Government prepared eight reform laws in the financial sphere to improve business climate and submitted them to the Parliament of the Republic of Macedonia. They comprise modifications and amendments to the Securities Law, Customs Tariff Law, Law on Customs Administration, Customs Code, Law on Fast Money Transfer, Law on Preventing Money Laundering and Financing Terrorism, as well as adoption of new Law on State Audit and Law on Instrument for Pre-Accession Assistance (IPA).
 
– New legal solutions, in addition to harmonization of our legislation with the Acquis Communautaire in the financial sector, will also provide for functional and stable securities market for both domestic and foreign investors and contribute to improvement of business climate, Minister of Finance, Zoran Stavreski, said at today’s press conference.
 
Modifications and amendments to the Securities Law envisage acquisition of qualifying holding in the stock exchange, brokerage house and securities depositary.
 
– This practically means that entities can acquire shares, the total cumulative amount of which exceeds 10%, 20% and 50% of the total issued voting shares of a stock exchange, brokerage houses and securities depositary, should they previously obtain consent by the Securities and Exchange Commission. So far, pursuant to the Law, it was not allowed for a shareholder, together with all of its affiliates, to own more than 10% of the voting shares of a stock exchange and 15% of the voting shares of a securities depositary, Stavreski explained, adding that this provides for a legal possibility for entrance of foreign investors on the Macedonian Stock Exchange.
 
In addition, Guarantee Fund will be established for settlement of already agreed transactions with securities. Accordingly, Securities Depositary should establish Guarantee Fund, resources of which will be exclusively used when a member to the Depositary has no sufficient funds to settle already agreed transaction. Establishment of Guarantee Fund will increase security of foreign and domestic investors to invest in securities, since it will guarantee each agreed transaction. Provisions for establishment of Guarantee Fund will be applied from 1 January 2011.
 
Amendments also envisage establishment of Investor Compensation Fund. The Fund will be established and managed by Fund Operator. Membership will be mandatory for all brokerage houses, authorized banks performing securities-related services and investment fund management companies that manage the funds of individual clients – portfolio owners.
 
According to the Minister, objective of establishing the Fund is to indemnify the investors in securities in case of initiating bankruptcy procedure at a Fund’s member or when SEC determines that a member is not able to meet its obligations towards the clients neither at the moment nor in near future.
 
– The provisions in the Law provide for confidence of investors to invest in securities, and will start applying on the day Macedonia becomes EU Member State, Stavreski said.
 
Modifications and amendments to the Customs Law are aimed at creating legal framework to implement the new Customs Declaration Processing System (CDPS) in the Customs Administration. It will contribute to improving the business climate by introducing new information technologies, leading to paperless environment. Thus, as Stavreski pointed out, customs procedure will be significantly simplified, leading to reducing the costs and the time necessary for companies engaged in foreign trade to perform customs operations.
 
As for the Law on Customs Tariff, it is proposed to regulate the customs tariff rate when importing used cars and reduce it to the level of customs tariff rate on new vehicles. Customs duties when importing used passenger vehicles are reduced from the existing 10% to 5%, thus leveling them with the customs duty on new passenger vehicles. Such reduction will provide the citizens in Macedonia the possibility to purchase cheaper vehicle, Minister pointed out.
 
This draft Law also includes amendments aimed at reducing the customs rates on ceramics products used in production of spares parts in the car industry, which will influence both the production and export of final products.
 
Integrated Customs Tariff (TARIM) is to be introduced – tool that will enable uniform application of the Law on Customs Tariff, trade policy measures and all other regulations applied at import in and export of goods from the Republic of Macedonia. TARIM implementation is mandatory as a result of the introduction of new program for central processing of declarations within the Customs Administration.
 
– Tarim is one of the main sub-systems to be used as platform for the subsequent implementation of the EU TARIC system, after Macedonia receives a date for EU membership negotiations, Stavreski said. According to him, important novelty is also the increase of the limit of the value of goods, Macedonian citizens can import in the country free of customs duties.
 
– Limit of EUR 175 increases to EUR 350. Such double increase of limits means equalizing the treatment of our citizens with the one of citizens in the EU Member States and at the same time reducing customs barriers for our citizens, Stavreski pointed out.
 
Modifications and amendments to the Law on Customs Administration include provisions for defining the requirements for appointing director and deputy director of the Customs Administration. At the same time, the manner of terminating their term of office is also determined. These amendments set, for the first time, the criteria that will provide selection of expert, competent and professional persons at these responsible positions. Amendments also include provisions determining 4-year term of office of the director of the Customs Administration, Minister of Finance pointed out.
 
Amendments to the Law on Fast Money Transfer will also provide for greater availability and reduction of prices of services for citizens.
 
– So far, global system, through which money transfer is carried out, had to be operational in at least 100 countries. From now on, it should be operational in at least 20 countries, at least 10 out of which are OECD Members. Reduction of the number of countries is a result of the gradual market liberalization in line with the EU standards, which include no limitations in terms of the number of countries. For the purpose of protecting clients, it is suggested for at least 10 countries, in which the global system is operational, to be OECD Members, Stavreski pointed out.
 
Prior to the Law amendments, company performing fast money transfer had to deposit EUR 100,000 on a special account. These amendments include provisions for reducing this amount to EUR 20,000. Amount reduction is within the liberalization of the financial services market in the Republic of Macedonia.
 
Referring to the Draft Law on Audit of the Instrument for Pre-Accession Assistance (IPA), the Minister pointed out that this solution regulates the obligation for establishing autonomous and independent Audit Authority to implement, monitor and control IPA. Thus, efficient instrument for monitoring the manner of managing and spending the funds under the EU pre-accession assistance will be created.
 
In parallel to the establishment of Audit Authority for IPA funds, there is also strengthening of the financial and functional independence of the State Audit Office.
 
Stavreski emphasized that the amendments to the Law on Preventing of Money Laundering and Financing Terrorism are aimed at increasing the control and strengthening mechanisms for preventing money laundering and financing terrorism.
 
– We suggest expansion of the scope of entities, obliged to undertaking measures for preventing money laundering and financing terrorism. So far, this has been obligation of banks, saving houses, foreign exchange offices, providers of fast money transfer services, insurance companies, brokerage houses, lawyers, notaries public, casinos. From now on, such obligation will also apply to all organizers of games of chance, Securities Stock Exchange, Central Registry of the Republic of Macedonia and Central Securities Depository.
 
As for notaries public, car dealers, insurance companies and banks, as especially sensitive to risks of money laundering and financing terrorism, additional obligations are introduced. These entities should electronically submit data and information on certain legal affairs amounting to over EUR 15,000 to the Office for Prevention of Money Laundering and Financing Terrorism on daily or monthly basis. High fines for misdemeanours are proposed, which are to be graded on the basis of damage severity, Minister of Finance, Zoran Stavreski said.(MIA)
