Regulation on Minimum Requirements for Internal Control Organization in Currency Exchange Offices in the Kyrgyz Republic to Counter Financing of Criminal Activities and Money Laundering

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Creation date: 2026-01-22

Appendix 1 to the Resolution of the Board of the National Bank of the Kyrgyz Republic
of December 19, 2025

No. 2025-P-12/68-2-(NPA)

REGULATION

on the minimum requirements for the organization of internal control in currency exchange offices in the Kyrgyz Republic for the purpose of countering the financing of criminal activities and the legalization (money laundering) of criminal proceeds

Chapter 1. General Provisions

1. The purpose of this Regulation is to define the minimum requirements for the organization of internal control in currency exchange offices holding a license from the National Bank of the Kyrgyz Republic (hereinafter - the National Bank) for the purpose of countering the financing of criminal activities and the legalization (money laundering) of criminal proceeds (hereinafter - AML/CFT).

2. The National Bank exercises supervision over the activities of currency exchange offices regarding the organization of internal control for AML/CFT purposes.

3. For the purposes of this Regulation, the following terms are used:

1. Close relatives - parents, adoptive parents, adopted children, full and half siblings, grandparents, grandchildren, for whom a public official bears financial costs for covering living expenses, education, healthcare, and other necessary expenses.

2. Internal control - a set of measures to identify operations (transactions) subject to control and reporting, and suspicious operations (transactions), as well as to prevent other operations (transactions) with funds directly related to the financing of criminal activities and the legalization (money laundering) of criminal proceeds.

3. Identification - a procedure for establishing identification data about the client and/or the beneficial owner.

4. Verification - a procedure for checking the identification data of the client and/or the beneficial owner.

5. Beneficial owner - a natural person (natural persons) who ultimately (through a chain of ownership and control) directly or indirectly (through third parties) owns the right of ownership or controls the client, or a natural person on whose behalf or in whose interest an operation (transaction) is carried out.

6. Internal control program - internal measures, procedures, and control systems applied by a currency exchange office for the purpose of complying with the legislation of the Kyrgyz Republic in the field of AML/CFT.

7. Identification of operations subject to control and reporting - a stage of organizing internal control for AML/CFT purposes, which includes defining operations subject to control and reporting.

8. Source of funds - information about the origin of specific funds or assets that are the subject of business relations between the client and the currency exchange office. The received information must be substantive, indicating the source and/or grounds for obtaining or acquiring these funds or assets.

9. Source of other property - information about the origin of the aggregate property of a public official (the source of formation of all assets belonging to the client). The received information reflects data on the client's status and how the client acquired it.

10. Operations (transactions) subject to control and reporting - operations (transactions) with funds provided for in Articles 23, 24, 25, 26 of the Law of the Kyrgyz Republic "On Countering the Financing of Criminal Activities and the Legalization (Money Laundering) of Criminal Proceeds."

11. High-risk countries - states and territories (formations) that do not apply or apply insufficiently international standards for countering money laundering, terrorist financing, and the financing of proliferation of weapons of mass destruction, as well as offshore zones.

12. Public officials - one of the following natural persons:

a) Foreign public official - a person performing or having performed significant state or political functions (public functions) in a foreign state (heads of state or government, senior officials in government, courts, armed forces, state bodies, enterprises or institutions, prominent political figures, including prominent figures of political parties);

b) National public official - a person holding or having held a political and special state position in the Kyrgyz Republic provided for in the Register of State and Municipal Positions approved by the President of the Kyrgyz Republic, as well as senior management of state corporations, prominent political figures, including prominent figures of political parties;

c) Public official of an international organization - a senior official of an international organization entrusted or having been entrusted with important functions by the international organization (heads, deputy heads, and board members of an international organization or persons holding equivalent positions in an international organization).

13. Financial Intelligence Unit - the authorized state body of the Kyrgyz Republic in the field of countering the financing of criminal activities and the legalization (money laundering) of criminal proceeds.

14. One-time operation (transaction) - an operation (transaction) carried out once in the absence of permanent business relations (contractual relations) between the client and the currency exchange office.

15. Risk-based approach - the application of enhanced measures in the presence of a high level of risk or simplified measures in the presence of a low level of risk in accordance with established risk management procedures (identification, assessment, monitoring, control, risk reduction).

Sanctions lists - The Consolidated Sanctions List of the Kyrgyz Republic and the Consolidated Sanctions List of the UN Security Council.

17. Suspicious operation (transaction) - an operation (transaction) falling under the following signs:

a) if there is suspicion or sufficient grounds to suspect that the funds are proceeds of crime, including from predicate crimes, or are related to the legalization (money laundering) of criminal proceeds;

b) if there is suspicion or sufficient grounds to suspect that the funds are related to financing:

• terrorists and extremists;

• terrorist and extremist organizations (groups);

• terrorist and extremist activities;

• proliferation of weapons of mass destruction;

• organized groups or criminal communities.

Chapter 2. Internal Control Program for AML/CFT

4. The Internal Control Program for AML/CFT is part of the currency exchange office's internal control system and must ensure the implementation of at least the following activities:

1. organization of internal control aimed at establishing the authority and responsibility of officials for decision-making and defining the order of interaction and accountability between employees of the currency exchange office involved in the AML/CFT process;

2. implementation of measures to identify, assess, monitor, manage, reduce, and document risks of terrorist financing, proliferation of weapons of mass destruction, organized groups, and legalization (money laundering) of criminal proceeds (hereinafter - AML/CFT risk);

3. maintaining the AML/CFT risk assessment in an up-to-date state (updating no less than once a year) and providing information on the risk assessment to the National Bank and the authorized financial intelligence unit (if necessary);

4. when conducting an AML/CFT risk assessment, considering all risk factors, and then determining the overall risk level and measures to reduce it;

5. having internal regulatory documents approved by the head of the currency exchange office that ensure effective management of AML/CFT risk reduction, as well as taking into account risks identified at the country and/or relevant sector level;

6. monitoring the application of control measures approved by the head of the currency exchange office, expanding them if necessary, and applying measures to manage and reduce identified high risks of terrorist financing, proliferation of weapons of mass destruction, and legalization (money laundering) of criminal proceeds;

7. implementation of customer due diligence, including:

• identification and verification of the client (one-time and permanent) before establishing business relations/conducting a one-time operation by checking the accuracy of information provided in client questionnaires, using information and documents obtained from reliable sources;

• identification of the beneficial owner and taking available and reasonable measures to verify the beneficial owner of clients, including legal entities (foreign trusts, etc.).

When identifying and verifying the client (natural and legal person) and the beneficial owner, a questionnaire is filled out in accordance with the requirements established in the Regulation "On the Procedure for Conducting Customer Due Diligence," approved by the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of November 14, 2025 No. 739;

• in the event that an authorized person acts on behalf of or by order of the client, identification and verification of this person, as well as checking the corresponding documents confirming the authority of such person;

• obtaining information about the purpose and intended nature of business relations with the client;

• checking the source of origin of the client's funds and other property;

• identification and verification of client operations that are most susceptible to the risk of use for financing criminal activities and legalization (money laundering) of criminal proceeds, conducting operations having signs of suspicious operations;

• documenting information obtained as a result of identification and verification of the client and beneficial owner;

• storing and updating information and documents about the client, as well as information and documents obtained as a result of customer due diligence;

The above-mentioned customer due diligence measures are applied in cases and in the order established by the Cabinet of Ministers of the Kyrgyz Republic, as well as taking into account the results of risk assessment.

8. identification of operations (transactions) subject to control and reporting;

9. identification in the client's activities of operations having signs of suspicious operations, to confirm the validity or refute suspicions of the client carrying out such operations (transactions);

10. suspension of operations (transactions) and application of targeted financial sanctions against persons included in the Sanctions lists.

The list of criteria (signs) of suspicious operations (transactions) is formed by the financial intelligence unit. Taking into account the specifics of the activities of currency exchange offices, in addition to the signs of suspicious operations (transactions) formed by the financial intelligence unit, currency exchange offices must consider the following characteristic list of signs and criteria of suspicious operations, which may be supplemented later:

• unjustified refusal or unjustified delay in providing information requested by the client;

• multiple conduct (14 or more times) within a month of operations for the purchase and sale of cash foreign currency, lacking a clear economic or obvious lawful purpose, by the same person.

Suspension of operations (transactions) and application of targeted financial sanctions is carried out by the currency exchange office in accordance with the Regulation "On the Procedure for Suspension of Operation (Transaction), Freezing and Unfreezing of Operation (Transaction) and/or Funds, Providing Access to Frozen Funds and Managing Frozen Funds," approved by the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of November 14, 2025 No. 739;

11. application of measures regarding high-risk countries in accordance with the requirements of the Regulation "On the Procedure for Applying Measures (Sanctions) Regarding High-Risk Countries," approved by the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of November 14, 2025 No. 739;

12. establishing the order and grounds for refusing to provide services and conduct operations to a potential client, as well as for terminating the servicing of clients;

13. timely submission to the financial intelligence unit of information and documents, as well as reports on operations (transactions) subject to control and reporting;

14. ensuring the storage of information and documents about operations (transactions);

15. ensuring the confidentiality of information;

16. establishing control and monitoring of the constant compliance of the currency exchange office with the legislation of the Kyrgyz Republic on AML/CFT issues;

17. establishing control over employees of the currency exchange office whose activities are subject to high risk (cashier, operational staff, head of the currency exchange office), reflecting in job descriptions of employees the functions and responsibilities for implementing the AML/CFT policy;

18. conducting monitoring of the application of the internal control program and internal documents of the currency exchange office in the field of AML/CFT and improving them if necessary;

19. ensuring the performance of other duties provided for in the legislation of the Kyrgyz Republic in the field of AML/CFT.

5. Currency exchange offices are obliged to identify and assess risks that may arise in connection with the development and implementation of new financial products, services, and technologies, as well as new business practices for existing or new financial products, using new mechanisms or developing technologies. This assessment must be conducted before the implementation or use of the above-mentioned products, services, technologies, and business practices.

6. Currency exchange offices are obliged to develop and apply an internal control program, including based on a risk-based approach, allowing effective compliance with the norms of the legislation of the Kyrgyz Republic in the field of AML/CFT. The internal control program of a currency exchange office must comply with the legislation of the Kyrgyz Republic in the field of AML/CFT, and is also developed and applied taking into account the specifics of activities, staff size, client base, and risk level of the currency exchange office.

Chapter 3.

Implementation and Evaluation of the Effectiveness of the Internal Control Program

7. In the currency exchange office, there must be a person responsible for the development and implementation of the internal control program for compliance with AML/CFT legislation in accordance with the requirements established by the Cabinet of Ministers of the Kyrgyz Republic. The same responsible employee of the currency exchange office is sent for training no less than once every three years. At the same time, the responsible employee must know the current legislation of the Kyrgyz Republic on AML/CFT issues.

8. The assessment of the adequacy of the program and procedures to the requirements of AML/CFT legislation, as well as the assessment of the effectiveness and reliability of internal control for compliance with AML/CFT legislation, is carried out by the person responsible for assessing the internal control system in the currency exchange office.

The general assessment of the adequacy of the program and procedures, as well as the assessment of the effectiveness and reliability of internal control rules for compliance with AML/CFT legislation, are carried out on a continuous basis, but no less than once every three years.

The norms indicated in this paragraph do not apply to a currency exchange office where the same person is the responsible employee for the development and implementation of the internal control program for compliance with AML/CFT legislation, the head of the currency exchange office, as well as the head and participant/shareholder of the legal entity that opened the currency exchange office.

Chapter 4. Customer Due Diligence Taking into Account the Risk-Based Approach

9. The currency exchange office is obliged to identify and verify clients of natural persons and legal entities (both permanent and one-time) and beneficial owners of legal entities before conducting an operation (transaction), before establishing business relations, using a risk-based approach in accordance with the legislation of the Kyrgyz Republic.

When identifying the client and beneficial owner, a questionnaire is filled out in accordance with the requirements established in the Regulation "On the Procedure for Conducting Customer Due Diligence," approved by the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of November 14, 2025 No. 739.

10. The client identification procedure for a natural person involves establishing the identity of the client based on a photo-bearing identity document, establishing the beneficial owner, and collecting information about the client and beneficial owner in accordance with this Regulation.

11. When conducting an operation (transaction) by a client-legal entity, the currency exchange office must ensure the authenticity of the persons (based on an identity document) authorized to conduct the operation (transaction).

12. When reviewing documents, in particular, the constituent documents of a legal entity and documents confirming its state registration, currency exchange offices, for the purpose of a more thorough study of their client, must pay special attention to the legalization of documents, as well as study:

• all constituent documents of the client-legal entity, including all registered changes and additions to them, as well as other necessary documents confirming the state registration of the client as a legal entity;

• the composition of founders (participants) of the legal entity, identifying persons having the ability to influence decision-making by the bodies of the legal entity;

• the nature of the legal entity's activities;

• the ownership structure and governing bodies of the legal entity and their powers.

13. The currency exchange office is obliged to identify the beneficial owners of the client - a legal entity and apply measures to verify the identity of the beneficial owners, using corresponding information or data obtained from a reliable source to ensure that they know who the beneficial owner(s) is/are. To fulfill this requirement, currency exchange offices are obliged to determine beneficial owners who directly or indirectly (through third parties) own more than 25% of the shares (stocks) of the legal entity.

In the absence of beneficial owners directly or indirectly (through third parties) owning more than 25% of the shares (stocks), or if there are doubts about the size of the share (stock) of the beneficial owner, or doubts about whether the person(s) with the controlling block of shares is/are the real beneficial owner(s) of the client - a legal entity, the currency exchange office is obliged to determine the beneficial owner(s) exercising control over the legal entity or formation by other means.

In limited cases, in the actual absence of beneficial owners who directly or indirectly (through third parties) own more than 25% of the shares (stocks) and in the absence of beneficial owners exercising control by other means, the currency exchange office is obliged to determine the natural person(s) who has/have the ability to control the actions of the client - a legal entity due to positions held in the structure of the legal entity (responsible for strategic decision-making, exercises executive control, makes decisions on financial issues). In this case, the beneficial owner questionnaire is filled out for this person.

If the ownership structure of the legal entity includes foreign trusts or other legal entities, the currency exchange office is obliged to determine the beneficial owners of these legal entities. When identifying and checking/verifying the beneficial owner (regarding clients that are legal entities), the currency exchange office additionally uses the following information:

• regarding trusts: personal data of the settlor, trustee, protector (if any), beneficiaries or group of beneficiaries, and any other natural person ultimately exercising actual control over the trust;

• regarding other types of legal entities: personal data of persons holding equivalent positions.

When identifying and verifying the beneficial owner, a questionnaire is filled out in accordance with the requirements established in the Regulation "On the Procedure for Conducting Customer Due Diligence," approved by the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of November 14, 2025 No. 739.

In the event that the beneficial owner of the client is several natural persons, each having a share (stock) of more than 25% and/or exercising control by other means, the questionnaire is filled out for each such person.

A scheme of the ownership (management) structure of the client - a legal entity, which provides for intermediate legal entities up to the final owners - natural persons, directly or indirectly (through third parties) owning more than 25% of the shares (stocks), and the degree of interconnection between founders - legal entities and the beneficial owner, must be attached to the beneficial owner questionnaire. The ownership structure scheme must also display information regarding beneficial owners exercising control by other means and explain how such beneficial owners exercise this control. If the ownership structure of the legal entity includes foreign trusts or other legal entities, they must also be displayed on the scheme.

The currency exchange office is obliged to understand the nature of the client's activities, as well as its ownership (management) structure.

14. When servicing foreign public officials, in addition to applying the established customer due diligence measures, the currency exchange office must additionally apply the following measures:

1. use a system of tools to determine whether the client or beneficial owner is a public official;

2. obtain written permission from the head of the currency exchange office to conduct an operation for an amount requiring due diligence;

3. establish the source of origin of funds and other property of the foreign public official;

4. conduct constant and in-depth monitoring of business relations, including operations (transactions) carried out by the foreign public official, in the manner established for high-risk clients;

5. constantly update the available information about foreign public officials.

The currency exchange office must apply the above-mentioned measures to members of the family and close persons (close relatives, business partners, and official representatives) of the foreign public official.

15. The measures indicated in sub-item 1 of item 14 are applied to national public officials and public officials of international organizations, as well as their families and close persons (close relatives, business partners, and official representatives).

The measures indicated in sub-items 2-5 of item 14 are also applied to national public officials and public officials of international organizations, as well as their families and close persons (close relatives, business partners, and official representatives), in the event of determining a high risk regarding such persons.

16. In the event that an authorized person acts on behalf of or by order of the client, the currency exchange office is obliged to identify and verify this person, as well as check the corresponding documents confirming the authority of such person.

17. When conducting a one-time operation (transaction) or several interconnected one-time operations (transactions) for the purchase and sale (exchange) of cash national and/or foreign currency for an amount from 100,000 to 1,000,000 som (or equivalent amount in foreign currency, calculated at the official exchange rate of the National Bank on the day of the operation (transaction)), the identity of the client is established based on the original identity document.

Documents confirming identity include:

• for citizens of the Kyrgyz Republic:

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

b) general citizen passport of a citizen