’ is considered additional training in the area of economic sciences provided by international organizations, multilateral development banks or international financial and banking institutions, and/or widely accepted international qualifications in the area of economics, or training in other areas when it is relevant for the position to be taken or for the responsibilities assigned at the bank.

30. To meet the experience criterion, the person proposed to an administrator position must prove that he has, during the last ten years, experience appropriate for the nature, size, extent and complexity of the bank's activity and responsibilities assigned to ensure the bank's prudent sound management, taking into account earlier positions and length of employment, the size of the employing entities, job responsibilities, the number of subordinates, the nature and complexity of activity, which will be taken into consideration when assessing the person by this criterion, depending on the relevance of his experience for the administrator position to which the person is proposed, as follows:
1) for the position of member of the bank's board - experience of at least three years in administrator positions or other positions similar to managerial ones and/or academic positions in the area of economics or law;
2) for positions in management, including those of chairman and deputy chairman, head or deputy head of a subsidiary of a foreign-based bank - at least 5 years of experience in the area of financial activity and/or external audit of the sector of financial companies, of which 3 years as head or deputy head of a subdivision of the bank and/or as administrator or a position similar to a managerial position at financial companies and/or audit companies;
3) for the positions of head or deputy head of a branch of the bank - at least 2 years of experience in the area of financial activity, in the sector of financial companies;
4) for the position of member of the Board of Auditors - experience of at least three years in external and/or internal audit and/or control and accounting at public interest entities;
5) for the positions of chief accountant and deputy chief accountant of the bank, chief accountant and deputy chief accountant of the branch of the foreign-based bank - at least 3 years of experience in accounting and/or financial reporting, including 2 years of experience as head or deputy head of a subdivision of a bank involved in carrying out such activity and/or experience in conducting external audit in the sector of financial companies as team leader.
6) for the position of liquidator of a bank undergoing windup - at least 5 years of experience in the sector of financial companies.

31. The person proposed to the position of member of the bank's board or member of management must prove a good understanding of the bank's activity and the risks to which the bank is exposed. It includes knowledge about the areas for which the person will not be accountable alone, but will undertake joint accountability alongside other members of the board or management.

32. The majority of the members of the Board of the bank should be persons having the experience of at least 3 years as administrators or positions similar to managerial positions in the domain of financial activities in the sector of financial companies.

33. The majority of the members of management of the bank should be persons having the experience of at least 5 years in the domain of financial banking activities.

34. The powers of the members of the Board of Auditors may be delegated to the audit company, provided the latter is not engaged in carrying out external audit with the bank concerned. The audit company should have at least 3 years of activity and minimum one of its employees should be certified auditor (holding qualification certificate of an auditor of financial institution) pursuant to the effective legislation.

35. When a person proposed to an administrator position is qualified as a politically exposed person, he must submit a written statement that while performing his duties this characteristic would not cause material or image damages to the bank. The politically exposed persons shall be identified in conformity with the provisions of law on prevention and combat of money laundering and terrorism financing.

36. The National Bank of Moldova shall assess whether the person proposed to an administrator position meets the qualification and experience criteria, bearing in mind the nature, size, extent and complexity of the bank's activity and responsibilities assigned, taking into consideration the following aspects:
a) the bank's total assets, deposits of the bank's customers and/or the bank's turnover for the latest available financial reporting period;
b) whether the bank belongs to a financial group;
c) the branch and subsidiary network, the bank's geographical presence;
d) the nature and complexity of the bank's products, contracts and financial instruments.

37. For the purposes of this Chapter, positions similar to managerial positions are considered the activities carried out by a person who, pursuant to his functional responsibilities, is in charge of managing in person budgets or processes.

 

Chapter III
DOCUMENTS NECESSARY FOR CONFIRMATION/APPOINTMENT OF ADMINISTRATOR AND THE INTERVIEW

38. In order to obtain confirmation by the National Bank of Moldova for the position of administrator, the bank shall submit the following set of documents:
1) an application to the National Bank of Moldova, signed by the Chairman of the bank’s Board or by the Chairman of management;
2) an excerpt from the Minutes of the meeting of the authorized body of the bank that adopted the decision on the appointment or election of the person for the position of administrator; in case of a person elected to take the position of a member of the Board or of the Board of Auditors along with the bank’s authenticated copy of application for inclusion of the person concerned into the list of candidates to be subject to voting during general meeting of shareholders;
3) a document approved by the bank's Board or an excerpt from such, which specifies the functional duties of a person, except for the members of the bank’s board and of the Board of Auditors, and includes the detailed description of the powers, rights and responsibilities (hereafter referred to as powers) to be fulfilled during subsequent activities;
4) the results of the fit and proper assessment of the person proposed to an administrator position carried out and endorsed by the bank;
5) a questionnaire filled out by the person proposed to an administrator position in conformity with the Appendix to this Regulation and signed by him; the signature shall be certified by a notary;
6) a copy of identity card of a person authenticated by the bank;
7) a copy of documents confirming their education, as set forth herein, and, where appropriate, the copies of certification of professional training and/or refreshment courses:
a) in case of a resident of the Republic of Moldova – copy of university degree (Diploma) certified by the bank;
b) in case of a non-resident – copy of diploma or another document confirming the studies (containing the major or the obtained title (qualification)), certified by the bank;
c) at the discretion of a person – copies of certifications of trainings and/or courses in the investment banking fields during the last 3 years, certified by the bank;
8)  copies - authenticated by the bank - of the employment record book or any other document(s) confirming the work experience of the person, which is necessary for concluding whether the work experience requirement is met; should the person choose so - recommendation letters or reference contacts from the latest employers;
9) document proving that the person proposed for the position of administrator has no criminal record and is not on the wanted list and not subject to criminal prosecution:
a) in case of a resident of the Republic of Moldova – criminal record report issued by the competent authorities of the Republic of Moldova, valid as of the date of filing the application and, where appropriate, the documents issued by the competent authorities of the country (countries) in which he/she conducts his/her business (businesses) and holds control over it (controlled by him/her) and/or stays in for other reasons for more than 90 days, and/or resides in, drafted within 90 days preceding the date of application, legally certified as required by law;
b) in case of a non-resident – a relevant document issued by the competent authorities of the country of residence and, where appropriate, the documents issued by the competent authorities of the country (countries) in which he/she conducts his/her business (businesses) and holds control over it (controlled by him/her) and/or stays in for other reasons for more than 90 days, and/or resides in, prepared within 90 days preceding the date of application, legally certified as required by law;
10)  documents on absence or existence of unsettled arrears with the national public budget:
a) in case of a resident of the Republic of Moldova – certificate on the absence of arrears to the national public budget, valid on the date of application and/or documents on the absence or existence of arrears to the public budget of the country (countries) in which he/she conducts his/her business (businesses) and holds control over it (controlled by him/her) issued by the competent authorities of those countries, drafted within 90 days preceding the date of application, certified pursuant to the effective legislation;
b) in case of a non-resident – documents proving the absence or existence of arrears to the public budget of the country (countries) in which he/she conducts his/her business (businesses) and holds control over it (controlled by him/her), issued by the competent authorities of those countries, prepared within 90 days preceding the date of application, certified pursuant to the effective legislation;
11) a copy of the external audit company report (that includes as attachments the copies of the financial
statements) on the financial statements of the legal entity (except for banks) where that person has held the position of member of the Board, member of management and/or has exercised control during the last two years of office, certified by the person assigned to take position of administrator.
If the person proposed as administrator holds any of the aforementioned managerial positions at the parent company level and/or exercises control over the parent company, he/she shall submit the copies of the audit reports of the external audit company on the consolidated financial statements, and also attach the copies of the financial statements.
In case when the external audit of annual financial statements is not mandatory pursuant to the effective legislation, person proposed to take the position of an administrator shall produce the written statement of assets while specifying legal provisions exonerating the respective legal entity from carrying out external audit and appending copies of financial statements authenticated by the person proposed for the position of administrator;
When the report of the external auditor on the financial statements and the audited financial statements of the legal entity (except for banks) are publicly available, the electronic path (link) to the reports and the financial statements shall be provided.
12) The written statement of the person, bearing the signature certified by a notary, by which he agrees clearly to provide the National Bank of Moldova the information/data concerning that person, including confidential information, available at other persons/ national or foreign authorities;
13) The written statement of the politically exposed person, bearing the signature confirmed by a notary, that he will not cause material or image damage to the bank through his activity at the bank.

39. In order to get the confirmation of the National Bank of Moldova for the position of administrator at a branch of a foreign-based bank, the authorized body of the foreign bank shall submit, in conformity with the requirements, the documents specified at paragraph 38.

40. In order to appoint a person in the position of liquidator of a bank undergoing windup, that person should sign and submit to the National Bank of Moldova the documents specified at paragraph 38, items 1), 5, 8), 9) a), 10) and 12), as well as the following documents:
1) statement of personal interest as well as of business and own financial relation, such of wife/husband and children, including as follows:
a) debt due to the bank under liquidation, the activity in that bank or possession of certain ownership rights in such;
b) relations over the past 5 years with any bank as an employee, administrator or shareholder of a substantial holding;
c) financial, business or any individual relations with any person that has certain interest in the bank under liquidation and its assets, including information on a future employment in that entity;
d) failure to satisfy the patrimonial obligations to the bank under liquidation or any other bank during the last 5 years;
e) ownership of property competing with the bank's real property, if the bank’s windup implies the appraisal, sale and management thereof;
f) other financial or business interests that may affect the impartial exercise of the function of special administrator or liquidator of the bank undergoing windup;
2) statement on the existence or absence of a conflict of interest stemming from personal interests and relationships with the National Bank of Moldova, and if such a conflict does exist – then submit information concerning such conflict.

41. Whenever the powers of the members of the Board of Auditors are delegated to an audit company, the bank shall submit to that company the documents specified at paragraph 38, items 1), 2), 10) and 12), as well as the following documents:
1) an excerpt from the State Register issued by the competent authority in charge of registering legal entities;
2) list of auditors holding certificate of qualified auditor for financial institutions;
3) copy of contract signed between the bank and the audit company containing competencies of the Board of Auditors pursuant to the Law on Financial Institutions No. 550-XIII of 21 July 1995;
4) copies of financial statements of the audit company for the last 2 years;
5) information concerning participation of the audit company and its management in the equity of other legal entities, specifying the name, address and absolute and relative size of interest in such;
6) information concerning the first and last name, position, contact telephone number of the audit company's manager;
7) the documents specified at paragraph 38, items 9) and 10), concerning the audit company's managers;
8) information signed by the audit company manager concerning activities conducted during the last 3 years, giving detail on as follows: name of legal entities and lines of business conducted, activities and services furnished by the audit company, duration of such, data on financial statements of legal entities (total assets, income, turnover) and other such data considered relevant for confirmation of experience to date.

42. If the documents to be submitted for the confirmation/appointment of a person in an administrative position are in a foreign language, these shall be translated into the State language of the Republic of Moldova and certified by the authorized translator.

43. The copies of the documents specified at paragraph 38 shall be authenticated by signature by the authorized person at the bank/branch of a foreign-based bank or by one of the members of management.

44. If the submitted documents or information are not sufficient to conclude whether a person meets the requirements to administrators and take a decision on confirming/appointing the person as administrator, in line with this Regulation, the National Bank of Moldova may request additional documents and information from other legal entities, to the extent that the information is needed to perform assessment as specified by this Regulation.

45. With a view to assess whether the person is fit and proper to hold the position of administrator, the National Bank of Moldova may carry out professional interview with the person.

46. An interview with a person designated for the position of administrator shall be conducted in order to:
1) determine the level of general and specialized knowledge of banking activities, including legal framework and normative acts of the National Bank of Moldova necessary for the administrator in order to fulfill his/her functional obligations or, as appropriate, the level of knowledge of managing a bank, including internal control mechanisms and risks associated with banking activities;
2) for the persons proposed to the position of member of the board or management, the strategic vision, ability to identify and manage risk at a strategic level, ability to lead, independent thinking, ability and desire to learn and improve continuously will be assessed;
3) allow the person to explain some specific points referring to the documents and information submitted to the National Bank of Moldova or obtained by the latter as a result of its own investigations, consultations and assessments, which have led to the occurrence of some uncertainties or doubts related to the accuracy and authenticity of the submitted documents and information.

47. If the set of documents submitted to the National Bank of Moldova is incomplete and/or the bank's Board failed to submit to the National Bank of Moldova additional documents and information within the time limit set by the National Bank of Moldova, the latter shall return the application within a short period of time, but not later than in 10 business days from the deadline for submitting the complete package, without review of such.

 

Chapter IV
DECISION ON CONFIRMATION OF ADMINISTRATOR

48.  Within 45 working days from the date of receiving the full set of documents in accordance with Chapter III, the National Bank of Moldova shall either confirm or reject the appointment of the person as administrator, or shall return the set of documents submitted for additional investigations by the bank, while notifying in writing the bank/branch of the foreign-based bank on the decision taken.

49. Should any changes occur during the period of reviewing the application and documents submitted, the bank shall be obliged to inform the National Bank of Moldova about such changes and submit the documents that have been amended accordingly.

50. In the situation specified at paragraph 49, as well as when there is need to request additional information, the deadline specified at paragraph 48 may be extended for up to 30 business days or suspended for a period set by the National Bank of Moldova, with the written notification of the bank/branch of the foreign-based bank.

51. The National Bank of Moldova shall return without reviewing the set of documents submitted for the confirmation of the person proposed for the position of administrator whenever the membership on the Board or of the Board of Auditors is limited by this Regulation, in line with points 14, 15, 32 and 34.

52. The National Bank of Moldova may confirm, without assessment, the person who within the latest 6 months has been confirmed/approved by a foreign supervisory authority as administrator at a bank that is part to a financial group and who is proposed as administrator, with similar requirements, at a bank in the Republic of Moldova that is part to that group, after the National Bank of Moldova receives from that supervisory authority the information regarding the assessment performed by that authority.

53. The National Bank of Moldova shall to refuse confirmation /appointment of the person proposed to an administrator/liquidator position at a bank, specifying the reasons for refusal, whenever:
a) The person does not meet at least one of the reputation, qualification, or experience criteria and/or requirements set out in this Regulation; and/or
b) The National Bank of Moldova is not entirely convinced that this person will ensure compliance with the provisions of Article 7(2) of the Law on Financial Institutions 550-XIII of 21 July 1995, including prudent sound administration of the bank/branch of the foreign-based bank; and/or
c) erroneous information has been submitted.

 

Chapter V
NOTIFICATION AND REPORTING

54. The bank/branch of the foreign-based bank shall notify the National Bank of Moldova in writing, within 5 working days, about any termination/suspension of employment or term of office, specifying the legal grounds, and/or any transfer to another position of the bank administrator, explaining the reason. For administrators who are members of management and Chief Accountants, the term is one business day.

55. The bank/branch of the foreign-based bank shall notify the National Bank of Moldova in writing, within 5 working days, about the appointment of an administrator confirmed by the National Bank of Moldova to another position of administrator for which there is no need for repeated confirmation under this Regulation. The notification shall be accompanied by the decision of the governing body empowered to appoint or select the person, as well as by the explanation of the reasons underlying the changes.

56. The bank/branch of the foreign-based bank shall notify the National Bank of Moldova in writing, within 5 working days, about the employment of the administrator confirmed by the National Bank of Moldova, expect for the persons specified at paragraph 3, item 1, letters a) and b), and item 3), specifying the registration number and date of issuing the employment order.

57. The bank/ branch of the foreign-based bank shall submit to the National Bank of Moldova the list of bank administrators, according to the reporting requirements set forth in the regulatory acts of the National Bank of Moldova.

58. The bank/branch of the foreign-based bank shall notify the National Bank of Moldova in writing, within 2 business days from the day when it has found such information, that the administrator no longer meets reputation, qualification and experience requirements and might affect its activity, to ensure prudent sound management of the bank.

 

Chapter VI
VALIDITY OF CONFIRMATION ISSUED TO ADMINISTRATOR

59. The confirmation issued in care of administrator is valid as of the date of issuance of the confirmation or as of another date specified in the certificate of confirmation, granting the right to undertake the position and, subsequently, another administrator position, according to paragraph 16, at the bank specified in the certificate.

60. The confirmation issued in care of an administrator becomes invalid in cares as follows:
1) transfer of administrator to another position of administrator, except for such cases as provided for by the present Regulation;
2) transfer of administrator to position other than that of administrator;
3) termination of employment contract, as the case may be, termination of mandate, except for reelection as administrator at the same bank, including pursuant to the appointment of a temporary or special administrator, according to the bank recovery and resolution law;
4) withdrawal of confirmation of the administrator by the National Bank of Moldova or issuance by the latter of a prescription to replace prior assigned administrator;
5) launching windup of the bank.

 

Appendix:       _____PDF,       _____DOC.