Resolution of the Board of the National Bank of the Kyrgyz Republic dated July 15, 2015 No. 38/1 On Amendments and Additions to Certain Resolutions of the Board of the National Bank of the Kyrgyz Republic

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of July 15, 2015 No. 38/1

On Amendments and Additions to Certain Resolutions of the Board of the National Bank of the Kyrgyz Republic

(In the edition of the Resolution of the Board of the NBKR of June 8, 2017 No. 2017-P-12/23-1)

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 following resolutions of the Board of the National Bank of the Kyrgyz Republic (attached):

• "On Approval of the Regulation "On Operations of Commercial Banks with Precious Metals" dated August 26, 2009 No. 35/3;

• (paragraph lost force in accordance with the Resolution of the Board of the NBKR of June 8, 2017 No. 2017-P-12/23-1)

(In the edition of the Resolution of the Board of the NBKR of June 8, 2017 No. 2017-P-12/23-1)

2. This resolution applies to commercial banks carrying out operations with precious metals.

3. To the Legal Department:

• publish this resolution on the official website of the National Bank of the Kyrgyz Republic;

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

4. This resolution enters into force upon the expiration of fifteen days from the date of official publication.

5. To the Supervision and Licensing Methodology Department to bring this resolution to the attention of commercial banks, the Non-State Partnership "Union of Banks of Kyrgyzstan", regional departments, and the representative office of the National Bank of the Kyrgyz Republic.

6. Control over the implementation of this resolution is entrusted to the Deputy Chairman of the National Bank of the Kyrgyz Republic L.Dz. Orozbayeva.

Chairman	T. Abdygulov

	Appendix to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated July 15, 2015 No. 38/1

Amendments and Additions to Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic

(In the edition of the Resolution of the Board of the NBKR of June 8, 2017 No. 2017-P-12/23-1)

1. Make the following amendments and additions to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Operations of Commercial Banks with Precious Metals" dated August 26, 2009 No. 35/3:

in the Regulation "On Operations of Commercial Banks with Precious Metals" approved by the aforementioned Resolution:

• throughout the text, replace the word "NBKR" with the words "National Bank" in various grammatical cases;

• in Section I.:

• in paragraph 1.1, replace the word "Kyrgyz" with "Kyrgyz Republic";

• in paragraph 1.2.:

• sub-paragraph 1.2.1. is worded as follows:

"1.2.1. Precious metals are:

• gold in refined standard and measured ingots;

• silver in refined standard and measured ingots;

• platinum in refined standard and measured ingots.";

• in sub-paragraph 1.2.2, replace the words "Standard ingots of precious metals" with "Refined standard ingots of precious metals";

• sub-paragraph 1.2.3. is worded as follows:

"1.2.3. Refined measured ingots - manufactured and marked ingots made of precious metals, issued (released) by the National Bank of the Kyrgyz Republic or an refining enterprise certified by the London Bullion Market Association, with a mass of 1000 grams or less, with a content of chemically pure base metal of not less than 99.95-99.99 percent of the alloy mass of the ingot for gold and not less than 99.90 percent of the alloy mass of the ingot for silver/platinum";

• sub-paragraph 1.2.5. is recognized as having lost force;

• in sub-paragraph 1.2.10, exclude the words "As a rule, for such accounts the bank pays clients remuneration.";

• in sub-paragraph 1.2.11, exclude the words "As a rule, these accounts are used by clients for the purpose of storing precious metals in the bank, and they pay the bank a certain fee.";

• the first sentence of paragraph 1.3. is worded as follows:

"1.3. The requirements of this Regulation apply only to refined standard and measured ingots made of precious metals.";

• in Section II.:

• the fourth paragraph of paragraph 2.1. is worded as follows:

"- providing loans to banks in precious metals, and receiving loans from banks in precious metals;";

• paragraph 2.2. is supplemented with a paragraph of the following content:

"- manufactured in the form of measured ingots, in accordance with the National Standard of the Kyrgyz Republic (Kyrgyz State Standards (KMS) 1281:2015).";

• the first paragraph of paragraph 2.3. is worded as follows:

"Commercial banks carrying out operations with precious metals in the form of standard and measured ingots (except for refined measured ingots of precious metals issued (released) by the National Bank of the Kyrgyz Republic) are obliged:";

• paragraph 2.3. is supplemented with a paragraph between the third and fourth paragraphs of the following content:

"- possess special equipment specified in Appendix 2-1 for conducting express analysis of the composition of measured ingots of precious metals, for the purpose of determining the percentage content of precious metal and impurities;";

• paragraph 2.4. is recognized as having lost force;

• paragraph 2.7. is supplemented with sub-paragraphs 2.7-1., 2.7-2., 2.7-3. of the following content:

"2.7-1. Banks open anonymous metal accounts for carrying out operations on attracting and placing precious metals.

2.7-2. For carrying out operations related to the transfer of precious metals via anonymous metal accounts, banks have the right to establish correspondent relations:

1) with the National Bank of the Kyrgyz Republic, for carrying out operations with precious metals in the form of refined measured ingots issued (released) by the National Bank of the Kyrgyz Republic;

2) with non-resident banks, for carrying out operations with precious metals in the form of refined standard and measured ingots of other issuers.

2.7-3. Attraction and placement of precious metals into anonymous metal accounts may be carried out by transferring precious metals from other anonymous metal accounts, crediting precious metals to anonymous metal accounts upon their physical delivery, as well as by crediting precious metals sold to the client, or precious metals purchased by the bank.

Return of precious metals from clients' anonymous metal accounts is possible by transferring precious metals to other anonymous metal accounts, withdrawing precious metals in physical form from accounts, as well as by concluding a transaction for the purchase and sale of precious metals listed on metal accounts.";

• paragraph 2.9. is supplemented with a second paragraph of the following content:

"Precious metals accepted from a client for storage are not attracted funds of the bank and cannot be placed by it in its own name and at its own expense.";

• in Section IV.:

• in paragraph 4.2, exclude the sentence ", equal to the limits for currencies of countries that have signed Article 8 of the 'Agreement on Articles' with the IMF.";

• supplement Appendix 2-1 with the following content:

		"Appendix 2-1 to the Regulation on Operations of Commercial Banks with Precious Metals

TECHNICAL REQUIREMENTS for equipment for express analysis of refined measured ingots of precious metals

Name	Purpose	Note
X-ray fluorescence analyzer	Express analysis of the composition of measured ingots and coins (determination of the percentage content of precious metal and impurities)	Confirmation of the composition of a gold ingot with a gold content of 99.99 with measurement to hundredths of a %
Specialized electronic scales	Determination of the exact weight of precious metals (measured ingots and coins)	Class II (high) accuracy according to GOST 24104 with a measurement range from 0.02 gr. to 120 gr.

".

2. (Lost force in accordance with the Resolution of the Board of the NBKR of June 8, 2017 No. 2017-P-12/23-1)