Memoranda of Understanding
Cooperation between central banks is a key tool for enhancing expertise and knowledge, while also improving the effectiveness of supervision.
The Central Banks cooperate through multiple means, either on a multilateral level within international organizations, or bilaterally through the signing of specific agreements.
In line with the evolving dynamics of the San Marino financial system, the Central Bank fosters the signing of agreements with foreign counterparts to ensure proper supervision of investments abroad by San Marino financial institutions, as well as of investments and activities in San Marino by foreign financial entities.
This section provides information on the agreements currently in force.
On January 4, 2024, the Central Bank of the Republic of San Marino signed a Memorandum of Understanding (MoU) with the Andorran Financial Authority (AFA).
The MoU establishes a broad scope of bilateral cooperation between the two supervisors in their respective areas of expertise. Among the areas covered by the agreement are strong cooperation across the entire range of financial services, as well as the exchange of information and mutual assistance in the supervision and regulation of banking, financial, and insurance activities.
The agreement represents a tool aimed at facilitating the sharing of expertise and best practices, in anticipation of the Association Agreement between San Marino and Andorra with the European Union.
The Central Bank of the Republic of San Marino signed a memorandum of understanding with the Croatian National Bank in the field of banking supervision on September 23, 2009.
The memorandum - the first agreement signed by the CBSM with a foreign counterpart authority on the issue of banking supervision - defines the relationships between the two authorities on cooperation and exchange of information in the field of bank supervision, according to the international principles set by the Basel Committee.
The formalization of the agreements between the CBSM and the Croatian National Bank promotes cooperation in the area of banking supervision in light of the existing interests and relationships between the banking systems of the two countries.
Further information on the Croatian Central Bank and the articulation of Croatia's financial market can be found here.
In June 2024, the Central Bank of the Republic of San Marino signed a Memorandum of Understanding (MoU) with the National Bank of Georgia (NBG).
The MoU establishes a framework for bilateral cooperation between the two authorities in the performance of their respective functions and provides for the exchange of information and mutual assistance in multiple areas. These include cooperation in supervision and regulation of banking, financial and insurance activities of supervised entities.
The agreement also provides for technical cooperation and sharing of analyses and studies conducted on new technologies, such as Fintech and Blockchain, thus promoting the development of new frontiers in banking and financial intermediation.
In May 2023, CBSM and the Bank of Italy signed a new Memorandum of Understanding on cash services, an expression of the cooperative relationship between the two Central Banks in this area.
The agreement, effective since May 26, 2023, and replacing the 2019 protocol, serves as a crucial tool for supporting the San Marino banking system. It outlines the procedures for withdrawing banknotes from the Bank of Italy, handling counterfeit currency, depositing unfit banknotes, and submitting statistical reports.
Memorandum of Understanding with the Italian Securities and Exchange Commission (CONSOB).
On January 23rd 2003, the former Inspectorate for Credit and Currencies of San Marino (integrated in CBSM in accordance with the Law 86/2003) and the Italian Securities and Exchange Commission (CONSOB) signed a Memorandum of Understanding concerning Cooperation and Exchange of Information.
In 2013, the Central Bank of the Republic of San Marino signed a cooperation agreement (Memorandum of Understanding) in the area of banking and financial supervision with its Liechtenstein counterpart, the Financial Market Authority ( FMA).
Purpose of the Memorandum of Understanding is to foster and consolidate the financial ties between the two countries, constituting the technical-regulatory prerequisite both for the cross-border establishment of branches and representative offices of intermediaries already authorized in their respective territories, and for the establishment or acquisition of financial entities by operators active in the other country.
In line with internationally shared supervisory principles, however, the final decision about the foreign entity's application for authorization to operate in its territory is left to the host country authority.
The Memorandum of Understanding regulates the procedures of exchange of information between the CBSM and the FMA regarding the different options available for cross-border operations, providing for specific modalities of interaction between the two Authorities concerning interventions, including inspections, to be taken on cross-border settlements.
The agreement opens up new possibilities for all authorized San Marino's entities, which will also be able to evaluate hypotheses of progressive internationalization, according to tailored procedures based on their capital, technical-professional and organizational capacities (e.g., through the acquisition of equity interests, the establishment of joint ventures, the opening of branches, etc.).
More structured initiatives, such as the establishment of new authorized entities, may represent a first step towards the expansion of the reference markets taking into account that Liechtenstein is included in the European Economic Area.
Further information on the FMA and the articulation of Liechtenstein's financial market, please refer to the website.
On October 3, 2023, the Central Bank of the Republic of San Marino signed a Memorandum of Understanding (MoU) with the Malta Financial Services Authority (MFSA).
The MoU establishes a framework for bilateral cooperation between the two supervisory authorities within their respective functions and duties. It provides for the exchange of information and mutual assistance in the supervision and regulation of banking, financial and insurance activities.
The agreement is part of an effort to strengthen the effectiveness of supervisory action and expanding the Central Bank's international relations, particularly with supervisory authorities of European Union countries.
On July 2, 2024, CBSM signed a Memorandum of Understanding with the Portuguese insurance and pension fund supervisory authority (Autoridade de Supervisão de Seguros e Fundos de Pensões - ASF).
The Memorandum establishes a framework for bilateral cooperation between the two authorities and will support the integration of San Marino’s insurance sector into the EU.