Regulatory Alerts2025-10-15 | 133305Added
REGULATION "On Minimum Requirements for the System of Counteracting Internal and External Fraud in Microfinance Organizations of the Kyrgyz Republic"
This Regulation, issued by the National Bank of the Kyrgyz Republic on October 15, 2025, mandates that all microfinance organizations (MFOs) offering remote services or attracting term deposits establish and maintain an effective anti-fraud system. MFOs must develop a Fraud Counteraction Policy, review it annually, and integrate it into their risk management. The anti-fraud system must assess fraud risk for every transaction, categorizing it as low, medium, or high, and MFOs must implement specific actions for each risk level, including client notification, transaction suspension for up to 30 days, and maintaining a register of suspicious identifiers. MFOs are also required to provide a 24/7 client function for reporting fraud, compensate clients for damages from transactions with prohibited identifiers, and conduct annual system testing, submitting effectiveness reports quarterly and testing results annually by February 1.