The Central Bank seeks to promote the effective and efficient development and functioning of the banking system. To this end, banks exposed to country and transfer risks are required to have appropriate policies, processes, procedures, systems and controls to identify, monitor and mitigate such risks.

In introducing this Regulation and the accompanying Standards, the Central Bank intends to ensure that Banks’ approach to managing country and transfer risks are in line with leading international practices.

The Regulation and the accompanying Standards are issued pursuant to the powers vested in the Central Bank under the Central Bank Law.

Where the Regulation, or their accompanying Standards, include a requirement to provide information or to take certain measures, or to address certain items listed at a minimum, the Central Bank may impose requirements that are additional to the list provided in the relevant Article.