Rules for the Operation of the Automated System for Interbank Money Transfers

1 Registered and Approved By the Ministry of Justice of the Republic of Tajikistan Order No. 574 'g' dated October 23, 2020 By the Order of the Board of the National Bank of Tajikistan No. 105 dated August 31, 2020 Registered and Approved By the Ministry of Justice of the Republic of Tajikistan Order No. 574 'd' dated April 13, 2022 By the Order of the Board of the National Bank of Tajikistan No. 30 dated March 18, 2022

Rules for the Operation of the Automated System for Interbank Money Transfers The Rules for the Operation of the Automated System for Interbank Money Transfers (hereinafter referred to as the "Rules") are developed in accordance with Articles 31 and 32 of the Law of the Republic of Tajikistan "On the National Bank of Tajikistan," Article 18 of the Law of the Republic of Tajikistan "On Payment Services and the Payment System," Article 39 of the Law of the Republic of Tajikistan "On Banking Activity," and Article 45 of the Law of the Republic of Tajikistan "On Islamic Banking Activity." These Rules establish the procedure for the operation of the Automated System for Interbank Money Transfers, which falls under the jurisdiction of the National Bank of Tajikistan, as well as the rules and procedures for joining this system.

CHAPTER 1. GENERAL PROVISIONS

1. The following terms are used in these Rules:

• participants of the payment system (hereinafter referred to as "Participants" or individually as "Participant") – the National Bank of Tajikistan, credit financial organizations having correspondent accounts at the National Bank of Tajikistan, the Main Directorate of the Central Treasury of the Ministry of Finance of the Republic of Tajikistan, and professional participants of the securities market;
• Automated System for Interbank Money Transfers (hereinafter referred to as the "System") – an electronic payment system that ensures the processing of interbank payments through correspondent accounts of Participants opened at the National Bank of Tajikistan, using electronic means for receiving, processing, transmitting, and protecting information;
• clearing center – a structural unit of the National Bank of Tajikistan, whose functions include opening and servicing correspondent accounts of credit financial organizations and ensuring the uninterrupted operation of the System;
• electronic payment document – an electronic image of a paper payment document, having a format established by the rules of the payment system, containing the necessary information for carrying out settlements, and certified with an electronic digital signature;
• electronic payment – the implementation of cashless settlements through electronic payment documents using technical means and information technologies;
• electronic digital signature – a requisite of an electronic payment document intended to ensure the confirmation of the authenticity and authorship of the electronic payment document as a result of cryptographic transformation of information, being an integral part of the electronic payment document;
• credit financial organizations (depending on the purposes of these Rules) – legal entities (banks, Islamic banks, microcredit deposit organizations, and Islamic microcredit deposit organizations) carrying out all or separate banking operations and/or Islamic banking operations (hereinafter referred to as "License") based on the license of the National Bank of Tajikistan, as provided by law;
• interbank settlements – settlements between Participants of the System regarding the fulfillment of monetary claims and obligations for their own payments and for payments initiated by their clients;
• QR-payments – payments made by reading data from a QR code image using a mobile device, barcode scanner, and other devices;
• QR-code (Quick Response code) – a matrix code (two-dimensional barcode) that contains information about the sender and recipient of funds and is intended for scanning using a mobile device, barcode scanner, and other devices for the purpose of transferring details of a money transfer operation;
• unified QR code requirements – the unified EMV QR code standard developed by EMV Co.;
• EMV QR Merchant System (EQMS) – a unified registry of the National Bank of Tajikistan intended for centralized registration and accounting of all trade and service enterprises accepting payments via QR code; (Order of the Board of NBT No. 30 dated 18.03.2022)
• Key Certification Center of the Electronic Digital Signature of the National Bank of Tajikistan (hereinafter referred to as the "Certification Center") – a structural unit of the National Bank of Tajikistan responsible for providing and confirming the authenticity of electronic certificates issued to Participants;
• clearing – the process of collecting, processing, confirming payments, and calculating mutual multilateral net positions of Participants of the System;
• credit payment – a payment made by a Participant upon the instruction of the payer to debit funds from the payer's account and credit them to the recipient's account;
• final settlement – a settlement carried out on the correspondent accounts of Participants opened at the National Bank of Tajikistan through the payment system in real-time mode. Final settlement is unconditional and irrevocable;

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• payment document package – a collection of payments or messages sent to one Participant, grouped by the same type and settlement date, and formed in electronic form;
• position – a participant's payment clearing position is determined by the total amount of instructions for which the Participant is the payer or recipient;
• message – electronic information about requests, responses, and confirmations in the System;
• transaction – a payment operation in which the amount of the debited position equals the amount of the credited position and is executed on an "all or nothing" basis;
• operational day – the working day time during which the System receives/transmits, processes, and executes financial and non-financial messages, as well as for clearing settlements. Payment documents received by the System from Participants during the operational day are accepted for execution on the same day, while those received after the end of the operational day are rejected by the System;
• priority – a positive integer from 1 to 100 assigned to a payment message in the System and used to organize the queue of transactions.

2. The System consists of the following modules:

• real-time gross settlement (hereinafter referred to as "gross settlement") – intended for processing urgent payments and large amounts. Gross settlement processes payment documents transmitted by Participants and finalizes the settlement of related money transfers in real-time, including the final settlement of funds related to securities transactions.
• clearing settlements with net positions (hereinafter referred to as "clearing settlements") – intended for processing small-amount payments. Clearing settlements process packages of payment documents transmitted by Participants and calculate the multilateral net positions of Participants.
• instant payments – intended for instant money transfers, supports the service for receiving, processing, and conducting instant payments in 24-hour, 7-day, and 365-day mode using its subsystems and software-technical complexes.

CHAPTER 2. PURPOSE AND PRINCIPLES OF SYSTEM OPERATION 3. The main objectives of the System's operation are:

• ensuring reliable, fast, secure, and uninterrupted transfer of funds in cashless form between Participants of the System, as well as payments related to transactions on interbank financial markets;
• maintaining the stability of the banking and financial system of Tajikistan in the sphere of money circulation;
• reducing operational risks;
• improving the efficiency of the use of financial resources, as well as increasing the liquidity of the financial market of Tajikistan and ensuring the implementation of the monetary policy of the Republic of Tajikistan.

4. The National Bank of Tajikistan guarantees Participants the application of uniform legal and technical norms and requirements in the field of maintaining correspondent accounts, accessing the System, and exchanging and processing electronic documents.
5. The System operates on the basis of the following principles:

• priorities of processing and time of receipt of the electronic payment document;
• initiation of the electronic payment by the Participant;
• execution of electronic payments within the limits of funds in the correspondent accounts of Participants;
• the impossibility of canceling an executed electronic payment;
• high degree of security, speed, and reliability.

6. The National Bank of Tajikistan is the owner, operator, and independent participant of the System, carries out fund transfers on Participants' accounts, providing settlement services and payment clearing services.
7. Participants of the System appoint by order no less than two responsible persons to work in the System.
8. Responsibility for the correct crediting and debiting of funds from clients' accounts and the formation of the electronic payment document transmitted for processing in the System lies with the payer of funds, and for those received from the System – with the recipient.
9. Responsibility for the safety of information transmitted through the System, timely and correct crediting and debiting of funds from the correspondent accounts of Participants, formation of confirmations of receipt and processing of electronic payment documents, and statements on correspondent accounts lies with the National Bank of Tajikistan.

CHAPTER 3. PROCEDURE FOR JOINING THE SYSTEM, GENERAL REQUIREMENTS FOR PARTICIPATION, SUSPENSION AND TERMINATION OF PARTICIPATION IN THE SYSTEM 10. The procedure for joining the System is determined by these Rules. 11. The rights and obligations of Participants of the System are regulated by these Rules and a bilateral agreement on the provision of services for interbank settlements (hereinafter referred to as the "Agreement"). 12. Credit financial organizations, the Main Directorate of the Central Treasury of the Ministry of Finance of the Republic of Tajikistan, and professional participants of the securities market apply to the National Bank of Tajikistan with a written application for opening a correspondent account and connecting to the System. 13. The Department of Banking Supervision or the Financial Market Department of the National Bank of Tajikistan notifies the clearing center in writing of its consent to open a correspondent account, indicating the full name of the applicant organization. 14. Based on the letter from the Department of Banking Supervision or the Financial Market Department of the National Bank of Tajikistan, the clearing center begins the process of connecting the applicant organization to the System. 15. To join and work in the System, the applicant organization must have an electronic digital signature certificate. To obtain this certificate, the applicant organization applies to the Certification Center. 16. After providing the documents specified in paragraph 13 of Instruction No. 171 "On the procedure for opening, reissuing, and closing bank accounts by credit organizations in the Republic of Tajikistan" and upon technical readiness, the National Bank of Tajikistan, for the purpose of connecting the applicant organization to the System, assigns a banking identification code to this organization based on the Order of the Board of the National Bank of Tajikistan. 17. An Agreement is concluded between the National Bank of Tajikistan and the applicant. From the moment of signing the Agreement, the applicant organization becomes a Participant of the System. 18. The Participant of the System is registered in the System database by the National Bank of Tajikistan, and a test check of its readiness to work in the System is carried out. 19. The National Bank of Tajikistan sends a written notification to Participants of the System regarding the opening of the banking identification code of the new Participant. 20. Participant management is carried out in the modules of real-time gross settlement, clearing settlements with net positions, and instant payments. 21. Branches of credit financial organizations cannot connect to the System directly. 22. Each Participant of the System has one of the following statuses:

• "Active" – means that the Participant can send/receive messages and perform any actions allowed for this Participant in the System;
• "Suspended" – means the temporary suspension of the Participant's participation in the System in case of violation of the requirements of these Rules, conditions of the Agreement, by decision of the court and tax authority. All payment orders involving accounts of this Participant (account debited or credited) are automatically placed in a queue;
• "Inactive" – the Participant's status means the termination of the Participant's activity in the System based on the Order of the Board of the National Bank of Tajikistan on the revocation of the License and termination of the Agreement.

23. Payments sent by Participants with the "Suspended" status wait in a special queue until this Participant has the "Active" status. After transferring the Participant to the "Active" status, its transfers are processed in accordance with the established settlement or clearing order.
24. Payments in the queue that cannot be settled by the end of the operational day will be automatically annulled by the System with corresponding notification to Participants.

CHAPTER 4. CARRYING OUT ACTIVITIES WITHIN THE SYSTEM 25. The National Bank of Tajikistan, as the operator of the payment system, ensures the operation of the System and provides services for carrying out final settlement of Participants' payments. 26. Participants of the System carry out their activities in accordance with the schedule of the System's operational day approved by the Order of the Board of the National Bank of Tajikistan. 27. In case of unforeseen technical circumstances, the System administrator, in agreement with the Management of the National Bank of Tajikistan, changes the schedule of the System's operational day, informing Participants about this. 28. Participants transmit payment documents to the System in their own name or on behalf of their clients, ensuring the correctness and accuracy of the data contained in the payment documents they transmit. A finally settled document is not subject to modification or addition. Payment documents transmitted to the System must meet the requirements set forth in Appendix No. 1. 29. Payment documents are transmitted by Participants to the System in the form of payment messages in ISO 20022 format. 30. In accordance with Article 34 of the Law of the Republic of Tajikistan "On the National Bank of Tajikistan," the National Bank of Tajikistan charges Participants a certain fee for services provided within the framework of the System.

CHAPTER 5. ORGANIZATION OF ACTIVITIES IN THE REAL-TIME GROSS SETTLEMENT MODULE 31. The real-time gross settlement module operates on the principle of gross settlement, processing and settling each payment document individually. 32. The following payment documents are processed in the real-time gross settlement module:

1. payment orders for urgent transfers;
2. collection orders for collection in an undisputed manner in accordance with current regulatory acts;
3. payment orders for securities operations.

33. The stages of processing a payment document in the real-time gross settlement module are:

1. initiation and transmission of the document to the System by the Participant;
2. technical validation of the document by the System;

3 3) verification by the System of the availability of funds in the correspondent account, according to the circumstances, acceptance of the document for settlement or placement in a queue. From the moment of settlement, the payment document becomes irrevocable, ensuring final settlement. 34. Restrictions on the quantity or amount of payment documents transmitted to the real-time gross settlement module do not apply. 35. Payment documents are transmitted by Participants to the System in the form of payment messages. 36. Payment documents for securities operations are transmitted by Participants to the System in the form of payment orders. 37. Based on the speed of payment processing and the probability of their placement in a queue, Participants assign priorities to payment documents. 38. Priorities assigned by Participants to payment documents transmitted to the real-time gross settlement module must meet the requirements set forth in Appendix No. 2. 39. If the funds in the Participant's correspondent account are insufficient to settle a payment document, the System places the payment document in a queue according to the priority assigned by the Participant. 40. Upon crediting the Participant's correspondent account, for which payment documents are placed in a queue, the System re-processes these documents in accordance with the assigned priorities and the "first in, first out" (FIFO) principle. 41. Payment documents in the queue may be annulled by the initiating Participant. 42. In accordance with its internal procedures, a Participant may change the priority of a payment document in the queue to change the sequence of its settlement. 43. A payment document is considered finally settled for the Participant-payer at the moment of debiting its correspondent account, and for the Participant-recipient at the moment of crediting the correspondent account of this Participant. 44. The real-time gross settlement module does not initiate the return of a finally settled payment document, including in cases where it was transmitted erroneously. 45. The return of the amount of an erroneously transmitted payment document is carried out by the Participant-recipient upon the request of the Participant-payer or in case of discovery of incorrectly specified details in the payment document. 46. The Participant-recipient may return an erroneously transmitted payment document to the Participant-payer by providing a new payment document.

CHAPTER 6. ORGANIZATION OF ACTIVITIES IN THE CLEARING SETTLEMENTS MODULE BASED ON NET POSITIONS 47. The clearing settlements module operates on the principle of clearing and net position settlement, performing clearing of payments transmitted by Participants and sending clearing results for settlement in the real-time gross settlement module at predetermined intervals. 48. The clearing settlements module processes payment documents for credit transfers with small amounts. 49. Participants, based on payment documents received from clients, form packages of payment documents, which they transmit to the clearing settlements module in the form of payment messages. 50. A package of payment documents may contain payment documents intended for only one Participant-beneficiary. The maximum amount of one payment document in the clearing settlements module must not exceed 1,000.00 (one thousand) somoni. 51. During the operational day, the clearing settlements module ensures the possibility of carrying out two clearing sessions in accordance with the schedule of the System's operational day. 52. A clearing session includes the following stages:

• transmission of packages of payment documents;
• verification of packages of payment documents;
• pre-clearing;
• clearing.

53. During the "Transmission of Packages of Payment Documents" stage, packages of payment documents for the corresponding clearing session are received, validated, and technically accepted by the System with corresponding notification to Participants.
54. Participants can view preliminary net positions in real-time and reserve funds to cover debit net positions.
55. During the "Verification of Packages of Payment Documents" stage, Participants, in accordance with their internal procedures, may cancel packages or payment documents within a package transmitted for the corresponding clearing session.
56. At the "Pre-clearing" stage, the clearing settlements module informs Participants about net positions calculated for the corresponding clearing session and reserves funds in the correspondent accounts of Participants necessary to cover debit net positions. Payment documents included in the calculated net positions cannot be canceled by Participants at the corresponding stage.
57. At the "Clearing" stage, the clearing settlements module, based on the level of coverage of debit net positions, calculates final net positions for the corresponding clearing session. Packages of payment documents are included in the calculation of final net positions in accordance with the priorities assigned to them and the "first in, first out" (FIFO) principle, and accordingly, the payment documents included in them are accepted for settlement. Payment documents included in final net positions cannot be canceled.
58. Payment documents that were not accepted for settlement in the first clearing session are automatically transmitted by the clearing settlements module for processing in the second clearing session.
59. Final settlement of payment documents accepted for settlement is carried out at the moment of debiting the correspondent account of the Participant-payer for the amount of the debit net position and crediting the correspondent account of the Participant-recipient for the amount of the credit net position.
60. The clearing settlements module does not initiate the return of finally settled payment orders, including in cases where they were transmitted erroneously. The return of amounts of payment orders erroneously transmitted to the clearing settlements module is carried out in accordance with the procedure provided for in paragraphs 45-46 of these Rules.

CHAPTER 7. ORGANIZATION OF ACTIVITIES IN THE INSTANT PAYMENTS MODULE 61. The instant payments module is intended for carrying out payments on the principle of clearing in 24-hour, 7-day, and 365-day mode, calculating net positions and transmitting results to the real-time gross settlement module. 62. Participants of the instant payments module are:

• direct Participants – settlement Participants having direct connection to the instant payments module;
• indirect Participants – settlement Participants having connection to the instant payments module through a direct Participant's system;

63. The following payments are processed in the instant payments module:

• payments made through mobile banking, internet banking, electronic wallets (electronic money in somoni);
• transfers between individuals through bank payment cards;
• payment to suppliers of services and goods;
• payment for state services;
• QR-payments.

631. Participants – credit financial organizations providing QR-payment services, when forming QR codes, must comply with the unified QR code requirements in accordance with Appendix No. 3 of these Rules.
632. Participants – credit financial organizations providing QR-payment services in trade and service enterprises, are obliged to register trade and service enterprises in the unified registry of the National Bank of Tajikistan – EMV QR Merchant System according to the application provided for in accordance with Appendix No. 4 of these Rules.
633. Participants – credit financial organizations are obliged to take necessary measures to ensure security and/or prevent fraudulent or unauthorized actions when making QR-payments. (Order of the Board of NBT No. 30 dated 18.03.2022)
634. Participants, based on payment orders received from clients through various instant service channels, form payment messages, which they transmit to the instant payments module.