Functions

Listed below there are the functions of the Central Bank of the Republic of San Marino according to the provisions of its Statutes and other regulatory provisions:

Supervision on the Financial System. The Central Bank exercises the control over the supervised entities and on the activities they carry out; for this purpose, it issues its own regulations, requests periodical statistics and qualitative data, and carries our on-site inspections. In case of temporary cash imbalances, the Central Bank intervenes through its loans, adequately guaranteed, in order to protect the stability of the financial intermediaries. The function of the supervisory authority is performed taking into account the of the savings protection purposes assigned by the Statutes to the Central Bank.

Currency Authority. The Central Bank may carry out activities in foreign currencies that are identical to those carried out in Italy by Credit Institutions qualified - in dealing with currency - as fully authorised banks.

Management of the payment system. The maintenance of an efficient payment system is a prerequisite for the orderly conclusion of the economic transactions. The Central Bank aims at having the payment system of San Marino work steadily and in compliance with high security standards, so that it may offer to the economic operators the best conditions for settling their transactions. Through these two activities, the Central Bank manages and controls a dedicated local IT network. Additionally, the CBSM operates for the purpose of having the payment system of San Marino linked to the foreign systems, so as to maximise integration and facilitate payment from and to other countries.

Banknotes and Coins. The Central Bank is active in the prevention of fraud and counterfeiting of Euro denominated banknotes and coins, through the systemic management of the authenticity and fitness checking, based on the provisions of the Monetary Agreement and in concert with the international authorities appointed for this purpose. Additionally, the CBSM manages the systemic needs as regards to the procurement and payment of cash to the competent European authorities, as well as the gathering of statistical information on the recirculation of cash.

Consulting. Consultancy services to the State, through the Offices of the Public Administration, individual Secretaries of State, or directly to the State Congress, as regards a wide range of activities and issues. The Central Bank offers its contribution of experience and professionalism on the proposed introduction of new laws, individual projects and operating activities.

Monetary, financial, credit and currency statistics. The Central Bank gathers statistical data and other information from the supervised entities; this activity is carried out both at regular intervals as well as on a case-by-case basis. The data received, after the checking and validation thereof, feeds the internal statistics, used for supervisory purposes, or is aggregated for the purposes of statistics intended for publication, or is processed and transmitted to international contacts and included in the statistics of the different financial systems worldwide.

State Treasury. The Sole Treasury Service of the State and the Public Authorities and Autonomous Undertakings are managed by the Central Bank since 1993. The CBSM makes all payments (for salaries, pensions and supplies of any kind) based on the payment orders issued, and takes care of the collections of any tax (either directly or through the bank counters). Additionally, it produces a periodic reporting (from the daily cash situation to annual reporting) to different Entities.

State Tax Department. The State Tax Department, established in 2004 and assigned to the Central Bank, is focused on managing the collection of taxes, levies, duties and sanctions of the Tax Authority. Based on the Entries into the Register made by the imposing Entities, the CBSM prepares the tax collection notices, arranges the mailing, the notification, either by hand or "at the door", and the collection thereof. Where the conditions provided for by law apply, the Central Bank may grant payment extensions to the taxpayers. If the tax collection notices are not paid by their expiry date, the CBSM shall enforce the collection thereof through appropriate enforcement procedures, which may end with the sale of the seized assets.

Custodian of the financial resources of the State, of Authorities and Entities of the PA. On such amounts, the Central Bank pays the remunerations agreed upon with the State Congress. The resources deposited by the PA, together with the assets of the Bank and the other funds collected (mainly from interbank funding) are invested on the capital markets with a view of optimising returns in line with specific diversification and risk reduction criteria.

Agent for the management of national debt certificates. The Central Bank acts as paying agent and centralised manager of government securities issued by the Republic of San Marino. Therefore, the CBSM takes care of the electronic recording thereof, being dematerialised securities, the issuance and settlement thereof, the coupon payment and capital repayment. The issuing, subscription and circulation of the government securities of the Republic of San Marino are regulated by art. 12 of Law no. 153 of 31 October 2013 and by the Delegated Decree no. 173 of 18 December 2013.

Institutional reference point. The Central Bank of the Republic of San Marino holds relationships with a wide range of foreign contacts: central banks and supervisory authorities, international institutions (International Monetary Fund, World Bank, Bank for International Settlements), international Organisations (OECD, European Commission, etc.), Associations (International Association of Deposit Insurers, European Association of Deposit Insurers, etc.). For most of these reference points, the CBSM also produces a series of statistical data and information that ensure to the Republic of San Marino an approbate visibility at an international level.

Trust. In the field of trust, the Central Bank achieves three different functions: to supervise financial trustees (if the office of trustee is exercised by a person authorized under the Law No. 165 of November 17, 2005); to check the existence and permanence of the requirements for the professional exercise of the office of trustee in the territory of San Marino, for the purpose of keeping the Professional Trustee Register pursuant to the Delegate Decree No.49 of March 16, 2010; to keep the Register of the Trust pursuant to the Delegate Decree No.50 of March 16, 2010.

Register of fiduciary shareholdings.Pursuant to Article 14 of Law No. 183 of October 29, 2021, and as a result of the provisions of Article 37 of Decree-Law No. 139 of December 11, 2017, as of November 3, 2021, the reporting obligations set forth in Article 2 paragraph 2 of Law No. 98 of June 7, 2010 regarding the Register of fiduciary shareholdings (here in after:“the Register”) ceased. Information on the shareholdings in San Marino companies held by San Marino or foreign fiduciary companies has been maintained in the Register.Pursuant to the aforementioned Article 14 of Law No.183 of October 29, 2021, any reference in the current laws and decrees to the Register is to be understood as referring to the “register of beneficial owners” set forth in Article 23-quater of Law No. 92 of June 17, 2008.

Custodian bank of the Supplementary welfare fund FONDISS. Law no. 191 of 6 December 2011, for the establishment in the Republic of San Marino of the supplementary welfare fund named FONDISS, assigned to the Central Bank of the Republic of San Marino the function of custodian bank of the relevant resources. Therefore, the CBSM, besides performing for FONDISS the Treasury functions related to the collection of welfare contributions and to the payment of the benefits, also performs the typical activities of a custodian bank; these activities are particularly important in terms of protection of the taxpayers and control.