Resolution of the Board of the National Bank of the Kyrgyz Republic No. 11/2 of March 14, 2012 on Amendments and Additions to Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of March 14, 2012 No. 11/2

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

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. To make changes and additions to the Regulation "On Requirements for the Accounting Policy of Commercial Banks and Other Financial and Credit Institutions Licensed by the NBRK", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of October 23, 2004 No. 26/2 "On Approval of the Regulation "On Requirements for the Accounting Policy of Commercial Banks and Other Financial and Credit Institutions Licensed by the NBRK", registered in the Ministry of Justice of the Kyrgyz Republic on November 19, 2004, registration number 133-04 (attached).

2. To make additions to the Regulation "On Requirements for the Accounting Policy of Commercial Banks Carrying Out Operations in Accordance with Islamic Principles of Banking and Financing", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of September 30, 2009 No. 39/5 "On the Regulation "On Requirements for the Accounting Policy of Commercial Banks Carrying Out Operations in Accordance with Islamic Principles of Banking and Financing" (attached).

3. To publish this Resolution on the official website of the National Bank of the Kyrgyz Republic and in the journal "Regulatory Acts of the National Bank of the Kyrgyz Republic".

4. This Resolution shall enter into force after the expiration of fifteen days after its official publication.

5. 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.

6. The Department of Supervision and Licensing Methodology shall bring this Resolution to the attention of commercial banks, regional departments, and the Batken Representative Office of the National Bank of the Kyrgyz Republic.

7. Control over the implementation of this Resolution shall be entrusted to the Deputy Chairman of the National Bank of the Kyrgyz Republic Z.L. Chokoev.

Chairman	Z. Asankozhoeva

	Approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of March 14, 2012 No. 11/2

AMENDMENTS AND ADDITIONS to certain regulatory legal acts of the National Bank of the Kyrgyz Republic

I. To make the following changes and additions to the Regulation "On Requirements for the Accounting Policy of Commercial Banks and Other Financial and Credit Institutions Licensed by the NBRK", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of October 23, 2004 No. 26/2 "On Approval of the Regulation "On Requirements for the Accounting Policy of Commercial Banks and Other Financial and Credit Institutions Licensed by the NBRK", registered in the Ministry of Justice of the Kyrgyz Republic on November 19, 2004, registration number 133-04:

1. In the preamble, exclude the words "RSK, KSFK".

2. Supplement Chapter 3 with paragraph 3.5-1 of the following content:

"3.5-1. Within the framework of the accounting policy, detailed rules for organizing accounting for payment and settlement operations and their reflection in accounting accounts must be developed, as well as corresponding rules for organizing internal control. In this regard, each operation must be reflected in the accounting records (automated accounting system) of the FCU in a timely manner.

The rules for organizing accounting for payment and settlement operations must contain, among other things, the following main norms:

1. all operations must have documented confirmation from the bank-counterparty regarding the debit/credit of funds to the account;

2. reflection of operations in the accounting records of the FCU must be carried out in accordance with accounting rules and:

a) for payments in national currency - no later than the date of the settlement;

b) for outgoing payments in foreign currency:

• commercial banks - on the day of debiting funds from the FCU account, which must be confirmed by corresponding documents and subsequent receipt of an extract from the correspondent account from the correspondent bank;

• non-bank FCUs - no later than the day of receiving confirmation from the commercial bank of acceptance of the payment order for execution;

c) for incoming payments in foreign currency - no later than the day of receipt of confirmation of crediting funds."

3. In paragraph 4.1, exclude the words "RSK, KSFK".

II. To make the following additions to the Regulation "On Requirements for the Accounting Policy of Commercial Banks Carrying Out Operations in Accordance with Islamic Principles of Banking and Financing", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of September 30, 2009 No. 39/5 "On the Regulation "On Requirements for the Accounting Policy of Commercial Banks Carrying Out Operations in Accordance with Islamic Principles of Banking and Financing":

1. Supplement Chapter 3 with paragraph 3.6-1 of the following content:

"3.6-1. Within the framework of the accounting policy, detailed rules for organizing accounting for payment and settlement operations and their reflection in accounting accounts must be developed, as well as corresponding rules for organizing internal control. In this regard, each operation must be reflected in the accounting records (automated accounting system) of the FCU in a timely manner.

The rules for organizing accounting for payment and settlement operations must contain, among other things, the following main norms:

1. all operations must have documented confirmation from the bank-counterparty regarding the debit/credit of funds to the account;

2. reflection of operations in the accounting records of the bank must be carried out in accordance with accounting rules and:

a) for payments in national currency - no later than the date of the settlement;

b) for outgoing payments in foreign currency - on the day of debiting funds from the FCU account, which must be confirmed by corresponding documents and subsequent receipt of an extract from the correspondent account from the correspondent bank;

c) for incoming payments in foreign currency - no later than the day of receipt of confirmation of crediting funds."