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AGREEMENT between the Central Bank of the Russian Federation (Bank of Russia) and the National Bank of Moldova on Co-operation in Supervising the Activities of Credit Institutions

The Central Bank of the Russian Federation (Bank of Russia) and the National Bank of Moldova, hereinafter referred to as the Parties, expressing their mutual interest in establishing and promoting bilateral ties in banking supervision and seeking to achieve mutual understanding on issues relating to banking regulation and co-operation in supervising the activities of credit institutions, have agreed as follows:

1. For the purposes of this Agreement:

the banking supervision authorities shall be the Central Bank of the Russian Federation (Bank of Russia) and the National Bank of Moldova;

credit institutions shall be banks and non-bank credit institutions (institutions conducting certain kinds of banking operations) whose activities shall be subject to licensing and banking supervision by the Parties;

credit institutions shall be recognised as subsidiaries of credit institutions in compliance with the national legislation of the Parties;

credit institutions with a stake in authorised capital shall be credit institutions located in the country of one Party, whose authorised capital was formed with the participation of private individuals and legal entities which are non-resident in relation to the country where the credit institution is located;

supervisory information shall be information received under this Agreement by the banking supervision authorities of the other Party in the course of performing their supervisory functions.

2. The Parties express their readiness to regularly exchange information on the state and development of the banking system of each Party.

3. The Parties shall provide information on a regular and reciprocal basis on the applicable national banking legislation, banking supervision standards and requirements and any essential changes made therein.

4. The Parties shall agree to hold, if necessary, meetings of the heads of the banking supervision bodies (units) and/or experts to discuss questions of mutual concern and issues related to upgrading the supervision of credit institutions with the aim of maintaining reliability and efficiency of the national banking systems of the contracting Parties.

5. Co-operation within the framework of this Agreement shall be conducted on the basis of requests by the contracting Parties for assistance in exercising supervision or at the initiative of one of the Parties on the assumption that such assistance is of interest for the other Party.

A request for assistance shall be made in writing. Up-to-date communications facilities may be used for transmitting a request.

6. The Parties shall agree to interact in supervising the activities of particular units (representative offices and branches) and subsidiaries set up by credit institutions located in the country of the other Party and exercising control over the stake of credit institutions of both Parties in each other’s authorised capital, notably:

6.1. when licensing banking activities, the Parties shall agree that

6.1.1. should a credit institution located in the country of the other Party request the Party to grant it permission to open particular units and subsidiaries or for acquire a stake in the authorised capital of a credit institution and to issue licences to branches and subsidiaries, the Party shall consider such requests upon the receipt of the other Party’s consent in writing within the timr-limits set by the national banking legislation;

6.1.2. when considering requests of credit institutions to grant them permission to open particular units and subsidiaries or participate in the authorised capital of other credit institutions and to issue banking licences to branches and subsidiaries of credit institutions, the Parties express the readiness to provide each other with additional supervisory information necessary for making a decision;

6.1.3. when making decisions on granting permits to open particular units and subsidiaries of credit institutions or participate in the authorised capital of credit institutions and to issue licences to branches and subsidiaries of credit institutions, the Parties shall be guided by the provisions of the national legislation and take into consideration supervisory information received from the banking supervision authorities of the contracting Party;

6.1.4. the Parties shall notify each other in writing of their decisions with regard to the granting of permits to credit institutions located in the country of the other Party for opening particular units and subsidiaries of credit institutions or for a stake in the authorised capital of credit institutions and the issue of licences to branches and subsidiaries of credit institutions.

6.2. When exercising prudential supervision or examining reports of operating branches and subsidiaries set up by credit institutions located in the country of the other Party, the Parties

6.2.1. shall exercise prudential supervision of branches and subsidiaries of credit institutions in compliance with the national banking legislation;

6.2.2. shall assist branches and subsidiaries of credit institutions in submitting reports to the founding credit institution, needed by the latter to compile consolidated reports by forms established in the home country of the founding credit institution, and submitting their reports at the request of the banking supervision authority of the home country of the founding credit institution;

6.2.3. shall provide to each other upon request additional supervisory information on branches and subsidiaries of credit institutions located in their countries, necessary for the exercise of prudential supervision of the founding credit institution on the consolidated basis.

6.3. When conducting on-site inspections by the Parties,

6.3.1. the banking supervision authorities of the country where branches and subsidiaries of credit institutions of the other Party are located shall not obstruct and, if necessary, shall assist the banking supervision authorities of the other Party in organising and conducting inspections of such branches and subsidiaries of credit institutions. In so doing, the Parties shall not obstruct the participation of banking supervisors of the other Party in inspections as experts (observers).

6.3.2. should the banking supervision authorities of the country where branches of credit institutions of the other Party are located deem it necessary to inspect them, they shall notify the other Party of their decision and conduct such inspections on their own or jointly with the banking supervision authorities of the other Party;

6.3.3. the banking supervision authorities of the Parties express the readiness to provide at the request of the banking supervision authorities of the other Party supervisory information received as a result of an inspection of a branch and subsidiary of a credit institution.

6.4. When monitoring compliance by credit institutions located in the countries of the contracting Parties with the banking supervision authorities’ ordinances to eliminate shortcomings discovered in their work, the Parties

6.4.1. shall provide information, on a reciprocal basis, on any essential changes concerning credit institutions that have particular units and subsidiaries and also credit institutions which participate in the capital of other credit institutions located in the country of the other Party, such as: the prohibition or restriction of the range of banking operations, the appointment of a provisional administration to a credit institution and the re-organisation of a credit institution or the revocation of licence from a credit institution;

6.4.2. shall not object to the participation of representatives of the banking supervision authorities of the other Party in supervising the fulfilment by branches and subsidiaries of credit institutions of the ordinances of the banking supervision authorities of the other Party.

7. Assistance within the framework of this Agreement may be rejected partly or wholly if the fulfilment of the request runs counter to the national legislation. The requesting Party shall be notified about the refusal in writing and given the reasons for the refusal, as is required by the national legislation.

8. Each Party shall guarantee the confidentiality of supervisory information and documents received from the other Party as a result of the fulfilment of supervisory functions. The confidentiality of supervisory information shall be determined by the Party passing such information.

Supervisory information received on the basis of this Agreement cannot be used for purposes other than those for which was requested and provided without the consent of the Party that provided it.

Passing to a third Party supervisory information received from one of the Parties on the basis of this Agreement shall require prior consent in writing of the Party that has provided such information.

9. This Agreement shall come into force as of the date of its signing by both Parties and shall remain effective until December 31, 1999.

The term of this Agreement shall be automatically extended for each subsequent calendar year if none of the Parties has given notice of its termination before December 1 of the current year.

Done on September 14, 1999, through the exchange of letters in two copies in the Russian language and two copies in the Moldavian language, all texts of each copy being equally authentic.

Deputy Chairman of the Central Bank of the Russian Federation Vice-President of the National Bank of Moldova

O. V. Mozhaiskov

Ion Prodan

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Last updated on: 29/10/2018