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Law No. 443 1 November 2004 For The Modification And Completion Of The Law #. 58/1998 Concerning Banking Activity

Original Language Title:  LEGE nr. 443 din 1 noiembrie 2004 pentru modificarea şi completarea Legii nr. 58/1998 privind activitatea bancară

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LEGE no. 443 443 of 1 November 2004 to amend and supplement Law no. 58/1998 on banking
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 1.035 1.035 of 9 November 2004



The Romanian Parliament adopts this law + Article I Law no. 58/1998 on banking activity, published in the Official Gazette of Romania, Part I, no. 121 of 23 March 1998, as amended and supplemented, shall be amended and supplemented as follows: 1. in Article 2, after paragraph 1, paragraph 1 shall be inserted with the following contents: " Starting with the date of Romania's accession to the European Union, the regime of credit institutions, including electronic money institutions, or financial institutions authorised in another Member State, operating in Romania through a branch or provide services directly, will be the one provided in the head. XIV ^ 2. " 2. In Article 3, paragraph 2 shall read as follows: " For the purposes of this Law a) all secondary offices in Romania of a foreign credit institution will be considered a single branch; b) all subsidiaries of a parent company which, in turn, is a subsidiary of another parent company will be considered as subsidiaries of the latter. " 3. Article 10 shall read as follows: "" Art. 10. -Upon the authorization of a bank, the Romanian legal person, constituted as a subsidiary of a foreign credit institution or as a subsidiary of an entity that holds as a subsidiary a foreign credit institution or which will be under the control of the same persons natural or legal entities that control a foreign credit institution, the National Bank of Romania shall consult with the competent authority of the country of origin of the foreign credit institution. " 4 4. The letter e) of Article 14 shall read as follows: " e) from the assessment of the documentation submitted it follows that the bank cannot ensure the achievement of the objectives proposed in conditions compatible with the proper functioning of the banking system and the rules of a prudent banking practice to ensure the protection of the interests of depositors and other creditors; '. 5. The introductory part of Article 16 shall read as follows: "" Art. 16. -The National Bank of Romania may withdraw the authorization granted to a bank, the Romanian legal person, or a branch in Romania of a foreign credit institution, or at the request of the bank, when the shareholders decided to dissolve and liquidate it, respectively at the request of the foreign credit institution, or as a sanction, according to art. 69 69 para. 2 lit. e) or for the following reasons: " 6. Article 28 shall be inserted after Article 28, with the following contents: "" Art. 28 28 ^ 1. -On the date of the accession of Romania to the European Union, 25 ^ 1 para. 2 2 and 3 and those of art. 25 25 ^ 2 is repealed. " 7. The title of Chapter VIII shall read as follows: "" CHAPTER VIII Professional secrecy in banking and information exchange between authorities " 8. Article 37 ^ 3 is inserted after Article 37 ^ 4 with the following contents: "" Art. 37 37 ^ 4. -In the exercise of its powers provided by law, the National Bank of Romania shall ensure the exchange of information with authorities in Romania and with the competent authorities of the Member States of the European Union, in accordance with art. 3 3 of Law no. 312/2004 on the Statute of the National Bank of Romania 9. In Article 40, paragraph 2 shall read as follows: "The minimum level of initial capital is established by the National Bank of Romania through regulations, without being able to be less than the equivalent in the national currency of 5 million euros." 10. In Article 52 ^ 1, paragraph 3 shall read as follows: " If the person who intends to become a significant shareholder of a bank, the Romanian legal person, is a foreign credit institution or an entity that holds as a subsidiary a foreign credit institution or is a natural or legal person control a foreign credit institution and if, following the acquisition of the stake, the bank will become a subsidiary of the person who acquired the stake or will be controlled by this person, the valuation of the significant shareholder will be subject a prior consultation with the competent authority of the home country of the institution of foreign credit. " 11. in Article 83 ^ 8, paragraph 2 is inserted as follows: " Credit institutions provided in par. 1 will notify the National Bank of Romania of the opening of representations in Romania, in accordance with the regulations given by it. The representations will limit their activity to acts of information, representation, market research, customer contact and will not carry out any operations subject to the provisions of this law. " 12. in Article 83 ^ 9, after paragraph 2, paragraph 2 is inserted with the following contents: " In order to start the activity, the branch will open current account at the National Bank of Romania, according to the regulations issued by it Money transfers operated by enrolments in the current account opened in the records of the National Bank of Romania are irrevocable and unconditional. " 13. in Article 83 ^ 10, after paragraph 4, paragraphs 5 to 7 shall be inserted as follows: " For the purpose of the exercise of specific activities, credit institutions authorised in another Member State may use in the territory of Romania the name they use in the Member State of origin, without prejudice to the provisions relating to the use of the names "savings house for housing", "bank" or other terms used in Romania, which name credit institutions. If there is a danger of confusion, in order to ensure a proper clarification, the National Bank of Romania may request that the name be accompanied by an explanatory statement. In all its official acts, branches in Romania of credit institutions authorised in another Member State must clearly identify themselves by a minimum of data: the firm under which they are registered in the trade register, the address the main office, the unique registration code, the order number in the trade register, the number and the date of registration in the bank register. Branches in Romania of credit institutions authorised in another Member State may allocate, from the accounting profit determined before the deduction of the corporate tax, the amounts for the establishment of the general banking risk fund, within 1% of the balance of assets carrying risks specific to banking activity, as established by the regulations of the National Bank of Romania, in so far as the respective amounts are found in the net profit. " 14. in Article 83 ^ 12, after paragraph 4, paragraphs 5 and 6 are inserted as follows: " The sanctions and/or measures ordered by the National Bank of Romania may be challenged under the conditions laid down in the XIV. The application of sanctions shall be prescribed within one year from the date of becoming aware, but not more than 3 years after the date of the act. The application of sanctions shall not remove material, civil, administrative or criminal liability, as appropriate. " 15. Article 87 shall read as follows: "" Art. 87. -Credit institutions operating in Romania under the terms of this law shall be highlighted by the National Bank of Romania in the register of credit institutions, which is accessible to interested persons. " + Article II Law no. 58/1998 on banking activity, published in the Official Gazette of Romania, Part I, no. 121 of March 23, 1998, with subsequent amendments and completions, as well as those brought by this law will be republished in the Official Gazette of Romania, Part I, giving the texts a new numbering. This law was adopted by the Romanian Parliament, in compliance with the provisions of art. 75 75 and art. 76 76 para. (1) of the Romanian Constitution, republished. p. CHAMBER OF DEPUTIES PRESIDENT, VIOREL HREBENCIUC SENATE PRESIDENT NICOLAE VACAROIU Bucharest, November 1, 2004. No. 443. -------------