Resolution of the Board

of the National Bank

of the Kyrgyz Republic

of 21 December 2022

No. 2022-П-12/81-7-(НФКУ)

On Amendments

to Certain Regulatory Legal Acts

of the National Bank of the Kyrgyz Republic

In accordance with Articles 5, 9 and 64 of the Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic resolves:

1. To introduce amendments to the following resolutions of the Board of the National Bank of the Kyrgyz Republic (attached):

• "On the 'Rules for Regulating the Activities of Microfinance Organizations in the Territory of the Kyrgyz Republic'" of 19 February 2003 No. 4/2;

• "On the Rules for Regulating the Activities of Credit Unions in the Kyrgyz Republic" of 4 May 2005 No. 14/2;

• "On Certain Regulatory Acts of the National Bank of the Kyrgyz Republic" of 28 June 2006 No. 19/4;

• "On the Regulation 'On the Periodic Regulatory Report of a Credit Union'" of 16 January 2008 No. 3/3;

• "On Approval of the Regulation 'On the Periodic Regulatory Report of a Microcredit Company/Microcredit Agency' and the Regulation 'On the Periodic Regulatory Report of a Microfinance Company'" of 27 May 2009 No. 25/3;

• "On Approval of the Regulation 'On Minimum Requirements for Credit Risk Management in Credit Unions'" of 23 December 2009 No. 50/7;

• "On Approval of the Rules for Regulating the Activities of OJSC 'Financial Company of Credit Unions'" of 12 September 2012 No. 37/3;

• "On Approval of the Regulation on Minimum Requirements for Credit Risk Management in Microfinance Organizations Not Attracting Deposits" of 25 September 2013 No. 35/14;

• "On Approval of the 'Regulation on Minimum Requirements for Credit Risk Management in Credit Unions Carrying Out Operations in Accordance with Islamic Principles of Banking and Financing'" of 23 December 2013 No. 52/7;

• "On Approval of the 'Instruction on the Procedure for Complying with Open Currency Position Limits by Microfinance Companies'" of 30 May 2014 No. 24/8;

• "On Approval of the 'Instruction on the Procedure for Complying with Open Currency Position Limits by Credit Unions'" of 30 May 2014 No. 24/9;

• "On Approval of the 'Rules for Regulating the Activities of Microfinance Organizations Carrying Out Operations in Accordance with Islamic Principles of Banking and Financing'" of 30 May 2014 No. 24/11;

• "On Approval of the 'Rules for Regulating the Activities of Credit Unions Carrying Out Operations in Accordance with Islamic Principles of Banking and Financing'" of 16 July 2014 No. 32/5;

• "On Approval of Regulations of the National Bank of the Kyrgyz Republic" of 17 October 2014 No. 45/1;

• "On Approval of the Regulation 'On Licensing the Activities of Microfinance Companies'" of 23 December 2015 No. 78/26;

• "On Approval of the Rules for Regulating the Activities of Specialized Financial Institutions" of 16 March 2016 No. 12/4;

• "On Approval of the Instruction 'On Requirements for Operations of Microfinance Companies Attracting Deposits with Affiliated and Related Persons of the Microfinance Company'" of 15 June 2017 No. 2017-П-12/25-6-(НПА);

• "On Approval of the Regulation 'On Minimum Requirements for Organizing Internal Control in Microfinance Organizations, Credit Unions and Specialized Financial Institutions of the Kyrgyz Republic for the Purposes of Countering the Financing of Terrorist Activities and the Legalization (Laundering) of Criminal Proceeds'" of 21 August 2019 No. 2019-П-33/43-6-(НФКУ);

• "On Approval of the Regulation 'On Minimum Requirements for Organizing Internal Control in Exchange Bureaus in the Kyrgyz Republic for the Purposes of Countering the Financing of Terrorist Activities and the Legalization (Laundering) of Criminal Proceeds'" of 21 August 2019 No. 2019-П-33/43-7-(НФКУ);

• "On Approval of the Rules for Regulating the Activities of Guarantee Funds" of 9 September 2019 No. 2019-П-33/47-3-(НФКУ);

• "On Approval of the Rules for Regulating the Activities of Housing Savings Credit Companies" of 1 November 2019 No. 2019-П-33/55-2-(НФКУ);

• "On Approval of the Regulation 'On Measures of Influence Applied to Non-Bank Financial and Credit Organizations and Other Legal Entities Supervised by the National Bank of the Kyrgyz Republic'" of 23 December 2020 No. 2020-П-33/73-12-(НФКУ).

2. To the Legal Department:

• from the day of receipt of the relevant documents, within 3 (three) working days, to publish this resolution on the official website of the National Bank of the Kyrgyz Republic;

• after official publication, to 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.

3. This resolution enters into force upon the expiration of 15 (fifteen) days from the day of official publication.

4. To the Supervision Methodology Department, after official publication, within 3 (three) working days, to bring this resolution to the attention of OJSC 'Financial Company of Credit Unions', the Association of Legal Entities 'Association of Microfinance Organizations', the Association of Legal Entities 'National Association of Credit Unions and Cooperatives of Kyrgyzstan' and the Association of Legal Entities 'Association of Exchange Bureaus 'Alliance'', microfinance organizations, credit unions, OJSC 'Guarantee Fund', housing savings credit companies, exchange bureaus.

5. To the 'Secretariat of the Board' Department, within 3 (three) working days, to bring this resolution to the attention of the structural subdivisions, regional departments and the representative office of the National Bank of the Kyrgyz Republic in Batken Oblast.

6. To entrust control over the execution of this resolution to the member of the Board of the National Bank of the Kyrgyz Republic supervising the Supervision Methodology Department.

Chairman K. Bokontaev

Annex
to the resolution of the Board of the National Bank of the Kyrgyz Republic of 21 December 2022 No. 2022-П-12/81-7-(НФКУ)

Amendments

to Certain Regulatory Legal Acts

of the National Bank of the Kyrgyz Republic

1. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On the 'Rules for Regulating the Activities of Microfinance Organizations in the Territory of the Kyrgyz Republic'" of 19 February 2003 No. 4/2 the following amendments:

in the "Rules for Regulating the Activities of Microfinance Organizations in the Territory of the Kyrgyz Republic", approved by the above-mentioned resolution:

• paragraph 2.5.4. shall be set out in the following wording:

"2.5.4. Upon detection of facts of non-compliance by MFIs with the requirements of the National Bank imposed on their activities, their failure to provide information, as well as untimely provision or provision of unreliable information, the National Bank shall have the right to apply to them measures of influence in accordance with the constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the laws of the Kyrgyz Republic "On Banks and Banking Activities", "On Microfinance Organizations in the Kyrgyz Republic" and normative legal acts of the National Bank.";

• in paragraph 5.5.2. the word "Government" shall be replaced by the words "Cabinet of Ministers";

• paragraph 6.6. shall be set out in the following wording:

"6.6. Upon detection of facts of non-compliance by microfinance companies with economic norms and other requirements, their failure to provide information, as well as untimely provision or provision of unreliable information, the National Bank of the Kyrgyz Republic shall have the right to apply to MFIs measures of influence in accordance with the constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the laws of the Kyrgyz Republic "On Banks and Banking Activities", "On Microfinance Organizations in the Kyrgyz Republic" and corresponding normative acts of the National Bank.".

2. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On the Rules for Regulating the Activities of Credit Unions in the Kyrgyz Republic" of 4 May 2005 No. 14/2 the following amendments:

in the Rules for Regulating the Activities of Credit Unions in the Kyrgyz Republic, approved by the above-mentioned resolution:

• paragraph 1.2. shall be set out in the following wording:

"1.2. The National Bank of the Kyrgyz Republic (hereinafter – the National Bank) in accordance with the constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the laws of the Kyrgyz Republic "On Banks and Banking Activities", "On Credit Unions" and other normative legal acts of the Kyrgyz Republic establishes economic norms, requirements and restrictions mandatory for fulfillment by all credit unions, in order to preserve a stable financial system and protect the interests of participants of the credit union.";

• in paragraphs 5.3.2, 5.5.1 and 5.5.2 the word "Government" shall be replaced by the words "Cabinet of Ministers".

3. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On Certain Normative Acts of the National Bank of the Kyrgyz Republic" of 28 June 2006 No. 19/4 the following amendment:

in the Regulation "On Minimum Requirements for Conducting External Audit of Microfinance Organizations in the Kyrgyz Republic", approved by the above-mentioned resolution:

• paragraph 3.9. shall be set out in the following wording:

"3.9. Upon completion of the external audit, the external auditor shall provide to the MCC/MCA an audit report drawn up in accordance with the requirements established by the legislation of the Kyrgyz Republic and international standards on auditing, a letter to the management of the MCC/MCA, recommendations that must be included in the audit program, as well as any reports stipulated in the contract for conducting the external audit.

The National Bank shall have the right not to accept the conclusion of the external auditor of the MCC/MCA and to require a repeat audit of the MCC/MCA with the involvement of another audit organization in the event that circumstances are discovered which include:

    - detection of facts of concealment of information which, in accordance with Article 11 of the Law of the Kyrgyz Republic "On Auditing Activities", is grounds for conclusions about limitations during the audit;

    - deprivation (revocation) of the qualification certificate/license of the external auditor by the authorized body;

    - detection in the activities of the external auditor of facts of non-compliance with the legislation of the Kyrgyz Republic and paragraph 3.4 of this Regulation.

Upon detection of the above-mentioned circumstances, the National Bank shall send a corresponding requirement to conduct a repeat audit with establishment of deadlines and with provision of justified reasons to the address of the MCC/MCA. The MCC/MCA shall be obliged to conduct a repeat external audit in accordance with the requirements of the legislation of the Kyrgyz Republic and this Regulation. The repeat audit shall be carried out at the expense of the MCC/MCA.

The MCC/MCA shall not have the right to engage an audit organization or auditors to conduct the audit of the next financial year in the event that the previous audit report of that audit organization or auditor was not accepted or was recognized by the National Bank as not complying with the requirements of the legislation of the Kyrgyz Republic and/or international standards on auditing.".

4. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On the Regulation 'On the Periodic Regulatory Report of a Credit Union'" of 16 January 2008 No. 3/3 the following amendment:

in the Regulation "On the Periodic Regulatory Report of a Credit Union", approved by the above-mentioned resolution:

• in paragraph 2.1. subparagraph "a" shall be set out in the following wording:

"a) the financial condition of the CU within the framework of the functions performed by the National Bank of the Kyrgyz Republic, enshrined in the constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic" and in the Law of the Kyrgyz Republic "On Credit Unions";".

5. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation 'On the Periodic Regulatory Report of a Microcredit Company/Microcredit Agency' and the Regulation 'On the Periodic Regulatory Report of a Microfinance Company'" of 27 May 2009 No. 25/3 the following amendments:

1) In the Regulation "On the Periodic Regulatory Report of a Microcredit Company/Microcredit Agency", approved by the above-mentioned resolution:

• in paragraph 2.1, subparagraph "a" shall be amended to read as follows:

"a) the financial condition of the MCC/MCA within the framework of the functions performed by the National Bank of the Kyrgyz Republic (hereinafter - the National Bank), as enshrined in the Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic" and the Regulation on the Registration of Accounts and Deposits of Residents of the Kyrgyz Republic Opened in Foreign Banks;";

2) In the Regulation "On the Periodic Regulatory Report of a Microfinance Company", approved by the above-mentioned resolution:

• in paragraph 4, subparagraph "a" shall be amended to read as follows:

"a) the financial condition of the MFC within the framework of the functions performed by the National Bank, as enshrined in the Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the Law of the Kyrgyz Republic "On Microfinance Organizations in the Kyrgyz Republic" and the Regulation on the Registration of Accounts and Deposits of Residents of the Kyrgyz Republic Opened in Foreign Banks, approved by the resolution of the Board of the National Bank of the Kyrgyz Republic;".

6. To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation 'On Minimum Requirements for Credit Risk Management in Credit Unions'" of 23 December 2009 No. 50/7:

In the Regulation "On Minimum Requirements for Credit Risk Management in Credit Unions", approved by the above-mentioned resolution:

• paragraph one of clause 5.2.2 shall be supplemented with a sentence as follows:

"The borrower, guarantor/surety, pledgor must be informed, against signature, of the consequences of non-fulfillment or improper fulfillment of the obligations assumed under the respective contracts.";

• the tenth paragraph of clause 5.2.6 shall be amended to read as follows:

"- the right of the participant to early repayment of the loan in full or in part at any time without the collection of any commissions, penalties and other payments in accordance with the requirements of the legislation of the Kyrgyz Republic;";

• in the table of Appendix 2, the words "State Registration Service under the Government of the Kyrgyz Republic, State Agency for Land Resources under the Government of the Kyrgyz Republic" shall be replaced by the words "registration services in state bodies".

7. To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Rules for Regulating the Activities of OJSC 'Financial Company of Credit Unions'" of 12 September 2012 No. 37/3:

In the Rules for Regulating the Activities of OJSC "Financial Company of Credit Unions", approved by the above-mentioned resolution:

• in clause 18, the word "Government" shall be replaced by the words "Cabinet of Ministers";

• clause 27 shall be amended to read as follows:

"27. When establishing or acquiring a subsidiary or dependent company by the FCCU, the requirements of parts 5 and 6 of Article 26 and Article 79 of the Law of the Kyrgyz Republic "On Banks and Banking Activities" and the regulatory legal acts of the National Bank determining the procedure for establishing and/or acquiring a subsidiary or dependent company must be complied with.";

• in the title of Chapter 8, the word "Government" shall be replaced by the words "Cabinet of Ministers";

• in clause 34, the word "Government" shall be replaced by the words "Cabinet of Ministers";

• clause 52 shall be amended to read as follows:

"52. Upon detection of facts of non-compliance by the FCCU with the economic ratios and requirements established by these Rules, failure to submit or submission of unreliable and/or incomplete information, non-compliance with the deadlines for publishing reports on compliance with economic ratios, as well as the commission of violations in activities, the National Bank shall apply enforcement measures to the FCCU in accordance with the Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the Law of the Kyrgyz Republic "On Banks and Banking Activities" and the relevant regulatory legal acts of the National Bank.";

• in Appendix 1:

the table "INFORMATION on compliance with economic ratios of OJSC 'FCCU' as of '_' __________ 20" shall be amended to read as follows:

"

INFORMATION on compliance with economic ratios and requirements of OJSC "FCCU" as of "_" __________ 20

Name of ratios and requirements

Designation

Calculation of the ratio

Actual value of the ratio

Established value of the ratio

Deviation from the established ratio

Maximum risk per borrower

K1

LB

NCC

not more than 25%

Capital adequacy (sufficiency) standard

K2.1

NCC

NRA

not less than 12%

K2.2

NCPC

NRA

not less than 6%

Liquidity ratio (indicator)

K4

LA

O

not less than 30%

Average values for the reporting period

1 week

2 week

3 week

4 week

5 week

Average value for the month

LA - Liquid assets

О - Obligations of FCCU

Norm K4 = LA / O * 100%

»; in the table «14.B. Report on compliance with the requirements of the National Bank» replace the word «Government» with the words «Cabinet of Ministers»; - Appendix 2 shall be stated in the following wording:

«Appendix 2

to the Rules for regulating the activities

of OJSC «Financial Company of Credit Unions»

INFORMATION(*) on compliance with economic norms and requirements for ____ quarter of 20__ as of «___»_______20 of OJSC «Financial Company of Credit Unions»

Name of economic norms and requirements

Established value of the norm

Actual value of the norm

Maximum risk per one borrower (K1)

not more than 25%

Standard of sufficiency (adequacy) of total capital (K2.1)

not less than 12%

Standard of sufficiency (adequacy) of Tier 1 capital (K2.2)

not less than 6%

Norm (indicator) of liquidity (K4)

not less than 30%

(*) This information is subject to disclosure in accordance with Article 5 of the constitutional Law of the Kyrgyz Republic «On the National Bank of the Kyrgyz Republic» and Article 65 of the Law of the Kyrgyz Republic «On Banks and Banking Activities».». 8. 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 credit risk management in microfinance organizations not attracting deposits (deposits)» dated 25 September 2013 No. 35/14 the following changes: in the Regulation on minimum requirements for credit risk management in microfinance organizations not attracting deposits (deposits), approved by the above-mentioned resolution: - paragraph 3 shall be stated in the following wording: «3. MFO must carry out its activities in accordance with the laws of the Kyrgyz Republic «On Microfinance Organizations in the Kyrgyz Republic», «On Banks and Banking Activities» and other legislation of the Kyrgyz Republic, as well as the Charter of the MFO, on the basis of a license/certificate of the National Bank of the Kyrgyz Republic (hereinafter – the National Bank).»; - paragraph 5-1 «5-1. Terms and definitions used in the part of Islamic principles of banking and financing correspond to the terms and definitions given in the Law "On Banks and Banking Activities in the Kyrgyz Republic" and normative legal acts of the National Bank regulating the activities of MFOs operating on Islamic principles of banking and financing.» shall be recognized as having lost force; - subparagraph 2) of paragraph 24 shall be stated in the following wording: «2) early at any time without any commissions, penalties and other payments to repay the debt on the loan (leasing) in full or in part in accordance with the requirements of the legislation of the Kyrgyz Republic;»; - paragraph 30 shall be supplemented with a sentence of the following content: «The borrower, guarantor/surety, pledgor must be explained under signature the consequences of non-fulfillment or improper fulfillment of the obligations assumed under the relevant contracts.»; - subparagraph 9 of paragraph 34 shall be stated in the following wording: «9) the client's right to early repayment of the loan in full or in part at any time without charging any commissions, penalties and other payments in accordance with the requirements of the legislation of the Kyrgyz Republic;»; - the first paragraph of subparagraph 5 of paragraph 35 shall be stated in the following wording: «5) the right of each participant of the GSO to early repayment of the loan in its part at any time without charging any commissions, penalties and other payments in accordance with the requirements of the legislation of the Kyrgyz Republic. In case of early repayment of the loan by one of the participants of the GSO, the MFO may request the written consent of the participants of the GSO.»; - in the table of Appendix 3, replace the words «State Registration
Service under the Government of the Kyrgyz Republic, State Agency for Land Resources under the Government of the Kyrgyz Republic» with the words «registration services in state bodies». 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 credit risk management in credit unions carrying out operations in accordance with Islamic principles of banking and financing» dated 23 December 2013 No. 52/7 the following changes: in the «Regulation on minimum requirements for credit risk management in credit unions carrying out operations in accordance with Islamic principles of banking and financing», approved by the above-mentioned resolution: - paragraph 3 shall be stated in the following wording: «3. This Regulation uses the definitions set out in the constitutional Law of the Kyrgyz Republic «On the National Bank of the Kyrgyz Republic», the laws of the Kyrgyz Republic «On Banks and Banking Activities», «On Credit Unions» and normative legal acts of the National Bank.»; - paragraph 30 shall be supplemented with a sentence of the following content: «The borrower, guarantor/surety, pledgor must be explained under signature the consequences of non-fulfillment or improper fulfillment of the obligations assumed under the relevant contracts.»; - the ninth paragraph of paragraph 33 shall be stated in the following wording: «- the client's right to early repayment of the asset in full or in part at any time without charging any commissions, penalties and other payments in accordance with the requirements of the legislation of the Kyrgyz Republic.». 10. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic «On approval of the «Instruction on the procedure for compliance with limits of open currency positions by microfinance companies» dated 30 May 2014 No. 24/8 the following change: in the «Instruction on the procedure for compliance with limits of open currency positions by microfinance companies», approved by the above-mentioned resolution: - in line No. 9 of the table of Appendix 1, replace the word «Accounting» with the word «Official». 11. To introduce the following change to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the 'Instruction on the procedure for complying with the limits of open currency positions by credit unions'" of 30 May 2014 No. 24/9: in the 'Instruction on the procedure for complying with the limits of open currency positions by credit unions', approved by the above-mentioned resolution: - in line No. 9 of the table of the Appendix, replace the words "Accounting rate of the currency" with the words "Official rate of the currency". 12. To introduce the following changes to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the 'Rules for regulating the activities of microfinance organizations carrying out operations under
Islamic principles of banking and financing'" of 30 May 2014 No. 24/11: in the 'Rules for regulating the activities of microfinance organizations carrying out operations under Islamic principles of banking and financing', approved by the above-mentioned resolution: - restate paragraph 2 as follows: "2. The purpose of these Rules is to establish, in accordance with the constitutional Law of the Kyrgyz Republic 'On the National Bank of the Kyrgyz Republic', the laws of the Kyrgyz Republic 'On banks and banking activity' and 'On microfinance organizations in the Kyrgyz Republic', economic standards and requirements that are mandatory for fulfillment and observance by MFOs."; - in paragraph 28, replace the word "Government" with the words "Cabinet of Ministers"; - restate paragraph 38 as follows: "38. Upon detection of facts of non-compliance by microfinance companies with economic standards and other requirements, their failure to provide information, as well as untimely provision or provision of unreliable information, the National Bank has the right to apply to MFCs measures of influence in accordance with the constitutional Law of the Kyrgyz Republic 'On the National Bank of the Kyrgyz Republic', the laws of the Kyrgyz Republic 'On banks and banking activity', 'On microfinance organizations in the Kyrgyz Republic' and the corresponding normative legal acts of the National Bank.". 13. To introduce the following changes to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the 'Rules for regulating the activities of credit unions carrying out operations under Islamic principles of banking and financing'" of 16 July 2014 No. 32/5: in the 'Rules for regulating the activities of credit unions carrying out operations under Islamic principles of banking and financing', approved by the above-mentioned resolution: - in paragraphs 22, 31 and 33, replace the word "Government" with the words "Cabinet of Ministers". 14. To introduce the following changes to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of regulations of the National Bank of the Kyrgyz Republic" of 17 October 2014 No. 45/1: 1) in the Regulation "On the periodic regulatory report of microfinance companies carrying out operations in accordance with Islamic principles of banking and financing", approved by the above-mentioned resolution: - restate paragraph 1 as follows: "1. This Regulation, in accordance with the constitutional Law of the Kyrgyz Republic 'On the National Bank of the Kyrgyz Republic', the Law of the Kyrgyz Republic 'On microfinance organizations in the Kyrgyz Republic' and the Regulation 'On registration of accounts and deposits of residents of the Kyrgyz Republic opened in foreign banks', approved by a resolution of the Board of the National Bank of the Kyrgyz Republic (hereinafter - legislation), determines a unified form of periodic regulatory reporting (hereinafter - PRR) of microfinance companies
carrying out operations in accordance with Islamic principles of banking and financing (hereinafter - MFC)."; 2) in the Regulation "On the periodic regulatory report of microcredit companies and microcredit agencies carrying out operations in accordance with Islamic principles of banking and financing", approved by the above-mentioned resolution: - restate paragraph 1 as follows: "1. This Regulation, in accordance with the constitutional Law of the Kyrgyz Republic 'On the National Bank of the Kyrgyz Republic', the Law of the Kyrgyz Republic 'On microfinance organizations in the Kyrgyz Republic' and the Regulation 'On registration of accounts and deposits of residents of the Kyrgyz Republic opened in foreign banks', approved by a resolution of the Board of the National Bank of the Kyrgyz Republic (hereinafter - legislation), determines a unified form of periodic regulatory reporting (hereinafter - PRR) of microcredit companies and microcredit agencies carrying out operations in accordance with Islamic principles of banking and financing (hereinafter - MCC and MCA)."; 3) in the Regulation "On the periodic regulatory report of credit unions carrying out operations in accordance with Islamic principles of banking and financing", approved by the above-mentioned resolution: - restate paragraph 1 as follows: "1. This Regulation, in accordance with the constitutional Law of the Kyrgyz Republic 'On the National Bank of the Kyrgyz Republic' and the Law of the Kyrgyz Republic 'On credit unions' (hereinafter - legislation), determines a unified form of periodic regulatory reporting (hereinafter - PRR) for credit unions carrying out operations in accordance with Islamic principles of banking and financing (hereinafter - CU).". 15. To introduce the following change to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation 'On licensing the activities of microfinance companies'" of 23 December 2015 No. 78/26: in the Regulation "On licensing the activities of microfinance companies", approved by the above-mentioned resolution: - in paragraph 2 of Appendix 14, replace the word "government" with the words "Cabinet of Ministers". 16. To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Rules for regulating the activities of specialized financial institutions" of 16 March 2016 No. 12/4: in the Rules for regulating the activities of specialized financial institutions approved by the above-mentioned resolution: - in paragraph 9.2, replace the word "Government" with the words "Cabinet of Ministers"; - restate the first sentence of paragraph 19 as follows: "19. SFIs must have automated accounting and reporting systems that must comply with the requirements of the Regulation "On requirements for ensuring information security in commercial banks of the Kyrgyz Republic" approved by resolution of the Board of the National Bank of 22 December 2021
No. 2021-П-20/72-8-(НПА).". 17. To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Instruction "On requirements for operations of microfinance companies attracting deposits with affiliated persons and persons connected with the microfinance company"" of 15 June 2017 No. 2017-П-12/25-6-(НПА): in the Instruction "On requirements for operations of microfinance companies attracting deposits with affiliated persons and persons connected with the microfinance company and the housing savings credit company" approved by the above-mentioned resolution: - restate the first paragraph of paragraph 22 as follows: "22. The internal document of the MCC, HSCC regulating the procedure for lending to employees must contain provisions on lending to officials of the MCC, HSCC, comply with the requirements of the legislation of the Kyrgyz Republic and normative legal acts of the National Bank and contain at least the following:"; - in subparagraph 1 of paragraph 26, replace the word "Government" with the words "Cabinet of Ministers". 18. To introduce the following amendments to the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation "On minimum requirements for the organization of internal control in microfinance organizations, credit unions and specialized financial institutions of the Kyrgyz Republic for the purposes of countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds"" of 21 August 2019 No. 2019-П-33/43-6-(НФКУ): in the Regulation "On minimum requirements for the organization of internal control in microfinance organizations, credit unions and specialized financial institutions of the Kyrgyz Republic for the purposes of countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds" approved by the above-mentioned resolution: - in paragraph 2, replace the words "authorized state body in the field of AML/CFT in the person of the State Financial Intelligence Service under the Government of the Kyrgyz Republic" with the words "authorized state body of the Kyrgyz Republic in the field of AML/CFT"; - in paragraph 9: in the second paragraph, replace the word "Government" with the words "Cabinet of Ministers"; restate the tenth paragraph as follows: "Messages are sent to the financial intelligence body in accordance with the requirements of the Regulation "On the procedure for submitting information and documents to the financial intelligence body of the Kyrgyz Republic" approved by resolution of the Government of the Kyrgyz Republic of 25 December 2018 No. 606."; - in paragraph 23, replace the word "Government" with the words "Cabinet of Ministers". 19. 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 the organization of internal control in exchange
offices in the Kyrgyz Republic for the purposes of countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds'" of 21 August 2019 No. 2019-P-33/43-7-(NFKU) the following changes: in the Regulation "On minimum requirements for the organization of internal control in exchange offices in the Kyrgyz Republic for the purposes of countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds", approved by the above-mentioned resolution: - in the eighth paragraph of point 3, in the second paragraph of point 4, in the third paragraph of subpoint 2 of point 6, in the ninth paragraph of subpoint 4 of point 6 and in point 10, replace the word "Government" with the words "Cabinet of Ministers". 20. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Rules for regulating the activities of guarantee funds" of 9 September 2019 No. 2019-P-33/47-3-(NFKU) the following change: in the Rules for regulating the activities of guarantee funds, approved by the above-mentioned resolution: - in point 15, replace the word "Government" with the words "Cabinet of Ministers". 21. To introduce into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Rules for regulating the activities of housing savings credit companies" of 1 November 2019 No. 2019-P-33/55-2-(NFKU) the following changes: in the Rules for regulating the activities of housing savings credit companies, approved by the above-mentioned resolution: - to state point 4 in the following wording: "4. The National Bank exercises supervision and regulation of the activities of HSCGs in accordance with the constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", the Law of the Kyrgyz Republic "On banks and banking activities", the legislation of the Kyrgyz Republic in the sphere of countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds, the legislation of the Kyrgyz Republic in the sphere of regulating the activities of housing savings credit companies, and also in accordance with the normative legal acts of the National Bank."; - in subpoint 1 of point 8 and in the ninth paragraph of point 87, replace the word "Government" with the words "Cabinet of Ministers"; - in the fourth paragraph of point 9, replace the words "On the National Bank of the Kyrgyz Republic, banks and banking activities" with the words "On banks and banking activities". 22. To introduce the following changes into the resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation 'On measures of influence applied to non-bank financial and credit organizations and other legal entities supervised by the National Bank of the Kyrgyz Republic'" of 23 December 2020 No. 2020-П-33/73-12-(НФКУ): in the Regulation "On measures of influence applied to non-bank
financial and credit organizations and other legal entities supervised by the National Bank of the Kyrgyz Republic", approved by the above-mentioned resolution: - to restate paragraph 15 as follows: "15. NFCOs, their shareholders/participants/founders and officials must not be involved in unsound and unsafe banking practice."; - to restate paragraph 16 as follows: "16. The National Bank may apply to any NFCO, its shareholders/participants/founders and officials whose actions (inaction) are recognized as unsound and unsafe banking practice, measures of influence, up to revocation of the license/certificate of accounting registration in accordance with the legislation of the Kyrgyz Republic."; - to supplement paragraph 22 with a second paragraph of the following content: "The instruction may be applied as both a primary and an additional measure of influence."; - to restate paragraph 26 as follows: "26. In the event of violation by an NFCO of the norms, requirements and restrictions established by the laws of the Kyrgyz Republic "On Banks and Banking Activity", "On Countering the Financing of Terrorist Activity and Legalization (Laundering) of Criminal Proceeds", "On Protection of Bank Deposits", other regulatory legal acts of the Kyrgyz Republic, regulatory legal acts of the National Bank, the Supervisory Committee of the National Bank shall have the right to impose a fine: 1) in an amount of not more than 10 (ten) percent of the balance sheet value of assets – in respect of the NFCO; 2) in an amount of not more than the average annual remuneration, including all types of payments (official salary, premiums, bonuses, etc.) – in respect of an official of the NFCO. The fine may be applied as both a primary and an additional measure of influence."; - in paragraph 31, to replace the word "violations" with the words "offenses"; - in subparagraph 1 of paragraph 54 and paragraph 55, after the word "ratios", to supplement with the words "and requirements"; - to restate paragraph 68 as follows: "68. The decision to revoke the license of an SFCO is taken by the Board of the National Bank on the grounds set out in the Law of the Kyrgyz Republic "On Banks and Banking Activity"."; - in Appendix 1: in the text in the official language, in paragraphs 7 and 19, to replace the word "Non-fulfillment" with the word "Non-execution"; to restate paragraph 16 as follows: "16. Non-execution, within the time limits established by the National Bank, of instructions and/or other measures of influence applied by the National Bank.".