Resolution of the Board of the National Bank of the Kyrgyz Republic No. 18/6 of April 29, 2000 on Amendments and Additions to the Regulation on the Creation of Banks and Features of Their Activities in the Kyrgyz Republic

EXPIRED

(In the edition of the Resolution of the Board of the National Bank of the Kyrgyz Republic of March 2, 2006 No. 5/7)

Registered in the Ministry of Justice of the Kyrgyz Republic

May 12, 2000. Registration number 86

Bishkek

April 29, 2000 No. 18/6

RESOLUTION OF THE BOARD OF THE NATIONAL BANK OF THE KYRGYZ REPUBLIC

On Amendments and Additions to the Regulation on the Creation of Banks and Features of Their Activities in the Territory of the Kyrgyz Republic

In order to ensure the safety, reliability, and protection of the reputation of the banking and payment system of the Kyrgyz Republic, to fulfill the Kyrgyz Republic's obligations to the United Nations and other international organizations, to prevent the conduct of operations for the legalization of income obtained illegally, and due to the impossibility of carrying out adequate supervision of banking operations related to the activities of a bank client - a subject of offshore zones, acting on the basis of Articles 14 and 53 Law of the Kyrgyz Republic "On Banks and Banking Activity in the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic resolves:

1. Approve the attached amendments and additions to the Regulation on the Creation
   of Banks and Features of Their Activities in the Territory of the Kyrgyz Republic, approved by the Resolution of the Board of the NBKR of August 12, 1998 No. 19/2, and bring them into force from the moment of state registration.

2. The Legal Department of the NBKR to carry out the state registration
   of the attached amendments and additions to the Regulation on the Creation of Banks and Features of Their Activities in the Territory of the Kyrgyz Republic in the Ministry of Justice of the Kyrgyz Republic.

3. The Banking Supervision Department of the NBKR to bring this Resolution
   to the attention of the regional departments of the NBKR, commercial banks, and RSK.

4. Control over the implementation of this Resolution is assigned to
   K.Sh. Sharshkeeve, Deputy Chairman of the National Bank of the Kyrgyz Republic.

Chairman of the Board of the National
Bank of the Kyrgyz Republic U. Sarbanov

Approved

by the Resolution of the Board of the National Bank of the Kyrgyz Republic

of April 29, 2000 No. 18/6

AMENDMENTS AND ADDITIONS to the Regulation on the Creation of Banks and Features of Their Activities in the Territory of the Kyrgyz Republic

1. Regarding paragraph 12 of Section III:

• in the first paragraph, replace the words: "foreign investments" with the words:
  "foreign investors";

• supplement the paragraph with sub-paragraph 4 as follows:

"4) subjects (banks, subsidiary banks, credit organizations, financial institutions, legal entities, and citizens), incor- porated in offshore zones (according to Appendix 20) in addition to the documents listed in sub-paragraphs 1-3 of this paragraph:

1) information on the origin of funds directed by them for
participation in the bank's capital (for all subjects);

2) recommendations from 2 (two) banks, whose head offices
are incorporated in OECD countries with a rating higher than the maximum category B (for all subjects, except citizens)(1), containing:

• information stating that the person in question is a client (i.e., there is
  experience of joint activity) with at least one of the banks that have provided their recommendations, for a period of no less than 10 (ten) years (for all subjects, except citizens);

• confirmation that the bank providing the recommendations
  does not have information that over the past 10 (ten) years criminal cases have been initiated against the specified person for fraud (for example, financial, tax, or money laundering) and that no official accusations have been brought against him for violation of the legislation of any country (for all subjects, except citizens);

• confirmation that the bank providing the recommendations
  has sufficient grounds to believe that the recommended person possesses sufficient financial capabilities and knowledge of conducting business (for all subjects, except citizens).

In the event of foreign investors acquiring a package of shares of a bank, granting the right, directly or indirectly, to exercise control, or in the event of additional acquisition of shares of a bank, as a result of which foreign investors become direct or indirect owners of a controlling package of shares, it is necessary to submit documents legalized in the established order in accordance with sub-paragraphs 1-4 of paragraph 12 of this Regulation".

2. Paragraph 101 of Chapter 10 of Section VII is supplemented with a new paragraph as follows:

"In the event of foreign investors acquiring a package of shares of a bank, granting the right, directly or indirectly, to exercise control, or in the event of additional acquisition of shares of a bank, as a result of which foreign investors become direct or indirect owners of a controlling package of shares, in addition to the aforementioned documents, it is necessary to submit documents legalized in the established order in accordance with sub-paragraphs 1-4 of paragraph 12 of this Regulation thirty days before the planned date of acquisition of shares".

3. Supplement the Regulation with Appendix 22 - List of Offshore Zones for
   Banking Purposes in the Territory of the Kyrgyz Republic.

(1) That is, only all categories of A ratings assigned to the bank by one of the following rating agencies: Moodys Investors Service (USA), Standard & Poor's (USA), Fitch IBCA (USA), Duff & Phelps (USA), Thomson Bank Watch-BREE (United Kingdom), Nippon Investment Service (Japan).

Appendix 22

to the Regulation on the Creation of Banks and Features of Their Activities in the Territory of the Kyrgyz Republic

LIST

of offshore zones for banking purposes in the Territory of the Kyrgyz Republic

Island Centers

America

Anguilla

Antigua

Aruba

Bahamas

Barbados

Bermuda

Cayman Islands

Montserrat

Nevis

Netherlands

Antilles

St. Kitts

St. Lucia

St. Vincent

Turks and Caicos

Virgin Islands

Asia/Oceania

Cook Islands

Labuan

Macau

Marianas Islands

Marshall Islands

Nauru

Niue

Vanuatu

Western Samoa

Europe

Cyprus

Guernsey

Isle of Man

Jersey

Madeira

Other

Bahrain

Mauritius

Seychelles

Continental Centers

Andorra

Belize

Costa Rica

Gibraltar

Lebanese Republic

Liberia

Monaco

Panama