The Central Bank of the Republic of San Marino (Banca Centrale della Repubblica di San Marino) is the principal financial regulatory authority responsible for supervising banking, financial, and payment activities within the jurisdiction. San Marino

The Financial Intelligence Agency (Agenzia di Informazione Finanziaria) operates as the designated authority for receiving and analyzing suspicious transaction reports and is responsible for AML/CFT supervision of financial institutions. San Marino - https: //rm. coe. int

The primary legal instrument governing financial regulation in San Marino is Law No. 165 of 17 November 2005, which establishes the legal framework for banks, financial intermediaries, and other financial operators, and has been amended over time to align with international standards. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

Law No. 165/2005 defines the activities that require prior authorization from the Central Bank, including the taking of deposits, lending, payment services, and other financial activities that would encompass digital asset services. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

San Marino has also enacted the Consolidated Law on the Financial System, which complements Law No. 165/2005 and sets out the operational requirements, corporate governance standards, and prudential rules applicable to licensed financial entities. San Marino: Selected Issues and Statistical Appendix in: IMF Staff Country Reports Volume 2004 Issue 256 (2004)

The Republic of San Marino has adopted Law No. 92 of 17 June 2008, which established the Financial Intelligence Agency and implemented the obligations for financial institutions to report suspicious transactions. San Marino - https: //rm. coe. int

San Marino is a member of the Council of Europe and has committed to implementing the recommendations of the Financial Action Task Force (FATF), with its AML/CFT framework being evaluated under the Moneyval assessment process. San Marino - https: //rm. coe. int

The Moneyval compliance reports for San Marino have assessed the jurisdiction's progress in implementing international AML/CFT standards, with findings relating to the adequacy of the legal framework for financial supervision. San Marino - https: //rm. coe. int

The International Monetary Fund has conducted Article IV consultations with San Marino, with the 2004 and 2010 country reports providing assessments of the financial sector regulatory framework and recommending continued legal development. San Marino: Selected Issues and Statistical Appendix in: IMF Staff Country Reports Volume 2004 Issue 256 (2004)

The Bank for International Settlements (BIS) lists San Marino as a jurisdiction with a central bank, noting the Central Bank's role in monetary policy and financial stability oversight. San Marino

San Marino's legal system is based on the civil law tradition, with legislation enacted by the Grand and General Council serving as the primary source of law, supplemented by regulatory decrees issued by administrative authorities. San Marino: Selected Issues and Statistical Appendix in: IMF Staff Country Reports Volume 2004 Issue 256 (2004)

The OECD and IMF have both noted that San Marino's financial regulatory framework requires continued enhancement to address emerging risks, including those presented by new financial technologies. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

The Central Bank has the authority to issue secondary legislation and implementing regulations under the framework established by Law No. 165/2005, allowing it to adapt rules to cover digital asset activities. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

San Marino is not a member of the European Union, and therefore EU financial services directives do not apply directly, although San Marino has sought to align its regulatory standards with EU principles on a voluntary basis. San Marino

No specific digital asset securities law has been identified in the available sources as having been enacted by 2025–2026, meaning the existing financial laws apply to such activities by analogy. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

Under Law No. 165/2005, any entity seeking to conduct financial activities in San Marino, including those related to digital assets, must obtain prior authorization from the Central Bank of the Republic of San Marino. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

The specific activities that require licensing include taking deposits from the public, granting credit, providing payment services, issuing and managing means of payment, and engaging in trading for one's own account or for the account of customers in financial instruments. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

Digital asset exchange services and custody services would fall within the scope of financial activities requiring authorization under the existing legal framework, as they involve the holding and transfer of financial instruments. San Marino: Selected Issues and Statistical Appendix in: IMF Staff Country Reports Volume 2004 Issue 256 (2004)

The application for authorization must be submitted to the Central Bank and must include a comprehensive business plan, details of the proposed organizational structure, information on the beneficial owners and directors, and evidence of compliance with capital requirements. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

Capital requirements under the San Marino banking and financial regulatory framework follow international standards, requiring financial intermediaries to maintain minimum capital levels commensurate with the scope and volume of their operations. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

The Central Bank must process licensing applications within a defined statutory period, during which it evaluates the suitability of the applicants, the soundness of the business model, and compliance with regulatory requirements. San Marino: Selected Issues and Statistical Appendix in: IMF Staff Country Reports Volume 2004 Issue 256 (2004)

Financial institutions in San Marino must be established as joint-stock companies (società per azioni) with their registered office and effective place of management located in San Marino territory. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

Directors and senior managers of licensed entities must meet fitness and propriety requirements, demonstrating competence, integrity, and relevant professional experience in financial services. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

The Central Bank has the power to impose conditions on licenses and to revoke or suspend licenses in cases of material non-compliance with legal or regulatory obligations. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

No entity has been publicly confirmed in the provided source materials as having received a dedicated digital asset securities license from the Central Bank of San Marino. San Marino

The licensing regime for digital asset activities would follow the same procedural and substantive requirements as for traditional financial intermediaries, as no separate digital asset license category exists under current law. San Marino: Selected Issues and Statistical Appendix in: IMF Staff Country Reports Volume 2004 Issue 256 (2004)

Foreign entities seeking to operate in San Marino must establish a local presence and obtain authorization from the Central Bank, subject to the same requirements as domestically incorporated entities. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

The regulatory framework requires that licensed financial intermediaries maintain adequate internal controls, risk management systems, and governance arrangements appropriate for the nature and scale of their digital asset operations. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

The obligation to conduct customer due diligence (CDD) was established in San Marino through Law No. 92 of 17 June 2008, which implemented FATF standards and requires financial institutions to identify and verify the identity of their customers. San Marino - https: //rm. coe. int

Financial institutions must apply enhanced due diligence (EDD) for all transactions involving politically exposed persons (PEPs), with special emphasis on foreign PEPs, requiring additional information on the source of funds and ongoing monitoring of the business relationship. San Marino - https: //rm. coe. int

The Financial Intelligence Agency (FIA) of San Marino serves as the central unit for receiving suspicious transaction reports (STRs), with financial institutions required to report any transaction that they know or suspect to be related to money laundering or terrorist financing. San Marino - https: //rm. coe. int

Reporting obligations require financial institutions to submit STRs to the FIA immediately upon identifying suspicious activity, and to comply with any subsequent orders issued by the FIA regarding the handling of the reported transactions. San Marino - https: //rm. coe. int

The legal framework requires financial institutions to maintain all records relating to customer identification and transaction data for a minimum statutory retention period, enabling the reconstruction of transactions for supervisory and investigative purposes. San Marino - https: //rm. coe. int

Beneficial ownership information must be collected for all legal entities, requiring identification of the natural persons who ultimately own or control the customer, with this information made available to competent authorities upon request. San Marino - https: //rm. coe. int

PEP screening is a mandatory component of the AML/CFT compliance program, requiring financial institutions to have risk-based procedures for determining whether a customer or beneficial owner is a politically exposed person at the onset of the business relationship and during the course of ongoing due diligence. San Marino - https: //rm. coe. int

San Marino's AML/CFT framework requires the appointment of a designated compliance officer at each financial institution who is responsible for overseeing adherence to reporting obligations and internal AML policies. San Marino - https: //rm. coe. int

The Moneyval compliance reports for San Marino indicated a continued need to strengthen the effective implementation of AML/CFT requirements, including improvements in the quality of STRs filed and the depth of customer due diligence performed. San Marino - https: //rm. coe. int

Training requirements mandate that financial institutions provide regular AML/CFT training to all relevant staff, ensuring employees are aware of their obligations and can identify potentially suspicious behavior in digital asset transactions. San Marino - https: //rm. coe. int

The sustainable financial system in this direction integration of the sustainable peps and transparent tax compliance in the national fiscal system because it ensures a higher level of awareness by taxpayers and the accuracy of the data in the income statement and financial statements of the companies themselves, as also recommended by the OECD. San Marino: Selected Issues and Statistical Appendix in: IMF Staff Country Reports Volume 2004 Issue 256 (2004)

The 2010 IMF Country Report indicated that the Central Bank had revoked licenses and taken administrative measures against non-compliant financial institutions in prior years, although specific details of these enforcement actions are not elaborated in the available source text. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

The same legal text continues as follows: The same Law No. 92/2008 also provides for administrative penalties to be imposed on institutions that fail to fulfill their obligations regarding customer identification or reporting of suspicious transactions, in accordance with FATF recommendations. San Marino - https: //rm. coe. int

The Central Bank is authorized to impose fines and sanctions for non-compliance with the prudential requirements set out in Law No. 165/2005, including violations related to authorization conditions and operational obligations. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

No tax guidance has been issued for virtual assets. San Marino - https: //rm. coe. int

The same legal text continues as follows: The Republic of San Marino has a territorial tax system, under which income is subject to taxation only if it arises from activities conducted within Sammarinese territory, although the applicability of these principles to digital assets remains unspecified in the available sources. San Marino: Selected Issues and Statistical Appendix in: IMF Staff Country Reports Volume 2004 Issue 256 (2004)

The taxation of income and capital gains in San Marino operates under the General Income Tax Law, which distinguishes between different categories of income, but no specific provisions addressing cryptocurrency or digital asset transactions have been identified. San Marino: Selected Issues and Statistical Appendix in: IMF Staff Country Reports Volume 2004 Issue 256 (2004)

The OECD review referenced the need for San Marino to ensure tax transparency and compliance, though digital asset taxation was not specifically addressed. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

The absence of specific digital asset tax rules creates uncertainty regarding the treatment of cryptocurrency trading gains, mining income, and other virtual asset transactions under existing tax legislation. San Marino: Selected Issues and Statistical Appendix in: IMF Staff Country Reports Volume 2004 Issue 256 (2004)

The absence of a dedicated legal framework for digital asset securities creates regulatory uncertainty, requiring market participants to interpret existing financial laws by analogy to govern virtual asset activities. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

The lack of any confirmed licensing of digital asset service providers suggests that the regulatory system has not yet reached operational maturity in facilitating compliant virtual asset businesses. San Marino

The Moneyval compliance reports identified gaps in the effective implementation of AML/CFT measures, which may be exacerbated in the digital asset context where decentralized transactions pose challenges for traditional supervision. San Marino - https: //rm. coe. int

International pressure from the IMF and FATF bodies places a compliance burden on San Marino to enhance its regulatory frameworks, with consequences for the jurisdiction's reputation and international standing. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

The gap between the paper regulatory framework and the practical reality of enforcement is significant, as supervisory capacity for digital assets has not been demonstrated in the available sources. San Marino: Selected Issues and Statistical Appendix in: IMF Staff Country Reports Volume 2004 Issue 256 (2004)

Businesses operating in the digital asset space in San Marino face significant uncertainty regarding which regulatory requirements apply to their specific activities, increasing compliance costs and legal risk. San Marino - https: //rm. coe. int

The absence of sector-specific guidance from the Central Bank regarding the treatment of digital asset securities means that market participants cannot obtain clarity on expectations for authorization, capital, and operational requirements. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

The lack of dedicated tax rules for virtual assets creates material financial uncertainty for businesses and individuals engaged in cryptocurrency transactions in San Marino. San Marino: Selected Issues and Statistical Appendix in: IMF Staff Country Reports Volume 2004 Issue 256 (2004)

International alignment pressures could result in rapid regulatory changes, exposing businesses that entered the market under an incomplete framework to compliance surprises and potential enforcement actions. © 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

San Marino: Selected Issues and Statistical Appendix in: IMF Staff Country Reports Volume 2004 Issue 256 (2004)

© 2010 International Monetary Fund October 2010 IMF Country Report No. 10/317

San Marino - https: //rm. coe. int