Procedure for the Establishment of Structural Divisions by Credit Financial Organizations and Their Branches

1 "Registered" "Approved" Ministry of Justice of the Republic of Tajikistan Resolution of the Board of the National Bank of the Republic of Tajikistan of June 18, 2019, No. 559 "g" of May 29, 2019, No. 58 "Registered" "Approved" Amendments and additions Amendments and additions Ministry of Justice of the Republic of Tajikistan Resolution of the Board of the National Bank of the Republic of Tajikistan of February 25, 2021, No. 559 "g" of January 19, 2021, No. 7 "Registered" "Approved" Amendments and additions Amendments and additions Ministry of Justice of the Republic of Tajikistan Resolution of the Board of the National Bank of the Republic of Tajikistan of October 09, 2023, No. 559 "d" of September 13, 2023, No. 97

Procedure for the Establishment of Structural Divisions by Credit Financial Organizations and Their Branches

The Procedure for the Establishment of Structural Divisions by Credit Financial Organizations and Their Branches (hereinafter - the Procedure) is developed in accordance with parts 5 and 6 of Article 11 of the Law of the Republic of Tajikistan "On Banking Activity", parts 5 and 6 of Article 13 of the Law of the Republic of Tajikistan "On Islamic Banking Activity", part 3 of Article 6 of the Law of the Republic of Tajikistan "On Microfinance Organizations", and establishes the procedure for the establishment of structural divisions of credit financial organizations and their branches, as well as the list of certain banking operations or Islamic banking operations and other services that they may perform.

CHAPTER 1. GENERAL PROVISIONS

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

• credit financial organizations - credit organizations and Islamic credit organizations conducting activities provided by law based on a license from the National Bank of Tajikistan;
• state credit financial organizations - credit organizations and Islamic credit organizations whose charter capital (fund) is fully owned by the state; (Resolution of the Board of the NBT of September 13, 2023, No. 97)
• credit organizations - legal entities (banks and non-bank credit organizations, including microfinance organizations) conducting all or certain banking operations provided by law based on a license from the National Bank of Tajikistan;
• Islamic credit organizations - legal entities (Islamic banks, Islamic non-bank credit organizations, and Islamic microfinance organizations, including "Islamic banking windows") conducting all or certain Islamic banking operations provided by law based on a license from the National Bank of Tajikistan;
• branch - a separate structural division of credit financial organizations located outside their place of registration and performing banking or Islamic banking activities on their behalf in full or in part, having a unified charter capital and unified balance sheet with the credit financial organization;
• banking service center - a structural division of banks, Islamic banks, non-bank credit organizations, and Islamic non-bank credit organizations, which, depending on the type of the aforementioned organizations, may perform certain or all banking operations and services provided by this Procedure;
• microfinance service center - a structural division of microfinance organizations or Islamic microfinance organizations, which, depending on the type of the aforementioned organizations, may perform all or certain banking operations and services provided by this Procedure;
• cash service point - a structural division of banks, Islamic banks, non-bank credit organizations, Islamic non-bank credit organizations, microcredit deposit organizations, and Islamic microcredit deposit organizations, which, depending on the type of the aforementioned organizations, may perform currency exchange operations and other services provided by this Procedure (Resolution of the Board of the NBT of September 13, 2023, No. 97);
• banking operation - a banking operation or Islamic banking operation conducted in accordance with the established procedure by credit financial organizations.

2. Credit financial organizations and their branches, in accordance with this Procedure, may create other structural divisions outside their place of location - banking service centers, microfinance service centers, and mobile divisions (hereinafter - structural divisions).

3. To ensure the safety of the activities of structural divisions, they must be equipped with external surveillance cameras with memory volume allowing the storage of recordings for at least three continuous calendar months and ensuring full-time recording around the clock. Structural divisions must provide conditions for storing recordings and ensuring uninterrupted operation of external surveillance cameras in the event of temporary power outages and other unforeseen circumstances.

4. To ensure the safety of the assets of the credit financial organization, cash funds of structural divisions must be collected daily for storage in the cash office of the head office of the credit financial organization or its branch using its own collection service and/or a rented one. Cash funds may be stored in the building of the structural division if the building meets the requirements established by the normative legal acts of the National Bank of Tajikistan on cash operations.

5. Structural divisions located at a significant distance from the location of the head office of the credit financial organization and its branch may conclude agreements with other credit financial organizations for cash servicing, storage, and collection of valuables.

6. Ensuring compliance with the requirements of this Procedure and managing its risks is the responsibility of credit financial organizations.

7. Structural divisions must have the necessary equipment for work, signage, a seal indicating their full name, and stamps.

8. Credit financial organizations are obliged to check the activities of their structural divisions at least once a month, including the protection and safety of their assets. An act is drawn up as a result of the inspection, which must be reviewed by the management of the credit financial organization within five working days. The management of the credit financial organization must immediately review all identified cases of non-compliance with requirements and deficiencies of their structural divisions and take necessary measures to correct them and prevent them in the future.

9. Credit financial organizations are obliged to equip their structural divisions with software products, technical equipment, and communication means to create a unified centralized electronic network connected to their own automated banking system in real-time (online).

CHAPTER 2. PROCEDURE FOR OPENING AND CLOSING STRUCTURAL DIVISIONS

10. The activities of structural divisions are carried out based on their regulation, corresponding resolution (order) of credit financial organizations or their branches, and this Procedure. Banking service centers and microfinance service centers may operate around the clock.

11. The staffing level of structural divisions is determined by the credit financial organization in compliance with the requirements of paragraph 19 of this Procedure.

12. Credit financial organizations and their branches, having created a structural division in accordance with this Procedure, establish for them a list of banking operations and services, the procedure for conducting accounting operations, and conditions for storing cash and valuables.

13. In structural divisions having 3 or more full-time positions or employees, a head of the structural division is appointed by order of the head of the credit financial organization or its branch.

14. Credit financial organizations begin the activities of structural divisions and change their location with the agreement of the National Bank of Tajikistan.

15. Credit financial organizations and their branches must notify the National Bank of Tajikistan and its regional offices within 5 days after adopting the corresponding resolution (order) about the closure of structural divisions.

16. Structural divisions are closed by credit financial organizations and their branches in the following cases:

• non-compliance with safety rules and requirements of the legislation of the Republic of Tajikistan;
• shortage of necessary personnel;
• their untargeted activity.

CHAPTER 3. BANKING SERVICE CENTERS AND MICROFINANCE SERVICE CENTERS

17. Credit financial organizations and their branches may create banking service centers or microfinance service centers (hereinafter - centers) on the condition that the standards established by the National Bank of Tajikistan were met during the last month.

18. The area of banking centers of banks, Islamic banks, non-bank credit organizations, Islamic non-bank credit organizations, microcredit deposit organizations, and Islamic microcredit deposit organizations must be no less than 25 square meters, and in other credit financial organizations no less than 20 square meters, and they must also provide the opportunity to equip workstations for service workers and a waiting area for convenient and safe transactions with clients. (Resolution of the Board of the NBT of September 13, 2023, No. 97)

19. In banking centers of banks, Islamic banks, non-bank credit organizations, Islamic non-bank credit organizations, microcredit deposit organizations, and Islamic microcredit deposit organizations, no less than 3 employees must work, and in other credit financial organizations no less than 2 employees, servicing banking operations. (Resolution of the Board of the NBT of September 13, 2023, No. 97)

20. Centers, in accordance with the procedure established by the normative legal acts of the National Bank of Tajikistan, according to the license of the credit financial organization for conducting corresponding banking activities, may perform all or certain of the following operations and services:

Banking centers of banks, Islamic banks, non-bank credit organizations, and Islamic non-bank credit organizations perform the following banking operations and services:

• money transfers of individuals without opening a bank account;
• issuance of microcredits, Islamic microcredits (secured and unsecured) and acceptance of payments for credits, Islamic credits, and interest or income from them;
• opening and maintaining a savings deposit account;
• cash operations (including, acceptance and exchange of worn and damaged but fit banknotes);
• sale, purchase, and payment of winnings on government securities;
• currency exchange operations;
• replenishment of a demand deposit and term deposit account with the condition of opening this account in a bank, Islamic bank, non-bank credit organization, Islamic non-bank credit organization, or their branches, and payment of interest or their income;
• servicing bank payment cards;
• providing consulting and information services to clients.

Centers of microcredit deposit organizations and Islamic microcredit deposit organizations perform the following banking operations and services:

• money transfers of individuals without opening a bank account;
• issuance of microcredits, Islamic microcredits (secured and unsecured) and acceptance of payments for credits, Islamic credits, and interest or income from them;
• opening and maintaining a savings deposit account;
• cash operations (including, acceptance and exchange of worn and damaged but fit banknotes);
• currency exchange operations;
• replenishment of demand deposit and term deposit accounts with the condition of opening this account in a bank, Islamic bank, non-bank credit organization, Islamic non-bank credit organization, or their branches, and payment of interest or their income;
• servicing bank payment cards;
• providing consulting and information services to clients.

Centers of microcredit organizations, Islamic microcredit organizations, microcredit funds, and Islamic microcredit funds perform the following banking operations and services:

• issuance of microcredits, Islamic microcredits, and acceptance of payments for credits, Islamic credits, and interest or income from them;
• providing consulting and information services to clients.

21. Banking operations and services performed by centers must be reflected in the daily balance sheets of credit financial organizations and their branches.

22. The requirements of paragraphs 18 and 19 do not apply to centers of state credit financial organizations that were opened before May 1, 2016, and their location changes only within this district (Resolution of the Board of the NBT of September 13, 2023, No. 97).

CHAPTER 31. CASH SERVICE POINTS (Resolution of the Board of the NBT of September 13, 2023, No. 97)

221. Banks, Islamic banks, non-bank credit organizations, Islamic non-bank credit organizations, microcredit deposit organizations, Islamic microcredit deposit organizations, and their branches may create cash service points in hotels, railway stations, sanatoriums, airports, and customs posts.

222. The area of cash service points must be no less than 5 square meters and provide the opportunity to equip workstations for service workers and convenient conduct and risk reduction in transactions with clients.

223. Cash service points may perform the following banking operations and services in the manner established by the normative legal acts of the National Bank of Tajikistan:

• purchase and sale of foreign currency for national currency;
• exchange of one foreign currency for another foreign currency;
• exchange of cash foreign currency of one nominal value for other denominations;
• exchange of worn and damaged cash foreign currency for fit cash foreign currency;
• determination of the authenticity of cash foreign currency;
• servicing plastic cards through post-terminals;
• replenishment of bank payment card accounts and electronic wallets of individuals;
• providing clients with electronic payment instruments.

224. Cash service points must conduct customer identification when providing an individual with an electronic payment instrument in accordance with the requirements of the Law of the Republic of Tajikistan "On Countering the Legalization (Money Laundering) of Income Obtained by Criminal Means, Terrorism Financing, and Financing of the Proliferation of Weapons of Mass Destruction." Acquired foreign currency funds must be sold by cash service points at the request of individuals through this point.

225. Cash service points must have an iron safe for storing valuables, counting and sorting machines, a chair, a table, foreign currency authenticity determination means (detectors, microscopes), a printing device, computers, software products, and communication means connected to the unified centralized electronic network of the head office, allowing the registration, recognition, and determination of each exchange operation in the automated banking system of the credit financial organization in online mode.

226. Entry and presence of unauthorized persons in the cash service point is prohibited, except for collection service employees, responsible persons of the credit financial organization, and/or authorized employees of the National Bank of Tajikistan.

227. Banking operations and services performed by cash service points must be reflected in the daily balance sheets of banks, Islamic banks, non-bank credit organizations, Islamic non-bank credit organizations, microcredit deposit organizations, Islamic microcredit deposit organizations, and their branches. (Resolution of the Board of the NBT of September 13, 2023, No. 97)

CHAPTER 4. MOBILE DIVISION

23. Credit organizations and their branches may create a mobile division upon being equipped with vehicles and other material and technical capabilities.

24. A mobile division is a composite structure of credit organizations created on mobile transport, meeting technical requirements for banking service. A mobile division must consist of a cabin for conducting banking operations and an armored cash box, which must be equipped with necessary technical equipment.

25. A mobile division is created for the purpose of providing banking services only to individuals in remote settlements, at customs posts, at sites where construction, field, and other work is temporarily carried out, as well as in other places where there is a need for banking services.

26. A mobile division may perform the following banking operations and services:

• money transfers of individuals without opening an account;
• issuance of small loans (secured and unsecured);
• cash operations;
• currency exchange operations;
• providing consulting services.

27. A mobile division must meet technical requirements and have the following equipment: Signage in the Tajik language indicating its accountability to the credit organization. A list of operations performed by the mobile division. An information board, usually hung in the corridor of the cabin in a place visible to clients, which contains the following information and documents:

• a copy of the resolution (order) on the creation of this mobile division;
• the schedule of the mobile division;
• the volume (amount) of commission services required by the mobile division for the implementation of certain types of banking operations;
• the surname, name, and phone numbers of responsible employees of the credit organization responsible for the work of the mobile division;
• the exchange rate (cross-rate) of the exchange operation established by the credit organization (its branch) for the mobile division;
• other information that the mobile division considers necessary.

28. The corresponding documents of credit organizations must establish requirements for the actions of employees of the mobile division in the event of emergencies on the way, during the servicing of clients, during attempts by unauthorized persons to penetrate service cabins, the vehicle, as well as requirements in the event of failure of the technical information program and an accident of the mobile division vehicle.