Regulation No. 2007-07 on the Collection of Savings and Banking Activities

REGULATION ON THE COLLECTION OF SAVINGS AND BANKING ACTIVITIES Year 2007 / Number 07 (Consolidated text as of 29/01/2026 - Update XXIV)

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Central Bank of the Republic of San Marino Regulation No. 2007-07 on the collection of savings and banking activities (upd. XXIV) 3 INDEX PART I INTRODUCTION................................................................................................................................................................ 12 TITLE I PRELIMINARY PROVISIONS .......................................................................................................................................................................... 12 Article I.I.1 - Legislative sources .................................................................................................... 12 Article I.I.2 - Definitions ............................................................................................................ 12 TITLE II OBJECTIVES AND STRUCTURE OF THE PROVISION..................................................................................... 20 Article I.II.1 - Purposes................................................................................................................. 20 Article I.II.2 - References................................................................................................................... 20 Article I.II.3 - Preparation ........................................................................................................ 20 Article I.II.4 - Structure ............................................................................................................... 20 Article I.II.5 - Models ................................................................................................................ 20 PART II COLLECTION OF SAVINGS AND BANKING ACTIVITIES ...................................................................... 21 TITLE I PRELIMINARY PROVISIONS .......................................................................................................................................................................... 21 Article II.I.1 - Legislative sources ................................................................................................... 21 Article II.I.2 - Administrative sanctions ...................................................................................... 21 TITLE II BANKING ACTIVITIES ...................................................................................................................................... 21 Article II.II.1 - Reservation of banking activity ............................................................................. 21 Article II.II.2 - Illegal banking ........................................................................................................ 21 Article II.II.3 - Reserved activities................................................................................................. 21 Article II.II.4 - Other exercisable activities..................................................................................... 22 Article II.II.5 - Activities exercisable subject to authorization.......................................................... 22 TITLE III COLLECTION BY BANKS.......................................................................................................... 23 Article II.III.1 - Savings collection instruments................................................................... 23 Chapter I Collection by means of bank deposits.......................................................................................................23 Article II.III.2 - Forms of deposit ............................................................................................. 23 Article II.III.3 - Use of savings deposits....................................................................... 23 Article II.III.4 - Savings books.......................................................................................... 23 Chapter II Collection by means of securities.........................................................................................................24 Article II.III.5 - Types of securities....................................................................................................... 24 Article II.III.6 - Certificates of deposit ....................................................................................... 24 Article II.III.7 - Bonds ..................................................................................................... 25 Article II.III.8 - Atypical securities ...................................................................................................... 27 TITLE IV COLLECTION BY AUTHORIZED SUBJECTS OTHER THAN BANKS........................ 27 Article II.IV.1 - Savings collection instruments .................................................................. 27 Article II.IV.2 - Quantitative limits on issuance....................................................................... 27 Article II.IV.3 - Minimum duration of bond loans........................................................ 28 Article II.IV.4 - Conditions for dematerialization ............................................................. 28 PART III AUTHORIZATION FOR BANKING ACTIVITIES.............................................................................................. 29 TITLE I PRELIMINARY PROVISIONS .......................................................................................................................................................................... 29 Article III.I.1 - Legislative sources.................................................................................................. 29 Article III.I.2 - Administrative sanctions..................................................................................... 29 TITLE II AUTHORIZATION FOR CONSTITUTION...................................................................................................... 29 Article III.II.1 - Signatories of the application ................................................................................... 29 Article III.II.2 - Form of the application ....................................................................................... 29 Article III.II.3 - Content of the application ................................................................................. 29 Article III.II.4 - Declaration of controlling subjects............................................................. 30 Article III.II.5 - Beneficial owners................................................................................................. 30

Central Bank of the Republic of San Marino Regulation No. 2007-07 on the collection of savings and banking activities (upd. XXIV) 4 Article III.II.6 - Methods of submitting the application ........................................................ 30 Article III.II.7 - Term of the decision.............................................................................. 31 Article III.II.8 - Suspension of the term ................................................................................... 31 Article III.II.9 - Interruption of the term.................................................................................... 31 TITLE III MINIMUM REQUIREMENTS...................................................................................................................................................... 31 Article III.III.1 - Criteria for drafting the articles of incorporation.......................................................... 31 Article III.III.2 - Legal form....................................................................................................... 33 Article III.III.3 - Company seat ............................................................................................ 33 Article III.III.4 - Share capital................................................................................................ 33 Article III.III.5 - Locked deposit........................................................................................... 33 Article III.III.6 - Requirements for promoters.................................................................................... 34 Article III.III.7 - Requirements for corporate officers.................................................................. 34 Article III.III.8 - Business plan ...................................................................................... 34 TITLE IV - [ABROGATED] -............................................................................................................................................................. 35 TITLE V AUTHORIZATION TO BEGIN OPERATIONS......................................................................................... 35 Article III.V.1 - Preliminary provisions ........................................................................................................... 35 Article III.V.2 - Terms of the application..................................................................................... 35 Article III.V.3 - Form of the application ....................................................................................... 35 Article III.V.4 - Content of the application ................................................................................. 35 Article III.V.5 - Variations and integrations to the business plan......................................... 36 Article III.V.6 - Methods of submitting the application ........................................................ 36 Article III.V.7 - Term of the decision ............................................................................. 36 Article III.V.8 - Reiteration of the application ............................................................................. 36 Article III.V.9 - Minimum requirements ............................................................................................... 37 Article III.V.10 - Inspections..................................................................................... 37 Article III.V.11 - Notification of commencement of operations............................................................... 37 Article III.V.12 - Foreign exchange authorization ..................................................................................... 37 TITLE VI ACTIVITIES OF FOREIGN SUBJECTS ......................................................................................................................... 38 Chapter I Branches of foreign banks ...................................................................................................................38 Article III.VI.1 - Requirements for authorization ......................................................................... 38 Article III.VI.2 - Authorization application............................................................................. 39 Article III.VI.3 - Business plan...................................................................................... 39 Article III.VI.4 - Requirements for branch managers...................................................... 40 Article III.VI.5 - Authorization procedure................................................................................... 40 Article III.VI.6 - Applicable provisions................................................................................... 41 Chapter II Provision of services without a permanent establishment ..........................................................................................42 Article III.VI.7 - Scope of application of the discipline.......................................................... 42 Article III.VI.8 - Conditions for authorization ...................................................................... 43 Article III.VI.9 - Authorization application............................................................................. 43 Article III.VI.10 - Authorization procedure................................................................................. 43 Article III.VI.11 - Applicable provisions................................................................................. 44 Chapter III Representative offices .....................................................................................................................44 Article III.VI.12 - Prohibition on exercising reserved activities ........................................................ 44 Article III.VI.13 - Requirements ........................................................................................................ 44 Article III.VI.14 - Procedure....................................................................................................... 44 TITLE VII VARIATION, WAIVER AND REVOCATION OF AUTHORIZATION ....................................................... 45 Article III.VII.1 - Request for variation................................................................................... 45 Article III.VII.2 - Waiver of authorization ........................................................................... 45

Central Bank of the Republic of San Marino Regulation No. 2007-07 on the collection of savings and banking activities (upd. XXIV) 5 Article III.VII.3 - Revocation of authorization.............................................................................. 46 PART IV CORPORATE OFFICERS ............................................................................................................................................ 47 TITLE I REFERENCE................................................................................................................................................................................. 47 Article IV.I.1 – Applicable provisions for corporate officers of banks ............................. 47 PART V OWNERSHIP STRUCTURES.................................................................................................................................................. 48 TITLE I PRELIMINARY PROVISIONS .......................................................................................................................................................................... 48 Article V.I.1 - Legislative sources................................................................................................... 48 Article V.I.2 - Administrative sanctions...................................................................................... 48 TITLE II REQUIREMENTS......................................................................................................................................................................... 48 Chapter I Good repute ..............................................................................................................................................48 Article V.II.1 - Requirements............................................................................................................. 48 Article V.II.2 - Certification methods .................................................................................. 49 Article V.II.3 - Foreign certificates.................................................................................................. 49 Article V.II.4 - Validity requirements for certificates...................................................................... 49 Article V.II.5 - Exempted subjects................................................................................................. 49 Chapter II Sound and prudent management .....................................................................................................................50 Article V.II.6 - Requirements............................................................................................................. 50 Article V.II.7 - Information note ................................................................................................ 51 Article V.II.8 - Attached documentation................................................................................... 52 TITLE III AUTHORIZATION FOR ACQUISITION OF SIGNIFICANT PARTICIPATIONS................................. 52 Article V.III.1 - Scope of application..................................................................................... 52 Article V.III.2 - Subjected parties................................................................................................... 53 Article V.III.3 - Authorization application .............................................................................. 53 Article V.III.4 - Declaration of controlling subjects............................................................. 54 Article V.III.5 - Terms of the decision .............................................................................. 54 Article V.III.6 - Evaluation criteria ........................................................................................ 55 TITLE IV COMMUNICATION OBLIGATIONS......................................................................................................................... 55 Article V.IV.1 - Ownership structures............................................................................................. 55 Article V.IV.2 - Voting agreements................................................................................................. 56 TITLE V POWERS OF INTERVENTION.......................................................................................................................................... 56 Article V.V.1 - Revocation of authorization................................................................................ 56 Article V.V.2 - Annulment of shareholder resolutions.......................................................... 56 Article V.V.3 - Order to alienate the participation........................................................ 56 Article V.V.4 - Verification of the permanence of requirements ............................................................. 57 PART VI BALANCE SHEET........................................................................................................................................................................... 58 TITLE I PRELIMINARY PROVISIONS .......................................................................................................................................................................... 58 Article VI.I.1 - Legislative sources.................................................................................................. 58 Article VI.I.2 - Administrative sanctions .................................................................................... 58 TITLE II GENERAL RULES...................................................................................................................................................... 58 Article VI.II.1 - General obligations.............................................................................................. 58 Article VI.II.2 - Composition of the balance sheet ............................................................................... 58 Article VI.II.3 - Audit obligations for Sanmarinese banks and branches of foreign banks 58 Article VI.II.4 - Certification of the audit firm and auditors...................... 59 Article VI.II.5 - Reference ............................................................................................................... 59 PART VII PRUDENTIAL SUPERVISION .................................................................................................................................... 60 TITLE I PRELIMINARY PROVISIONS .......................................................................................................................................................................... 60

Central Bank of the Republic of San Marino Regulation No. 2007-07 on the collection of savings and banking activities (upd. XXIV) 6 Article VII.I.1 - Legislative sources ................................................................................................ 60 Article VII.I.2 - Administrative sanctions ................................................................................... 60 TITLE II SUPERVISORY CAPITAL ................................................................................................................................. 60 Article VII.II.1 - Structure of supervisory capital............................................................... 60 Article VII.II.2 - Core capital........................................................................................... 60 Article VII.II.3 - Supplementary capital............................................................................... 61 Article VII.II.4 - Deductions ........................................................................................................ 61 Article VII.II.5 - Limits and restrictions........................................................................................... 62 Article VII.II.6 - Minimum amount of supervisory capital ............................................ 63 Article VII.II.7 - Hybrid capitalization instruments......................................................... 63 Article VII.II.8 - Subordinated liabilities....................................................................................... 63 Article VII.II.9 - Guarantees provided upon issuance of hybrid capitalization instruments and subordinated liabilities and consequent "on-lending" operations.................... 64 Article VII.II.10 - Request for approval from the Central Bank ................................................... 65 Article VII.II.11 - Repurchase by the issuing bank of shares of hybrid capitalization instruments or subordinated liabilities ............................................ 65 Article VII.II.12 - Derogations ......................................................................................................... 66 Article VII.II.13 - Rectified supervisory capital................................................................. 66 TITLE III CAPITAL ADEQUACY........................................................................................................................ 67 Chapter I General rules ........................................................................................................................................67 Article VII.III.1 - Mandatory provision........................................................................ 67 Article VII.III.2 - Structure of the capital ratio .......................................................... 67 Article VII.III.2-bis - Derogation for operations related to the trading portfolio of small size...................................................................................................... 68 Article VII.III.2-ter - Minimum capital ratio ........................................................... 68 Chapter II Credit risk...................................................................................................................................68 Article VII.III.3 - Weighting criteria .................................................................................. 68 Article VII.III.4 - Debtor counterparties................................................................