Resolution of the Board of the National Bank of the Kyrgyz Republic No. 2021-P-14/34-4-(PS) of 24 June 2021 on Amending the Resolution of the Board of the National Bank of the Kyrgyz Republic of 2 September 2019 No. 2019-P-14/46-1-(PS) on Approval of the Regulation on Licensing of Activities of Payment Organizations and Payment System Operators — NBKR — KG

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

of 24 June 2021 No. 2021-P-14/34-4-(PS)

On Amending the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Licensing of Activities of Payment Organizations and Payment System Operators" of 2 September 2019 No. 2019-P-14/46-1-(PS)

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" and Article 26 of the Law of the Kyrgyz Republic "On the Payment System of the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic resolves:

To amend the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Licensing of Activities of Payment Organizations and Payment System Operators" of 2 September 2019 No. 2019-P-14/46-1-(PS) (attached).
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 Normative Legal Acts of the Kyrgyz Republic.

This resolution enters into force upon the expiry of fifteen days from the day of official publication.
To the Payment Systems Department: bring this resolution to the attention of payment organizations and payment system operators and the Legal Entity Association "Association of Payment System Operators of the Kyrgyz Republic".
To the Department for the Development of the State Language and Document Management: bring this resolution to the attention of the relevant structural subdivisions, regional departments and the representative office of the National Bank of the Kyrgyz Republic in Batken Oblast.
To assign control over the execution of this resolution to the member of the Board of the National Bank of the Kyrgyz Republic supervising the Payment Systems Department.


Chairman	T. Abdygulov

Annex to the Resolution

of the Board of the National Bank

of the Kyrgyz Republic

of 24 June 2021 No. 2021-P-14/34-4-(PS)

Amendments

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

"On Approval of the Regulation "On Licensing of Activities of Payment Organizations and Payment System Operators"

of 2 September 2019 No. 2019-P-14/46-1-PS

To introduce to the Resolution of the Board of the National Bank of the Kyrgyz Republic **"**On Approval of the Regulation "On Licensing of Activities of Payment Organizations and Payment System Operators" of 2 September 2019 No. 2019-P-14/46-1-(PS) the following amendments:

In the Regulation "On Licensing of Activities of Payment Organizations and Payment System Operators", approved by the above-mentioned Resolution:

Supplement the Regulation with paragraph 2-1 as follows:

"2-1. A payment system operator may combine its activity only with the activity of a payment organization.

A payment organization may combine its activity only with the activity of a payment system operator.";

Restate paragraph 5 as follows:

"5. Licensees are obliged, within 15 (fifteen) working days from the day of adoption of a decision by the relevant authorized management body, to notify the National Bank:

of a change in the size of the charter capital;
of liquidation or reorganization;
of a change in the composition of the executive or supervisory management bodies (board of directors – if any);
of a change in the legal and/or actual addresses of the organization;
of the opening of representative offices and/or branches in the oblasts or outside the Kyrgyz Republic.

Licensees must also notify the National Bank of a change in the composition of founders (shareholders/participants) and/or the size of their shares/participatory interests in the organization as a result of their acquisition/sale/transfer in any manner, as well as of the transfer of shares/participatory interests of the founders (shareholders/participants) of the organization to third parties for trust management. The notification must be sent to the National Bank within 15 (fifteen) working days from the day of adoption by the founders (shareholders/participants) of the relevant decisions/ conclusion of contracts/agreements and other grounds in accordance with the legislation of the Kyrgyz Republic.

Notifications must be sent in written form with attached copies, certified by the licensee, of the relevant decisions of the authorized management bodies (or originals of extracts from such decisions) and other supporting documents, including those provided for by this Regulation.

The National Bank has the right to request additional documents/information concerning the adopted changes.";

In paragraph 7:

restate the fourth paragraph as follows:

"Officials – members of the supervisory management body (Board of Directors – if any), members of the executive management body (head, technical director, chief accountant) and/or persons equated to them in their functional duties, exercising management of the current activity of the payment organization and/or payment system operator.";

in the fifth paragraph:

restate subparagraph 1 as follows:

"1) officials of the payment organization and/or payment system operator and their close relatives;";

restate subparagraph 3 as follows:

"3) members of the supervisory and executive management bodies of the legal entities specified in subparagraph 2 of this definition, and their close relatives;";

in subparagraphs 4 and 5, replace the word "term" in various case forms with the word "definition" in the corresponding cases;

In paragraph 10:

restate the first paragraph as follows:

"The minimum size of the charter capital of a payment organization/payment system operator must be:";

restate the fourth paragraph as follows:

"If the applicant submits documents for two licenses/ the licensee combines the activity of a payment organization and a payment system operator, the charter capital of such organization must be not less than 3,000,000 (three million) soms.";

Restate paragraph 11 as follows:

"11. When carrying out activities for the provision of services for the acceptance and processing of payments and settlements for goods/services that are not the result of its own activity, in favor of third parties – suppliers of goods/services who are non-residents, in the presence of direct contracts with such suppliers/integration of technical platforms and carrying out financial settlements for cross-border payments, the charter capital of the payment organization must be not less than 10,000,000 (ten million) soms.";

Restate paragraph 12 as follows:

"12. When carrying out the acceptance of funds from payers for the payment of taxes, levies and payments subject to crediting to the Single Treasury Account of the authorized state body for forecasting and execution of the budget at the National Bank, in the presence of direct contracts with state bodies or local self-government bodies administering the payment of taxes, levies and payments, the payment organization must have charter capital of not less than 10,000,000 (ten million) soms.

The requirement of this paragraph does not apply to payment organizations that accept funds from payers for the payment of taxes, levies and payments on the basis of an agency agreement/contract with a commercial bank and provide services on behalf of the bank.";

Restate paragraph 13 as follows:

"13. If the payment system of a payment system operator, according to the significance criteria established in the Policy on Supervision (Oversight) of the Payment System of the Kyrgyz Republic, approved by Resolution of the Board of the National Bank of the Kyrgyz Republic of 15 July 2015 No. 38/4, is recognized as a systemically important/significant payment system, or the payment organization/payment system operator is recognized as a provider of critical services based on the results of 12 (twelve) months or more, the minimum size of the charter capital is established depending on the degree of significance of the payment system in the following amounts:

1) not less than 200,000,000 (two hundred million) soms, if the payment system is recognized as systemically important;

2) not less than 30,000,000 (thirty million) soms, if the payment system is recognized as significant;

3) not less than 20,000,000 (twenty million) soms, if the payment organization and/or payment system operator is recognized as a provider of critical services.

The payment organization or payment system operator, within 6 (six) months from the day of notification of the licensee of the decision of the Payment System Committee of the National Bank, must adopt a decision to increase the charter capital in the amount established in this paragraph of the Regulation and deposit funds into the bank. In case of failure to deposit funds within the established time limits, the National Bank applies measures of influence in accordance with the normative legal acts of the National Bank.";

Supplement the Regulation with paragraph 13-1 as follows:

"13-1. In case of adoption of a decision to change the size of the charter capital, the payment organization/payment system operator must, within 15 (fifteen) working days from the date of adoption of the decision, provide to the National Bank the following documents:

1) a copy of the relevant decision of the authorized management body (or the original of an extract from such decision), certified by the licensee;

2) information allowing determination of the sources of origin of the funds of the founders (shareholders/participants) directed to increase the charter capital, with attached copies of supporting documents.";

Supplement the Regulation with paragraph 15-1 as follows:

"15-1. In case of a change in the composition of founders (shareholders/participants) of a payment organization/payment system operator, information about them must be submitted to the National Bank in questionnaires according to the forms of Annexes 3 and 4 to this Regulation within 15 (fifteen) working days from the day of adoption by the founders (shareholders/participants) of the relevant decisions/conclusion of contracts/agreements and other grounds in accordance with the legislation of the Kyrgyz Republic.";

In paragraph 16:

restate the third paragraph as follows:

"- to the regional departments of the National Bank – by applicants registered and located in the oblasts of the Kyrgyz Republic, except Chui and Batken oblasts;";

restate the fourth paragraph as follows:

"- to the representative office of the National Bank in Batken Oblast – by applicants registered and located in Batken Oblast.";

restate the fifth paragraph as follows:

"Documents submitted by foreign founders (shareholders/participants) must be legalized or apostilled in the manner established by the legislation of the Kyrgyz Republic. Documents submitted in a foreign language must contain a duly certified translation into the state and/or official languages of the Kyrgyz Republic.";

Restate paragraph 17 as follows:

"17. All documents submitted to the National Bank in accordance with this Regulation and containing more than one sheet must be described sheet by sheet, bound, numbered, signed and certified by the signature of the head and the seal of the applicant/licensee. At the request of the National Bank, individual documents may be submitted in electronic form.

Copies of documents submitted to the National Bank in accordance with this Regulation must be certified by the seal and signature of the head/other authorized person of the applicant/licensee, unless individual paragraphs of this Regulation establish a different procedure for certifying copies of submitted documents.";

Supplement the Regulation with paragraph 17-1 as follows:

"17-1. Along with the submission of the documents provided for by this Regulation, payment organizations/payment system operators and individuals must provide consent to the collection and processing of personal data in accordance with Annex 8 to this Regulation in respect of persons whose personal data is submitted to the National Bank. Failure to provide the above consent is grounds for refusal to consider the submitted documents, including those of officials of the payment organization/payment system operator.";

Restate paragraph 19 as follows:

"19. To obtain a license to carry 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 its own activity, in favor of third parties through payment systems based on information technologies and electronic means and methods of making payments, the applicant submits to the National Bank the following documents in one copy in the state or official languages:

1) an application for the issuance of a license, drawn up in the form in accordance with Annex 1 to this Regulation, signed by the head of the applicant;

2) copies of constituent documents: the charter and the constituent agreement (if there is more than one founder (shareholder/participant)), as well as copies of the certificate of state registration/re-registration, the decision on the creation of the legal entity, on the size of the charter capital, on the election of the supervisory (if any) and executive management bodies, certified by the seal and signature of the head/other authorized person of the applicant;

3) copies of documents of founders (shareholders)/participants that are legal entities: constituent documents, certificate of state registration/re-registration, as well as financial statements for the last reporting date submitted to the tax authorities, certified by the seal and signature of the head/other authorized person of the legal entity;

4) information allowing determination of the sources of origin of the funds of the founders (shareholders/participants) directed to the formation of the charter capital, with attached copies of supporting documents;

5) questionnaires filled out and signed by members of the executive management body and founders (shareholders/participants), according to Annexes 2, 3 and 4 to this Regulation, or scanned copies of completed questionnaires with subsequent sending of the original, with attached:

documents confirming the compliance of the applicant's officials with the established requirements in accordance with Section 3 of this Regulation;
documents provided for officials by paragraph 40 of this Regulation;

6) information about affiliated and related persons of the applicant (full name of the individual, name of the legal entity, constituent and other supporting documents);

7) a business plan containing at least:

definition of the goals pursued in conducting operations;
forecast calculations of the economic results expected from conducting these operations, for at least 3 (three) years;

8) a copy of the agreement on opening a settlement account in a bank for the storage and use of funds from the population and from its agents for the provision of services in favor of suppliers of goods/services, as well as a separate account for the economic activity of the applicant;

9) a copy of a preliminary agreement with a commercial bank/payment organization in the field of integration of technical platforms and carrying out financial settlements for cross-border payments (for an applicant that will provide services for the acceptance and processing of payments and settlements for goods that are not the result of its own activity, in favor of third parties who are non-residents of the Kyrgyz Republic);

10) a document confirming the deposit of funds as charter capital, according to paragraphs 10 or 11 and 12 (depending on the provision of services) of this Regulation;

11) copies of the applicant's internal documents, the rules of operation of the payment organization, providing for:

the procedure for connecting agents/subagents, peripheral devices;
the procedure for cash collection;
the procedure for conducting claim work;
the procedure for returning funds to clients;
the procedure for the movement of funds passing through agents/subagents and payment terminals;
the procedure for actions in the event of emergency situations;
a detailed description of mechanisms for managing directories of senders and recipients for checking clients against international and national lists of persons involved in terrorist and extremist activities or the proliferation of weapons of mass destruction;
the rights, obligations and responsibilities of the parties and its participants.

Documents must be bound, numbered and certified by the seal and signature of the head and/or authorized person;

12) a power of attorney signed by the head or other authorized person in accordance with the constituent documents, with the imprint of the seal, issued to the representative for obtaining the license, if a representative acts on behalf of the applicant by power of attorney;

13) copies of documents of the founder (shareholder/participant) of the applicant who is an individual resident/non-resident of the Kyrgyz Republic:

a copy of the passport (a copy of the ID passport for a resident, for a non-resident – a copy of the passport of a foreign state citizen);
certificates of absence of debts on payment of taxes and/or a copy of the declaration of income, social contributions as of the date of submission of documents in the form provided for by the legislation of the Kyrgyz Republic; for an individual non-resident, it is necessary to provide similar documents in accordance with the legislation of the country of origin;
information allowing determination of the sources of origin of the funds of the founder (shareholder/participant) directed to the formation of the charter capital, with attached supporting documents and documents on the absence of accounts payable (bank certificate of savings, from the place of work – on income; a certificate of dividends or other documents confirming the receipt of income and the availability of funds directed to the formation/increase of charter capital, acquisition of shares, or participation in a share);

14) an act of installation and commissioning of the hardware-software complex.";

Supplement the Regulation with paragraph 19-1 as follows:

"19-1. To obtain a license to carry out activities for the provision of services for the acceptance, processing and issuance of financial information (processing, clearing) on payments and settlements of third parties to participants of the payment system, of this processing, clearing center, the applicant submits to the National Bank the following documents in one copy in the state or official languages:

1) an application for the issuance of a license, drawn up in the form in accordance with Annex 1 to this Regulation, signed by the head of the applicant;

2) copies of constituent documents: the charter and the constituent agreement (if there is more than one shareholder/participant), as well as copies of the certificate of state registration/re-registration, the decision on the creation of the legal entity, on the size of the charter capital, on the election of the supervisory (if any) and executive management bodies, certified by the seal and signature of the head/other authorized person of the applicant;

3) copies of documents of shareholders (founders)/participants that are legal entities: constituent documents, certificate of state registration, as well as financial statements for the last reporting date submitted to the tax authorities, certified by the seal and signature of the head/other authorized person of the legal entity;

documents confirming the compliance of the applicant's officials with the established requirements in accordance with Section 3 of this Regulation;
documents provided for officials by paragraph 40 of this Regulation;

6) information about affiliated and related persons of the applicant (full name of the individual, name of the legal entity, constituent and other supporting documents);

7) a business plan containing at least:

definition of the goals pursued in conducting operations;
technology of operation and encryption algorithm;
forecast calculations of the economic results expected from conducting these operations for at least 3 (three) years;

8) a copy of the agreement on opening a settlement account in a commercial bank for the storage and use of funds of economic activity;

9) a document confirming the deposit of funds as charter capital, according to paragraph 10 of this Regulation;

10) a copy of the internal document regulating the procedure for carrying out financial monitoring in the payment system, containing at least:

the purpose and tasks of financial monitoring;
principles of financial monitoring;
a set of elements forming the monitoring system;
rules of internal control for the purposes of countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds.

11) a copy of the rules of functioning of the payment system, which at a minimum must contain the following:

a detailed description of the architecture of the payment system and its scheme of operation;
the procedure, conditions and procedures for joining and leaving the payment system;
the procedure for connecting a participant to the payment system;
the procedure for conducting processing and final settlement;
the procedure for canceling and returning erroneous payments;
the procedure for conducting claim work;
the procedure for providing information by participants of the payment system about their activities to the payment system operator;
the risk management system in the payment system, including the risk management model used, the list of measures and methods of risk management, internal control systems and the activity of the internal audit service, if any;
requirements for information protection;
the procedure for resolving disputes;
the procedure for actions of participants in the event of emergency situations in the system;
the rights, obligations and responsibilities of the operator and participants of the payment system;
a detailed description of mechanisms for managing directories of senders and recipients for checking clients against international and national lists of persons involved in terrorist and extremist activities or the proliferation of weapons of mass destruction.

The rules of functioning of the payment system must be bound, numbered and certified by the signature of the head/other authorized person and the seal of the applicant;

12) an act of installation and commissioning of the hardware-software complex (hereinafter – HSC);

13) passports of automated information systems and components of the APC, containing at least:

general characteristics (purpose, date of implementation, etc.);
system configuration (hardware, software/system, application/database management systems, disk partition sizes, backup map, etc.);
list of regulatory documents (regulations, procedures, etc.) used in the operation of the system, including system recovery procedures;
scheme (topology) of interaction between equipment and related systems;

14) a copy of the document establishing the applicant's right of ownership or lease to the premises occupied for the placement of the APC. The owned or leased premises for the placement of the APC must meet the requirements for technical fortification and equipment in accordance with the Regulation "On Regulation of Activities of Payment Organizations and Payment System Operators", approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 2019-P-14/50-2-(PS) of 30.09.2019. If the payment system operator uses for the placement of the APC:

its own premises, then it is necessary to provide documents confirming the right of ownership to these premises;
leased premises, then it is necessary to provide a lease agreement with a technical description of the premises. The lease agreement must have a term of at least 1 (one) year
subleased premises, then the sublease agreement must be accompanied by the lease agreement (main agreement), which is concluded between the lessee and the lessor, which gives the right and terms for providing the premises for sublease;

15) a copy of the document confirming the possibility/availability of support by the software of the licensed organization of an open interface (API) and integration with the single settlement center (if any), determined by the National Bank to ensure operational compatibility and inter-system interaction;

16) a copy of a preliminary agreement with a commercial bank on opening a settlement account for accounting of electronic money (for an applicant who plans to provide services for processing and distribution of electronic money);

17) a copy of a preliminary agreement on the issue/distribution of electronic money with the issuer of electronic money (for an applicant who plans to provide services for processing and distribution of electronic money);

18) a power of attorney signed by the head or other authorized person in accordance with the constituent documents, with the seal impression, issued to the representative for obtaining a license in case a representative acts on behalf of the applicant by power of attorney;

19) copies of documents of the founder (shareholder/participant) – an individual resident/non-resident:

a copy of the passport (a copy of the ID-passport – for a resident, for a non-resident – a copy of a foreign state passport);
certificates of absence of debts on taxes and/or a copy of the declaration of income, social contributions as of the date of submission of documents in the form provided by the legislation of the Kyrgyz Republic; for an individual non-resident, it is necessary to provide similar documents in accordance with the legislation of the country of origin;
information allowing to determine the sources of origin of the founder's (shareholder/participant's) funds directed to the formation of the authorized capital, with the attachment of supporting documents and documents on the absence of accounts payable (bank certificates on savings, from the place of work – on income; certificate on dividends or other documents confirming the receipt of income and the availability of funds directed to the formation/increase of the authorized capital, acquisition of shares, or participation in a share).";
in the first sentence of paragraph 22, the words "paragraph 19" shall be replaced by the words "paragraphs 19 and 19-1";
paragraph 24 shall be stated as follows:

"24. When submitting documents that do not meet the requirements of this Regulation, or not in full more than 3 (three) times, or in violation of the established deadlines, the National Bank refuses to consider the documents and sends a written notification thereof.";

The Regulation shall be supplemented with paragraph 24-1 as follows:

"24-1. Repeated submission of an application and documents for obtaining licenses is allowed after 6 (six) months from the day of official refusal to consider documents or from the day of expiration of the deadlines specified in paragraph 23 of this Regulation (in case of violation of these deadlines).

Repeated submission of an application and documents for obtaining licenses is allowed only upon elimination of deficiencies and comments specified by the National Bank during the initial consideration of documents. In case of failure to eliminate the comments specified by the National Bank during the initial consideration of documents, the National Bank has the right to refuse to consider the documents without re-sending for revision of documents within 15 (fifteen) working days from the date of their receipt by the National Bank.";

the first sentence of paragraph 28 shall be stated as follows:

"The issuance of a license to an authorized person is carried out upon presentation of a power of attorney and documents proving his identity, as well as a document confirming payment of the state fee for issuing a license.";

paragraph 30 shall be stated as follows:

"30. The National Bank refuses to issue a license for any of the following reasons:

1) non-compliance of constituent and other documents submitted for obtaining a license for the declared activity with the requirements established by the legislation of the Kyrgyz Republic and this Regulation;

2) when providing false and/or incomplete information more than 3 (three) times or violation of the established deadlines for providing information, according to paragraphs 23 and 24 of this Regulation;

3) if the comments were not eliminated during the repeated submission of documents, in accordance with paragraph 24-1 of this Regulation;

4) non-compliance of officials with the qualification requirements established in section 3 of this Regulation and regulatory legal acts of the National Bank;

5) non-compliance of founders (shareholders/participants) with the requirements established in paragraph 15 of this Regulation;

6) non-compliance of the size of the authorized capital, sources of formation of the authorized capital with the requirements of the legislation of the Kyrgyz Republic and this Regulation;

7) existence of a court decision prohibiting the applicant from engaging in this type of activity;

8) results of a preliminary check confirming the inoperability of automated systems and/or non-compliance of the applicant's documents with the requirements of regulatory legal acts of the National Bank and this Regulation;

9) non-payment of the state fee for issuing a license;

10) if previously the license of a payment organization/payment system operator was revoked by the National Bank.";

the title of chapter 10 of the Regulation shall be stated as follows:

"Chapter 10. Requirements for members of the executive management body of the applicant/licensee";

paragraph 32 shall be stated as follows:

"32. In order to organize the proper functioning of activities in a payment organization/payment system operator, a collegial executive management body in the form of a board must operate.

The board must include at least the full-time positions of the head (general director/president/chairman), technical director, chief accountant and/or persons equated to them in their functional duties, who manage the current activities of the payment organization/payment system operator, who also, when a state of emergency/emergency situation is introduced in the country (in the absence of a board of directors), ensure the effective and uninterrupted functioning of the payment system and inform the National Bank about the measures taken.";

the first paragraph of paragraph 34 shall be stated as follows:

"The head of the executive management body of the payment organization/payment system operator and/or a person equated to him in his functional duties, who is a member of the executive management body, must meet the following requirements:";

in paragraph 35:

the first paragraph shall be stated as follows:

"The technical director and/or a person equated to him in his functional duties, who is a member of the executive management body, must meet the following requirements:";

the fourth paragraph shall be stated as follows:

"- have certificates in the field of information technology/programs, etc. (if any).";

in paragraph 36:

the first paragraph shall be stated as follows:

"The chief accountant and/or a person equated to him in his functional duties, who is a member of the executive management body, must meet the following requirements:";

the third paragraph shall be stated as follows:

"- have at least 3 (three) years of work experience in the position of accountant, including at least 1 (one) year in the position of chief accountant;";

paragraph 37 shall be stated as follows:

"37. Members of the executive management body must not fall under the following conditions:

1) in respect of these persons, a court verdict has been issued prohibiting work in payment, banking, financial systems and/or in the field of information systems/security;

2) members of the executive management body previously were officials in an organization licensed by the National Bank, and there are decisions of the Payment System Committee, the Supervisory Committee of the National Bank or there is a conclusion, decision or other acts of the National Bank (decision of the Payment System Committee of the National Bank, prescriptions, inspection reports, etc.) recognizing that the candidate:

a) is involved in actions (inaction) as a result of which restrictions on operations and/or a special regime were introduced in the organization (in a banking/payment and other financial organization) in accordance with regulatory legal acts of the National Bank;

b) is involved in actions that influenced the suspension or revocation of the license of the payment organization and/or payment system operator where the candidate previously held a managerial position;

c) is involved in actions classified as unsound and/or unsafe banking practice.";

The Regulation shall be supplemented with paragraph 37-1 as follows:

"37-1. A candidate does not have the right to occupy in a payment organization and/or payment system operator the positions specified in paragraphs 34-36 of this Regulation, if there are facts indicated:

a) in subparagraph 1 of paragraph 37 of this Regulation – within 5 (five) years from the day of removal or expungement of criminal record;

b) in subparagraphs 2(a) and 2(c) of paragraph 37 of this Regulation – within 3 (three) years from the day of entry into force of the corresponding decision of the Payment System Committee and the Supervisory Committee of the National Bank, prescription, inspection reports, etc.;

c) in subparagraph 2(b) of paragraph 37 of this Regulation – within 2 (two) years from the day of entry into force of the resolution of the Payment System Committee on revocation of the license;

d) in case of a criminal record of a member of the executive management body after the fact of obtaining a license for the activity of a payment organization and payment system operator, this member of the executive management body must be replaced.";

the first sentence of paragraph 38 shall be stated as follows:

"In case of dismissal/transfer/being on parental leave (maternity leave) in accordance with the legislation of the Kyrgyz Republic of members of the executive management body, the payment organization/payment system operator is obliged to notify the National Bank within 15 (fifteen) working days from the date of adoption of the decision with attachment of a copy of the corresponding decision.";

The Regulation shall be supplemented with paragraph 38-1 as follows:

"38-1. When appointing members of the executive management body, the payment organization/payment system operator is obliged to notify the National Bank within 15 (fifteen) working days from the date of adoption of the decision with attachment of a copy of the corresponding decision, as well as with attachment of the documents specified in paragraph 40 of this Regulation.";

paragraph 40 shall be stated as follows:

"40. The payment organization/payment system operator must submit to the National Bank, together with the documents for obtaining a license specified in paragraphs 19 and 19-1 of this Regulation, the following documents of members of the executive management body, including for newly hired and/or when changing members of the executive management body:

1) a copy of the diploma of secondary/higher education;

2) a certified copy of the corresponding decision (or the original extract from such decision) of the authorized management body that adopted the decision on the election/appointment of the candidate to the position, according to this Regulation, as well as a copy of the employment contract indicating the functional duties of the candidate in accordance with the job description;

3) for the head of the executive management body – the corresponding document (certificate) on completing a course on countering terrorist financing and legalization (laundering) of criminal proceeds (copy). At the time of submission of documents to the National Bank, the period for obtaining the document (certificate) must not exceed 2 (two) years from the date of its receipt;

4) at least one recommendation from persons who worked with the candidate at previous places of work or had business relations with him, in the form of Appendix 5 to this Regulation. It is not allowed to provide recommendations from employees/officers of the National Bank; from close relatives; from persons recognized as involved in activities related to unsound and unsafe banking practice.

5) a copy of the employment record book;

6) a copy of the ID passport.";

the first paragraph of paragraph 42 shall be stated as follows:

"When establishing non-compliance of officials of the payment organization/payment system operator with the requirements established in paragraphs 34-36 of this Regulation, as well as the presence of grounds provided for in paragraphs 37 and 37-1 of this Regulation, the National Bank within 30 (thirty) calendar days sends to the applicant for obtaining license(s)/payment organization/payment system operator a letter on suspension or replacement of the official.";

paragraph 43 shall be stated as follows:

"43. Documents of officials submitted within the framework of the applicant's application for obtaining license(s) of a payment organization/payment system operator are considered together with the rest of the package of documents for obtaining license(s) at a meeting of the Payment System Committee of the National Bank.";

subparagraph 1 of paragraph 47 shall be stated as follows:

"1) have a diploma of higher education and work experience of at least 3 (three) years, of which at least 2 (two) years – in managerial positions;";

paragraph 50 shall be stated as follows:

"50. In case of signs of threat of bankruptcy in the payment organization/payment system operator, the Board of Directors (if any) is obliged:

1) to take urgent necessary measures to prevent bankruptcy of the payment organization/payment system operator;

2) to immediately convene an extraordinary general meeting of founders (shareholders/participants);

3) to immediately notify the National Bank about the occurrence of signs of threat of bankruptcy in the payment organization/payment system operator, about the results of consideration by the board of directors of the issue of convening an extraordinary general meeting of shareholders, as well as about the urgent necessary measures being taken and planned to prevent bankruptcy and failures in the payment organization/payment system operator;

4) to take decisions to ensure the effective and uninterrupted functioning of the payment system when a state of emergency/emergency situation is introduced in the country and inform the National Bank about the measures taken.";

paragraph 56 shall be stated as follows:

"56. Re-issuance of the license is carried out within 10 (ten) working days from the day of receipt of the corresponding application and documents, according to paragraph 55 of this Regulation. When re-issuing the license, the licensor makes the corresponding changes to the register of payment organizations/payment system operators.";

paragraph 63 shall be stated as follows:

"63. In case of adoption of a decision on liquidation/voluntary termination of activity, the licensee must, within 15 (fifteen) working days from the day of adoption of the decision, submit an application for termination of activity and the original license to the National Bank indicating the reason and attaching copies of the corresponding decisions of the authorized management body.";

The Regulation shall be supplemented with paragraph 63-1 as follows:

"63-1. In case of revocation of the license of a payment organization and/or payment system operator by the Payment System Committee, the payment organization and/or payment system operator is obliged:

1) within the deadlines established by the Payment System Committee, to complete payments to participants of payment systems and suppliers of goods/services (third parties) and immediately terminate the licensed type of activity;

2) within 3 (three) working days from the day of receipt of the notification on revocation of the license, to surrender the license to the National Bank.

The National Bank publishes information on the termination of the license on the official website of the National Bank.";

paragraph 64 shall be stated as follows:

"64. The licensee, before surrendering the corresponding license to the National Bank, must fulfill the terms of the agreement(s), complete payments and fulfill financial obligations to participants of the payment system and suppliers of goods/services (third parties) and terminate the licensed type of activity, in accordance with the legislation of the Kyrgyz Republic.

When surrendering the license of a payment organization to the National Bank, the licensee must submit in paper form copies of reconciliation acts of finality of settlements for payments to third parties.

When surrendering the license of a payment system operator, the licensee must also submit copies of documents confirming the completion of mutual settlements with participants of the payment system for the provision of relevant services.";

The Regulation shall be supplemented with section 6 as follows:

"Section 6. Licensing during the regimes of state of emergency or emergency situation

Chapter 16. Procedure and terms of consideration of documents

During the period of the regimes of state of emergency (SE) or emergency situation (ES), the National Bank considers scanned copies of the application and documents of the applicant for obtaining licenses of a payment organization and/or payment system operator sent to the official mail of the National Bank. At the same time, the term for consideration of the application, as well as consideration of other licensing issues, may be extended based on a decision of the Board of the National Bank taking into account the duration of the SE or ES regime. The originals of documents are subject to mandatory additional sending after the removal of the SE or ES regimes.

The license is issued after the National Bank receives the applicant's documents meeting the requirements of paragraphs 16-17 of this Regulation.

During the period of the SE or ES regimes, the preliminary check of the operability of automated systems provided for in paragraph 21 of this Regulation, and the check of compliance of the submitted documents of the applicant with the requirements established in paragraphs 19 and 19-1 of this Regulation, may not be carried out by employees of the National Bank based on a separate decision of the Board of the National Bank.";

Appendix 2 shall be stated as follows:


"Appendix 2 to the Regulation on Licensing of Activities of Payment Organizations and Payment System Operators (place for photo) QUESTIONNAIRE (filled in by an official) (position ) 1. Full name (If surname was changed: (previous surname, when changed/reason?)). ______ 2. Position (name of payment organization/payment system operator) ______ 3. Date and place of birth ______ 4. Passport series ______ No. ______ issued by ______ Date of issue ______ 5. Citizenship______ 6. Actual place of residence and place of residence according to registration at the time of filling out the questionnaire, phone number ______ ______ 7. Marital status______ 8. Education______ (higher) diploma No. ______ date of issue ______ 9. Issued by:

"Appendix 2 to the Regulation on Licensing of Activities of Payment Organizations and Payment System Operators (place for photo) QUESTIONNAIRE (filled in by an official) (position ) 1. Full name (If surname was changed: (previous surname, when changed/reason?)). ______ 2. Position (name of payment organization/payment system operator) ______ 3. Date and place of birth ______ 4. Passport series ______ No. ______ issued by ______ Date of issue ______ 5. Citizenship______ 6. Actual place of residence and place of residence according to registration at the time of filling out the questionnaire, phone number ______ ______ 7. Marital status______ 8. Education______ (higher) diploma No. ______ date of issue ______ 9. Issued by:


Name of educational institution and its location	Faculty or department	Year of admission	Year of graduation	Specialty according to the received diploma

Training in courses:


Topic of seminar or courses	Organizer of seminar	Place of completion	Date of completion	Availability of certificate


11. Information on the candidate's knowledge in the field (available/not available): - banking legislation ______; - corporate governance ______; - financial reporting and accounting ______; - procedure for preparing reports of payment organization/payment system operators ______; - strategic planning ______; - risk management ______; - liquidity management ______; - audit standards ______; - countering terrorist financing and legalization (laundering) of criminal proceeds ______ 12. Work performed since the beginning of labor activity: 13. Total work experience/ work experience (participation in the board of directors):

11. Information on the candidate's knowledge in the field (available/not available): - banking legislation ______; - corporate governance ______; - financial reporting and accounting ______; - procedure for preparing reports of payment organization/payment system operators ______; - strategic planning ______; - risk management ______; - liquidity management ______; - audit standards ______; - countering terrorist financing and legalization (laundering) of criminal proceeds ______ 12. Work performed since the beginning of labor activity: 13. Total work experience/ work experience (participation in the board of directors):


Date of employment	Date of dismissal	Position held	Name of institution, location	Reason for dismissal

Indicate all other organizations, associations, institutions of which you are an employee or member:


Name of organization	Location of organization	Position held


15. Indicate any family ties with employees of the payment organization/payment system operator, connections with persons or companies controlling the payment organization/payment system operator, all mutual obligations and contracts, etc. ______ ______ ______ 16. Marital status: (married, etc.) ______ List close relatives (parents, spouse, children, adoptive parents, adopted children, full and half brothers and sisters, grandfathers, grandmothers, grandchildren), as well as other relatives whom you consider necessary to include in this list ______								---	---	---	---	---	---		Full name	Family relationship	Date and place of birth	Position and place of work	Home address, tel. no.	Have close relatives been held criminally liable: Yes/no. If yes, indicate the reasons								17. Do you have an unexpunged criminal record or a court decision prohibiting you from engaging in any type of activity? ______ ______ 18. Have preventive measures of influence been applied to you by the National Bank? ______ ______ 19. I,______ ______ (surname, name, patronymic) confirm that the information provided above is reliable and complete, and undertake to further submit to the National Bank within 10 (ten) working days information on all changes that have occurred in it. I acknowledge that in the event of distortions and omissions on my part, this may entail the further application of measures of influence against me and the payment organization/payment system operator in accordance with the legislation of the Kyrgyz Republic.				---	---		"" ______ 20	______ (signature)

»;

in Appendix 5, the words "(name and location of the organization where the recommender works)" shall be replaced by the words "(name and location of the organization where the recommender works, position of the recommender)";
The Regulation shall be supplemented with Appendix 8 as follows:

"Appendix 8

to the Regulation on licensing

the activities of payment organizations

and payment system operators

Consent of the personal data subject to the collection and processing of his personal data

Locality, date

(surname, name, patronymic)

residing at the address: ______

Identity document: ______ series ______ No.______

(type of document)

issued by ______

(date of issue) (by whom issued)

(for authorized persons)

acting on behalf of ______

(surname, name, patronymic)

residing at the address: ______

Identity document: ______ series ______ No.______

(type of document)

issued by______

(date of issue) (by whom issued)

on the basis of ______

(power of attorney, law, other legal act)

freely, consciously, of my own will give full and unconditional consent to the National Bank of the Kyrgyz Republic:

to the processing (any operation or set of operations performed regardless of methods, by the National Bank or on its behalf, by automated means or without such means for the purposes of collection, recording, storage, updating, grouping, blocking, erasure and destruction of personal data), as well as to:
the transfer of personal data (provision by the National Bank to third parties in accordance with the Law of the Kyrgyz Republic "On Personal Information" and international treaties.

The above consent extends, among other things, to the following personal data: surname, name and patronymic (former surname, name, patronymic, date, place and reason for change (in case of change); date and place of birth; information on citizenship (including previous citizenship, other citizenships); information on education (name and year of graduation of the educational organization, name and details of the document on education, qualification, field of training or specialty according to the document on education); information on the presence of an academic degree; information on knowledge of foreign languages, level of proficiency; address of place of residence (place of stay); contact telephone number or information on other means of communication; type, series, number of the identity document, name of the body that issued it, date of issue; taxpayer identification number; marital status, composition of family and close relatives; information on labor activity (including military service, part-time work, entrepreneurial activity, activity on the basis of service contracts, etc.); state awards, other awards and insignia (by whom awarded and when); information on the presence or absence of a criminal record, including on applied measures of disciplinary, administrative liability and liability for committing offenses and violations; information on income, expenses, property and property obligations; personal photograph).

I provide the above personal data for processing for the purposes of the National Bank carrying out the licensing procedures provided for by this Regulation.

I hereby confirm that I have been notified of the transfer of my personal data to other state bodies for verifying their reliability and for identifying information on issues of impeccable business reputation and qualifications, including consciously and unconditionally confirm that I do not require subsequent notification of me in accordance with Article 24 of the Law of the Kyrgyz Republic "On Personal Information" and paragraph 12 of the Procedure for obtaining the consent of the personal data subject to the collection and processing of his personal data, the procedure and forms of notifying personal data subjects of the transfer of their personal data to a third party, approved by the resolution of the Government of the Kyrgyz Republic of 21 November 2017 No. 759, when the National Bank transfers my personal data to the above persons within the framework of supervision and licensing procedures.

Consent to the processing of personal data is indefinite (valid permanently for the purposes of supervision and licensing) and is valid from the date of signing this consent.

""____ 20


Signature______	Full name______

Lineage: No known changes

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