Instruction No. 211 on the Procedure for Carrying Out Foreign Currency Exchange Operations

"Registered" by the Ministry of Justice, Resolution No. 139 "d" dated December 4, 2015 "Approved" by the Board of the National Bank of Tajikistan dated September 29, 2015 No. 195 "Registered" by the Ministry of Justice, Resolution No. 139 "e" dated August 25, 2020 "Approved" by the Board of the National Bank of Tajikistan dated July 30, 2020 No. 95

Instruction No. 211 “On the Procedure for Carrying Out Foreign Currency Exchange Operations”

Instruction No. 211 “On the Procedure for Carrying Out Foreign Currency Exchange Operations” (hereinafter – the Instruction) is developed in accordance with Article 9 of the Law of the Republic of Tajikistan “On Currency Regulation and Currency Control” and Part 2 of Article 3 of the Law of the Republic of Tajikistan “On Banking Activity”, and establishes the procedure and rules for organizing, carrying out, documenting, accounting for, and reporting on foreign currency exchange operations in credit financial organizations.

CHAPTER 1. GENERAL PROVISIONS

1. Foreign currency exchange operations with cash and non-cash foreign currency (hereinafter – exchange operations) include the purchase and sale of foreign currency for national currency, as well as the exchange of one foreign currency for another.
2. When carrying out exchange operations with cash foreign currency, the following additional services may be offered:

• exchange of cash foreign currency;
• replacement of worn and damaged cash foreign currencies with payment-ready cash foreign currencies;
• verification of the authenticity of cash foreign currency, and others. For these services, credit financial organizations establish tariffs and approve them in cases prescribed by legislation, with the agreement of antimonopoly authorities.

3. Exchange operations are carried out by a credit financial organization holding the right to conduct foreign currency operations in accordance with the license of the National Bank of Tajikistan (hereinafter – authorized bank) within the territory of the Republic of Tajikistan and abroad, without restrictions, in the manner established by legislation and this Instruction.
4. Islamic credit organizations carry out foreign currency exchange operations in accordance with the principles of Islamic financing and regulatory legal acts of the National Bank of Tajikistan on Islamic banking activity.
5. The authorized bank carries out an exchange operation on the domestic market (interbank, intra-bank, cash) and on the foreign market for itself or for its clients (individuals and legal entities holding bank accounts) and with other individuals (one-time exchange operations).
6. The authorized bank carries out an exchange operation with cash and non-cash foreign currency on the domestic foreign exchange market, and with non-cash foreign currency on foreign markets where there is demand and supply, taking into account the need for such operations and the receipt of income.
7. The authorized bank conducts an exchange operation on the domestic market through structural subdivisions of the head office, branches, banking service centers, and its automated technical devices providing cash services, and on the foreign market through structural subdivisions of the head office or branches conducting foreign currency operations and international settlements.

CHAPTER 2. PROCEDURE FOR CARRYING OUT FOREIGN CURRENCY EXCHANGE OPERATIONS WITH CASH 7. The authorized bank, for carrying out exchange operations with cash foreign currency, utilizes the capabilities of all its institutions having operational cash desks. 8. Institutions with operational cash desks (hereinafter – institutions) include: a) cash centers of the head office and branches; b) banking service centers and automated technical devices (ATMs and terminals). 9. The authorized bank, in order to carry out exchange operations with cash foreign currency, must: a) develop, purchase, and implement software products, technical equipment, and communication means necessary for creating a unified, centralized electronic network connecting all institutions carrying out exchange operations with cash foreign currency to its operational system. This system must have the ability to conduct, account for, recognize, and determine each exchange operation in a unified operational system connecting banking service centers, branches, and the head office of the authorized bank in real-time (online) mode, and ensure the submission of information and daily reporting on exchange operations to the National Bank of Tajikistan in electronic form; b) bring buildings and technical equipment of institutions into compliance with the National Bank of Tajikistan's requirements for cash nodes, equipping each cashier's workspace with a centralized video control and surveillance system; c) based on the volume of demand for exchange operations, location features, and operating hours, allocate to institutions sufficient volumes of funds in cash national and foreign currencies, ensuring their delivery to and return from institutions located outside the head office or branch, through its own collection service or on a contractual basis; d) ensure separate accounting and reporting for the cashier's allocated funds in cash national and foreign currencies intended for exchange operations, their receipts, expenditures, and balances, as well as the income (expenses) from exchange operations into the cash desk and their reflection in the daily balance sheet; e) take necessary measures to train and retrain cashiers who will conduct exchange operations, confirming their completion of qualification training with an official document and preventing unqualified cashiers from conducting exchange operations. Qualified cashiers must know the procedure and rules for conducting exchange operations, accounting and reporting on them, documentation procedures, have knowledge and skills in determining the authenticity and payment status of cash foreign currency in accordance with Appendix No. 1 and national currency, identify suspicious operations and provide information on them, organize and maintain office work, preserve valuables, and ensure safety during operations; f) adopt a special regulatory act (order, directive, instruction, or other) stating that the cash desk of this institution and the cashier have the right to conduct exchange operations with cash foreign currency, specifying therein the procedure for carrying out, accounting, bookkeeping, and reporting on exchange operations, operating hours, and other necessary conditions; g) place in a prominent (accessible) location for clients information that the cash desk of this institution carries out exchange operations with cash foreign currency, and notify other citizens about the existence of such service using various forms of advertising; h) based on market conditions, the ratio of supply and demand for cash foreign currency, and the procedure established by the National Bank of Tajikistan, establish individually at the beginning of each working day the exchange rate (cross-rate) for cash foreign currency exchange operations and, by entering it into the centralized operational system, communicate it to each institution. Information on exchange rates (cross-rates) must be communicated to clients and other citizens in a clear, transparent, and timely manner on advertising stands and boards; i) based on local conditions and institution location, the ratio of supply and demand for cash foreign currency, operating hours, and other influencing factors, determine the exchange rate (cross-rate) for cash foreign currency exchange operations or change an previously established rate (cross-rate) during the working day. 10. Exchange operations with cash foreign currency are carried out in the following manner: a) individual clients of the authorized bank and other individuals may carry out exchange operations with cash foreign currency at institutions of the authorized bank (point 8 of this Instruction) without restrictions on amount and purpose, subject to compliance 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 Weapons of Mass Destruction Financing”. Carrying out exchange operations in other places (outside the head office, branch, banking service center, ATMs, and terminals) is strictly prohibited, and non-compliance with this requirement by individuals is considered an offense and entails administrative and criminal liability; b) exchange operations with cash foreign currency for amounts equivalent to 350 calculation indices are carried out without providing a personal identification document, and for amounts equivalent to more than 350 calculation indices, provided that a personal identification document is mandatory. In case of doubt that the exchange operation with cash foreign currency is related to money laundering, terrorism financing, or weapons of mass destruction financing, the operation is carried out with the provision of personal identification documents, regardless of its amount; c) the cashier registers each carried-out exchange operation with cash foreign currency through the unified operational system in an electronic Exchange Operations Register and issues to the individual a document confirming the exchange operation (receipt); d) The Exchange Operations Register is maintained in electronic form in accordance with Appendix No. 2; e) the document confirming the exchange operation (hereinafter – Confirming Document), in accordance with Appendix No. 3, for amounts of cash foreign currency equivalent to up to 350 calculation indices is issued without indicating personal identification data and signed by the cashier; for amounts equivalent to more than 350 calculation indices, it is issued with personal identification data, signed by the cashier, and stamped (sealed) by the institution; it is formed in electronic form, printed on paper, and issued to the individual; f) Confirming Documents issued for amounts equivalent to more than 1,750 calculation indices are additionally sealed with a round stamp of the banking service center, branch, or head office of the authorized bank; g) providing a Confirming Document (receipt) for each exchange operation and for each client is mandatory; h) the Confirming Document serves as the basis for individuals to export cash foreign currency abroad; i) the software product of the centralized operational system of the credit financial organization must ensure the ability to account for, maintain, and document the Registration Journal and Confirming Document, summarize daily results, prepare reports on exchange operations with cash foreign currency, and print them on paper.

CHAPTER 3. REPORTING AND SUPERVISION PROCEDURE FOR FOREIGN CURRENCY EXCHANGE OPERATIONS WITH CASH 11. Authorized banks submit by the 5th day of each month to the National Bank of Tajikistan (its regional offices) a consolidated report on institutions that have received or lost the right to carry out exchange operations with cash foreign currency. 12. Consolidated reporting on the volumes and weighted average exchange rates of cash foreign currency exchange operations, as part of the authorized bank's reporting on foreign currency exchange operations on the domestic foreign exchange market of the republic, is submitted to the National Bank of Tajikistan (its regional offices) in real-time (online), daily. 13. Authorized banks provide the National Bank of Tajikistan (its regional offices) with all other information regarding exchange operations by form and within established deadlines, through their own unified operational systems connected to the National Bank of Tajikistan, in real-time (online) mode. 14. Heads of authorized banks (their branches) and responsible persons are obliged to carry out daily supervision over the procedure for carrying out, recording income, documenting, and reporting on exchange operations, as well as the safety of cash valuables, including through unified own operational systems. Authorized banks and their branches are obliged to ensure in the prescribed manner that each of their institutions is equipped with an Exchange Operations Verification Journal. 15. The National Bank of Tajikistan and its regional offices (their authorized representatives) have the right to inspect the activities of any institution, directly or with the participation of a representative of the authorized bank.

CHAPTER 4. LIABILITY FOR VIOLATION OF THIS INSTRUCTION 16. Ensuring compliance with the requirements of this Instruction is placed on the heads of authorized banks (their branches) and responsible persons, and compliance with requirements is monitored by the National Bank of Tajikistan (its regional offices) on site. 17. In case of violations of the requirements of this Instruction being identified, the National Bank of Tajikistan may apply any operational corrective measures or impact measures to the authorized bank in accordance with Article 48 of the Law of the Republic of Tajikistan “On the National Bank of Tajikistan”. 18. The National Bank of Tajikistan, in case of non-compliance with the procedure for carrying out exchange operations, or failure to comply with instructions and directives to eliminate deficiencies more than twice, in order to ensure financial stability, within the requirements of the Laws of the Republic of Tajikistan “On the National Bank of Tajikistan” and “On Banking Activity”, may apply to the authorized bank a prohibition measure on carrying out operations or revoke its license for banking activity.

Appendix No. 1 to Instruction No. 211 “On the Procedure for Carrying Out Foreign Currency Exchange Operations”

RULES for determining the authenticity and payment status of foreign currencies

1. Foreign currencies (monetary signs - banknotes, treasury bills) are recognized as payment-ready in the following cases: a) retaining main payment status features: name of the central (national) bank, numbers and series, denominations in figures and words, main design (portrait) of the front and back sides, as well as anti-counterfeiting elements (watermark, magnetic marks embedded in the paper, colored fibers including those visible under ultraviolet light, confetti, security threads, microtext, luminescent designs, etc.); b) having wear and dirt; c) having glued or torn corners or pieces (area not more than 1-2 square centimeters), if the torn parts unconditionally belong to that banknote; d) having glued tears, if they do not exceed one quarter of the width of the banknote; e) having small oil and other spots, inscriptions, and stamped marks (except stamps indicating that the banknote is not authentic), provided they do not prevent determining the authenticity of the banknote and do not cover significantly (more than 50%) one of the main payment status features listed in sub-item "a" of this point; f) banknotes with holes having a diameter of not more than 0.5 mm; g) monetary signs declared by the central (national) bank-issuer of the corresponding foreign state for withdrawal from circulation up to and including the declared date. After the withdrawal date, such monetary signs are declared by the central (national) bank-issuer as non-payment-ready and are accepted only for exchange. The withdrawal date declared by the central (national) bank-issuer of the corresponding foreign state is indicated in an information message of the National Bank of Tajikistan. The National Bank of Tajikistan informs credit financial organizations about changes in the cash circulation of foreign states.
2. Foreign currencies (monetary signs - banknotes, treasury bills) are recognized as non-payment-ready taking into account the following grounds: a) torn into parts and glued; b) not retaining main payment status features; c) changed initial color or discolored; d) burnt or scorched; e) fully or significantly covered with paint, ink, oil; f) exposed to chemical reagents causing the paper to glow under ultraviolet light; g) having significant intentional damage (main designs changed, in particular portraits of people, security thread removed, presence of significant inscriptions including those visible under ultraviolet light); h) changed geometric dimensions by more than 3 mm both in reduction and increase; i) monetary signs withdrawn from circulation after the date declared by the central (national) bank-issuer of the corresponding foreign state as being in circulation.
3. Non-payment monetary signs of a foreign state may, where possible, be replaced with payment monetary signs of the same foreign state or with somoni, subject to the collection of commissions.

Appendix No. 2 to Instruction No. 211 “On the Procedure for Carrying Out Foreign Currency Exchange Operations with Cash”

Journal of registration of foreign currency exchange operations with cash in ______________________________________________________ (name of authorized bank, branch or their institutions) Commenced: "___" _____________ 20 g.

№ п/н и дата операции	Код вида операции	Курс (кросс-курс)	Принято: код / наименование / сумма	Ф.И.О. физического лица	Паспорт: серия номер	Выдано: код / наименование / сумма	Примечание
1	07.07.2015	01	6,5200 / 840 долл. США / 100,00	[Name]	Series ___ No. ___	972 сомони / 652,00
2	01	7,1484	978 евро / 100,00	[Name]	Series ___ No. ___	972 сомони / 714,84
3	02	0,1154	972 сомони / 115,40	[Name]	Series ___ No. ___	810 росс. рубль / 1000,9
4	03	56,4900	810 росс. рубль / 10 000	[Name]	Series ___ No. ___	840 долл. США / 177,02

Note:

1. In column 2 by figures are denoted: 01 - operation of purchasing cash foreign currency for national currency (somoni); 02 - operation of selling cash foreign currency for national currency (somoni); 03 - operation of exchange (conversion) of two foreign currencies.
2. In column 3, the transaction rate for purchase/sale of foreign currency for somoni and cross-rates for exchange of two foreign currencies are indicated.
3. In columns 4 and 7, the codes of currencies participating in the exchange operation are indicated according to ISO classification.

Appendix No. 3 to Instruction No. 211 “On the Procedure for Carrying Out Foreign Currency Exchange Operations”

Name of authorized bank: | Name of institution: Registration number №: | Registration number №: Address: | Address:

Document confirming the foreign currency exchange operation Date:__________________ Time:____________ Operation Name: Purchase of cash foreign currency for cash national currency Full Name of individual:___________________________________________________ | Passport: series ____________ number № _______________

№ п/п	Код вида операции*	Курс (кросс-курс) операции	Принято: код / наименование / сумма	Выдано: код / наименование / сумма
1	01	6,5200	840 долл. США / 100,00	972 сомони / 652,00
2	01	7,1484	978 евро / 100,00	972 сомони / 714,84
3	02	0,1154	972 сомони / 115,40	810 росс. рубль / 1000,9
4	03	56,4900	810 росс. рубль / 10 000	840 долл. США / 177,02

• 01 - operation of purchasing cash foreign currency for national currency (somoni) 02 - operation of selling cash foreign currency for national currency (somoni) 03 - operation of exchange (conversion) of two foreign currencies

Cashier: (signature) (Full Name)