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2020-12-23 | 129066

Rules for Regulating the Activities of Specialized Financial Institutions

The National Bank of the Kyrgyz Republic establishes binding economic norms, liquidity requirements, and operational restrictions for specialized financial institutions (SFUs) engaged in foreign currency exchange to ensure financial system stability. SFUs are mandated to maintain a minimum capital adequacy ratio of 100%, adhere to strict liquidity and risk management policies, and submit detailed periodic regulatory and daily currency transaction reports. The National Bank retains the authority to conduct unannounced inspections, impose sanctions for non-compliance, and enforce the liquidation of institutions that fail to meet regulatory obligations or have their licenses revoked.

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Date of creation: 2025-11-28

Approved

by the Resolution of the Board of the National Bank of the Kyrgyz Republic of March 16, 2016 No. 12/4

RULES

regulating the activities of specialized financial institutions

(In the edition of the Resolutions of the Board of the National Bank of the Kyrgyz Republic of November 30, 2016 No. 47/5, May 31, 2017 No. 21/8, June 15, 2017 No. 2017-P-12/25-12, December 23, 2020 No. 2020-P-33/73-13, September 28, 2021 No. 2021-P-33/53-10, December 21, 2022 No. 2022-P-12/81-7, October 23, 2025 No. 2025-P-12/55-4-(NPA))

  1. General Provisions

  2. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 31, 2017 No. 21/8)

  3. The National Bank of the Kyrgyz Republic (hereinafter - the National Bank) exercises supervision over the activities of specialized financial institutions (hereinafter - SFUs) engaged in foreign currency exchange, with the aim of preserving the stability of the financial system and ensuring their compliance with the legislation and regulatory legal acts of the Kyrgyz Republic.

These Rules do not apply to commercial banks, microfinance organizations, credit unions, JSC "Financial Company of Credit Unions", financial-credit corporations (companies), loan offices, mutual credit societies, operating on the basis of a license issued by the National Bank of the Kyrgyz Republic and authorized to carry out certain banking operations.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 31, 2017 No. 21/8)

  1. The National Bank establishes economic indicators, requirements, and restrictions mandatory for SFUs to fulfill, with the aim of preserving the stability of the financial system and the sustainable development of SFUs. To achieve the goal and perform the tasks of the National Bank, the Board of the National Bank may, by a separate resolution, change the values of the economic indicators and requirements established in these Rules for a limited period.

  2. The National Bank has the right to apply impact measures to SFUs in accordance with the legislation of the Kyrgyz Republic and these Rules.

  3. SFUs may establish higher requirements for economic indicators and requirements for the purpose of additional risk reduction, without violating the values of economic indicators and requirements established by these Rules and other regulatory legal acts of the National Bank.

  4. The transportation of cash is organized by SFUs independently or with the involvement of a cash-in-transit service/organization, with which a corresponding contract is concluded. In this case, the contracts must provide for conditions ensuring the safety and preservation of SFU valuables during transportation, as well as the issue of compensation for valuables in case of their loss.

  5. Economic indicators, requirements, and restrictions mandatory for SFUs to fulfill

  6. SFUs must comply with the economic indicators, requirements, and restrictions established by the National Bank for SFUs.

  7. Minimum capital size indicator.

8.1. The minimum capital size indicator of SFUs must be maintained at a level of not less than 100% of the minimum authorized capital.

8.2. The minimum capital size indicator of SFUs is determined by the formula:

N1 = (SK / UK) * 100%, where:

SK - own capital of the SFU on the assessment date;

UK - minimum authorized capital established for the SFU by the National Bank.

8.3. SFUs must calculate own capital (on the assessment date) based on the following indicators:

  • paid-up authorized capital (cost of ordinary and preferred shares);
  • capital contributed above nominal value;
  • additional capital contributed by individuals and legal entities;
  • undistributed profit/losses of previous years;
  • losses of the current year.
  1. Liquidity indicator (ratio).

9.1. The value of the liquidity indicator (ratio) N2 must be maintained at a level of not less than 100%.

9.2. The liquidity indicator (ratio) is determined by the formula:

N2 = (LA / OB) * 100%, where:

LA - liquid assets, which include cash in national and foreign currencies (cash register), funds in settlement (current) accounts of the SFU and deposits in banks in national and foreign currencies, as well as state treasury bills and other highly liquid securities issued by the Cabinet of Ministers of the Kyrgyz Republic and the National Bank (hereinafter - highly liquid securities), including highly liquid securities purchased under repurchase agreements. These securities, when calculating the liquidity indicator (ratio), are taken into account minus the premium (discount) and unrealized profit (losses);

OB - obligations of the SFU, which include obligations to banks, dividends payable to shareholders, obligations to clients for foreign currency exchange, other obligations, except for tax obligations to be remitted to the budget.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 21, 2022 No. 2022-P-12/81-7)

  1. To carry out settlements with clients, the SFU must open settlement (current) accounts in national and foreign currencies in several commercial banks operating on the basis of a license issued by the National Bank.

  2. The amount of funds placed in settlement (current) accounts of the SFU in one commercial bank must not exceed 20% of the size of the paid-up authorized capital of the SFU.

  3. The obligation of the SFU regarding client funds credited to the settlement (current) account of the SFU for exchange must be fulfilled no later than two working days.

  4. The term specified in paragraph 12 of these Rules is calculated from the date of crediting client funds to the settlement (current) account of the SFU to the date of acceptance for execution by the commercial bank of the payment document of the SFU on the day indicated as the date of its preparation, unless otherwise provided by the legislation of the Kyrgyz Republic and/or bilateral agreements between the commercial bank and the SFU.

  5. It is established that in the event of untimely crediting of funds to the client's settlement (current) account, the client has the right to demand from the SFU payment of interest for non-fulfillment of the monetary obligation in the amount of double the current discount rate of the National Bank from the amount of the overdue payment for each day of delay, unless a higher amount of interest is provided for by the legislation of the Kyrgyz Republic or bilateral agreements between the SFU and the client.

  6. The SFU must develop and approve a risk management policy by the Board of the SFU, which must subsequently be approved by the Board of Directors of the SFU.

  7. The Board of Directors of the SFU periodically reviews the adequacy of policies and, if necessary, makes changes and additions, which are also subject to preliminary approval by the Board of the SFU.

  8. In the event of a sharp change in the exchange rate of the national currency in the market, in order to maintain its stability, the National Bank has the right to establish the size of the margin.

  9. The SFU is not entitled to:

  • provide loans and credits to legal entities and individuals;
  • borrow funds from legal entities and individuals, except for shareholders - legal entities and commercial banks.

  1. Procedure and deadlines for submitting regulatory and other reports

  2. SFUs must have automated accounting and reporting systems that must comply with the requirements of the Regulation "On Requirements for Ensuring Information Security in Commercial Banks of the Kyrgyz Republic", approved by the Resolution of the Board of the National Bank of December 22, 2021 No. 2021-P-20/72-8-(NPA). SFUs must have internet access to submit reports electronically to the National Bank.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 21, 2022 No. 2022-P-12/81-7)

  1. In order to ensure adequate regulation of the activities of the head SFU and their branches/exchange points, they must independently and timely submit to the National Bank reliable periodic regulatory reports in the form, procedure, and deadlines according to Appendices 1-7 of these Rules, as well as other additional information in accordance with a written request of the National Bank.

  2. The head SFU and their branches/exchange points must provide a report on the purchase and sale of cash foreign currency via the portal twice a day:

  • from 7:00 to 11:00 on the day following the reporting working day - an extended report indicating currency rates and volumes, as well as a report on currency rates without volumes;
  • from 13:00 to 15:00 - a report on foreign currency rates without indicating volumes. At the end of the working day, the head SFU and their branches/exchange points independently form a report on the purchase and sale of cash foreign currency (calculate the totals for operations conducted during the day, determine the balance at the end of the working day) and submit it to the National Bank via the portal for each branch/exchange point. The cash balance at the end of the day must equal the cash balance at the beginning of the next day.

SFUs are obliged to provide a summary report on the purchase and sale of non-cash foreign currency, carried out by the head SFU and their branches/exchange points, electronically to the National Bank. At the same time, a printout of this report is certified by the signature of the responsible employee, stamped by the SFU, filed in chronological order, and stored in the SFU.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of November 30, 2016 No. 47/5)

  1. In the event of non-submission of periodic regulatory reports by the SFU, including reports on the purchase and sale of foreign currency in both cash and non-cash forms, the Chairman of the Board of the SFU or a member of the Board replacing the Chairman in his absence, notifies the National Bank in writing of the reasons for non-submission no later than the next reporting working day.

  2. The Chairman of the Board of the SFU bears responsibility for the timeliness and accuracy of submitting the specified report to the National Bank.

  3. Financial reports of the SFU are submitted to the National Bank in accordance with the requirements of the National Bank regarding the formation, publication, and submission to the National Bank of financial reports of the SFU.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of September 28, 2021 No. 2021-P-33/53-10)

  1. Impact measures applied to SFUs

  2. SFUs are responsible for the timely identification and proper management of risks present in the activities of the SFU.

  3. The National Bank has the right to inspect the activities of the SFU without prior notice upon presentation of a document serving as the basis for the inspection.

  4. SFUs are obliged to provide a separate room to the inspection group of the National Bank, in which there are no audio/video devices recording audio/video, prevent any attempts by third parties to install audio/video equipment in the room provided to the inspection group of the National Bank, ensure the safe storage of SFU documents and the inspection group of the National Bank, and also provide the inspection group of the National Bank with equipment and technology necessary for conducting the inspection.

  5. Upon detection of violations and deficiencies in the activities of the SFU, violation of the rights and legitimate interests of consumers by the SFU, the National Bank has the right to apply any impact measures provided for by the legislation of the Kyrgyz Republic and these Rules, depending on the type and nature of the violation, the specific situation, and the complexity of problems in the SFU.

  6. The National Bank has the right to apply several measures and sanctions for one violation.

  7. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 23, 2020 No. 2020-P-33/73-13)

  8. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 23, 2020 No. 2020-P-33/73-13)

  9. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 23, 2020 No. 2020-P-33/73-13)

  10. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 23, 2020 No. 2020-P-33/73-13)

  11. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 23, 2020 No. 2020-P-33/73-13)

  12. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 23, 2020 No. 2020-P-33/73-13)

  13. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 23, 2020 No. 2020-P-33/73-13)

  14. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 23, 2020 No. 2020-P-33/73-13)

  15. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of December 23, 2020 No. 2020-P-33/73-13)

  16. In the event of revocation of the SFU license, within three days after receiving the decision of the National Bank of the Kyrgyz Republic on the revocation of the license, the SFU must submit the original license to the National Bank of the Kyrgyz Republic, and within one month - begin the procedure for out-of-court liquidation.

  17. Obligations for the liquidation of the SFU are imposed on the management body authorized for liquidation by the charter of the SFU.

  18. In the event of non-fulfillment by the SFU of the requirements established in paragraph 38 of these Rules, the National Bank has the right to apply to the court with a claim for the forced liquidation of the SFU in accordance with the legislation of the Kyrgyz Republic.

  19. An SFU against which a decision on the application of impact measures has been taken has the right to appeal this decision in accordance with the Regulation "On Pre-trial Regulation of Disputes between the National Bank of the Kyrgyz Republic and commercial banks, organizations carrying out certain types of banking operations, and their founders (participants), legal and physical persons.

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 31, 2017 No. 21/8)

  1. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 31, 2017 No. 21/8)

  2. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 31, 2017 No. 21/8)

  3. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 31, 2017 No. 21/8)

  4. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 31, 2017 No. 21/8)

  5. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 31, 2017 No. 21/8)

  6. (Lost force in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic of May 31, 2017 No. 21/8)

Appendix 1

COMPOSITION

Periodic Regulatory Report of Specialized Financial Institutions

(In the edition of the Resolutions of the Board of the National Bank of the Kyrgyz Republic of November 30, 2016 No. 47/5, June 15, 2017 No. 2017-P-12/25-12)

section

name

Frequency

Submission deadlines

Note or reference to NPA

1

Title page

Monthly

Within 12 calendar days from the end of the reporting period

Attached to sections

Once a year

By February 1, following the reporting year

2

Information on members of the Board of Directors and Board of the SFU

Once a year

By February 1, following the reporting year

Attached to sections

Upon changes

Within 12 calendar days from the end of the reporting period

3

Information on certain officials

Once a year

By February 1, following the reporting year

Attached to sections

Upon changes

Within 12 calendar days from the end of the reporting period

4

Basic information

Once a year

By February 1, following the reporting year

Attached to sections

Upon changes

Within 12 calendar days from the end of the reporting period

5

Section 1.

Balance Sheet

A. Assets

B. Liabilities

C. Capital

Monthly

Within 12 calendar days from the end of the reporting period

6

Section 2.

Income Statement

A. Interest Income

B. Interest Expenses

C. Non-interest Income

D. Non-interest Expenses

E. Other Operating and Administrative Expenses

Monthly

Within 12 calendar days from the end of the reporting period

7

Section 3.

Capital Structure

A. Changes in Capital Structure

B. Reference Information on SFU Shares

Monthly

Within 12 calendar days from the end of the reporting period

8

Section 4.

Changes in Undistributed Profit

Monthly

Within 12 calendar days from the end of the reporting period

9

Section 5.

Daily Report on Purchase and Sale of Foreign Currency

A. Daily Report on Purchase and Sale of Cash Foreign Currency and Currency Rates

B. Daily Report on Purchase and Sale of Non-cash Foreign Currency

Daily - 2 times a day

from 7:00 no later than 11:00 as of the end of the last operational day

from 13:00 no later than 15:00

  1. extended report indicating foreign currency rates and volumes of their purchase and sale

  2. report on foreign currency rates without indicating volumes of their purchase and sale

10

Section 6.

Information on Economic Indicators

Monthly

Within 12 calendar days from the end of the reporting period

Appendix 2

to the Rules for Regulating the Activities of Specialized Financial Institutions

PERIODIC REGULATORY REPORT

(In the edition of the Resolutions of the Board of the National Bank of the Kyrgyz Republic of June 15, 2017 No. 2017-P-12/25-12, October 23, 2025 No. 2025-P-12/55-4-(NPA))

No. ___________________________________

(date of submission)

(registration, outgoing)

As of:

"_" _____________ 20 g.

Prepared:

________________ 20__ g.

/day, month, year/

/day, month, year/

Frequency: - monthly; - annual; - correction

Accuracy of the report confirmed by:

internal audit

audit without conclusion

audit with issuance of conclusion

Reporting Institution: _________________________________________________

(name of SFU indicated in capital letters)

External Auditor of SFU _______________________________________________________

(reference to No. and date of conclusion)

SIGNATURE AND CERTIFICATION

We, the undersigned, certify that this reporting and attachments are prepared in accordance with the requirements of the National Bank of the Kyrgyz Republic. We also certify that we have checked this reporting, confirm and bear responsibility that it represents the correct state and information of the SFU as of this reporting date.

  1. Chairman of the Board of Directors of the SFU

or Member of the Board of Directors replacing

the Chairman in his absence

(signature) (Full Name)

  1. Chairman of the Board

(signature) (Full Name)

  1. Chief Accountant

(signature) (Full Name)

Employee of the SFU,

designation:

Executor

responsible for preparation and

Full Name:

submission of the PRO

signature:

telephone:

Notes:

  1. The title page indicates:
  • date and outgoing registration number;
  • date as of which the report was prepared (for example, as of November 20, 2015);
  • date of completion of report preparation;
  • frequency - "monthly", "annual" or "correction". Submission of a corrected report is allowed if technical errors arise. In this case, only those report forms in which changes were made are submitted, with changes marked by a marker;
  • type of audit or inspection conducted - one or two of the following lines are indicated:

a) internal audit - if the audit was conducted by internal audit;

b) audit without conclusion - if an audit was conducted that does not give recommendations, a work plan for the future, but is limited to issuing a conclusion on the correctness of operations and accounting;

c) audit with issuance of conclusion - if an audit was conducted that, in addition to checking the correctness of operations and accounting, gives the SFU recommendations and a plan of measures for improvement and/or perfection of its activities;

  • name of the reporting SFU, indicated in capital letters;

  • external auditor - filled in when submitting the annual report;

  • certifying signatures of the Chairman of the Board of Directors of the SFU or a member of the Board of Directors replacing the Chairman in his absence, the Chairman of the Board, the Chief Accountant, and the person responsible for preparing and submitting the report;

  • signature of the SFU employee responsible for preparing and providing the PRO, indicating position, surname, first name, patronymic, and phone number.

INFORMATION ON MEMBERS OF THE BOARD OF DIRECTORS OF THE SFU

Full Name

Place of Work

Position

Telephone

Sample Signature

1

2

3

4

5

6

7

8

9

10

INFORMATION ON MEMBERS OF THE BOARD OF THE SFU

Full Name

Place of Work

Position

Telephone

Sample Signature

1

2

3

4

5

6

7

8

9

10

Executor

signature: ________________________

Notes:

  1. Information on members of the Board of Directors of the SFU must contain the following information:
  • surname and first name;
  • place of work;
  • position;
  • work phone number;
  • sample signature.
  1. Information on members of the Board of the SFU must contain the following information:
  • surname and first name;
  • place of work;
  • position;
  • work phone number;
  • sample signature.

INFORMATION ON CERTAIN OFFICIALS OF THE SFU

  1. Chief Accountant

a) Full Name

b) position

c) telephone

d) sample signature

  1. Official responsible for liquidity management

a) Full Name

b) position

c) telephone

d) sample signature

  1. Official responsible for operations on the purchase and sale of cash and non-cash foreign currency

a) Full Name

b) position

c) telephone

d) sample signature

Executor

signature: ________________________

Notes:

  1. Information on certain officials of the SFU contains a list of the following certain officials of the SFU:
  1. chief accountant
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