Resolution of the Board of the National Bank of Kyrgyz Republic No. 3/7 dated February 24, 2010 on Amendments and Additions to Resolution No. 22/2

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of February 24, 2010 No. 3/7

On amendments and additions to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated July 14, 2005 No. 22/2 "On the Regulation 'On Minimum Requirements for External Audit of Banks and Financial Credit Institutions Licensed by the National Bank of the Kyrgyz Republic', registered in the Ministry of Justice of the Kyrgyz Republic on August 12, 2005, registration number 102-5"

In accordance with Articles 7 and 43 of the 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. Make amendments and additions to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated July 14, 2005 No. 22/2 "On the Regulation 'On Minimum Requirements for External Audit of Banks and Financial Credit Institutions Licensed by the National Bank of the Kyrgyz Republic', registered in the Ministry of Justice of the Kyrgyz Republic on August 12, 2005, registration number 102-5" (attached).

2. This Resolution shall enter into force upon the expiration of one month after its official publication.

3. After official publication, the Legal Department shall 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.

4. The Supervision and Licensing Methodology Directorate shall bring this Resolution to the attention of commercial banks.

5. Control over the implementation of this Resolution is entrusted to the Deputy Chairman of the National Bank of the Kyrgyz Republic K.K. Bokontaev.

Chairman	M. Alapaev

	Appendix to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2010 No. 3/7

AMENDMENTS AND ADDITIONS to the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 22/2 dated July 14, 2005 "On the Regulation 'On Minimum Requirements for External Audit of Banks and Financial Credit Institutions Licensed by the National Bank of the Kyrgyz Republic', registered in the Ministry of Justice of the Kyrgyz Republic on August 12, 2005, registration number 102-05"

Make the following amendments and additions to the Regulation "On Minimum Requirements for External Audit of Banks and Financial Credit Institutions Licensed by the National Bank of the Kyrgyz Republic", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 22/2 dated July 14, 2005, registered in the Ministry of Justice of the Kyrgyz Republic on August 12, 2005, registration number 102-5:

1. Complete the Preamble after the words "requirements (criteria) for bank audits" with the words ", including those conducting activities in accordance with Islamic principles of banking and financing and banks having an "Islamic window".

2. Make the following changes to Section I "Definitions Used":

• Complete the ninth paragraph after the words "International Financial Reporting Standards," with the words "standards approved by the Accounting and Auditing Organization for Islamic Financial Institutions(1)". Rewrite footnote 1 as follows: "Notes (disclosures) to the financial statements of an Islamic bank disclose information required by standards approved by the Accounting and Auditing Organization for Islamic Financial Institutions.";

• Complete the eleventh paragraph after the words "bank holding company" with the words ", Islamic bank, bank having an "Islamic window", Islamic Principles of Banking and Financing, Shariah Board".

3. Complete point 2.4.1 after the words "member of the Board of Directors," with the words "Shariah Board,".

4. Complete point 2.4.2 after the words "member of the Board of Directors," with the words "Shariah Board,".

5. Complete point 3.1 with the following paragraph:

"In relations conducted in accordance with Islamic principles of banking and financing, Audit Standards for Islamic Financial Institutions developed by the Accounting and Auditing Organization for Islamic Financial Institutions may be applied.".

6. Complete sub-point (5) of point 3.4.1 after the words "International Standards on Auditing" with the words ", Audit Standards for Islamic Financial Institutions(2)". Rewrite footnote 2 as follows: "in case of conducting an audit in accordance with standards approved by the Accounting and Auditing Organization for Islamic Financial Institutions.".

7. Complete the fourth paragraph of point 3.8.1 after the words "international financial reporting standards" with the words ", as well as in accordance with standards approved by the Accounting and Auditing Organization for Islamic Financial Institutions(3)". Rewrite footnote 3 as follows: "in case of conducting an audit in accordance with standards approved by the Accounting and Auditing Organization for Islamic Financial Institutions.".

8. Complete the fourth paragraph of point 3.8.2 after the words "international financial reporting standards" with the words ", as well as in accordance with standards approved by the Accounting and Auditing Organization for Islamic Financial Institutions(4)". Rewrite footnote 4 as follows: "in case of conducting an audit in accordance with standards approved by the Accounting and Auditing Organization for Islamic Financial Institutions.".

9. Complete sub-point d) of point 3.13 after the words "with international auditing standards" with the words ", Audit Standards for Islamic Financial Institutions(5)". Rewrite footnote 5 as follows: "in case of conducting an audit in accordance with standards approved by the Accounting and Auditing Organization for Islamic Financial Institutions.".

10. Complete point 4.2-1 with the following sentence:

"The notification must be sent within a period not later than ten days from the date of publication of the financial statements.".

11. Rewrite the sixth paragraph of point 5.3 as follows:

"- assessment of compliance with International Financial Reporting Standards, standards approved by the Accounting and Auditing Organization for Islamic Financial Institutions;".

12. Throughout the text of the Regulation, replace the abbreviation "NBKR" with the words "National Bank" in the appropriate grammatical cases.