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Announcement: Successful completion of the Twinning Project in Montenegro

Bulgarian National Bank (BNB) and the Ministry of Finance of Montenegro, the Central Bank of Montenegro (CBCG), the Insurance Supervision Agency, and the Securities Commission today have successfully completed a two-year twining project MN 08 IB FI 01 “Strengthening the Regulatory and Supervisory Capacity of the Financial Regulators”. The Project commenced on 30 November 2009 and the European Union (EU) financed it through “Instrument for Pre-accession Assistance” with the budget of 1,199,966.94 euro. BNB implemented the Project in consortium with the De Nederlandsche Bank and the Bulgarian Financial Supervision Commission.

Main results achieved are as follows:

- 8 new laws prepared – 3 laws adopted by the Parliament – Law on the Financial Stability Council, Law on Takeover of Joint Stock Companies, and Law on Investment Funds;

- The Financial Stability Council established, and action plans for managing crisis situations prepared;

- Guidelines in the area of insurance supervision were prepared, on how to perform self-assessment of the core principles of the International Association of Insurance Supervisors (IAIS), as well as a self assessment report of the IAIS core principles, activity plans for off-site and on-site inspections, an evaluation report and a Master Plan (Road Map) with the necessary conclusions on possible ways of transposing and applying the Solvency II Directive in Montenegro, and Gap analysis of some chapters of the Solvency II Directive.

- Following were also prepared: Action Plan for the Basel II implementation, new Decision on Capital Adequacy, framework for implementation of Pillar 2 requirements of the Basel II Accord on banks’ capital and relevant guidelines, manuals and reporting forms. This will enable the CBCG to plan its activities for several years ahead and to set its priorities;

- Guidelines on transposition of all major directives in the area of securities and pensions were prepared, as well as 9 operating manuals and methodological instructions, while most of them were already implemented, and 24 different trainings were held, including two international conferences as well;

- AML/TF inspection manuals were prepared, as well as inspection programs, Memorandum on Cooperation among the institutions of the beneficiary country concerning the prevention of money laundering and terrorist financing. The Project had significant contribution in harmonization of the Montenegrin legislation with the European Union legislation in the area of insurance market, bank supervision, securities, pensions, investments, prevention of money laundering and terrorist financing, as well as in strengthening the financial stability and administrative capacities.