Resolution of the Board of the National Bank of the Kyrgyz Republic of 14 June 2023 No. 2023-П-12/38-4-(НПА)

On Amendments

to Certain Regulatory Legal Acts

of the National Bank of the Kyrgyz Republic

In accordance with Articles 5, 9 and 64 of the Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic resolves:

1. To introduce amendments to the following resolutions of the Board of the National Bank of the Kyrgyz Republic (attached):

• "On Approval of the Regulation 'On Minimum Requirements for Credit Risk Management in Credit Unions' of 23 December 2009 No. 50/7;

• "On Approval of the Regulation 'On the Procedure for Issuing a License for the Right to Conduct Exchange Operations with Cash Foreign Currency' of 27 July 2011 No. 40/4;

• "On Approval of the Instruction on the Provision by Commercial Banks of the Kyrgyz Republic to Clients of Individual Bank Safes for the Storage of Valuables" of 12 September 2012 No. 37/2;

• "On Approval of the Instruction on Working with Bank Accounts, Accounts for Bank Deposits (Deposits)" of 31 October 2012 No. 41/12;

• "On Approval of the Regulation 'On Minimum Requirements for Credit Risk Management in Microfinance Organizations Not Attracting Deposits (Deposits)' of 25 September 2013 No. 35/14;

• "On Approval of the Regulation 'On Minimum Requirements for Credit Risk Management in Credit Unions Conducting Operations in Accordance with Islamic Principles of Banking and Financing' of 23 December 2013 No. 52/7;

• "On Approval of the Rules for Regulating the Activities of Credit Bureaus on the Territory of the Kyrgyz Republic" of 28 September 2016 No. 40/5;

• "On Approval of the Instruction on Working with Bank Accounts, Accounts for Bank Deposits (Deposits) Opened in Accordance with Islamic Principles of Banking and Financing" of 13 June 2019 No. 2019-П-12/31-2-(НПА);

• "On Approval of the Regulation 'On Minimum Requirements for the Organization of Internal Control in Commercial Banks for the Purpose of Countering the Financing of Terrorist Activities and the Legalization (Laundering) of Criminal Proceeds', the Regulation 'On the Procedure for Conducting Exchange Operations with Cash Foreign Currency in the Kyrgyz Republic' and on Introducing Amendments and Additions to Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic on Issues of Countering the Financing of Terrorist Activities and the Legalization (Laundering) of Criminal Proceeds" of 14 August 2019 No. 2019-П-12/42-1-(НПА);

• "On Approval of the Regulation 'On Minimum Requirements for the Organization of Internal Control in Exchange Bureaus in the Kyrgyz Republic for the Purpose of Countering the Financing of Terrorist Activities and the Legalization (Laundering) of Criminal Proceeds' of 21 August 2019 No. 2019-П-33/43-7-(НФКУ);

• "On Approval of the Rules for Regulating the Activities of Housing Savings Credit Companies" of 1 November 2019 No. 2019-П-33/55-2-(НФКУ).

2. To the Legal Department:

• from the day of receipt of the relevant documents, within 3 (three) working days, to publish this resolution on the official website of the National Bank of the Kyrgyz Republic;

• after official publication, to send this resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State Register of Regulatory Legal Acts of the Kyrgyz Republic.

3. To the Supervision Methodology Department, after official publication, within 3 (three) working days, to bring this resolution to the attention of the Legal Entity Association "Union of Banks of Kyrgyzstan", commercial banks, the Legal Entity Association "Association of Microfinance Organizations", OJSC "Financial Company of Credit Unions", non-bank and specialized financial-credit organizations, the relevant structural subdivisions, regional departments and the Representative Office of the National Bank of the Kyrgyz Republic in the Batken region.

4. This resolution enters into force upon the expiration of 15 (fifteen) days from the day of official publication.

5. To entrust control over the execution of this resolution to the member of the Board of the National Bank of the Kyrgyz Republic supervising the Supervision Methodology Department.

Acting Chairman Z. Chokoev

Annex
to the resolution of the Board of the National Bank of the Kyrgyz Republic of "14" June 2023 No. 2023-П-12/38-4-(НПА)

Amendments

to Certain Regulatory Legal Acts

of the National Bank of the Kyrgyz Republic

1. To introduce to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation 'On Minimum Requirements for Credit Risk Management in Credit Unions' of 23 December 2009 No. 50/7 the following amendment:

in the Regulation "On Minimum Requirements for Credit Risk Management in Credit Unions" approved by the above-mentioned resolution:

in Annex 1:

• to restate paragraph 3 in the following wording:

"3. A copy of the identity document, on paper or a document in digital format obtained from state information systems, by which it is possible to identify the member of the CU.".

2. To introduce to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation 'On the Procedure for Issuing a License for the Right to Conduct Exchange Operations with Cash Foreign Currency' of 27 July 2011 No. 40/4 the following amendments:

in the Regulation "On the Procedure for Issuing a License for the Right to Conduct Exchange Operations with Cash Foreign Currency" approved by the above-mentioned resolution:

in Annex 10:

• in Chapter III:

to restate paragraph 1 in the following wording:

"1. The purchase of cash foreign currency shall be carried out with mandatory identification of the client on the basis of the original identity document (with photograph) on paper or a document in digital format obtained from state information systems, if the amount of the purchase of foreign currency is equal to or exceeds the registration amount established by the National Bank. In the presence of the client, the cashier recounts the amount of cash and verifies the authenticity of the currency presented by the client. In this case, the handling of banknotes must be carried out in such a way that the banknotes are within the client's field of view.";

paragraph 4 shall be restated as follows:

"4. The sale of cash foreign currency is carried out with mandatory identification of the client on the basis of the original identity document (with photograph) on paper or a document in digital format obtained from state information systems, if the amount of the sale of foreign currency is equal to or exceeds the registration amount established by the National Bank. In the presence of the client, the cashier recounts the amount of cash and verifies the authenticity of the currency presented by the client. In this case, the handling of banknotes must be carried out in such a way that the banknotes are within the client's field of view.".

3. To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Instruction on the provision by commercial banks of the Kyrgyz Republic to clients of individual bank safes for storing valuables" of 12 September 2012 No. 37/2:

in the Instruction on the provision by commercial banks of the Kyrgyz Republic to clients of individual bank safes for storing valuables, approved by the above-mentioned resolution:

• in paragraph 6:

paragraph eleven of subparagraph 1 shall be restated as follows:

"b) the original of the documents identifying the client and the client's authorized persons (if any), on paper or documents in digital format obtained from state information systems, acting by power of attorney, for identification of persons and making copies thereof;";

paragraph thirteen of subparagraph 1 shall be restated as follows:

"d) a copy of the identity document of the beneficial owner, on paper or a document in digital format obtained from state information systems, if he is not the client;";

paragraph nine of subparagraph 2 shall be restated as follows:

"b) the identity document of the client's authorized persons, on paper or a document in digital format obtained from state information systems (if any) (the original is provided to the bank, from which a copy is made);";

paragraph eleven of subparagraph 2 shall be restated as follows:

"d) a copy of the identity document of the beneficial owner, on paper or a document in digital format obtained from state information systems, if he is not the client;";

paragraph sixteen of subparagraph 2 shall be restated as follows:

"Note. Under storage agreements concluded before the entry into force of this Instruction and currently in effect, the bank must obtain information about the full name of the beneficial owner, as well as a copy of the identity document of the beneficial owner, on paper or a document in digital format obtained from state information systems, if he is not the client.";

• paragraph 18 shall be restated as follows:

"18. The client's access to the safe is possible if the client has the key to the safe (in the case where the safe has a mechanical lock), the original identity document, on paper or a document in digital format obtained from state information systems, and, if necessary, other documents confirming his authority for the right to use this safe, as well as if the parties comply with the terms of the storage agreement that do not contradict the legislation of the Kyrgyz Republic.".

4. To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Instruction on working with bank accounts, accounts for bank deposits" of 31 October 2012 No. 41/12:

in the Instruction on working with bank accounts, accounts for bank deposits", approved by the above-mentioned resolution:

• paragraph 38 shall be restated as follows:

"38. The person acting on behalf of the client must provide the original identity document, on paper or a document in digital format obtained from state information systems, as well as documents confirming that he has the relevant authority to open an account.";

• subparagraph 2 of paragraph 40 shall be restated as follows:

"2) the client's identity document (the original on paper from which a copy is made is provided for review, or a document in digital format obtained from state information systems, except in the cases specified in paragraph 39);";

• paragraph one of paragraph 42 shall be restated as follows:

"42. If the client (parent, other legal representative or third person) opens an account in favor of a child, he must submit an application containing information about the person in whose favor the account is opened; information about the person opening the account (the original identity document of the parent, other legal representative or third person on paper or a document in digital format obtained from state information systems; the original identity document of the child (passport on paper or a document in digital format obtained from state information systems, or birth certificate); a card with specimen signatures of persons entitled to dispose of the funds in the account.";

• subparagraph 9 of paragraph 43 shall be restated as follows:

"9) the identity document of the person authorized to dispose of the funds of the legal entity (when servicing in person, the original on paper from which a copy is made is provided for review, or a document in digital format obtained from state information systems).";

in Appendix 1:

• paragraph one of paragraph 5 shall be restated as follows:

"5. To verify the identity of individuals, the bank uses the original of one of the following documents:";

• the second paragraph of subparagraph 1 of paragraph 5 shall be restated as follows:

"- passport of a citizen of the Kyrgyz Republic (ID card or identity document in digital format obtained from state information systems);";

• the fifth paragraph of subparagraph 1 of paragraph 5 shall be restated as follows:

"- driver's license on paper or a license in digital format obtained from state information systems (only when the client's bank account is topped up by third parties, as well as by the clients themselves who have an account with the bank);".

5. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation on minimum requirements for credit risk management in microfinance organizations that do not attract deposits" of 25 September 2013 No. 35/14 the following change:

in the Regulation "On approval of the Regulation on minimum requirements for credit risk management in microfinance organizations that do not attract deposits", approved by the above-mentioned resolution:

in Appendix 1:

• subparagraph 5 of paragraph 1 shall be restated as follows:

"5) a copy of the identity document on paper or a document in digital format obtained from state information systems, by which it is possible to identify the client of the MFO;".

6. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation on minimum requirements for credit risk management in credit unions carrying out operations in accordance with Islamic principles of banking and financing" of 23 December 2013 No. 52/7 the following change:

in the Regulation "On approval of the Regulation on minimum requirements for credit risk management in credit unions carrying out operations in accordance with Islamic principles of banking and financing", approved by the above-mentioned resolution:

in Appendix 1:

• paragraph 3 shall be restated as follows:

"3. A copy of the identity document on paper or a document in digital format obtained from state information systems, by which it is possible to identify the client of the CU.".

7. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Rules for regulating the activities of credit bureaus on the territory of the Kyrgyz Republic" of 28 September 2016 No. 40/5 the following changes:

in the Rules for regulating the activities of credit bureaus on the territory of the Kyrgyz Republic, approved by the above-mentioned resolution:

• the second paragraph of subparagraph 1 of paragraph 27 shall be restated as follows:

"a) conducting appropriate background checks of personnel upon hiring, including references and recommendations, completeness and accuracy of the resume, education and qualifications, as well as identity documents (on paper or documents in digital format obtained from state information systems);";

• subparagraph 1 of paragraph 36 shall be restated as follows:

"1) identification of an individual is carried out on the basis of the original identity document (on paper or a document in digital format obtained from state information systems). In the event of an application by a representative of a user or a subject of a credit history, his identity document and/or power of attorney (authorization) drawn up in accordance with the legislation of the Kyrgyz Republic shall be checked;".

8. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Instruction on working with bank accounts, bank deposit (deposit) accounts opened in accordance with Islamic principles of banking and financing" of 13 June 2019 No. 2019-П-12/31-2-(НПА) the following changes:

in the Instruction on working with bank accounts, bank deposit (deposit) accounts opened in accordance with Islamic principles of banking and financing", approved by the above-mentioned resolution:

• paragraph 37 shall be restated as follows:

"37. A person acting on behalf of the client must provide the original identity document on paper or a document in digital format obtained from state information systems, as well as documents confirming that he has the relevant authority to open an account.";

• subparagraph 2 of paragraph 39 shall be restated as follows:

"2) the client's identity document (the original on paper from which a copy was taken shall be provided for review, or a document in digital format obtained from state information systems, except in the cases specified in paragraph 38);";

• the first paragraph of paragraph 41 shall be restated as follows:

"41. If a client (parent, other legal representative or third party) opens an account in favor of a minor, he must submit an application containing information about the person in whose favor the account is being opened; information about the person opening the account (the original identity document of the parent, other legal representative or third party on paper or a document in digital format obtained from state information systems); the original identity document of the minor (passport on paper or a document in digital format obtained from state information systems or birth certificate); a card with specimen signatures of persons entitled to dispose of the funds held in the account.";

• the first paragraph of subparagraph 9 of paragraph 42 shall be restated as follows:

"9) the identity document on paper or a document in digital format obtained from state information systems of the person authorized to dispose of the funds of the legal entity (when servicing in person, the original from which a copy was taken shall be provided for review).".

in Appendix 1:

• paragraph 3 shall be restated as follows:

«3. The client identification procedure presupposes establishing the client's identity on the basis of the original identity document, with a photograph on paper or a document in digital format obtained from state information systems (for minors – without a photograph), establishing the beneficial owner, collecting information about the client and the beneficial owner in accordance with this Instruction.»;

• the third paragraph of point 4 shall be set out in the following wording:

«When opening a bank account and conducting operations on the account of a client that is a legal entity, the bank must also verify the authenticity of the persons (on the basis of an identity document, on paper or a document in digital format obtained from state information systems) who have the right to open and/or dispose of the funds held in the client's account.»;

• the first paragraph of point 5 shall be set out in the following wording:

«5. To verify the identity of individuals, the originals of the following documents shall be accepted:»;

• the second paragraph of subpoint 1 of point 5 shall be set out in the following wording:

«- passport of a citizen of the Kyrgyz Republic (ID card or identity document in digital format obtained from state information systems);».

9. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic «On approval of the Regulation “On minimum requirements for the organization of internal control in commercial banks for the purposes of countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds”, the Regulation “On the procedure for conducting exchange operations with cash foreign currency in the Kyrgyz Republic” and on introducing amendments and additions to certain normative legal acts of the National Bank of the Kyrgyz Republic on issues of countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds» dated 14 August 2019 No. 2019-П-12/42-1(НПА) the following amendment:

in the Regulation «On the procedure for conducting exchange operations with cash foreign currency in the Kyrgyz Republic», approved by the above-mentioned resolution:

• subpoint 1 of point 27 shall be set out in the following wording:

«1) identification of the client, as well as checking the client for presence or absence in the Sanctions lists and the List of persons, groups and organizations with respect to which there is information about their participation in the legalization (laundering) of criminal proceeds, shall be carried out on the basis of the original identity document (with photograph), on paper or a document in digital format obtained from state information systems, if the amount of the purchase of foreign currency is equal to or exceeds 70000 soms (or the equivalent amount in foreign currency calculated at the official rate of the National Bank on the day of the operation (transaction);».

10. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic «On approval of the Regulation “On minimum requirements for the organization of internal control in exchange bureaus in the Kyrgyz Republic for the purposes of countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds» dated 21 August 2019 No. 2019-П-33/43-7-(НФКУ) the following amendments:

in the Regulation «On minimum requirements for the organization of internal control in exchange bureaus in the Kyrgyz Republic for the purposes of countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds», approved by the above-mentioned resolution:

• in point 6:

subpoint 1 shall be set out in the following wording:

«1) When carrying out a one-time operation (transaction) or several interrelated one-time operations (transactions) for the purchase and sale (exchange) of cash national and/or foreign currency in the amount from 70000 to 1000000 soms (or the equivalent amount in foreign currency calculated at the official rate of the National Bank on the day of the operation (transaction)), the identity of the client shall be established on the basis of the original identity document.

Identity documents include:

• in respect of citizens of the Kyrgyz Republic:

  • a) passport of a citizen of the Kyrgyz Republic of the 2004 model (ID card or identity document in digital format obtained from state information systems);

  • b) identification card – passport of a citizen of the Kyrgyz Republic of the 2017 model (ID card or identity document in digital format obtained from state information systems);

  • c) certificate of the civil registry authorities on the birth of a citizen – for a citizen of the Kyrgyz Republic who has not reached 16 years of age;

  • d) military ID;

  • e) driver's license (on paper or license in digital format obtained from state information systems);

• in respect of foreign citizens:

  • a) passport of a foreign citizen;

  • b) residence permit in the Kyrgyz Republic;

• in respect of stateless persons – residence permit in the Kyrgyz Republic;

• in respect of refugees:

  • a) certificate of registration of an application for recognition of a person as a refugee;

  • b) refugee certificate.

In addition to establishing the client's identity, employees of the exchange bureau must check the client for presence or absence in the Sanctions lists and the List of persons, groups, organizations with respect to which there is information about their participation in the legalization (laundering) of criminal proceeds.»;

• the second paragraph of subpoint 2 shall be set out in the following wording:

«Proper customer due diligence is expressed in identifying the customer: establish the identity of an individual customer: full name, place of residence, date of birth, citizenship – on the basis of the original identity document (with photograph), in paper form or a document in digital format obtained from state information systems, and a document confirming the right of a foreign citizen or stateless person to stay (reside) in the Kyrgyz Republic, address of place of residence (registration) or place of stay, taxpayer identification number (if any) or social protection certificate number, authority to dispose of funds or property, as well as other data required in accordance with the regulatory legal acts of the Kyrgyz Republic.».

11. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic «On approval of the Rules for regulating the activities of housing savings credit companies» dated 1 November 2019 No. 2019-П-33/55-2-(НФКУ) the following change:

in the Rules for regulating the activities of housing savings credit companies approved by the above-mentioned resolution:

in Appendix 2:

• paragraph 6 shall be set out in the following wording:

«6. A copy of the identity document, in paper form or a document in digital format obtained from state information systems, by which it is possible to identify the participant.».