Resolution of the Board

of the National Bank

of the Kyrgyz Republic

of 29 August 2022

No. 2022-П-14/54-5-(ПС)

On Amendments to the Resolution of the Board of the National Bank

of the Kyrgyz Republic "On Approval of the Regulation "On Measures of Influence Applied to Payment System Operators/Payment Organizations"

of 30 September 2019 No. 2019-П-14/50-3-(ПС)

In accordance with Articles 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 Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Measures of Influence Applied to Payment System Operators/Payment Organizations" of 30 September 2019 No. 2019-П-14/50-3-(ПС) (attached).

• 2. 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.

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

• 4. To the Payment Systems Department to bring this resolution to the attention of payment organizations and payment system operators.

• 5. 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.

Acting Chairman Z. Chokoev

Annex
to the Resolution of the Board of the National Bank of the Kyrgyz Republic of "29" August 2022 No. 2022-П-14/54-5-(ПС)

Amendments

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

"On Approval of the Regulation "On Measures of Influence Applied

to Payment System Operators/Payment Organizations"

of 30 September 2019 No. 2019-П-14/50-3-(ПС)

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 Measures of Influence Applied to Payment System Operators/Payment Organizations" of 30 September 2019 No. 2019-П-14/50-3-(ПС): in the Regulation "On Measures of Influence Applied to Payment System Operators/Payment Organizations" approved by the above-mentioned resolution:

• 1) to restate paragraph 4 as follows:

"4. The basis for applying measures of influence to payment system operators/payment organizations and (or) their officials is the violation of norms, requirements and restrictions established by 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 the Payment System of the Kyrgyz Republic", "On Countering the Financing of Terrorist Activities and Legalization (Laundering) of Criminal Proceeds", normative legal acts of the National Bank and other normative legal acts of the Kyrgyz Republic. The National Bank applies appropriate measures of influence to payment system operators/payment organizations and (or) their officials upon detection of violations provided for by this Regulation.";

• 2) to restate paragraph 8 as follows:

"8. The decision on the application of appropriate measures of influence is taken by the Committee on the Payment System of the National Bank in the form of a resolution. The decision on the application of a measure of influence in the form of an order is taken by the head of the structural subdivision exercising the functions of regulation, supervision and control over payment system operators and payment organizations.";

• 3) in paragraph 9:

  • to supplement the fifth paragraph after the words "inspections of technical documents" with the words "and other requested information/documents or the provision of unreliable/incomplete information/documents";

  • to recognize the seventh paragraph as having lost force;

  • to recognize the ninth paragraph as having lost force;

• 4) to supplement the Regulation with paragraph 9-1 as follows:

"9-1. The order must contain an indication of the fact of the violation, specific references to the legislation of the Kyrgyz Republic that were violated by the payment system operator/payment organization and/or their officials, as well as a time limit for their elimination.".

• 5) to restate paragraph 10 as follows:

"10. The National Bank has the right to impose a fine on payment system operators/payment organizations. A fine on payment system operators/payment organizations in the amount of not more than 10 (ten) percent of the book value of assets (as of the last reporting date) of the payment system operator/payment organization is imposed in the case of:

    - failure to comply with an order of the National Bank within the established time limits;

    - systematic (2 or more times during 12 consecutive calendar months) failure to submit financial or other reporting or submission of untimely/unreliable/incomplete information, financial or other reporting or data;

    - violation of the legislation of the Kyrgyz Republic, including antimonopoly legislation and legislation on countering the financing of terrorist activities and legalization (laundering) of criminal proceeds;

    - obstruction during the exercise by National Bank employees of supervisory functions within the framework of conducted inspections.

Payment system operators/payment organizations are obliged to pay the fine within a one-month period from the day of delivery to them of the resolution on the imposition of the fine. In the event of non-payment by payment system operators/payment organizations of the fine, the National Bank has the right to apply measures aimed at compulsory recovery of the debt within the framework of enforcement proceedings or other measures of influence in accordance with the legislation of the Kyrgyz Republic.";

• 6) to restate paragraph 11 as follows:

"11. Imposition of a fine on officials of payment system operators/payment organizations. A fine on the officials of payment system operators/payment organizations in the amount of not more than the average annual remuneration, including all types of payments in the given organization (official salary, bonuses, incentives, etc.), is imposed in the case of:

    - actions or inaction of officials of payment system operators/payment organizations that entail suspension/revocation of a license, compulsory liquidation or bankruptcy of the payment system operator/payment organization - in the amount of 50 percent of the average annual remuneration;

    - failure to comply with instructions of the National Bank – in the amount of 50 percent of the average annual remuneration;

    - systematic (two or more times within 12 consecutive calendar months) failure to submit financial or other reporting or submission of untimely/unreliable/incomplete information, financial or other reporting – in the amount of 30 percent of the average annual remuneration;

    - violation of the banking legislation of the Kyrgyz Republic, antimonopoly legislation and legislation on countering the financing of activities and legalization (laundering) of criminal proceeds – in the amount of 50 percent of the average annual remuneration;

    - obstruction in the exercise by National Bank employees of supervisory functions within the framework of conducted inspections - in the amount of 50 percent of the average annual remuneration.

The amount of the average annual remuneration of an official is calculated according to the following formula: V/3/29.6*365, where: V – remuneration of the official for the last 3 months, including all types of payments (official salary, bonuses, incentives, etc.), minus mandatory tax payments and social contributions provided for by the legislation of the Kyrgyz Republic; 3 – number of months; 29.6 – average monthly number of calendar days; 365 – number of days in a year.

Officials of payment system operators/payment organizations are obliged to pay the fine within one month from the day the decision on imposing the fine is served on them. In the event of non-payment of the fine by officials of payment system operators/payment organizations, the National Bank has the right to apply to them measures of compulsory collection of the fine within the framework of enforcement proceedings and other measures in accordance with the legislation of the Kyrgyz Republic.»;

• 7) paragraph 13 shall be set out in the following wording:

«13. The National Bank has the right to apply a fine to payment system operators/payment organizations and/or their officials for offenses provided for by the Code of the Kyrgyz Republic on Offenses. In this case, the decision on imposing a fine is adopted in accordance with the Code of the Kyrgyz Republic on Offenses. Bringing to liability twice for the same offense is not permitted.»;

• 8) in the first sentence of paragraph 23, the words «, entering information about this into the register and notifying the payment system operator/payment organization» shall be excluded;

• 9) in the first paragraph of paragraph 31, the words «or voluntary liquidation» shall be excluded;

• 10) in paragraph 34, the words «and certain other financial-credit organizations» shall be excluded.