NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of 14 March 2018 No. 2018-P-14/8-11-(BS)

On Amending the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Basic Requirements for the Activities of Commercial Banks when Concluding an Agency Agreement for the Provision of Retail Banking Services" of 26 May 2010 No. 36/7"

In accordance with Articles 20 and 68 of the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic, Banks and Banking Activities", the Board of the National Bank of the Kyrgyz Republic

RESOLVES:

1. To amend the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Basic Requirements for the Activities of Commercial Banks when Concluding an Agency Agreement for the Provision of Retail Banking Services" of 26 May 2010 No. 36/7" (attached).

2. The Legal Department shall:

• 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 Normative Legal Acts of the Kyrgyz Republic.

3. This resolution enters into force upon the expiration of fifteen days from the day of official publication.

4. The Payment Systems Department shall bring this resolution to the attention of commercial banks, payment system operators and payment organizations of the Kyrgyz Republic.

5. Control over the execution of this resolution shall be assigned to the Deputy Chairman of the National Bank of the Kyrgyz Republic Orozbaeva L.Dzh.

Chairman of the Board of the National Bank of the Kyrgyz Republic		T. Abdygulov

		Annex to the Resolution of the Board of the National Bank of the Kyrgyz Republic of 14 March 2018 No. 2018-P-14/8-11-(BS)

AMENDMENTS to the Resolution of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Basic Requirements for the Activities of Commercial Banks when Concluding an Agency Agreement for the Provision of Retail Banking Services" of 26 May 2010 No. 36/7"

To amend the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Basic Requirements for the Activities of Commercial Banks when Concluding an Agency Agreement for the Provision of Retail Banking Services" of 26 May 2010 No. 36/7" as follows:

In the Regulation "On Basic Requirements for the Activities of Commercial Banks when Concluding an Agency Agreement for the Provision of Retail Banking Services", approved by the above-mentioned Resolution:

1) Paragraph 4 shall be restated as follows:

"4. A bank may engage a legal entity or an individual entrepreneur as a retail agent in accordance with the requirements of this Regulation. In this case, the bank bears responsibility for the performance of obligations by agents within the framework of the agreement.

Retail agents may provide:

• an expanded scope of retail banking services;

• a limited scope of retail banking services.";

2) Paragraph 5 shall be restated as follows:

"5. The expanded scope of retail banking services includes:

• acceptance and processing of payments and settlements for goods and services that are not the result of one's own activities, in favor of third parties through payment systems based on information technologies and electronic means, and methods of making payments;

• execution of money transfers through money transfer systems;

• issuance and acceptance of forms and their transfer to the bank for processing overdraft loans;

• repayment of loans;

• replenishment of a bank account;

• distribution/redemption of electronic money.";

3) Paragraph 6 shall be restated as follows:

"6. The limited scope of retail banking services includes:

• acceptance and processing of payments and settlements for goods and services that are not the result of one's own activities, in favor of third parties through payment systems based on information technologies and electronic means, and methods of making payments;

• repayment of loans;

• distribution/redemption of electronic money.";

4) Paragraph 6-1 shall be restated as follows:

"6-1. When engaging a retail agent for the distribution/redemption of electronic money, the bank must comply with the requirements of the National Bank established in the Regulation "On Electronic Money in the Kyrgyz Republic", approved by a resolution of the Board of the National Bank of the Kyrgyz Republic. In case of non-compliance with the requirements of normative legal acts, the National Bank has the right to apply enforcement measures in accordance with the legislation of the Kyrgyz Republic.";

5) Add paragraph 7-1 as follows:

"7-1. Agents of the expanded scope of retail banking services and agents of the limited scope of retail banking services are prohibited from:

• accepting lottery stakes, except for state (national) lotteries conducted in real time;

• accepting payments for lottery tickets, receipts and other documents certifying the right to participate in a lottery.";

6) Add paragraph 9-1 as follows:

"9-1. Barcode - a bar code, a machine-readable code, a set of geometric symbols, the arrangement of which is described in the corresponding goods/objects, etc.";

7) In paragraph 10:

• in the first paragraph, after the words "retail banking services", add the words "in accordance with paragraph 25 of this Regulation";

• the second and third paragraphs shall be deemed to have lost force;

8) Paragraph 17-1 shall be deemed to have lost force;

9) Paragraph 25 shall be restated as follows:

"25. The bank, guided by documents on risk management and information systems management, must develop criteria for selecting a retail agent based on the following categories of agents in accordance with the normative legal acts of the National Bank:

1) Agents for the provision of an expanded scope of retail banking services are legal entities, residents of the Kyrgyz Republic, that hold a license from the National Bank for one of the following types of banking activity and banking operations:

a) for carrying out activities for microfinance organizations;

b) for carrying out activities of credit unions;

c) for carrying out activities for the provision of services for the acceptance and processing of payments and settlements for goods and services that are not the result of one's own activities, in favor of third parties through payment systems based on information technologies and electronic means, and methods of making payments;

d) for carrying out activities for conducting exchange operations with cash foreign currency.

2) Agents for the provision of a limited scope of retail banking services are agents that do not fall under agents for the provision of an expanded scope of retail banking services, that are legal entities/individual entrepreneurs, residents of the Kyrgyz Republic, that do not have/have a license from the National Bank for carrying out activities of banking/payment services, as well as the state enterprise "Kyrgyz pochtasy".";

10) In paragraph 26:

• in the first sentence, after the words "agreement with the retail agent and", exclude the words "if necessary";

• in the second sentence, replace the words "unambiguously state" with the word "contain";

11) In paragraph 45:

• replace the words "issues a cash receipt at the request of the payer" with the words "must issue to the payer a cash (electronic) receipt";

• exclude the second sentence;

12) Paragraph 51 shall be restated as follows:

"51. Information on accepted payments must be stored in the hardware-software complex and on electronic media of the bank and/or the retail agent for a period of five years.";

13) Paragraph 64 shall be restated as follows:

"64. Depending on the terms of the agency agreement for the provision of retail banking services, the retail agent may install payment terminals with a full-function keyboard that allows, if necessary, entering:

• identification text information on the client;

• biometric scanning devices;

• barcode scanning devices.";

14) Paragraph 69 shall be restated as follows:

"69. All operations conducted by the retail agent for the provision of retail banking services must be stored in the format in which they were generated, sent or received, with observance of their integrity and immutability for a period (of five years).";

15) Annex 1 to the Regulation "On Basic Requirements for the Activities of Commercial Banks when Concluding an Agency Agreement for the Provision of Retail Banking Services" shall be restated as follows:

		"[Annex 1](toktom://db/98489" \l "pr1) to the Regulation "On Basic Requirements for the Activities of Commercial Banks when Concluding an Agency Agreement for the Provision of Retail Banking Services"

Name of the commercial bank

---

For ______ quarter of 20__.

REPORT on the engagement of retail agents for the provision of retail banking services to the population on behalf of the bank

A. Retail agents providing an expanded scope of services
No.	Name of agent	Location (address)	Types of services provided
1	2	3	4
B. Retail agents providing a limited scope of services
No.	Name of agent	Location (address)	Types of services provided
1	2	3	4

Executor	______ (personal signature)	______ (initials, surname)