Resolution of the Board of the National Bank of the Kyrgyz Republic No. 25/8 of 27 June 2008 on Amending and Supplementing Resolution No. 26/1 of 15 May 2007 on the Regulation on Minimum Requirements for Organizing Internal Control in Commercial Banks and Other Financial and Credit Institutions Licensed by the NBKR for the Purpose of Countering the Financing of Terrorism and the Legalization (Laundering) of Criminally Obtained Income

Registered with the Ministry of Justice of the Kyrgyz Republic

25 July 2008. Registration number 83-08

Bishkek

of 27 June 2008 No. 25/8

RESOLUTION OF THE BOARD OF THE NATIONAL BANK

OF THE KYRGYZ REPUBLIC

On Amending and Supplementing the Resolution

of the Board of the National Bank of the Kyrgyz Republic

"On the Regulation "On Minimum Requirements for Organizing

Internal Control in Commercial Banks and Other

Financial and Credit Institutions Licensed by the NBKR

for the Purpose of Countering the Financing of Terrorism and

the Legalization (Laundering) of Criminally Obtained

Income" No. 26/1 of 15 May 2007

(published in the journal "Normative Acts of the National Bank

of the Kyrgyz Republic", No. 2008/9)

Having considered the draft amendments and supplements to Resolution of the Board of the National Bank of the Kyrgyz Republic "On the Regulation "On Minimum Requirements for Organizing Internal Control in Commercial Banks and Other Financial and Credit Institutions Licensed by the NBKR for the Purpose of Countering the Financing of Terrorism and the Legalization (Laundering) of Criminally Obtained Income" No. 26/1 of 15 May 2007, registered with the Ministry of Justice of the Kyrgyz Republic on 14 June 2007, registration number 57-07, guided by the Laws of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", "On Banks and Banking Activity in the Kyrgyz Republic", "On Countering the Financing of Terrorism and the Legalization (Laundering) of Criminally Obtained Income", the Board of the National Bank of the Kyrgyz Republic resolves:

1. To approve the amendments and supplements to Resolution of the Board of the National Bank of the Kyrgyz Republic "On the Regulation "On Minimum Requirements for Organizing Internal Control in Commercial Banks and Other Financial and Credit Institutions Licensed by the NBKR for the Purpose of Countering the Financing of Terrorism and the Legalization (Laundering) of Criminally Obtained Income" No. 26/1 of 15 May 2007, registered with the Ministry of Justice of the Kyrgyz Republic on 14 June 2007, registration number 57-07 (attached).

2. The Legal Department, together with the Supervision and Licensing Methodology Division, shall in the established procedure send this resolution for state registration to the Ministry of Justice of the Kyrgyz Republic.

3. This resolution enters into force after state registration with the Ministry of Justice of the Kyrgyz Republic and subsequent official publication.

4. After publication of the registered normative legal act, the Legal Department shall inform the Ministry of Justice of the Kyrgyz Republic of the source of publication (name of the publication, its number and date).

5. Control over the execution of this resolution shall be assigned to the Deputy Chairman of the National Bank of the Kyrgyz Republic Bokontaev K.K.

Chairman of the Board of the National

Bank of the Kyrgyz Republic M. Alapaev

Approved

by resolution of the Board

of the National Bank

of the Kyrgyz Republic

of 27 June 2008 No. 25/8

AMENDMENTS AND SUPPLEMENTS

to Resolution of the Board of the National Bank

of the Kyrgyz Republic No. 26/1 of 15 May 2007

"On the Regulation "On Minimum Requirements for Organizing

Internal Control in Commercial Banks and Other

Financial and Credit Institutions Licensed by the NBKR

for the Purpose of Countering the Financing of Terrorism and

the Legalization (Laundering) of Criminally Obtained

Income", registered with the Ministry of

Justice of the Kyrgyz Republic on 14 June 2007,

registration number 57-07

To introduce into Resolution of the Board of the National Bank of the Kyrgyz Republic No. 26/1 of 15 May 2007 "On the Regulation "On Minimum Requirements for Organizing Internal Control in Commercial Banks and Other Financial and Credit Institutions Licensed by the NBKR for the Purpose of Countering the Financing of Terrorism and the Legalization (Laundering) of Criminally Obtained Income", registered with the Ministry of Justice of the Kyrgyz Republic on 14 June 2007, registration number 57-07, the following amendments and supplements:

1. Section 5 shall be supplemented with paragraph 5.5. as follows:

"5.5. The bank must give adequate attention and exercise proper control in respect of clients belonging to the category of clients exposed to higher risk.".

2. Section 5 shall be supplemented with paragraph 5.7. as follows:

"5.7. The bank must ensure compliance with all procedures developed for the purpose of exercising proper control of the risk of financing of terrorism and legalization (laundering) of criminally obtained income associated with the use of new technologies (new banking products) involving transactions without direct contact.".

3. Paragraphs 5.5. and 5.6. of Section 5 shall be considered paragraphs 5.6. and 5.8.

4. Section 6 shall be supplemented with paragraph 6.4. as follows:

"6.4. Before the commencement of new types of services or operations, the bank must identify and assess all possible risks relating to the given service or operation, for the purpose of preventing the financing of terrorism and the legalization (laundering) of criminally obtained income.".

5. Paragraphs 6.4.-6.6. of Section 6 shall be considered paragraphs 6.5.-6.7., respectively.

6. In paragraph 7.2. of Section 7, the words ", and submits information" shall be replaced by the words "and submission of information".