Resolution of the Board of the National Bank of the Kyrgyz Republic No. 2022-P-14/47-7-(PS) of 27 July 2022 on Amending Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic

BOARD OF THE NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of 27 July 2022 No. 2022-P-14/47-7-(PS)

On Amending Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic

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

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

• "On Approval of the Regulation 'On Basic Requirements for the Activities of Commercial Banks when Concluding an Agency Agreement for the Provision of Banking Retail Services' of 26 May 2010 No. 36/7;

• "On Approval of the Regulation 'On Bank Payment Cards in the Kyrgyz Republic' of 9 December 2015 No. 76/8.

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 Regulatory Legal Acts of the Kyrgyz Republic.

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

4. To the Payment Systems Department: bring this resolution to the attention of commercial banks, payment system operators, payment organizations, microfinance organizations, credit unions, the association of legal entities "Association of Microfinance Organizations" and the association of legal entities "National Association of Credit Unions and Cooperatives of Kyrgyzstan".

5. To the State Language and Document Management Development Division: 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.

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 Payment Systems Department.

Acting Chairman	Z. Chokoev

Annex to the Resolution of the Board of the National Bank of the Kyrgyz Republic of 27 July 2022 No. 2022-P-14/47-7-(PS)

AMENDMENTS to Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic

1. 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 Basic Requirements for the Activities of Commercial Banks when Concluding an Agency Agreement for the Provision of Banking Retail Services' of 26 May 2010 No. 36/7":

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

• restate paragraph 5 as follows:

"5. The extended range of banking retail services includes:

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

• execution of money transfers through money transfer systems;

• issuance and acceptance of forms for opening a bank account for the purpose of transmitting them to the bank;

• issuance and acceptance of forms for the issuance/re-issuance of bank payment cards;

• organization of the exchange of forms and client questionnaires for the issuance/re-issuance of bank payment cards in electronic form and subsequent transfer of bank payment cards to clients;

• issuance and acceptance of forms for access to remote distance banking services, including to electronic wallets, for the purpose of transmitting them to the bank;

• issuance and acceptance of forms for the issuance/re-issuance of access codes to remote distance banking services for the purpose of transmitting them to the bank;

• provision of issued codes for access to remote distance banking services subject to compliance with the conditions of security and confidentiality of information/data about the client;

• issuance and acceptance of forms for arranging loans for the purpose of transmitting them to the bank;

• repayment of loans;

• replenishment of a bank account;

• distribution/redemption of electronic money;

• conducting the procedure of identification and verification of a bank client, including the holder of an electronic wallet;

• conclusion of agreements with acceptors on the acceptance of electronic money of a local electronic money system;

• conclusion of agreements with commercial organizations on the payment of wages to electronic wallets;

• issuance of cash from bank cards, including from virtual cards;

• issuance of cash to bank clients from payment terminals with a cash-out function from the accounts of such bank clients;

• acceptance of payments to the budget (fines, taxes, customs duties), including using mobile applications and QR codes;

• conclusion of agreements with organizations with a state share/commercial organizations on the payment of wages to bank payment cards.

The transfer of information to the bank for the types of the extended range of banking retail services in electronic form is permitted in accordance with the Law of the Kyrgyz Republic "On Electronic Signature".";

• restate the first sentence of paragraph 6-1 as follows:

"6-1. A bank, when engaging a retail agent for the distribution/redemption of electronic money, must comply with the requirements of the National Bank established in the Regulation 'On Electronic Money in the Kyrgyz Republic', approved by resolution of the Board of the National Bank of 20 April 2022 No. 2022-P-14/25-3-(PS).";

• restate the third sentence of paragraph 34 as follows:

"These requirements do not apply to agents providing a limited range of banking services specified in paragraph 25 of this Regulation, as well as to payment organizations providing services through terminals with a cash-out function.".

2. 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 Bank Payment Cards in the Kyrgyz Republic' of 9 December 2015 No. 76/8":

in the Regulation "On Bank Payment Cards in the Kyrgyz Republic", approved by the above-mentioned resolution:

• in paragraph 3, replace the figures "30.03.2016 No. 15/6" with the figures "20.04.2022 No. 2022-P-14/25-3-(PS).";

• supplement paragraph 13 with a fourth paragraph of the following content:

"At the same time, the issuer has the right to permit the holder of a pre-issued card to make payments without using a PIN code and to make contactless payments within the limits established in internal rules and procedures for card holders, taking into account the criteria for assessing the degree (level) of risks per client, in accordance with the issuer's internal control program and the rules of payment systems. Liability for these transactions shall be borne by the issuer.".