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NBM's current practice and new trends in regulation and oversight of money
transfer services
Patrascu Lina
Head, Payment systems
Regulation and Oversight Division
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Overview 370 thousand people were working or looking for
work abroad (25% of active population);
more than 66% of them were working or looking for work in CIS countries;
total inflows, made through official channels, from abroad in favor of natural person exceeded 1,4 billion USD (21% of GDP);
more than 1,2 billion USD were transferred through international money transfer systems.
Note: data are provided for year 2011
Source: NBM, National Bureau of Statistics of the Republic of Moldova
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Remittance services market
Money transfer operators in Republic of Moldova are banks (14 banks) and post office.
Market consists from 18 international money transfer systems.
Most of international money transfer systems originate from CIS countries.
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NBM's current practice in regulating and overseeing money transfer services
In 2009 NBM assessed remittance services market based on General principles for international remittance services (BIS-WB, 2007)
Regulation on the activity of banks within the international money transfer systems, approved in October, 2010
Requirements: Transparency of the conditions; Risk management; AML/CFT.
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Law on the National Bank of Moldova, 1995
Basis for oversight
Policy on payment system oversight in the
Republic of Moldova, approved in June, 2011
Objective of the NBM’s oversight – safety and efficiency of money transfer services.
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Subject of the oversight are banks and market as a whole.
Results of the quarterly monitoring, that highlights the situation and trends on money transfer market, are presented to the Top Management.
Periodical assessment of the remittance services market according to the international principles.
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New trends in regulating and overseeingmoney transfer services
In May, 2012 the Parliament of the Republic of Moldova approved the Law on payment services and e-money.
Directive 2007/64 on payment services in the internal market
Directive 2009/110 on the taking up, pursuit and prudential supervision of the business of electronic money institutions
Payment services, including money remittance
E-money issuance
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Payment institution - a commercial company
which holds the licence issued by National Bank of Moldova to provide payment services (inclusive money remittance).
Prudential requirements (equity capital, regulatory capital, funds safeguarding requirements) for domestic companies and branches of foreign companies are similar.
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1. Hold equity capital in the amount of not less than MDL 350,000 (~23,000 EUR);
2. Write an application, prepare documents required by the law;
3. Wait. Within two months, NBM will inform the applicant about the
decision on license issuance or on rejecting the application for license issuance;
4. In case the decision was positive, applicant should pay the license fee MDL 8000 (~500 EUR);
5. NBM, within 3 business days from the date of receipt of the document confirming the payment of the license fee, will issue the license.
Note: equity capital and license fee differ based on the payment services intended to be provided. Presented values are applicable just for money transfer activity.
Steps to become a payment institution:
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Law on payment services and e-money
grants access to non-bank ensures proportional competition payment service providers to the banking sector
increases consumer protection therefore confidence in cashless payments
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Additional information
www.bnm.md
• Law no. 114 from 18.05.2012 on payment services and e-money;
• Regulation on the activity of banks within the international money transfer systems, approved by the Decision of the Council of Administration of the National Bank of Moldova No.204 of October 15, 2010;
• Policy on payment system oversight in the Republic of Moldova, approved by the Decision of the Council of Administration of the National Bank of Moldova, no.143 of June 30, 2011.
Contact information:
Republic of Moldova, MD-2005, Chisinau, 1 Grigore Vieru Avenue;[email protected]: + 373 22 409 325Fax: + 373 22 213 086
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Thank you for your attention!
