Procedure for Attracting Banking Payment Agents and Ensuring Compliance with Attraction Conditions

1 "Registered" Approved Ministry of Justice of the Board of the Republic of Tajikistan National Bank of on "03" May 2018, No. 927 Tajikistan on "12" April 2018, No. 51 Change registered Change approved Ministry of Justice by the Board of the Republic of Tajikistan National Bank No. 12 No. 9271 on "14" May 2025 on "7" January 2025 Procedure For the Attraction of Banking Payment Agents and Implementation of Control Over Compliance with the Conditions of Their Attraction The procedure for attracting banking payment agents and implementing control over compliance with the conditions of their attraction (hereinafter - the Procedure) is developed in accordance with Article 13 of the Law of the Republic of Tajikistan "On Payment Services and the Payment System", establishes the procedure for attracting banking payment agents by credit financial organizations to carry out certain banking operations, requirements for their activities and implementation of control by credit financial organizations over the activities of banking payment agents (Resolution of the Board of NBT dated 7.01.2025, No. 12).

CHAPTER 1. GENERAL PROVISIONS

1. The following main terms are used in this Procedure:

• banking payment agency activity – activity of a credit financial organization to carry out certain banking operations by attracting banking payment agents in accordance with the Law of the Republic of Tajikistan "On Payment Services and the Payment System" (Resolution of the Board of NBT dated 7.01.2025, No. 12);
• banking payment agency agreement – an agreement concluded between a credit financial organization and a banking payment agent, for the purpose of carrying out on behalf of the credit financial organization certain banking operations established by the Law of the Republic of Tajikistan "On Payment Services and the Payment System" (Resolution of the Board of NBT dated 7.01.2025, No. 12);
• banking payment sub-agency agreement – an agreement concluded between a banking payment agent and a banking payment sub-agent, for the purpose of carrying out on behalf of the credit financial organization certain banking operations defined by the Law of the Republic of Tajikistan "On Payment Services and the Payment System"

2 (Resolution of the Board of NBT dated 7.01.2025, No. 12);

• client - a natural person to whom certain types of payment services are provided on behalf of a credit financial organization by a banking payment agent (sub-agent) (Resolution of the Board of NBT dated 7.01.2025, No. 12);
• client identification - a set of measures to determine the identification data of the client (representative of the client), established in accordance with the Law of the Republic of Tajikistan "On Counteracting the Legalization (Money Laundering) of Proceeds Obtained by Criminal Means, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction" (Resolution of the Board of NBT dated 7.01.2025, No. 12);
• special bank account – an account opened by a banking payment agent in a credit financial organization for crediting in full the cash received from natural persons, debiting and crediting funds to bank accounts (Resolution of the Board of NBT dated 7.01.2025, No. 12);
• security deposit - funds serving as collateral for payment settlements, credited by a banking payment agent to a special bank account in a credit financial organization (Resolution of the Board of NBT dated 7.01.2025, No. 12);
• overdraft – an operation carried out on the basis of an agreement between a credit financial organization and a banking payment agent at the moment of a shortage of funds in the special account of the banking payment agent, providing the banking payment agent with the opportunity to use the funds of the credit financial organization under certain conditions (Resolution of the Board of NBT dated 7.01.2025, No. 12);

CHAPTER 2. REQUIREMENTS FOR A CREDIT FINANCIAL ORGANIZATION IN CARRYING OUT BANKING PAYMENT AGENCY ACTIVITY 2. A credit financial organization must develop and approve a strategy for implementing banking payment agency activity and ensure effective control over the process of providing services through banking payment agents (sub-agents) (Resolution of the Board of NBT dated 7.01.2025, No. 12); 3. To carry out banking payment agency activity, a credit financial organization must:

• develop and approve internal regulatory documents defining the procedure, conditions for attracting and functioning of banking payment agents (sub-agents), including rules for providing payment services through banking payment agents (sub-agents);
• make additions and changes to the policy on information security and risk management related to banking payment agency activity;

3

• develop a procedure for conducting regular monitoring and supervisory checks of the activities of banking payment agents (sub-agents) (Resolution of the Board of NBT dated 7.01.2025, No. 12).

4. A credit financial organization must determine the list of payment services provided by banking payment agents (sub-agents) in accordance with the Law of the Republic of Tajikistan "On Payment Services and the Payment System" (Resolution of the Board of NBT dated 7.01.2025, No. 12).
5. A credit financial organization sets tariffs for payment services provided by a banking payment agent (sub-agent) (Resolution of the Board of NBT dated 7.01.2025, No. 12).
6. A credit financial organization must ensure compliance and fulfillment of the requirements of the Law of the Republic of Tajikistan "On Counteracting the Legalization (Money Laundering) of Proceeds Obtained by Criminal Means, Terrorism Financing and Financing of the Proliferation of Weapons of Mass Destruction" within the framework of banking payment agency activity (Resolution of the Board of NBT dated 7.01.2025, No. 12).
7. A credit financial organization is obliged to keep confidential all information received from a banking payment agent and, upon request, provide necessary information to the National Bank of Tajikistan (Resolution of the Board of NBT dated 7.01.2025, No. 12).
8. A credit financial organization, when carrying out banking payment agency activity, is obliged to regularly perform the following actions:

• verification of the legal status of a banking payment agent (sub-agent);
• verification of the address or location of a banking payment agent (sub-agent);
• verification of the absence of relations with the credit financial organization that could be an obstacle to banking agency activity;
• verification of the compliance of the resources of a banking payment agent (sub-agent) with the requirements of banking payment agency activity;
• conducting a mystery shopping to determine the quality of provided services (Resolution of the Board of NBT dated 7.01.2025, No. 12).

9. A credit financial organization, in accordance with the adopted strategy for the Implementation of Banking Payment Agency Activity, may take additional measures necessary to reduce risks in carrying out banking payment agency activity (Resolution of the Board of NBT dated 29.10.2024, No. 12).
10. If a credit financial organization fails to comply with prudential standards established by the National Bank of Tajikistan for six months, the credit financial

4 organization is prohibited from carrying out banking payment agency activity (Resolution of the Board of NBT dated 29.10.2024, No. 12). 11. A banking payment agent may conclude a banking payment agency agreement with several credit financial organizations to provide payment services (Resolution of the Board of NBT dated 29.10.2024, No. 12). 12. The resources of a banking payment agent for providing services to several credit financial organizations must be assessed by the credit financial organization during the consideration of the application (Resolution of the Board of NBT dated 29.10.2024, No. 12). 13. A credit financial organization, when carrying out banking payment agency activity, must ensure the acceptance of payments in cash, including metal coins, and non-cash using electronic payment instruments (Resolution of the Board of NBT dated 29.10.2024, No. 12).

CHAPTER 3. METHODS OF ASSESSMENT AND PROCEDURE FOR SELECTION OF A BANKING PAYMENT AGENT BY A CREDIT FINANCIAL ORGANIZATION 14. A credit financial organization, when choosing a banking payment agent, must take into account the following:

• stability of commercial activity for the last 6 (six) months, at the time of selection by the credit financial organization of a banking payment agent (Resolution of the Board of NBT dated 7.01.2025, No. 12);
• the banking payment agent is not a problematic borrower of any credit financial organization for the last 6 (six) months prior to the date of signing the banking payment agency agreement;
• possessing the appropriate infrastructure and human resources to provide services within the framework of banking payment agency activity;
• convenient location for clients of the banking payment agent's activity (Resolution of the Board of NBT dated 7.01.2025, No. 12).

15. A legal entity or individual entrepreneur, for carrying out activity as a banking payment agent, must submit to the credit financial organization the following documents and information:

• constituent documents of a legal entity or a document on state registration of an individual entrepreneur;
• an extract from the register of legal entities or individual entrepreneurs;
• a description of commercial activity carried out by these persons for the last 6 (six) months;
• the legal and actual address of a legal entity or individual entrepreneur, phone numbers and working hours (Resolution of the Board of NBT dated 7.01.2025, No. 12).

16. A credit financial organization must verify in

5 the correctness of the information received from a legal entity or individual entrepreneur, or their employees involved in banking payment agency activity (Resolution of the Board of NBT dated 7.01.2025, No. 12). 17. A credit financial organization must define in its internal regulatory documents the minimum requirements for the procedure for selecting a banking payment agent (sub-agent) (Resolution of the Board of NBT dated 7.01.2025, No. 12). 18. A non-commercial organization, educational institution, or any other organization, which, in accordance with legislation, is not permitted to carry out commercial activity, is not attracted to banking payment agency activity. 19. If the head of a legal entity or an individual entrepreneur has a criminal record related to financial fraud, fraud, or any other financial violations, then such a legal entity or individual entrepreneur cannot be selected as a banking payment agent (sub-agent).

CHAPTER 4. REQUIREMENTS FOR THE CONTENT OF THE AGENCY/SUB-AGENCY AGREEMENT 20. The agency/sub-agency agreement must contain the following:

• a list of payment services provided by a banking payment agent (sub-agent) and restrictions on them;
• the method of providing payment services, including using electronic payment instruments and gaining access to them (via the Internet, through dial-up and other communication channels, using mobile communication, personal computer, or other devices);
• tariffs and commissions of a banking payment agent (sub-agent);
• the procedure, deadlines, and form of reporting by a banking payment agent to the credit financial organization regarding client operations;
• security procedures, including the procedure for conducting client identification;
• a provision on the liability of the credit financial organization to clients, as well as the rights and obligations of the credit financial organization and the banking payment agent, liability of the credit financial organization and the banking payment agent (sub-agent) for non-performance or improper performance of obligations arising in the provision of payment services;
• a provision on risk mitigation measures, including restrictions on client operations, cash management, security of the premises of a banking payment agent (sub-agent), etc.;
• a provision stating that all information or data collected by a banking payment agent (sub-agent) within the framework of banking payment agency activity is the property of the credit

6 financial organization and must remain confidential (a banking payment agent (sub-agent) must ensure the preservation of all relevant records, data, documents, or files in accordance with this Procedure and the requirements established by the credit financial organization);

• a provision stating that the employees of a banking payment agent (sub-agent) are not considered employees of the credit financial organization, and the rights and obligations of these employees must be agreed upon between the credit financial organization and the banking payment agent (sub-agent);
• methods for resolving conflicts arising in the provision of payment services by a banking payment agent (sub-agent).
• contact phone numbers, address, and work schedule, during which a banking payment agent (sub-agent) may provide payment services (Resolution of the Board of NBT dated 7.01.2025, No. 12).

201. In a banking payment agency agreement, the activity of a banking payment agent, established by part 1 of Article 13 of the Law of the Republic of Tajikistan "On Payment Services and the Payment System", is determined by reference to the following permitted operations, including:

• loan repayment;
• replenishment of a bank account;
• withdrawal of cash from a bank account;
• increase in the balance of electronic money;
• return of the balance or part of the balance of electronic money to natural persons in cash form;
• receipt and issuance of the amount of internal money transfers;
• payment for paid state services using electronic payment instruments;
• other operations corresponding to the activity provided for in part 1 of Article 13 of the Law of the Republic of Tajikistan "On Payment Services and the Payment System".

202. In a banking payment sub-agency agreement, in compliance with the requirements of part 4 of Article 13 of the Law of the Republic of Tajikistan "On Payment Services and the Payment System", the following operations of a banking payment agent may be provided:

• loan repayment;
• replenishment of a bank account;
• increase in the balance of electronic money;
• payment for paid state services using electronic payment instruments;
• other operations provided for in the agreement with the banking payment agent (Resolution of the Board of NBT dated 7.01.2025, No. 12).

7 21. A credit financial organization and a banking payment agent (sub-agent) may provide for other conditions in the banking payment agency/sub-agency agreement (Resolution of the Board of NBT dated 7.01.2025, No. 12). 22. A credit financial organization is responsible for all actions or errors of a banking payment agent (sub-agent), regardless of the conditions provided for in the banking payment agency/sub-agency agreement, provided that they relate to banking payment agency activity or issues related to them (Resolution of the Board of NBT dated 7.01.2025, No. 12). 23. Upon concluding a banking payment agency agreement, a credit financial organization provides the banking payment agent with the rules, procedure, and conditions for providing payment services (Resolution of the Board of NBT dated 7.01.2025, No. 12). 24. Upon concluding a banking payment agency agreement, a credit financial organization determines the amount of the guarantee deposit, which serves as collateral for settlements for operations of a banking payment agent. The amount of the guarantee deposit is credited by a banking payment agent to a special bank account opened by it in a credit financial organization. By agreement between the credit financial organization and the banking payment agent, this account may be blocked by the credit financial organization for the amount of the limit agreed upon by the parties. Also, the credit financial organization may provide an overdraft to a banking payment agent on its special bank account in case of a shortage of funds by the banking payment agent (Resolution of the Board of NBT dated 7.01.2025, No. 12).

CHAPTER 5. PUBLICATION OF THE LIST OF BANKING PAYMENT AGENTS (SUB-AGENTS) AND THEIR ADDRESSES 25. A credit financial organization providing payment services by attracting banking payment agents (sub-agents) must maintain a list of banking payment agents (sub-agents) in accordance with Appendices No. 1 and No. 2 of this Procedure and post it on its official website (Resolution of the Board of NBT dated 7.01.2025, No. 12). 26. A credit financial organization is obliged to provide the list of all its banking payment agents (sub-agents) upon request by natural persons. The list of agents (sub-agents) must correspond to the information submitted to the National Bank of Tajikistan (Resolution of the Board of NBT dated 7.01.2025, No. 12). 261. A credit financial organization posts on its official website a list of banking payment agents (sub-agents) with indication of their location where banking services are provided (Resolution of the Board of NBT dated 7.01.2025, No. 12). 27. A banking payment agent (sub-agent) cannot move, transfer

8 or close its premises within the framework of banking agency activity without prior notification to the credit financial organization (Resolution of the Board of NBT dated 7.01.2025, No. 12). 28. Notification of the intention to move, transfer, or close the premises of a banking payment agent (sub-agent) must be submitted to the credit financial organization no later than 30 (thirty) days before the date of such intention (Resolution of the Board of NBT dated 7.01.2025, No. 12).

CHAPTER 6. CONTROL BY A CREDIT FINANCIAL ORGANIZATION WITHIN BANKING AGENCY ACTIVITY 29. A credit financial organization is obliged to carry out control over the activities of banking payment agents (sub-agents) and ensure appropriate mechanisms for their compliance with current requirements. A credit financial organization must ensure the expansion of the functions of internal audit and/or internal control departments to assess risks inherent in banking payment agency activity and guarantee adequate staffing of these departments with qualified employees. Control must include:

• assessment of the compliance of control mechanisms carried out with the involvement of external resources through regular audits;
• compliance with procedures for protecting the database, information and communication systems;
• providing banking payment agents (sub-agents) with appropriate guidelines and documents on risk management in the provision of payment services;
• checking banking agency activity based on risk assessment to ensure compliance with rules, regulations, and operational instructions;
• training employees of relevant departments in all key processes and skills necessary for carrying out banking payment agency activity.

30. A credit financial organization must take measures to integrate the software of banking payment agency activity with the main banking automated system to ensure the risk management process for all types of banking activity (Resolution of the Board of NBT dated 7.01.2025, No. 12).
31. A credit financial organization must conduct training for banking payment agents (sub-agents) for the correct carrying out of operations and providing agreed payment services, including training related to proper client identification, rules of customer service, and ensuring information confidentiality (Resolution of the Board of NBT dated 7.01.2025, No. 12).
32. A credit financial organization posts on its official website a list of banking payment agents (sub-agents) with

9 whom the banking payment agency agreement has been terminated due to improper activity (Resolution of the Board of NBT dated 7.01.2025, No. 12).

CHAPTER 7. RESTRICTIONS ON THE ACTIVITY OF A BANKING PAYMENT AGENT (SUB-AGENT) 32. A banking payment agent (sub-agent) is prohibited from:

• carrying out any operations without a connection to the information system of the credit financial organization;
• performing operations for which it is impossible to issue a cash receipt or confirmation of the operation in the form of an electronic message;
• charging the client any additional amounts beyond the tariffs established by the credit financial organization;
• providing payment services not provided for by the banking payment agency/sub-agency agreement;
• carrying out any operations with foreign currency, including receiving funds for the purpose of repaying loans in foreign currency;
• carrying out cross-border money transfers;
• carrying out operations under the supervision of an employee or affiliated person of the credit financial organization;
• attracting other persons on the basis of an agreement to carry out banking payment agency activity, except for cases of attracting banking payment sub-agents (Resolution of the Board of NBT dated 7.01.2025, No. 12).

33. A credit financial organization must establish restrictions on payment services provided by a banking payment agent (sub-agent). Restrictions may be on the quantity and volume of operations, as well as within other restrictions that the credit financial organization deems necessary (Resolution of the Board of NBT dated 7.01.2025, No. 12).
34. When establishing restrictions, the volumes of cash carried by a banking payment agent (sub-agent) must be taken into account, as well as risks related to the location of a banking payment agent (sub-agent) in carrying out banking payment agency activity.

CHAPTER 8. MINIMUM REQUIREMENTS FOR HARDWARE-SOFTWARE COMPLEX OF A CREDIT FINANCIAL ORGANIZATION WITHIN BANKING PAYMENT AGENCY ACTIVITY 35. A credit financial organization must apply technologies guaranteeing instant payments to the account of the final recipient of funds (Resolution of the Board of NBT dated 7.01.2025, No. 12). 36. A credit financial organization must guarantee that:

• all operations within the framework of banking payment agency activity are performed in real-time;
• information systems and equipment used by banking payment agents (sub-agents) have a direct connection to the automated banking system of the credit financial organization;
• each operation of a banking payment agent (sub-agent) is reflected in the automated banking system of the credit financial organization;
• information about operations is transmitted via secure communication channels;
• a cash receipt or confirmation of the completed operation is issued in the form of an electronic message;
• in case of exceeding the daily limit or performing an unauthorized operation by a banking payment agent (sub-agent), auto-rejection of the operation occurs;
• a journal of operation registration and unexpected cases is kept;
• all data on operations carried out through banking payment agents (sub-agents) are stored for a period of no less than 5 (five) years (Resolution of the Board of NBT dated 7.01.2025, No. 12).

37. A credit financial organization d