SAN MARINO
LAW June 27, 2003 # 86
REPUBLIC OF SAN MARINO


Functional integration between the Inspectorate for the Office of Banking and Credit Institution Sammarinese



We the Captains Regent of the Most Serene Republic of San Marino
Promulgate and publish the following law approved by the Great and General Council
its meeting on 27 June 2003.



Art.1 (Integration)
It 'placed the integration of the Inspectorate for the Office of Banking and Credit Institution
Sammarinese to be carried out in two successive operations: the first immediate and initiated by
of this law and the second to be carried out with a special legislative measure by the
expiry of the Institute Board of Directors of Credito Sammarinese but not
than the month of April 2005. | || in this respect it is authorized the State Congress to present by September 2004, a special
bill that defines all the appropriate steps on banking regulations and financial
force.
This piece of legislation will, among other things, provide for:
• replacement of the Board of the Central Bank of the Republic of San Marino
a Collegiate Organ Council defining the Central Bank's strategies, it | || coordinate the application and verifying the achievement of the set objectives.
This body should be composed of at least three members, including the chairman, appointed by
Great and General Council and have, preferably, a long and proven
senior experience in the banking and financial sector. At least one of them must have
gained direct experience in central banks, supervisory authority or similar institutions;
• attribution to the General Manager, as part of the strategies fixed organ Collegiate, autonomy
decision-making and responsibilities in the operational management of the Central Bank.
The Director General will participate in the meetings of the Committee for Credit and Savings.

Art.2 (Change of corporate name of the San Marino Credit Institute)
As a result of the integration between the Inspectorate for the Office of Banking and Credit Institution
San Marino, the first paragraph of Article 1 of the Law March 9, 1988 n. 34 is replaced by the following
:
"The Central Bank of the Republic of San Marino, body in public and private participation, has
registered office in San Marino. It pursues the functions and objectives assigned to it by law in accordance
principles of autonomy and independence. ".

Art.3 (Purpose of the Central Bank of San Marino Republic)
​​ Article 2 of Law March 9, 1988 n. 34 is replaced by the following:
"The objectives of the Republic of San Marino of the Central Bank are as follows:
a. Provide banking and financial services to the State and the public sector also in order to coordinate the management
availability and choice of forms of financing;
b. fulfill the role of the currency Authority of the Republic of San Marino and control
application of the provisions on foreign exchange;
c. exercise control over activities credit and financial carried out by authorized intermediaries, to
protection of banking stability and savings in the Republic of San Marino, which is recognized
a significant social value;
d. contribute to the creation of conditions that enable the 'range of banking services and financial instruments
updated and competitive;
e. provide adequate support to the banking system of public R absolving also
stimulus and guidance functions;
f. facilitate' economic and financial activities with the preparation and maintenance of
of the Republic payment systems.
The Central Bank of the Republic of San Marino normally entertain direct relations with
supranational financial organizations, central banks and supervisory UTHORITY, financial intermediaries
banking and non-banking, insurance companies and other parties in compliance with its purposes and functions
.. "

Art.4 (functions of the Central Bank of the Republic of San Marino)
Article 6 of the Law of 9 March 1988 n. 34 is replaced by the following:
"the functions of the Central Bank of the Republic of San Marino are:
1. the control and supervision of banking, financial and credit activities carried out by authorized intermediaries
, the protection of savings and the control over the services and tools financial
;
2. the exclusive management of currency relations, with the possibility of delegating to other banks or
branches operating in the territory, in compliance with applicable laws; 3
. the management and supervision of the clearing and payment system;

4. the collection and compilation of monetary statistics, credit and currency;
5. the granting, in accordance with procedures and criteria established by it, the lender of last resort in
respect of authorized banks to operate in the territory of the Republic, provided that
adequately collateralized;
6. the custody and administration of deposits on behalf of and under state guarantee,
in securities and cash, bound by the reserve requirements banks ensuring their ready cash
in compliance with the Banking Act;
7. management and administration - with the possibility of delegation - of the guarantee schemes to protect depositors
;
8. coordination and promotion of activities, initiatives and services in favor of the consortium
San Marino financial system;
9. the role of institutional reference, in banking, financial issues, and currency, against
of Central Banks, Supervisory Authorities or similar foreign authorities and against
International Organizations;
10. the issuance of securities on their own, for the purposes to be determined by the Board of Directors
;
11. management - with the possibility of delegation - the treasury and tax collection services on behalf of
State and public bodies;
12. the formulation, if required, to advise the Congress of State about financial matters and asset
State;
13. identifying, on behalf of the State Congress or the State Secretary for Finance and the Budget
, the forms of funding pertempo most appropriate time to cover
possible financial needs of the State and Public Administration;
14. the issue on behalf of the State, subject to the law of authorization, debt
public securities;
15. the exclusive exercise, with the possibility to delegate other banks or branches operating in
territory on gold transactions and precious metals;
16. any other function assigned to it by the laws of the Republic.
To achieve the purposes of the law, the Central Bank of the Republic of San Marino
, through its bodies and their respective areas of expertise, will take
measures, even in the form of Circular and Uniforms letters, which will, in addition to the character
device, even an explanatory function and interpretation of the tasks assigned by law to the
Central Bank of the Republic of San Marino itself.. "

Art.5 ( structure of the Republic of San Marino Central Bank)
the Central Bank of the Republic of San Marino is c mposta two autonomous divisions among them:
the Supervision Division and the Division Bank.
first Division maintains prerogatives, functional relationships, responsibilities, functions and powers
set by law for the Inspectorate for the Office of Banking Supervision, representing
its natural continuation, the second division than was originally planned for ' Institute
Credito Sammarinese.
As a result of integration achieved in Article 1 of this law and as provided
in the preceding paragraph, all references required by law Inspectorate peril
Office of Banking means just referred to Supervisory division of the Central Bank of the Republic of San Marino
.
After the entry into force of the legislative measure referred to in Article 1, second paragraph, of the Collegiate Organ
this law, in compliance with the principles of independence of the first paragraph of this Article
, may modulate the Divisions to organizational and operational requirements of the Central Bank
.
Following the integration provided for by this Act, the Central Bank of the Republic of San Marino
is not subject to prudential supervision dela Supervision Division.
The Central Bank of the Republic of San Marino, in order to safeguard its stability, adopt
appropriate structures and internal models of analysis and verification in accordance with the principles of prudential supervision provided for by
n regulations and provisions force.

Art.6 (Organs of the Central Bank of the Republic of San Marino)
Article 29 of Law 21 of February 21, 1986, as amended by Article 17 of Law 8 March 1988
33 and Article 8 of Law 34 of 9 March 1988 are amended as follows:
"Art.29
They are the Institute: the Shareholders' Meeting, the Chairman, the Board of Directors,
the Board of Auditors, the General Manager and the Supervision Committee.
the President is the legal representative of the Central Bank of the Republic of San Marino,
convenes and chairs the Board of Directors and carry out the resolutions.
The Board of Directors consists of five to seven members and shall act by a majority of

Its members regarding the items on the agenda by the President, ex officio or at the request of at least two components
.
Under his responsibilities the Board of Directors may delegate powers to individual directors
within its competence.

Art.8 of the Institute are:
the Assembly;
The Board of Directors;
The President;
The Board of Auditors;
The Director General;
The Supervision Committee.. "


Art 7 (Attribution of powers and functions to the Central Banc of the Republic of San Marino)
The powers and functions provided by current normativ for the Inspectorate for the Office of Banking and
the San Marino Credit Institute are attributed respectively to the Supervision Division and the Division
Bank of the Republic of San Marino Central Bank.
the General Manager of the Central bank of the Republic of San Marino, in addition to the functions and powers attributed to it
for the Division bank under the Statute, it is also assigned administrative responsibility of Supervision Division
.
in order to ensure continuity the oversight, the Division of supervision Coordination
is composed of the Inspectors appointed under Article 21 of Law 12 February 1986 n. 21 modified
with Article 11 of the Law March 8, 1988 n. 33 ; one of them, with the appointment of the Congress of State
, assumes the title of the Surveillance Coordinator.

Art.8 (Supervision Committee)
At Law 34 of 9 March 1988 is the following Article:
"Art.19 bis
(Supervision Committee)
the Supervision Committee shall comprise the members of the Inspectorate for the Office of Banking
appointed pursuant to Law 21 of February 12, 1986, as amended.
to it are assigned all the functions, powers, duties and responsibilities previously attributed
to the members of the Inspectorate for the Office of Banking by law.
the Supervision Committee is governed by the Inspectorate Coordinator for the Office of Banking
or, his absence, the Deputy Coordinator appointed by the Committee for Credit and Savings.
the Supervision Committee, as a rule, also works in collaboration with the Director General
of the Central Bank of the Republic of San Marino. to this end
may be invited to attend meetings of the Supervision Committee and the meetings of the Committee for Credit and Savings
; news and relevant information acquired are subject to secrecy referred
Article 23 of Law 21 of February 21, 1986 and subsequent amendments, including in respect of
administrative bodies and the Central Bank's control of the Republic of San Marino.
The provisions of the preceding paragraph for Direttor General can not be delegated, even
pursuant to the provisions of Article 19 of Law 34 of 9 March 1988.
Under current legislation, until the entry into force of the legislative measure proposed
Article 1, paragraph 2, of this Act, the Committee for Credit and Savings and, where required by
laws, the Congress of State, is the body contact of the supervisory prudential
carried out by the supervision Committee.. "

Art.9 (Statutory Auditors) Article
18 of Law 34 of 9 March 1988 has added the following paragraph:
"the Board of Auditors, with regard to one Divis Supervision, subject to the provisions of the preceding paragraphs
also in reference to taleDivisione, not exercises control over
Inspectorate functions for the Office of Banking Supervision referred to in Article 12 of Law 33 of 8 March 1988
.. "

Art.10 (expense Vigilance )
Article 26 of Law 21 of February 12, 1986, as amended by Article 13 of the Law 8 March 1988
33, is replaced by:
"All direct and indirect costs relating to the supervisory and control they are supported by
Central Bank of the Republic of San Marino.
With proper Regency Decree, at the proposal of the Central Bank of the Republic of San Marino
, they are periodically set the criteria and procedures for compensation of expenses referred to in the previous paragraph
against persons subject to prudential supervision the Supervision Division
.. "

Art.11 (legal protection of documents relating to the Supervision Division)
the legal protection and the related charges for acts related to the performance of their tasks | || professional from the Supervision Division and members of his Coordination
are borne by the Central Bank of the Republic of San Marino.
If the damage is constituted civil party in respect of persons referred to in subparagraph

Above, the burden of any compensation is paid by the Central Bank of the Republic of San Marino
, except in cases of willful misconduct or gross negligence.

Art.12 (secrecy)
The members of the administrative and control bodies, employees and those who, for various reasons,
collaborate with the Central Bank of the Republic of San Marino shall be subject to rules of professional secrecy
required by article 23 of Law 21 of February 21, 1986, as amended.

Art.13 (Inspectorate staff for the Office of Banking Supervision)
In order to ensure continuity in supervision, staff employed in any capacity
at the Inspectorate for Office of Banking will be offered within 15 days after the entry into force of this Act
, the opportunity to be taken indefinitely
by the Central Bank of the Republic of San Marino, in the Supervision Division, under conditions the Board of Directors
, while respecting the roles and professional skills, establish, in consultation with the proposed joint
of the Supervision and Management. The acceptance or rejection will be
statement by the person concerned within 30 days following receipt.
The employees of the Public Administration that will decide to maintain the ratio of
civil service job will be transferred, in accordance with the provisions of the regulations
on mobility and acquired rights, to another Office or Service
of Public Administration.
The staff employed in the Supervision Division responds on his activities to the Supervisory Coordination
; the management of the Supervision Division staff will be coordinated with the Director General
of the Central Bank of the Republic of San Marino.

Art.14 (Term of office)
To enable the final buoyancy definition of the Central Bank of the Republic of San Marino
, to be implemented by legislative action of the second paragraph of cu '
Article 1 of this law, the mandate of all the components of the Bank Statutory bodies Division and
the Supervision Committee is confirmed and extended to 30 April 2005.
the provisions in the preceding paragraph is not applicable the Director General of the Central Bank of the Republic of San Marino
and the Coordinator of the Supervisory Board, who will hold office until
the natural expiration of its term.

Art.15 (International Collaboration)
Watch Division has direct contacts with organizations and authorities of other states with similar
duties and functions, with which it can collab rare and establishing appropriate arrangements to | || cooperation, without the explicit mandate of the Committee for Credit and Savings.
The Director General will inform the Committee for Credit and Savings about relationships International
that the Central Bank has in accordance with Article 6, paragraph 9, of the Law March 9
1988 n. 34 as amended by Article 4 of this law, and are not covered because they are already
provided in the preceding paragraph.



Art.16 (Fines)
Except as provided in Title IX of Law 21 of February 12, 1986 and subsequent amendments and
in Title III of the law 25 February 1986 n.24, Directors, Statutory Auditors, Managers, Attorneys
and Liquidators who violate the provisions of the Regulatory Division, are punished with
fine ranging from a minimum of Euro 1,000.00 to a maximum of Euro 15,000.00.
The pecuniary sanction imposed by the Supervision Division and has become enforceable,
due to be settled by payment to the Central Bank of the Republic of San Marino.
An appeal against the sanction is allowed ric rso in accordance with law.
With proper Regency Decree, at the proposal of the Central Bank of the Republic of San Marino
, having heard the opinion of the Committee for Credit and Savings, they have identified violations
for which applies the financial penalty imposed this Article.



Art.17 (Code of Conduct)
In order to ensure the necessary independence to the Central Bank of the Republic of San Marino,
maintain public confidence and preserve its reputation, it must be adopted a code
of conduct, aimed at members of the bodies of the Bank and the management staff,
that inspires the work of the same principles of autonomy, independence and impartiality.

Art.18 (Entry into force)
This Law shall enter into force on the fifth day following that of its legal publication.

Our Residence, this day of 30 June 2003/1702 dFR


THE CAPTAINS REGENT
Pier Marino Menicucci - Giovanni Giannoni




THE S


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