Regulation No. 2025-05 on Key Function Holders of San Marino Financial Enterprises

THE GENERAL DIRECTOR
OF THE CENTRAL BANK OF THE REPUBLIC OF SAN MARINO HAVING REGARD TO Law No. 165 of 17 November 2005 (Law on Banking, Financial and Insurance Enterprises and Services), and in particular Article 39, which grants the Central Bank of the Republic of San Marino the power to issue measures containing binding and general provisions, as well as Article 15, according to which the Central Bank itself, as the supervisory authority, establishes requirements, criteria, procedures for appointment, removal, disqualification, and suspension for key function holders of authorized subjects (financial enterprises); HAVING REGARD TO the opportunity to organically collect in a single regulatory corpus all existing supervisory provisions at the sectoral level regarding key function holders, with the aim of ensuring the highest level of internal coherence and facilitating their updating over time to the standards provided for by the European Union acquis (so-called fit and proper requirements) pursuant to Article 37, paragraph 1-ter, of the aforementioned Law No. 165 of 17 November 2005; HAVING REGARD TO the Statute of the Central Bank of the Republic of San Marino approved by Law No. 96 of 29 June 2005 and subsequent amendments, and in particular Article 30, paragraph 3, according to which acts of the Central Bank in matters of supervision, deliberated by the Supervisory Coordination, are issued by the General Director; HAVING REGARD TO the outcomes of the public consultation procedure on the draft regulation concluded on 30 November 2025; HAVING REGARD TO the deliberations of the Supervisory Coordination and the Board of Directors by which the text of Regulation No. 2025-05, named “Regulation on key function holders of San Marino financial enterprises”, was approved, ISSUES the attached Regulation No. 2025-05 which will enter into force on 29 January 2026. San Marino, 23 December 2025. THE GENERAL DIRECTOR Signed: Dr. Andrea Vivoli

REGULATION
ON KEY FUNCTION HOLDERS
OF SAN MARINO FINANCIAL ENTERPRISES year 2025 / number 05

Central Bank of the Republic of San Marino
Regulation No. 2025-05 on key function holders of San Marino financial enterprises

INDEX
PART I INTRODUCTION .......................................................................................................................................4
TITLE I PRELIMINARIES ................................................................................................................................................4
Article I.I.1 – Legislative Sources...................................................................................................... 4
Article I.I.2 – Definitions ............................................................................................................. 4
TITLE II OBJECTIVES AND STRUCTURE OF THE MEASURE......................................................................6
Article I.II.1 – Purpose .................................................................................................................. 6
Article I.II.2 – Preparation ......................................................................................................... 6
Article I.II.3 – Structure ................................................................................................................ 6
Article I.II.4 – Models.................................................................................................................. 7
PART II HONORABILITY AND CORRECTNESS.........................................................................................................8
TITLE I HONORABILITY REQUIREMENT .............................................................................................................8
Article II.I.1 – Definition of the honorability requirement ................................................................ 8
Article II.I.2 – Methods of certification of the honorability requirement.......................................... 8
TITLE II CORRECTNESS CRITERION.............................................................................................................9
Article II.II.1 – Definition of the correctness criterion ................................................................. 9
Article II.II.2 – Application methods of the correctness criterion ................................................. 10
Article II.II.3 – Methods to attest correctness.................................................................. 11
PART III PROFESSIONALISM AND COMPETENCE.............................................................................................12
TITLE I PROFESSIONALISM REQUIREMENT...................................................................................................12
Article III.I.1 – Definition of the professionalism requirement for directors ..................... 12
Article III.I.2 – Definition of the professionalism requirement for the head of the executive structure . 13
Article III.I.3 – Definition of the professionalism requirement for auditors .................................... 14
Article III.I.4 – Methods of certification of the professionalism requirement ................................ 14
TITLE II COMPETENCE CRITERION ............................................................................................................15
Chapter I Individual-based Competence ..........................................................................................................15
Article III.II.1 – Definition of the competence criterion ............................................................ 15
Article III.II.2 – Application methods of the competence criterion .............................................. 16
Article III.II.3 – Methods to attest competence............................................................... 16
Chapter II Collective-based Competence............................................................................................................16
Article III.II.4 – Definition of the criterion for adequate collective composition of bodies...... 16
Article III.II.5 – Application methods of the criterion for adequate collective composition of the bodies ............................................................................................................. 17
PART IV INDEPENDENCE ....................................................................................................................................18
TITLE I INDEPENDENCE REQUIREMENT .......................................................................................................18
Article IV.I.1 – Definition of the independence requirement for the independent director . 18
Article IV.I.2 – Definition of the independence requirement for auditors ...................................... 19
Article IV.I.3 – Certification methods ................................................................................. 19
TITLE II INDEPENDENCE OF JUDGMENT.........................................................................................................19
Article IV.II.1 – Definition of independence of judgment....................................................... 19
Article IV.II.2 – Application methods of independence of judgment......................................... 19
PART V TIME AVAILABILITY................................................................................................................... 21
Article V.I.1 – Time availability for the performance of duties .................................... 21
Article V.I.2 – Application methods concerning time availability for the performance of duties .......................................................................................................... 21
PART VI APPLICABLE NORMS .........................................................................................................................22
TITLE I FORMAL AND PROCEDURAL ASPECTS...............................................................................................22

Central Bank of the Republic of San Marino
Regulation No. 2025-05 on key function holders of San Marino financial enterprises
Article VI.I.1 – Preliminaries............................................................................................................ 22
Article VI.I.2 – Submission of documentation and communication of information to the competent body.................................................................................... 22
Article VI.I.3 – Checks and evaluations on the documentation and information produced ... 23
Article VI.I.4 – Deliberation by the competent body ............................................................. 23
Article VI.I.5 – Communication to the Central Bank ................................................................. 24
Article VI.I.6 – Evaluations by the Central Bank...................................................................... 24
Article VI.I.7 – Registration of key function holders in the Companies Register........................ 25
TITLE II DISQUALIFICATION, SUSPENSION AND REMOVAL FROM OFFICE.............................................25
Chapter I Disqualification ...............................................................................................................................................25
Article VI.II.1 – Causes of disqualification.......................................................................................... 25
Article VI.II.2 – Ordinary procedure.......................................................................................... 25
Article VI.II.3 – Extraordinary procedure .................................................................................... 26
Chapter II Suspension...........................................................................................................................................26
Article VI.II.4 – Possible causes of suspension ......................................................................... 26
Article VI.II.5 – Ordinary procedure.......................................................................................... 26
Article VI.II.6 – Extraordinary procedure .................................................................................... 27
Chapter III Removal ............................................................................................................................................27
Article VI.II.7 – Causes of removal .......................................................................................... 27
Article VI.II.8 – Removal procedure.................................................................................... 27
PART VII FINAL AND TRANSITIONAL NORMS .....................................................................................................28
TITLE I IMPLEMENTATION TIMELINES......................................................................................................................28
Article VII.I.1 – Entry into force............................................................................................... 28
Article VII.I.2 – Transitional regime............................................................................................ 28
TITLE II COORDINATING AMENDMENTS TO SECTORAL REGULATIONS.....................................28
Article VII.II.1 – Repeals .................................................................................................... 28
Article VII.II.2 – Amendments ....................................................................................................... 28
Article VII.II.3 – Consolidated texts.............................................................................................. 31

Central Bank of the Republic of San Marino
Regulation No. 2025-05 on key function holders of San Marino financial enterprises
PART I
INTRODUCTION
Title I
Preliminaries
Article I.I.1 – Legislative Sources

1. This Regulation falls within the category of implementing measures of Law No. 165 of 17 November 2005 provided for by Article 39 and draws its legislative source from Articles 15 and 46 of the cited law.
2. The sanctioning powers of the Central Bank are regulated by Article 31 of Law No. 96 of 29 June 2005 and the violation of the provisions contained in this Regulation is punished by Decree No. 76 of 30 May 2006 and subsequent amendments.
   Article I.I.2 – Definitions
3. For the purposes of this Regulation, the expressions used shall be understood with the following meaning:

• “Chief Executive Officer (CEO)”: member of the Board of Directors, however named, endowed with delegated powers pursuant to Article 49, fourth paragraph, of the Companies Law;
• “Central Bank”: the Central Bank of the Republic of San Marino;
• “Head of the Executive Structure”: General Director or, in the absence thereof, a director with delegation to perform the functions of General Director, and any Deputy Director, to be understood as the natural person called to temporarily or occasionally substitute for the functions of Head of the Executive Structure in the event of absence of the General Director or the director delegated thereto;
• “Managerial Duties”: managerial or top-level functions or otherwise performed by personnel holding organizational units, falling within senior management pursuant to Law No. 102/2019 where applicable, and in sanctionable subjects, pursuant to Article 22, paragraph 2, letter b), of the Sanctions Decree;
• “Corporate Control”: the relationship defined by Article 2 of the LISF;
• “Accounting Control”: function described by Article 68 of the Companies Law and regulated by Article 34 of the LISF;
• “Sanctions Decree”: Decree No. 76 of 30 May 2006 and subsequent amendments;
• “Identity Document”: document, containing the photograph and indication of all personal details of a natural person and issued by a national or foreign public authority;
• “Key Function Holders”: natural persons holding the offices of director, auditor, or head of the executive structure for San Marino financial enterprises;
• “Key Function Holders with Executive Duties”: Head of the Executive Structure or director who exercises the powers delegated to them by the Board of Directors, individually or as a member of an Executive Committee or Internal Technical Committees with operational functions;

Central Bank of the Republic of San Marino
Regulation No. 2025-05 on key function holders of San Marino financial enterprises

• “Key Function Holders with Non-Executive Duties”: the Chairman of the Board of Directors, directors who do not fall among those with executive duties, and auditors;
• “Financial Enterprises”: San Marino or foreign enterprises that carry out, in an entrepreneurial manner, activities included in the list of Annex 1 of the LISF, or activities equivalent to them and subject to Supervision;
• “Type A Financial Enterprises”: San Marino financial enterprises that carry out one or more reserved activities pursuant to the LISF marked in Annex 1 of the said law with the letters A, D, G, J-bis and L-bis;
• “Type B Financial Enterprises”: San Marino financial enterprises that do not carry out any reserved activity of those of Type A financial enterprises, but carry out one or more reserved activities pursuant to the LISF marked in Annex 1 of the said law with the letters B, C, I and J;
• “Type C Financial Enterprises”: San Marino financial enterprises not falling under either Type A or Type B;
• “Companies Law”: Law No. 47 of 23 February 2006 and subsequent amendments;
• “Anti-Money Laundering Law”: Law No. 92 of 17 June 2008 and subsequent amendments;
• “LISF”: Law No. 165 of 17 November 2005 and subsequent amendments;
• “Competent Body”: the body of which the key function holder is a member (Board of Directors or Board of Statutory Auditors) or, in the case of the General Director or Deputy Director, the Board of Directors that confers the appointments;
• “Shareholders”: subjects who, directly or indirectly, i.e., as controlling subjects of legal entities, hold shareholdings in the share capital of the financial enterprise qualifying as significant based on the supervisory regulation of the sector;
• “Personnel Holding Organizational Units”: personnel placed at the head of significant organizational units and endowed with significant decision-making and representation powers;
• “Rigorous Procedures”: extraordinary proceedings referred to in Part II, Title II, Chapters I and II of the LISF and resolution procedures pursuant to Law No. 102 of 14 June 2019;
• “Economically Relevant Relationships”: employment relationships or continuous or periodic professional relationships, or other “intuitu personae” relationships such as to influence the independence of the subject as a key function holder;
• “Relevant Offenses”: all offenses against property and against the public economy, with the exception of contraventions, and special offenses provided for by the LISF and current legislation in matters of prevention and combating money laundering and terrorist financing as well as in matters of cross-border transport of cash and similar instruments;
• “Auditors”: subjects appointed for accounting control on behalf of Audit Firms;
• “SG”: the company authorized to exercise activity E of which Annex 1 of the LISF, or activity F of which the same Annex, or both;
• “Audit Firm”: San Marino company registered in the Register referred to in Article 7 of Law No. 146 of 27 October 2004, or foreign company authorized pursuant to Article 33, paragraph 3 of the LISF;
• “Defaulted Company”: companies subject to bankruptcy proceedings or rigorous procedures or foreign equivalent procedures to those regulated respectively:

Central Bank of the Republic of San Marino
Regulation No. 2025-05 on key function holders of San Marino financial enterprises

• by Law No. 17 of 15 November 1917 and Article 115 of the Companies Law;
• by Part II, Title II, Chapters I and II of the LISF;
• by Law No. 102 of 14 June 2019.

2. In the remainder of the text, the use of terms subject to definition is highlighted in small caps.
3. For all terms not subject to definition in paragraph 1, reference is made to the definitions and notions contained in the articles of the LISF.
   Title II
   Objectives and structure of the measure
   Article I.II.1 – Purpose
4. This Regulation aims to collect in a single regulatory corpus all supervisory provisions regarding the requirements and procedures (for appointment, disqualification, removal, and suspension) applicable to KEY FUNCTION HOLDERS,
   thus ensuring coherence among the different types of FINANCIAL ENTERPRISES, except for special norms addressed solely to certain categories of the latter, and facilitating their updating to the standards provided for by the European Union acquis, pursuant to Article 37, paragraph 1-ter, of the LISF.
5. Among the standards referred to in the previous paragraph 1 is primarily the so-called “fit and proper” standard, which strengthens the traditional requirements of honorability, professionalism, and independence, providing, solely for certain types of FINANCIAL ENTERPRISES according to principles of proportionality and risk-based approach, additional criteria such as correctness, competence, collective suitability, and time availability, as well as the application of self-assessment procedures by the COMPETENT BODIES of the aforementioned FINANCIAL ENTERPRISES, subject in any case to the scrutiny of the CENTRAL BANK.
   Article I.II.2 – Preparation
6. The Regulation, in conformity with what is provided by Article 38, paragraph 5 of the LISF and the implementing Regulation No. 2006-02, was subject to prior consultation.
7. The Regulation was prepared starting from the provisions already in force on the subject of KEY FUNCTION HOLDERS of SAN MARINO FINANCIAL ENTERPRISES within the specific sectoral regulations, and then applying the necessary interventions for harmonization and alignment with the standards referred to in the previous Article I.II.1.
   Article I.II.3 – Structure
8. The Regulation is divided into seven Parts, each of which is divided into Titles. Each Title is divided into Articles, sometimes grouped by Chapters.

Central Bank of the Republic of San Marino
Regulation No. 2025-05 on key function holders of San Marino financial enterprises
2. The Article, which represents the basic regulatory unit, has a composite numbering, i.e., formed by three different sub-numberings, separated by a dot: the first indicates the Part, the second the Title, the third the Article.
Article I.II.4 – Models

1. The models referred to in this Regulation and listed below:
   a) “self-declaration of honorability requirement”; b) “self-declaration of correctness criterion”; c) “self-declaration of professionalism requirement”; d) “self-declaration of independence requirement for independent director”; e) “self-declaration of independence requirement for control functions”, are published by the CENTRAL BANK, in the version updated from time to time, within the regulatory section of the website www.bcsm.sm., with prominence of the date of commencement of their validity.

Central Bank of the Republic of San Marino
Regulation No. 2025-05 on key function holders of San Marino financial enterprises
PART II
HONORABILITY AND CORRECTNESS
Title I
Honorability Requirement
Article II.I.1 – Definition of the honorability requirement

1. KEY FUNCTION HOLDERS must possess, subject to what is provided for by Article VI.II.4 and without prejudice to the absence of causes of unfitness referred to in Article 1, paragraph 1, point 9, of the COMPANIES LAW, the following honorability requirements:
   a) never having received, save for the effects of rehabilitation, final convictions for RELEVANT OFFENSES; b) never having received, save for the effects of rehabilitation, final convictions for misdemeanors falling among offenses against public order, against public faith, or private offenses against the public administration, for which the penalty of imprisonment for a time not less than one year not suspended has been applied; c) never having received, save for the effects of rehabilitation, final convictions for misdemeanors of another nature for which the penalty of imprisonment for a time not less than two years not suspended has been applied; d) never having held the office of KEY FUNCTION HOLDER in FINANCIAL ENTERPRISES subject in the last five years to RIGOROUS PROCEDURES.
2. The possession of the requirements referred to in the previous paragraph must also exist with reference to the absence of equivalent final convictions (letters a, b, and c) or the absence of impeditive situations (letter d) applied in jurisdictions other than the San Marino jurisdiction.
3. The requirement referred to in paragraph 1 letter d) is considered lacking if the office of KEY FUNCTION HOLDER was held for at least 18 months in the 24 months preceding the adoption of the measure and the KEY FUNCTION HOLDER has been imposed administrative sanctions, with reference to the same premises of the measure.
   Article II.I.2 – Methods of certification of the honorability requirement
4. The possession of the requirements referred to in