The powers of the Central Bank in the field of regulation and control are increased
Publika.az reports that this was reflected in the proposed amendment to the law “On the Central Bank of the Republic of Azerbaijan”, which was discussed at today’s meeting of the Economic Policy, Industry and Entrepreneurship Committee of the Milli Majlis.
According to the law in force, the Central Bank on the regulation and control of the activity of credit organizations and the national operator of postal communication adopts normative acts on the matters assigned to its authority by law, in the cases and in the order determined by law, in agreement with the supervisory body of the financial markets, in credit organizations, as well as their subsidiaries. conducts inspections in their communities.
According to the project, the Central Bank on the regulation of the activity of the control subjects, if it is provided for in the laws regulating the financial markets:
– adopts regulatory acts that regulate the activity of control subjects, including prudential activity and market behavior;
– determines the rules for drawing up and submitting individual and consolidated reports of control subjects;
– determines the criteria of system importance of control subjects;
– performs other powers related to the regulation of the activities of the control subjects.
The Central Bank for supervision of the activities of the subjects of supervision, as provided for in the laws regulating the financial markets:
– issues licenses and permits, restricts, suspends and cancels the activity of control subjects;
– receives and analyzes prudential, statistical, financial and other reports from control subjects;
– conducts on-site inspections of control subjects;
– imposes influence, corrective measures and sanctions on the subjects of control and their managers, as well as issues other mandatory instructions for the purpose of eliminating violations detected in the activity of the subjects of control or preventing situations that may cause violations;
– carries out a field risk assessment and analyzes the results of the risk assessment in relation to the subjects under its control in the fight against the legalization of property obtained through crime and the financing of terrorism;
– appoints a temporary administrator to the subject of control, implements resolution measures;
– appeals to the court about the compulsory liquidation of the control subject and the appointment of the liquidator;
– carries out other powers related to control of control subjects.
The Central Bank also has the following powers in relation to the regulation and control of the activities of the control subjects:
– within the framework of control measures, to demand the holding of meetings of the authorized management bodies of the control subject, including extraordinary meetings, to call the meetings of the authorized management bodies and internal committees in the event that this request is not fulfilled, and (or) to participate in those meetings as an observer;
– to send an authorized representative to the subject of control in accordance with Article 53-2 of this Law for the purpose of monitoring the activity of the subject of control;
– use reasoned judgment;
– to determine the minimum requirements for ensuring information security in the subjects of control and to coordinate the activities of subjects of control in the field of cyber security;
– in connection with the implementation of regulatory and control functions in the field of financial markets, including when considering applications during the issuance of licenses and permits, to apply to the relevant state bodies (institutions) with a request and receive the necessary information from them;
– to carry out test purchase of financial services (products) in accordance with the rules established by the Central Bank in order to protect the rights of consumers and investors;
– to accept methodological documents of a recommendatory nature regarding the activity of control subjects;
– to give mandatory instructions to control subjects on the violation of the legal interests of consumers and investors in the financial markets or the elimination of situations that create conditions for the violation;
– to find out the persons belonging to the subject of control, to obtain the necessary information and documents from other institutions about the persons who have a significant share of participation, as well as the current activities of those persons and their management, if they are legal entities.
In order to protect the stability and stability of the financial markets, the Central Bank ensures the confidentiality of the information obtained within the framework of control measures. Disputes regarding the decisions taken by the Central Bank in connection with the implementation of regulatory and control functions are considered in court. Filing an appeal against the decision does not stop its execution.
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