«REPUBLIC OF KAZAKHSTAN
ҰЛТТЫҚ БАНКІ»
РЕСПУБЛИКАЛЫҚ
МЕМЛЕКЕТТІК МЕКЕМЕСІ
БАСҚАРМАСЫНЫҢ
ҚАУЛЫСЫ
31 August 2016
Almaty city

REPUBLICAN
STATE INSTITUTION
«NATIONAL BANK
OF THE REPUBLIC OF KAZAKHSTAN»
RESOLUTION
OF THE BOARD
No. 211
Almaty city

On approval of the Rules for the functioning of the interbank clearing system

Registered by the Ministry of Justice of the Republic of Kazakhstan on 18 October 2016 No. 14333

In accordance with the laws of the Republic of Kazakhstan dated 30 March 1995 «On the National Bank of the Republic of Kazakhstan», dated 26 July 2016 «On Payments and Payment Systems», for the purpose of establishing the procedure for the functioning of the interbank clearing system, the Board of the National Bank of the Republic of Kazakhstan RESOLVES:

1. To approve the attached Rules for the functioning of the interbank clearing system.

2. To recognize as having lost force the resolution of the Board of the National Bank of the Republic of Kazakhstan dated 31 December 2015 No. 262 «On approval of the Rules for the functioning of the interbank clearing system» (registered in the Register of State Registration of Normative Legal Acts of the Republic of Kazakhstan on 15 February 2016 under No. 13068, published on 31 March 2016 in the information and legal system «Әділет» of the republican state enterprise with the right of economic management «Republican Center for Legal Information of the Ministry of Justice of the Republic of Kazakhstan»).

3. The Department of Payment Systems (Ashykbekov E.T.) shall, in the procedure established by the legislation of the Republic of Kazakhstan, ensure:

1) together with the Legal Department (Sarsenova N.V.) the state registration of this resolution with the Ministry of Justice of the Republic of Kazakhstan;

2) sending of this resolution to the republican state enterprise with the right of economic management «Republican Center for Legal Information of the Ministry of Justice of the Republic of Kazakhstan»:

for official publication in the information and legal system «Әділет» within ten calendar days after its state registration with the Ministry of Justice of the Republic of Kazakhstan; for inclusion in the State Register of Normative Legal Acts of the Republic of Kazakhstan, the Reference Control Bank of Normative Legal Acts of the Republic of Kazakhstan within ten calendar days from the day of its state registration with the Ministry of Justice of the Republic of Kazakhstan;

3) placement of this resolution on the official internet resource of the National Bank of the Republic of Kazakhstan after its official publication.

4. The Department for the Protection of the Rights of Consumers of Financial Services and External Communications (Terentyev A.L.) shall ensure the sending of this resolution for official publication in periodical printed publications within ten calendar days after its state registration with the Ministry of Justice of the Republic of Kazakhstan.

5. Control over the execution of this resolution shall be entrusted to the Deputy Chairman of the National Bank of the Republic of Kazakhstan Pirmatov G.O.

6. This resolution shall enter into force upon the expiry of ten calendar days after the day of its first official publication.

Chairman of the National Bank
D. Akishev

Approved by resolution of the Board of the National Bank of the Republic of Kazakhstan dated 31 August 2016 No. 211

Rules for the functioning of the interbank clearing system

Chapter 1. General provisions

1. These Rules for the functioning of the interbank clearing system (hereinafter – the Rules) have been developed in accordance with the laws of the Republic of Kazakhstan dated 30 March 1995 «On the National Bank of the Republic of Kazakhstan» (hereinafter – the Law on the National Bank), dated 26 July 2016 «On Payments and Payment Systems» (hereinafter – the Law on Payments and Payment Systems) and determine the procedure for the functioning of the interbank clearing system (hereinafter – the system), the operator of which is the National Bank of the Republic of Kazakhstan (hereinafter – the National Bank). The operational center of the system is the republican state enterprise with the right of economic management «Kazakhstan Center for Interbank Settlements of the National Bank of the Republic of Kazakhstan» (hereinafter – the Center).

2. The system is a payment system intended for making payments and (or) money transfers between its participants by means of multilateral clearing of the instructions of the participants.

Money transfer based on the results of clearing in the system is carried out using the money of its participants in the interbank money transfer system (hereinafter – the interbank system).

3. The Rules use the concepts provided for by the Law on Payments and Payment Systems, the Law of the Republic of Kazakhstan dated 7 January 2003 «On Electronic Document and Electronic Digital Signature», and the following concepts:

1) audit trail – sequential registration of events on the processing of electronic messages in the system, information on which is stored in the system and by the participants of the system;

2) authentication – a set of measures to confirm the authenticity of the participants of the system during the exchange of payment and information messages, as well as the authenticity of payment and information messages;

3) software and hardware complex of the system – technical, software or other means ensuring the operation of the system,

including the information system, servers and terminals of the system, means of communication (data transmission);

4) priority code – a code determining the order of processing payment messages in the system. The priority code is assigned to a payment message by the sender participant;

5) debit transfer – a money transfer in which the initiating participant is the beneficiary participant;

6) debit payment message – a payment message initiating a debit transfer, containing a demand to the sender participant of the money for the payment of a certain amount of money;

7) participant of the system (hereinafter – participant) – a person that has concluded an agreement on participation in the system, as well as the National Bank;

8) participant's position in the system (hereinafter – participant's position) – a position intended for accounting of the amount of money of the system participant transferred by it from a correspondent account in tenge opened with the National Bank for making payments and money transfers through the system;

9) systemic risk – the risk of default by one or several participants on one or several money transfers caused by default by one or several participants;

10) participant's debit queue – a sequential series of unexecuted payment messages in the system as of a certain date for the monetary obligations of this participant to other participants;

11) participant's credit queue – a sequential series of unexecuted payment messages in the system as of a certain date for the monetary obligations of other participants to this participant;

12) money sender participant – a participant from whose position money is transferred (debited);

13) initiating participant – a participant that sent a payment message to the system. The initiating participant is a money sender participant or a beneficiary participant;

14) beneficiary participant – a participant to whose position money is transferred;

15) credit transfer – a money transfer in which the initiating participant is the money sender participant;

16) credit risk – the risk associated with the possibility of untimely performance (non-performance) by the counterparty of its obligations in full;

17) operational risk – the risk associated with deficiencies in information systems or internal processes, human errors, failures or disruptions in the management of the system, including as a result of external events;

18) liquidity risk – the risk of the money sender participant associated with the possibility of untimely performance (non-performance) of its obligations to transfer money in full;

19) payment date – the date of execution of the payment message;

20) electronic information message (hereinafter – information message) – an electronic message having an electronic digital signature, not related to payment messages and having an informational nature, including statements;

21) electronic payment message (hereinafter – payment message) – an electronic message having an electronic digital signature, on the basis of which money transfers are made through the positions of participants in the system;

22) electronic message – a set of information in electronic form in the format developed by the Center.

The concepts of risks used in the Rules are applicable to the system within the framework of the Rules and are set out in accordance with the Glossary of terms used in payment and settlement systems developed by the Committee on Payments and Market Infrastructures of the Bank for International Settlements (Basel, Switzerland, March 2003).

4. The National Bank organizes and ensures the functioning and management of the system, performs other functions of the system operator established by the Law on Payments and Payment Systems.

5. The performance of operational and technological functions, including the conclusion of agreements with participants on the processing and issuance of payment and information messages (hereinafter – agreement on the provision of services in the system) and third parties providing services for the functioning of the system, is carried out by the Center on behalf of the National Bank.

Chapter 2. Conditions of participation in the system

6. The condition for obtaining the status of a participant is the existence of a participant's correspondent account in tenge opened with the National Bank in the manner established by the Rules for establishing correspondent relations between the National Bank of the Republic of Kazakhstan and banks, as well as organizations carrying out certain types of banking operations, approved by resolution of the Board of the National Bank of the Republic of Kazakhstan dated 31 August 2016 No. 209, registered in the Register of state registration of normative legal acts under No. 14336, (hereinafter – the Resolution), and the participant's participation in the interbank system.

7. To conclude an agreement on the provision of services in the system, a legal entity shall submit to the Center the following documents:

1) an application for connection to the system in free form;

2) a copy of the application for accession to the correspondent account agreement with the National Bank (hereinafter – correspondent account agreement), and a copy of the agreement on participation in the system concluded with the National Bank (hereinafter – agreement on participation in the system).

The conclusion of a mixed agreement containing the terms of the correspondent account agreement and the agreement on participation in the system is allowed.

Submission of a copy of the correspondent account agreement is not required if it is present in the participant's file previously formed when concluding with it agreements on participation in the system and on the provision of services in the interbank system.

8. Legal entities acquire the status of a participant after concluding an agreement on participation in the system with the National Bank. Termination of the agreements on participation in the system and on the provision of services in the system entails the loss by the legal entity of the status of a participant.

The National Bank participates in the system as a participant when making its own payments and (or) money transfers and payments and (or) money transfers on the instructions of clients and obtains the status of a system participant on the basis of an agreement on the provision of services in the system concluded with the Center.

9. The legal basis for the functioning of the system consists of the Law on Payments and Payment Systems, the Rules, agreements on participation in the system, agreements on the provision of services in the system.

10. The agreement on participation in the system contains:

1) the subject of the agreement;

2) the rights and obligations of the parties;

3) the liability of the parties for non-fulfillment of the terms of the agreement;

4) the procedure for amending the terms and terminating the agreement;

5) the procedure for dispute resolution;

6) other terms as agreed by the parties.

11. The operation of certain provisions of the agreement on participation in the system is temporarily suspended on the grounds provided for by the Resolution and (or) the correspondent account agreement.

Temporary suspension of a participant's participation in the system does not deprive the legal entity of the status of a participant.

Chapter 3. Services provided in the system and types of operations

12. The cost of services (tariffs) provided by the Center to a participant in the system shall be approved by the National Bank in agreement with the Center in accordance with subparagraph 12) of part two of paragraph 25 of the Regulation on the National Bank of the Republic of Kazakhstan approved by Decree of the President of the Republic of Kazakhstan dated 31 December 2003 No. 1271

“On approval of the Regulation and structure of the National Bank of the Republic of Kazakhstan”.

13. The Operations Center provides the participant with services in the system:

1) for receiving and processing payment messages;

2) for receiving, processing and presenting to participants information messages on completed operations;

3) for performing other operational and technological functions to support the functioning of the system as defined by Article 8 of the Law on Payments and Payment Systems.

14. The Operator provides services in the system in accordance with the functions of the system operator established by Article 8 of the Law on Payments and Payment Systems, including services for extending the operating day of the system, for defining and applying the risk management system in the system.

15. Debit and credit transfers are carried out through the system on the basis of participants' payment messages.

16. The system uses payment messages with current and future payment dates. The payment date is set by the initiating participant from the current date up to three operating days, not including the date of transmission of the payment message to the Center. Payment messages with a future payment date are stored in the system until the payment date specified in the payment message occurs.

17. A payment message transmitted to the Center with a current or future value date is revoked by the participant by sending an information message to the Center on revocation of the payment message.

18. Revoked payment messages are considered annulled and are registered by the Center and the participant in electronic form. Revocation by a participant of payment messages from the system after the end of the operating day corresponding to the payment date is not allowed.

19. The beneficiary participant sends to the system a debit payment message addressed to a specific remitting participant with a payment date exceeding the current date of the system's operating day by at least two operating days. The conditions for issuing a debit payment message shall be provided for in the agreement between the remitting participant and the beneficiary participant.

20. Within three working days from the day of signing the agreement between the remitting participant and the beneficiary participant, the remitting participant shall notify the Center of the following information:

1) the name of the remitting participant, its bank identification code;

2) the name of the beneficiary participant, its bank identification code;

3) the number and date of the agreement, its term;

4) the name and individual identification code of the beneficiary;

5) other information agreed by the parties in the agreement between the remitting participant and the beneficiary participant.

Debit payment messages are not sent in favor of the treasury bodies of the Ministry of Finance of the Republic of Kazakhstan.

21. A debit payment message with a payment date of at least two operating days sent to the Center enters the credit queue of the beneficiary participant and the debit queue of the remitting participant to which a claim is presented for payment of a certain sum of money on the day of execution of this payment.

22. A debit payment message shall be sent by the Center to the remitting participant no later than the operating day from the day of receipt.

23. In case of disagreement of the remitting participant to the processing by the Center of a debit payment message and execution of a payment thereon, the remitting participant shall send to the Center a message on cancellation of the debit payment message from the participant's debit queue.

24. If, before the due date for execution of payment under a debit payment message, the Center has not received a message from the remitting participant on cancellation of the debit payment message from its debit queue, the debit payment message shall be executed by the Center.

25. Revocation of a debit payment message shall be carried out before its execution by the Center.

26. After revocation or cancellation of a debit payment message, the Center shall notify the beneficiary participant and the remitting participant thereof.

Chapter 4. Procedures for the functioning of the system, the procedure for interaction of participants with the operator and the operations center, information security measures

Paragraph 1. Functioning of the system and exchange of electronic messages in the system, information security measures

27. Participants exchange electronic messages in accordance with the exchange procedures and formats developed by the Center in agreement with the National Bank and applied in the system (hereinafter – the Procedures).

28. The Procedures shall be communicated by the Center to participants within the time limits established by the agreement on the provision of services in the system by publication on the official internet resource of the Center.

29. The system shall observe information security measures established by the Center to determine the fact of transmission of electronic messages and detect errors in their transmission.

30. The Center shall develop and approve the procedure for authentication of electronic messages.

31. Transmission and receipt of payment and information messages, including information messages on revocation of payment messages, in the system shall be carried out electronically during the operating day determined by the National Bank in accordance with the schedule for receipt and processing of payment documents.

32. If a payment message or information message is received by the Center after the end of the operating day, they shall be considered received by the Center at the beginning of the next operating day. The Center shall refuse to execute a payment message received by the Center with a payment date of the past operating day, with sending to the initiating participant an information message on non-execution of the payment message indicating the reason.

33. In the event that a participant does not carry out operations in the system on a working day that is an operational day for the system, the Center accepts payment messages received in favor of that participant, determines its net position and carries out the transfer of money based on the clearing results.

34. The Center and the participants ensure the storage of information and monitor electronic messages sent and received. All electronic messages processed by the Center and the participants leave an audit trail in the internal software systems of the Center and the participants.

35. Changes to payment messages during their processing by the Center are not allowed.

36. To ensure confidentiality, integrity, confirmation of authorship and authenticity of electronic instructions during the exchange of electronic messages, the Center and the participants use the cryptographic information protection and electronic digital signature system "Tumar", provided to the participant by the Center.

37. The system uses participant identification based on a cryptographic two-way authentication protocol, according to which not only the participant but also the center of the system is identified.

After the participant is identified, information is exchanged between the system and the participant. To ensure the integrity of information transmitted over the communication channel, a message authentication code is calculated, providing for the application of protective measures against intentional or unintentional introduction of changes (distortions) into the transmitted information. To ensure confidentiality, encryption of information stored or transmitted over open channels is performed, which guarantees protection against unauthorized access to this information and allows avoiding compromise of the information.

38. The completeness (finality) of payments and (or) transfers of money is regulated by Article 7 of the Law on Payments and Payment Systems.

Paragraph 2. Multilateral clearing procedure

39. After the end of the operational day, the Center stops accepting payment messages for the completed operational day, performs clearing of the accepted payment messages and determines the net position of each participant.

40. The clearing procedure is performed in accordance with priority codes. Within one priority code, payment messages belonging to the same queue are processed in the order of their receipt into the system.

41. Priority codes are developed and approved by the Center in agreement with the National Bank.

42. A change in the priority of a payment message in the queue is carried out by the initiating participant by sending an information message to the system about the change in priority without revoking the payment message.

43. After determining the net position of each participant, the Center reserves from participants with a debit net position in the interbank system an amount of money equal to the debit net position of that participant.

44. The transfer of money based on the clearing results is carried out through the position of the system in the interbank system (hereinafter – the position of the system).

45. The transfer of money based on the clearing results in the interbank system is carried out in accordance with the net position of each participant using the reserved amount of money in accordance with paragraph 43 of the Rules. The transfer of money is carried out on the basis of the Center's instructions to debit (credit) money for the amount of the net position of each participant.

46. The Center carries out in the interbank system the transfer of money from the positions of participants having a debit net position based on the clearing results to the position of the system, then the transfer of money from the position of the system in the interbank system to the positions of participants having a credit net position based on the clearing results. After the completion of money transfers based on the clearing results, the balance on the position of the system in the interbank system is equal to zero.

Paragraph 3. Provision of information messages during and at the end of the operational day

47. During the operational day, at the request of a participant, the Center sends to the participant:

1) an information message in the form of a statement on the state of the participant's position, containing a list of payment messages transmitted by that participant to the Center and received in favor of that participant;

2) an information message about unprocessed payment messages, containing a list of unprocessed payment messages indicating the reason for the non-processing of each payment message.

48. The Center provides participants with information messages containing information about payment messages with both the current and a future payment date. In the participant's request to receive an information message in the form of a statement, the date for which the participant requested to receive the information message in the form of a statement is indicated.

49. After the completion of money transfers, the Center sends to the participant a final information message in the form of a statement containing information about the payment messages processed in the system and information about the participant's net position based on the clearing results, as well as a list of unprocessed payment messages and all payment messages received in favor of that participant and indicated in the final information message in the form of a statement.

50. If the information message in the form of a statement on the state of the participant's position in the system does not contain information about an electronic message transmitted by the participant to the Center, the participant notifies the Center thereof and, jointly with the Center, no later than the next operational day, determines the reason for the loss of the electronic message.

In case of untimely receipt of electronic messages or their absence, the participant notifies the Center.

Chapter 5. Risk management system in the system

51. The specifics of the functioning of the software and hardware complex of the system are established by the Center's documents.

52. For the purposes of identifying, measuring and monitoring liquidity risks, credit and systemic risk, the National Bank and the Center carry out supervision (oversight) of the system, including analysis and assessment of the functioning of the system for compliance with international standards.

In order to manage liquidity risk, credit and systemic risks, when there are insufficient funds in the interbank system to settle a participant's net position (participants' net positions), the system cancels payment messages for the required amount and recalculates the participants' net positions (queue unwinding method).

53. The following methods are used to manage operational risk:

1) the National Bank's control and supervision over the organization and functioning of the system in accordance with the Law on the National Bank;

2) continuous monitoring and maintenance by the Center of the uninterrupted operation of the system's software and hardware complex in accordance with the methods defined by the Center's internal documents on operational risk management;

3) keeping the system's business continuity plan up to date, taking into account possible scenarios of system stoppage, and testing by the National Bank together with the Center of this plan with the transfer of the system's operation from the main center to the backup center at least twice during the year;

4) ensuring the operability of the backup center;

5) transfer of the system's operation from the main center to the backup center in the presence of failures or downtime in the operation of the system's software and hardware complex that cannot be restored in the main center.

54. The National Bank, together with the Center and participants, conducts an analysis of the risk management methods used at least once every two years. Based on the results of the analysis, a decision is made to retain or change the risk management methods.

Chapter 6. Monitoring and supervision (oversight) of the system

55. The National Bank carries out real-time monitoring of the system and supervision (oversight) of the system.

56. Real-time monitoring of the system is carried out by the National Bank by observing the positions of the system's participants during the operational day.

57. Supervision (oversight) of the system is carried out in accordance with the Law on the National Bank.

58. Participants monitor the state of their position in the system, including by receiving statements from the Center.