Strengthening the independence of the National Bank: amendments to legislation

The National Bank of Moldova (NBM) will consolidate the structure of its activity, considering the international standards applicable to central banks. The Parliament voted in the first reading favor of a draft law amending several normative acts.

“The amendments envisage the consolidation of some aspects of the functional independence of the National Bank and the adjustment of the legislative framework regarding the administrative procedures carried out by the NBM. The draft proposes specific provisions that take into account the status and objectives pursued by the National Bank as a bailout authority, a body that licenses and supervises banks, payment service providers, and e-money issuers, as well as the specificity of the sectors regulated and supervised by the National Bank.

The document also specifies the NBM’s powers in the field of prevention and combating money laundering, standardizes in the legislation some aspects of the NBM’s supervisory and control powers, tightens the rules of accounting and financial reporting, specifies the NBM’s mandate and powers in the macro-prudential field. It also regulates the right of the NBM to sell commemorative and jubilee coins directly to the public.”

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The draft law prohibits members of the NBM management bodies and employees from holding shares in the social capital of supervised organizations. The National Bank of Moldova included this provision to prevent potential conflicts of interest in exercising the regulatory, supervisory process, and entity control powers.

In addition, the National Bank will pay a monthly allowance of 50 percent of their current salary to members of the management bodies with expired terms of office and to employees who performed supervisory duties and terminated their labor relations. The National Bank will bear the financial costs of the allowance for the period of compliance with the disability restriction.

The National Bank of Moldova elaborated the draft law, with the International Monetary Fund recommendations and the commitments assumed by Moldova under the association agreement with the EU. The Parliament will examine the document in the second reading.

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