Resolution of the Board of the National Bank of the Kyrgyz Republic No. 2019-P-12/42-1-(NPA) of 14 August 2019 approving the Regulation on Minimum Requirements for the Organization of Internal Control in Commercial Banks for the Purpose of Countering the Financing of Terrorist Activities and the Legalization (Laundering) of Criminal Proceeds, the Regulation on the Procedure for Conducting Exchange Operations with Cash Foreign Currency in the Kyrgyz Republic, and Amending and Supplementing Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic on Countering the Financing of Terrorist Activities and the Legalization (Laundering) of Criminal Proceeds

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

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

Bishkek, dated 14 August 2019 No. 2019-P-12/42-1-(NPA)

On approving the Regulation "On Minimum Requirements for the Organization of Internal Control in Commercial Banks for the Purpose of Countering the Financing of Terrorist Activities and the Legalization (Laundering) of Criminal Proceeds", the Regulation "On the Procedure for Conducting Exchange Operations with Cash Foreign Currency in the Kyrgyz Republic" and on amending and supplementing certain regulatory legal acts of the National Bank of the Kyrgyz Republic on countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds

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 approve the Regulation "On Minimum Requirements for the Organization of Internal Control in Commercial Banks for the Purpose of Countering the Financing of Terrorist Activities and the Legalization (Laundering) of Criminal Proceeds" (Appendix 1).

2. To approve the Regulation "On the Procedure for Conducting Exchange Operations with Cash Foreign Currency in the Kyrgyz Republic" (Appendix 2).

3. To introduce amendments and supplements to the following resolutions of the Board of the National Bank of the Kyrgyz Republic (Appendix 3):

• "On approving the Instruction on working with bank accounts and bank deposit (deposit) accounts" of 31 October 2012 No. 41/12;

• "On approving the Instruction on the provision by commercial banks of the Kyrgyz Republic to clients of individual bank safes for storing valuables" of 12 September 2012 No. 37/2;

• "On establishing requirements for determining subjects and the list of offshore zones" of 16 April 2003 No. 13/2;

• "On approving the Instruction on the exercise of banking supervision" of 20 June 2018 No. 2018-P-12/24-2-(NPA);

• "On the Regulation "On measures of influence applied to banks and certain other financial and credit organizations licensed by the National Bank of the Kyrgyz Republic" of 15 June 2017 No. 2017-P-12/25-4-(NPA);

• "On approving the Regulation "On direct banking supervision" of 28 May 2008 No. 22/4;

• "On certain regulatory legal acts of the National Bank of the Kyrgyz Republic" of 14 September 2011 No. 52/4;

• "On approving the Regulation "On corporate governance in commercial banks of the Kyrgyz Republic" of 17 May 2017 No. 19/12;

• "On approving the Regulation "On minimum requirements for risk management in banks of the Kyrgyz Republic" of 15 June 2017 No. 2017-P-12/25-8-(NPA);

• "On approving the Rules for forming a system of internal control and internal audit in banks and non-bank financial and credit organizations licensed and regulated by the National Bank of the Kyrgyz Republic" of 15 June 2017 No. 2017-P-12/25-3-(NPA);

• "On approving the Regulation on minimum requirements for external audit of banks and other financial and credit organizations licensed by the National Bank of the Kyrgyz Republic" of 15 June 2017 No. 2017-P-12/25-2-(NPA);

• "On the List of main documents generated in the activities of commercial banks and financial and credit organizations licensed by the National Bank of the Kyrgyz Republic, indicating retention periods" of 27 August 2004 No. 22/9;

• "On the Regulation "On the implementation of Islamic principles of financing in the Kyrgyz Republic within the framework of a pilot project" of 30 October 2006 No. 32/2;

• "On approving the Regulation "On operations carried out in accordance with Islamic principles of banking and financing" of 23 September 2009 No. 38/8;

• "On the Regulation "On corporate governance in banks of the Kyrgyz Republic carrying out operations in accordance with Islamic principles of banking and financing" of 30 November 2011 No. 67/9;

• "On approving the Regulation "On minimum requirements for risk management in banks carrying out operations in accordance with Islamic principles of banking and financing" of 18 July 2018 No. 2018-P-12/30-3-(BS).

4. To recognize as no longer in force:

1) resolution of the Board of the National Bank of the Kyrgyz Republic "On the Regulation "On minimum requirements for the organization of internal control in commercial banks and other financial and credit institutions licensed by the NBKR for the purpose of countering the financing of terrorism and the legalization (laundering) of proceeds obtained by criminal means" of 15 May 2007 No. 26/1;

2) resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to the resolution of the Board of the National Bank of the Kyrgyz Republic "On the Regulation "On minimum requirements for the organization of internal control in commercial banks and other financial and credit institutions licensed by the NBKR for the purpose of countering the financing of terrorism and the legalization (laundering) of proceeds obtained by criminal means" No. 26/1 of 15 May 2007" of 27 June 2008 No. 25/8;

3) resolution of the Board of the National Bank of the Kyrgyz Republic "On approving the Regulation "On minimum requirements for the organization of internal control in commercial banks for the purpose of countering the legalization (laundering) of criminal proceeds and the financing of terrorist or extremist activities" of 29 December 2010 No. 96/2;

4) resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to certain regulatory legal acts of the National Bank of the Kyrgyz Republic" of 29 September 2011 No. 55/9;

5) paragraph 35 of Appendix to the resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to certain regulatory legal acts of the National Bank of the Kyrgyz Republic" of 16 November 2012 No. 43/1;

6) in the resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to certain regulatory legal acts of the National Bank of the Kyrgyz Republic" of 10 April 2013 No. 11/2:

• paragraph two of point 1 of the resolution;

• point I of the Appendix to the above-mentioned resolution;

7) in the resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to certain resolutions of the Board of the National Bank of the Kyrgyz Republic" of 10 February 2016 No. 7/2:

• paragraph two of point 1 of the resolution;

• point 1 of the appendix to the above-mentioned resolution;

8) in the resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to certain regulatory legal acts of the National Bank of the Kyrgyz Republic" of 15 June 2017 No. 2017-P-12/25-5-(NPA):

• paragraph seven of point 1 of the resolution;

• point 6 of the Appendix to the above-mentioned resolution;

9) resolution of the Board of the National Bank of the Kyrgyz Republic "On approving the Regulation on the procedure for conducting exchange operations with cash foreign currency in the Kyrgyz Republic" of 30 November 2000 No. 42/1;

10) resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to the resolution of the Board of the National Bank of the Kyrgyz Republic of 30 November 2000 No. 42/1 "On approving the Regulation on the procedure for conducting exchange operations with cash foreign currency in the Kyrgyz Republic" of 13 June 2007 No. 30/8;

11) resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approving the Regulation on the procedure for conducting exchange operations with cash foreign currency in the Kyrgyz Republic" No. 42/1 of 30 November 2000" of 17 September 2008 No. 35/1;

12) resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to certain regulatory legal acts of the National Bank of the Kyrgyz Republic" of 14 October 2009 No. 41/3;

13) point 6 of Appendix to the resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to certain regulatory legal acts of the National Bank of the Kyrgyz Republic" of 25 April 2012 No. 18/9;

14) point IV of Appendix to the resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing supplements to certain regulatory legal acts of the National Bank of the Kyrgyz Republic" of 4 July 2012 No. 28/9;

15) point 5 of Appendix to the resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to certain regulatory legal acts of the National Bank of the Kyrgyz Republic" of 16 November 2012 No. 43/1;

16) in the resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to certain regulatory legal acts of the National Bank of the Kyrgyz Republic" of 23 December 2013 No. 52/8:

• subpoint 4 of point 1 of the resolution;

• point 4 of the Appendix to the above-mentioned resolution;

17) in the resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to certain resolutions of the Board of the National Bank of the Kyrgyz Republic" of 29 January 2014 No. 2/15:

• paragraph two of point 1 of the resolution;

• point 1 of the Appendix to the above-mentioned resolution;

18) in the resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to certain resolutions of the Board of the National Bank of the Kyrgyz Republic" of 27 November 2014 No. 53/8:

• paragraph seven of point 1 of the resolution;

• point 6 of the Appendix to the above-mentioned resolution;

19) in the resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to certain resolutions of the Board of the National Bank of the Kyrgyz Republic" of 10 February 2016 No. 7/2:

• paragraph eight of point 1 of the resolution;

• point 7 of the Appendix to the above-mentioned resolution;

20) in the resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing supplements and amendments to certain resolutions of the Board of the National Bank of the Kyrgyz Republic" of 30 November 2016 No. 47/5:

• paragraph two of point 1 of the resolution;

• point 1 of the Appendix to the above-mentioned resolution;

21) in the resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to certain regulatory legal acts of the National Bank of the Kyrgyz Republic and recognizing as no longer in force certain regulatory legal acts of the National Bank of the Kyrgyz Republic" of 15 June 2017 No. 2017-P-12/25-12-(NPA):

• subpoint 4 of point 1 of the resolution;

• point 4 of the Appendix to the above-mentioned resolution;

22) in the resolution of the Board of the National Bank of the Kyrgyz Republic "On introducing amendments and supplements to certain regulatory legal acts of the National Bank of the Kyrgyz Republic" of 16 August 2017 No. 2017-P-12/34-1-(NPA);

• paragraph four of point 1 of the resolution;

• point 3 of the Appendix to the above-mentioned resolution.

5. 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 Regulatory Legal Acts of the Kyrgyz Republic.

6. This resolution enters into force on 1 November 2019.

7. To the Department of Supervision Methodology and Licensing of Banks, to bring this resolution to the attention of commercial banks, the Legal Entity Union "Union of Banks of Kyrgyzstan", microfinance companies, microcredit companies, OJSC "Financial Company of Credit Unions", credit unions, specialized financial institutions, exchange bureaus, structural subdivisions, regional departments and the representative office of the National Bank of the Kyrgyz Republic in Batken region.

8. To assign control over the execution of this resolution to the member of the Board supervising the Department of Supervision Methodology and Licensing of Banks.

Acting Chairman of the Board of the National Bank of the Kyrgyz Republic		N.Zhenish

		Appendix 3 to the resolution of the Board of the National Bank of the Kyrgyz Republic of 14 August 2019 No. 2019-P-12/42-1-(NPA)

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

1. To introduce the following amendments and supplements to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approving the Instruction on working with bank accounts and bank deposit (deposit) accounts" of 31 October 2012 No. 41/12:

in the Instruction on working with bank accounts and bank deposit (deposit) accounts approved by the above-mentioned resolution:

• in point 8, the words "beneficial owner (beneficiary)" shall be replaced by the words "beneficial owner";

• paragraph two of point 9 shall be set out in the following wording:

"Opening of a bank account or bank deposit (deposit) account shall be carried out only if the bank has received all documents provided for by the legislation of the Kyrgyz Republic and this Instruction, and also identification and verification of the client and the beneficial owner has been carried out in accordance with the legislation of the Kyrgyz Republic.";

• point 11 shall be set out in the following wording:

"11. The following terms and definitions are used in this Instruction:

Bank deposit (deposit) is understood in the meaning specified in Article 749 of the Civil Code of the Kyrgyz Republic.

Bank account is a method of reflecting contractual relations between a bank and a client for accepting a bank deposit (deposit) and/or performing by the bank operations related to the provision of banking services to the client, provided for by a bank account agreement, bank deposit agreement, legislation and business customs applied in banking practice.

Non-cash settlement is understood in the meaning specified in Article 2 of the Law of the Kyrgyz Republic "On the Payment System of the Kyrgyz Republic".

Beneficial owner is an individual (individuals) who ultimately (through a chain of ownership and control) directly or indirectly (through third parties) owns the right of ownership or controls the client, or an individual on whose behalf or in whose interests an operation (transaction) is carried out.

Verification is the procedure for checking the identification data of the client and (or) the beneficial owner.

Depositor is a person who has deposited a sum of money with the bank or in whose name a sum of money has been received by the bank from a third party and who has a corresponding agreement for opening and maintaining a bank account or bank deposit (deposit).

Trust declaration is a written agreement that property, the right to which is held by one person, actually belongs to another person, in whose interests the legal title of ownership was transferred to the first person.

Deposit certificate is a security similar to a savings certificate, however, only a legal entity may be its holder. The relations between the issuing bank of the deposit certificate and its client are based on bank deposit (deposit) relations.

Identification is the procedure for establishing identification data about the client and (or) the beneficial owner.

Individual entrepreneur is a citizen of the Kyrgyz Republic, a foreign citizen or a stateless person permanently or temporarily residing in the territory of the Kyrgyz Republic and engaged in individual entrepreneurial activity in its territory in accordance with the current legislation of the Kyrgyz Republic.

Nominal service is a service where nominal persons (nominal director, shareholder, participant, etc.) are appointed to official positions in an organization or act as shareholders (participants) of the organization. At the same time, the organization is actually owned and managed by the beneficial owner in accordance with an agreement (arrangement) between the nominal person and the beneficial owner.

Nominal persons may be determined by the bank by the client filling out a questionnaire drawn up in accordance with the requirements of the financial intelligence body.

Nominal shareholder (participant) is an individual or legal entity owning securities of a legal entity only formally on the instruction of the beneficial owner on the basis of an agreement (arrangement).

Nominal director is an individual managing an organization only formally, acting on written or oral instructions of the beneficial owner on the basis of an agreement concluded between them.

Financial intelligence body is the State Financial Intelligence Service under the Government of the Kyrgyz Republic.

Risk-oriented approach is the application of enhanced measures in the presence of a high level of risk or simplified measures in the presence of a low level of risk in accordance with established risk management procedures (identification, assessment, monitoring, control, risk reduction).

Sanctions list is a list of individuals and legal entities, groups and organizations in respect of which there is information about their participation in terrorist or extremist activities and the proliferation of weapons of mass destruction.

Savings certificate is a security certifying the fact of depositing funds with the bank as a bank deposit (deposit) and the client's right to receive, upon expiry of the established term, the amount of the bank deposit (deposit) and interest thereon at any subdivision of the given bank. Only an individual may be the holder of a savings certificate.

Individuals are citizens of the Kyrgyz Republic, foreign citizens, stateless persons.

Legal entity is an organization registered in the manner established by legislation, which has separate property in ownership, economic management or operational management and is liable for its obligations with this property, and may, in its own name, acquire and exercise property and personal non-property rights and obligations.";

• in the first sentence of paragraph four of point 15, the words "owners of lands land users" shall be replaced by the words "owners of lands/land users";

• in point 21, the words "beneficial owner (beneficiary)" shall be replaced by the words "beneficial owner";

• point 22 shall be set out in the following wording:

"22. The bank must refuse the client to open an account or conduct operations on the account if:

• the relevant documents necessary to fulfill the requirements for opening an account and conducting operations on it, identification and verification of the client and the beneficial owner and carrying out other measures of proper verification of the client are not submitted;

• clearly unreliable documents are submitted.

At the same time, the bank must, in the established manner, send a corresponding message to the financial intelligence body within one working day from the day of the decision to refuse servicing the client.";

• to supplement the Instruction with points 22-1, 22-2, 22-3, 22-4 of the following content:

"22-1. If, when opening an account or conducting operations on the account, the bank has suspicions that the operations (transactions) are related to the financing of terrorist activities and the legalization (laundering) of criminal proceeds, the bank must apply the following measures:

• conduct identification and verification of the client and the beneficial owner, regardless of any exceptions or established threshold values;

• send a message about the suspicious operation (transaction) to the financial intelligence body within 5 (five) hours from the moment the operation (transaction) is recognized as suspicious.

22-2. If the bank is convinced that conducting proper verification of the client will lead to disclosure of information about the suspicions that have arisen, the bank does not take measures for proper verification of the client and sends a message about the suspicious operation (transaction) to the financial intelligence body.

22-3. If there is information regarding a client or beneficial owner about participation in terrorist or extremist activity and the proliferation of weapons of mass destruction, obtained in accordance with the norms of the legislation of the Kyrgyz Republic, the bank must, without prior notification of the client, immediately freeze the operation (transaction) and/or funds of the client included in the Sanctions List, and within 3 (three) hours from the moment of freezing send a message to the financial intelligence body.

The procedure for freezing and unfreezing an operation (transaction) and (or) funds, as well as the procedure for providing access to frozen funds and managing frozen funds, are established by the Government of the Kyrgyz Republic.

22-4. The bank is obliged to check the identification data of the client, the authorized representative of the client, the beneficial owner and the counterparty of the client for the presence or absence in the List of persons, groups, organizations in respect of which there is information about their participation in the legalization (laundering) of criminal proceeds. This check is carried out before establishing and in the course of business relations with the client and (or) before carrying out any operation (transaction) of the client.

If there is information regarding a client or beneficial owner about participation in the legalization (laundering) of criminal proceeds, the bank is obliged to immediately suspend the operation (transaction) being carried out by the client and report this to the financial intelligence body within 3 (three) hours from the moment of suspension of the operation (transaction).

Operations (transactions) are suspended until a decision is made to seize property, adopted in accordance with the criminal procedure legislation of the Kyrgyz Republic.

If no decision is made to seize property, the suspended operation (transaction) is carried out in the established procedure and on the basis of an order of the financial intelligence body.";

• in paragraph 25, the words "beneficial owner (beneficiary)" in various cases shall be replaced by the words "beneficial owner" in the corresponding cases;

• in paragraph 33:

the seventh and eighth paragraphs shall be stated in the following wording:

"- purchase/sale of securities for a bank client;

• conduct of other operations on the accounts of clients and the bank.";

in the eleventh paragraph, the words and figures "No. 41/7 of 14 October 2009" shall be replaced by the words and figures "of 9 December 2015 No. 76/8";

the fourteenth paragraph shall be declared void;

• subparagraph 1 of paragraph 41 shall be supplemented with the second and third paragraphs of the following content:

"In the case of provision of an electronic patent, an individual entrepreneur, in order to confirm the fact of receipt of the electronic patent, prints a copy of the electronic patent and submits it to the bank. In this case, the bank employee must verify the authenticity of the paper copy of the electronic patent by scanning the QR code applied to the electronic patent using a mobile or other device having the appropriate software.

Note: QR code - a matrix code (two-dimensional barcode) containing information about the patent, created specifically for recognition by mobile devices.";

• in paragraph 52:

the first sentence of the third paragraph shall be stated in the following wording:

"The bank notifies the client in writing at the last known address of the need to receive the balance of funds, and in the absence of the client, the balance of funds is kept on the system accounting (on the balance sheet) of the bank.";

supplement with the fourth paragraph of the following content:

"When notifying the client, the bank may additionally use telephone/electronic communication services and send messages to the client's mobile number/email, as well as through the use of internet banking/mobile banking.";

• in paragraph 53:

the fourth paragraph shall be stated in the following wording:

"- the client has not submitted the relevant documents necessary to fulfill the requirements of identification and verification of the client and beneficial owner, as well as other measures of proper verification of the client, conducting operations on the account;";

the seventh and eighth paragraphs shall be stated in the following wording:

"If there is information regarding a client or beneficial owner about participation in terrorist or extremist activity and the proliferation of weapons of mass destruction, obtained in accordance with the norms of the legislation of the Kyrgyz Republic, the bank must, without prior notification of the client, immediately freeze the operation (transaction) and/or funds of the client included in the Sanctions List, and within 3 (three) hours from the moment of freezing send a message to the financial intelligence body.

The procedure for freezing and unfreezing an operation (transaction) and (or) funds, as well as the procedure for providing access to frozen funds and managing frozen funds, are established by the Government of the Kyrgyz Republic.";

• in Appendix 1 to the Instruction:

paragraph 1 shall be stated in the following wording:

"1. The "know your client" policy determines the procedure for proper verification of clients and includes:

1) the procedure for identifying the client and beneficial owner when opening a bank account, account for bank deposits (deposits);

Identification of the client and beneficial owner is carried out by filling out a questionnaire drawn up in accordance with the requirements established in the Regulation "On the Procedure for Conducting Proper Verification of a Client", approved by resolution of the Government of the Kyrgyz Republic of 25 December 2018 No. 606.

2) conducting verification of the client before and during the opening of a bank account, as well as verification of information after opening an account, in cases provided for by this Instruction;

3) taking available and reasonable measures to verify the beneficial owner before and during the opening of an account;

4) documentary recording of information obtained as a result of identification and verification of the client and beneficial owner;

5) storage and updating of information and documents on the client's activities and financial position, as well as information and documents obtained as a result of proper verification of the client, primarily in relation to high-risk clients;

6) conducting on an ongoing basis proper verification of the client throughout the entire period of business relations with the client and analyzing the compliance of operations (transactions) conducted by the client with available information on the content of his activities, financial position and source of funds, as well as on the nature of the risks of terrorist financing and legalization (laundering) of criminal proceeds;

7) monitoring operations on the client's account and other measures at the discretion of the bank.

Banks apply simplified or enhanced verification of business relations with the client using a risk-oriented approach.";

in paragraph 3, the words "beneficial owner (beneficiary)" in various cases shall be replaced by the words "beneficial owner" in the corresponding cases;

in paragraph 5:

subparagraph 1 shall be supplemented with the sixth paragraph of the following content:

"- driver's license (only when replenishing a client's bank account by third parties);";

subparagraph 2 shall be stated in the following wording:

"2) for foreign citizens:

• passport of a foreign citizen;

• residence permit in the Kyrgyz Republic;"

supplement with subparagraphs 3 and 4 of the following content:

"3) for stateless persons - residence permit in the Kyrgyz Republic;

4) for refugees:

• certificate of registration of an application for recognition of a person as a refugee;

• refugee certificate.";

in paragraph 8, the words "on countering the financing of terrorism and legalization (laundering) of proceeds from crime" shall be replaced by the words "on countering terrorist financing and legalization (laundering) of criminal proceeds";

the second paragraph of subparagraph 1 of paragraph 10 shall be stated in the following wording:

"- confirmation of information from official documents. As a document for confirmation, identity documents listed in paragraph 5 of this Appendix may be used;";

in paragraph 14, the words "beneficial owner (beneficiary)" shall be replaced by the words "beneficial owner";

• in Appendix 3 to the Instruction:

in paragraph 4, the words "on legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" shall be replaced by the words "on terrorist financing and legalization (laundering) of criminal proceeds";

in paragraph 7, the words "countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" in various cases shall be replaced by the words "countering terrorist financing and legalization (laundering) of criminal proceeds" in the corresponding cases.

2. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Instruction on the provision by commercial banks of the Kyrgyz Republic to clients of individual bank safes for storing valuables" of 12 September 2012 No. 37/2 the following changes:

in the Instruction on the provision by commercial banks of the Kyrgyz Republic to clients of individual bank safes for storing valuables, approved by the above resolution:

• in paragraph 6, the words "beneficial owner (beneficiary)" shall be replaced by the words "beneficial owner";

• in paragraph 10:

in the first paragraph:

the words "countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" shall be replaced by the words "countering terrorist financing and legalization (laundering) of criminal proceeds";

the words "beneficial owner (beneficiary)" shall be replaced by the words "beneficial owner";

the second paragraph shall be stated in the following wording:

"If the operations of the client, his trusted persons, the beneficial owner fall under the signs of suspicious operations, according to the legislation of the Kyrgyz Republic, the bank has the right to require these persons to provide any documents and information necessary for the bank to monitor their operations, in order to counter terrorist financing and legalization (laundering) of criminal proceeds. At the same time, the bank is obliged to send a message about the suspicious operation (transaction) to the financial intelligence body. The client must provide the bank with the above documents/information and notify the bank in writing of changes in any information and documents previously provided for identification.";

• in the second paragraph of paragraph 11, the words "authorized state body in the field of countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" shall be replaced by the words "financial intelligence body".

3. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On establishing requirements for determining subjects and the list of offshore zones" of 16 April 2003 No. 13/2 the following change:

the preamble of the resolution shall be stated in the following wording:

"In order to ensure the security, reliability and stability of the banking system of the Kyrgyz Republic, protect the interests of depositors and other creditors of a commercial bank, ensure transparency of the ownership structure of banks on the basis of Articles 79 and 89 of the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic, Banks and Banking Activity", prevent operations related to terrorist financing and legalization (laundering) of criminal proceeds, the Board of the National Bank of the Kyrgyz Republic resolves:".

4. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Instruction on the implementation of banking supervision" of 20 June 2018 No. 2018-P-12/24-2-(NPA) the following changes and supplement:

in the Instruction on the implementation of banking supervision, approved by the above resolution:

• paragraph 4 shall be supplemented with the ninth paragraph of the following content:

"- financial intelligence body - the State Financial Intelligence Service under the Government of the Kyrgyz Republic.";

• in paragraph 10, the words "in order to counter legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" shall be replaced by the words "in order to counter terrorist financing and legalization (laundering) of criminal proceeds", the words "authorized state body in the field of AML/CFT" shall be replaced by the words "financial intelligence body", the abbreviation "AML/CFT" shall be replaced by the abbreviation "PFTD/LPD";

• in paragraph 11, the abbreviation "AML/CFT" shall be replaced by the abbreviation "PFTD/LPD";

• in paragraphs 12, 14, the abbreviation "ML/FT" shall be replaced by the abbreviation "FTD/LPD";

• in section VI of Appendix 1, the abbreviation "AML/CFT" shall be replaced by the abbreviation "PFTD/LPD", the words "to the State Financial Intelligence Service of the Kyrgyz Republic" shall be replaced by the words "to the financial intelligence body", the abbreviation "with the SFIS" shall be replaced by the words "financial intelligence body";

• in Appendix 6, the abbreviation "ML/FT" shall be replaced by the abbreviation "FTD/LPD".

5. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On the Regulation "On measures of influence applied to banks and certain other financial and credit organizations licensed by the National Bank of the Kyrgyz Republic" of 15 June 2017 No. 2017-P-12/25-4-(NPA)" the following changes:

in the Regulation "On measures of influence applied to banks and certain other financial and credit organizations licensed by the National Bank of the Kyrgyz Republic", approved by the above resolution:

• in chapter 1:

in the third paragraph, the words "countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" shall be replaced by the words "countering terrorist financing and legalization (laundering) of criminal proceeds";

in the fifth paragraph, the words "On countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" shall be replaced by the words "On countering terrorist financing and legalization (laundering) of criminal proceeds";

• in paragraphs 2, 5, 13, 24, 56, 61, 69, the words "countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" in various cases shall be replaced by the words "countering terrorist financing and legalization (laundering) of criminal proceeds" in the corresponding cases;

• in paragraph 7 of Appendix 1 to the Regulation, the words "on countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" shall be replaced by the words "on countering terrorist financing and legalization (laundering) of criminal proceeds".

6. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation "On direct banking supervision" of 28 May 2008 No. 22/4" the following changes:

in the Regulation "On direct banking supervision", approved by the above resolution:

• in paragraph 2.2, the word "employee" in various cases shall be replaced by the word "servant" in the corresponding cases;

• in paragraph 2.2.2, the words "authorized employees" shall be replaced by the words "authorized servants", the words "consent of the employees themselves" shall be replaced by the words "consent of the servants themselves";

• in paragraph 2.5, the word "employees of the supervisory block" shall be replaced by the words "servants of the supervisory block";

the eighth paragraph of paragraph 3.1 shall be stated in the following wording:

"- the presence among the shareholders of the bank owning or managing both in aggregate and individually ten or more percent of the bank's shares, of persons registered in the territory of states that do not apply the recommendations of the intergovernmental organization (group) for the development and implementation of international standards for countering money laundering, terrorist financing and financing of the proliferation of weapons of mass destruction (FATF) and do not participate in international cooperation in the field of countering terrorist financing and legalization (laundering) of criminal proceeds, and in respect of which the FATF calls on member states to apply countermeasures. The list of these countries is established by the financial intelligence body.";

• in the second paragraph of paragraph 3.3, the words "on countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" shall be replaced by the words "on countering terrorist financing and legalization (laundering) of criminal proceeds";

• in Appendix 1 to the Regulation, the word "employee(s)" shall be replaced by the word "servant(s)", the word "employees" shall be replaced by the word "servants".

7. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On certain regulatory legal acts of the National Bank of the Kyrgyz Republic" of 14 September 2011 No. 52/4 the following changes and supplement:

in the Regulation "On the work of banks with securities", approved by the above resolution:

• in paragraph 16:

the seventh paragraph shall be stated in the following wording:

"- conclusion of the official on PFTD/LPD on the involvement of the issuer and the securities issued by it in operations carrying the risk of terrorist financing and legalization (laundering) of criminal proceeds, according to the relevant regulatory legal acts in the field of countering terrorist financing and legalization (laundering) of criminal proceeds;";

• supplement with the eighth paragraph of the following content:

"Note: the official on PFTD/LPD is a bank employee (at the level of the head of the compliance control service), appointed for the purpose of organizing internal control on countering terrorist financing and legalization (laundering) of criminal proceeds, having access to all information relating to identification, verification, detection, recording and transmission of data to the financial intelligence body.";

• the third paragraph of paragraph 41 shall be declared void.

8. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation "On corporate governance in commercial banks of the Kyrgyz Republic" of 17 May 2017 No. 19/12" the following change:

in the Regulation "On corporate governance in commercial banks of the Kyrgyz Republic", approved by the above resolution:

• in paragraphs 28 and 58, the words "on issues of countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" shall be replaced by the words "on issues of countering terrorist financing and legalization (laundering) of criminal proceeds".

9. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation "On minimum requirements for risk management in banks of the Kyrgyz Republic" of 15 June 2017 No. 2017-P-12/25-8-(NPA)" the following changes:

in the Regulation "On minimum requirements for risk management in banks of the Kyrgyz Republic", approved by the above resolution:

• in paragraph 3:

in the seventeenth and eighteenth paragraphs, the words "on countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" shall be replaced by the words "on countering terrorist financing and legalization (laundering) of criminal proceeds";

in the twenty-sixth paragraph, the abbreviation "AML/CFT" shall be replaced by the abbreviation "PFTD/LPD", the abbreviation "ML/FT" shall be replaced by the abbreviation "FTD/LPD";

• in paragraph 90, the words "on managing the risk of legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity (hereinafter - ML/FT)" shall be replaced by the words "on managing the risk of terrorist financing and legalization (laundering) of criminal proceeds (hereinafter - FTD/LPD)";

• in paragraphs 91 and 92, the abbreviation "ML/FT" shall be replaced by the abbreviation "FTD/LPD", the abbreviation "AML/CFT" shall be replaced by the abbreviation "PFTD/LPD".

10. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Rules for the formation of the internal control and internal audit system in banks and non-bank financial and credit organizations licensed and regulated by the National Bank of the Kyrgyz Republic" of 15 June 2017 No. 2017-P-12/25-3-(NPA) the following changes:

in the Rules for the formation of the internal control and internal audit system in banks and non-bank financial and credit organizations licensed and regulated by the National Bank of the Kyrgyz Republic, approved by the above resolution:

• in paragraph 30:

the words "countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" shall be replaced by the words "countering terrorist financing and legalization (laundering) of criminal proceeds";

the abbreviation "AML/CFT" shall be replaced by the abbreviation "PFTD/LPD";

• subparagraph 10 of paragraph 34 shall be stated in the following wording:

"10) implementation in the bank of the internal control program in the field of PFTD/LPD, according to the requirements of the regulatory legal acts of the National Bank on PFTD/LPD";

• in the ninth paragraph of paragraph 40, the words "on preventing legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" shall be replaced by the words "on countering terrorist financing and legalization (laundering) of criminal proceeds".

11. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation "On minimum requirements for external audit of banks and other financial and credit organizations licensed by the National Bank of the Kyrgyz Republic" of 15 June 2017 No. 2017-P-12/25-2-(NPA)" the following change:

in the Regulation "On minimum requirements for external audit of banks and other financial and credit organizations licensed by the National Bank of the Kyrgyz Republic", approved by the above resolution:

• subparagraph 4 of paragraph 47 shall be stated in the following wording:

"4) on disclosure of fraud or a fraudulent scheme or on identification of transactions falling under the signs of an operation related to terrorist financing and legalization (laundering) of criminal proceeds;".

12. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On the List of main documents generated in the activities of commercial banks and financial-credit organizations licensed by the National Bank of the Kyrgyz Republic, with indication of retention periods" of 27 August 2004 No. 22/9 the following change:

in the List of main documents generated in the activities of commercial banks and financial-credit organizations licensed by the National Bank of the Kyrgyz Republic, with indication of retention periods, approved by the above-mentioned resolution:

• in article 406, the words "on issues of countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" shall be replaced by the words "on issues of countering terrorist financing and legalization (laundering) of criminal proceeds".

13. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On the Regulation 'On the implementation of Islamic principles of financing in the Kyrgyz Republic within the framework of a pilot project' of 30 October 2006 No. 32/2" the following changes:

in the Regulation "On the implementation of Islamic principles of financing in the Kyrgyz Republic within the framework of a pilot project", approved by the above-mentioned resolution:

• subparagraph "b" of paragraph 8 of section 3 shall be set out in the following wording:

"b) policy and procedures on countering terrorist financing and legalization (laundering) of criminal proceeds;";

• subparagraph 8 of paragraph 1.1 of section 4 shall be set out in the following wording:

"8) policies and procedures on countering terrorist financing and legalization (laundering) of criminal proceeds when carrying out operations in accordance with Islamic principles;".

14. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation 'On operations carried out in accordance with Islamic principles of banking and financing' of 23 September 2009 No. 38/8" the following change:

in the Regulation "On operations carried out in accordance with Islamic principles of banking and financing", approved by the above-mentioned resolution:

• in paragraph 1.5, the words "for the purpose of countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity," shall be replaced by the words "for the purpose of countering terrorist financing and legalization (laundering) of criminal proceeds".

15. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On the Regulation 'On corporate governance in banks of the Kyrgyz Republic carrying out operations in accordance with Islamic principles of banking and financing' of 30 November 2011 No. 67/9" the following change:

in the Regulation "On corporate governance in banks of the Kyrgyz Republic carrying out operations in accordance with Islamic principles of banking and financing", approved by the above-mentioned resolution:

• in subparagraph 7 of paragraph 50 and subparagraph 1 of paragraph 55, the words "on issues of countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" shall be replaced by the words "on issues of countering terrorist financing and legalization (laundering) of criminal proceeds".

16. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation 'On minimum requirements for risk management in banks carrying out operations in accordance with Islamic principles of banking and financing' of 18 July 2018 No. 2018-P-12/30-3-(BS)" the following changes:

in the Regulation "On minimum requirements for risk management in banks carrying out operations in accordance with Islamic principles of banking and financing", approved by the above-mentioned resolution:

• in paragraph 2:

in the eighteenth paragraph, the words "on countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity (hereinafter - AML/CFTE)" shall be replaced by the words "on countering terrorist financing and legalization (laundering) of criminal proceeds (hereinafter - CTF/AML)";

in the twentieth paragraph, the words "Risk of legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity (hereinafter - ML/FTE)" shall be replaced by the words "Risk of terrorist financing and legalization (laundering) of criminal proceeds (hereinafter - TF/ML)", the abbreviation "ML/FTE" shall be replaced by the abbreviation "TF/ML", the abbreviation "AML/CFTE" shall be replaced by the abbreviation "CTF/AML";

in the twenty-second paragraph, the words "on countering legalization (laundering) of criminal proceeds and financing of terrorist or extremist activity" shall be replaced by the words "on CTF/AML";

• in paragraphs 92, 93 and 94, the abbreviation "ML/FTE" shall be replaced by the abbreviation "TF/ML", the abbreviation "AML/CFTE" shall be replaced by the abbreviation "CTF/AML".

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