Resolution of the Board of the National Bank of the Kyrgyz Republic No. 28/6 of July 4, 2012 on Amendments to the Main Requirements for the Audit Committee

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of July 4, 2012 No. 28/6

On Amendments to the "Main Requirements for the Audit Committee" approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of November 20, 2003 No. 32/7

In accordance with Articles 7 and 43 of the 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. Approve the amendments and additions to the "Main Requirements for the Audit Committee", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of November 20, 2003 No. 32/7 (attached).

2. The Legal Department:

• publish this resolution on the official website of the National Bank of the Kyrgyz Republic and in the journal "Regulatory Acts 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. The Supervision and Licensing Methodology Department to bring this resolution to the attention of commercial banks.

4. This resolution enters into force after 15 days from the date of official publication.

5. Control over the implementation of this resolution is entrusted to the Deputy Chairman of the National Bank of the Kyrgyz Republic Z.L. Chokoev.

Chairman	Z. Asankozhoeva

	Approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic of July 4, 2012 No. 28/6

AMENDMENTS AND ADDITIONS to the "Main Requirements for the Audit Committee", approved by the Resolution of the Board of the NBKR No. 32/7 of November 20, 2003

Make the following amendments and additions to the "Main Requirements for the Audit Committee", approved by the Resolution of the Board of the NBKR No. 32/7 of November 20, 2003:

1. In paragraph 1.1, replace the words "JSC RSK, CSF" with the words "as well as banks carrying out operations in accordance with Islamic principles of banking and finance".

2. In paragraph 1.3:

• replace the words "will strengthen the system" with the words "is designed to strengthen control over the system";

• after the words "financial reporting", add the words "and the efficiency of the bank's activities";

• after the words "National Bank of the Kyrgyz Republic", add the words "(hereinafter - the National Bank)".

3. Throughout the text of the regulatory legal act, replace the words "NBKR" with the words "National Bank" in the appropriate cases.

4. Exclude paragraph 1.5.

5. In paragraph 5 of paragraph 2.2, after the words "internal and external auditors", add the words "for banks carrying out operations in accordance with Islamic principles of banking and finance, also with the Corporate Governance Committee, the Department responsible for monitoring Shariah compliance (or the authorized internal auditor checking Shariah compliance), the Shariah Board".

6. In paragraph 3.1, replace the words "two years" with the words "one year".

7. Supplement paragraph 3.2 with the following sentence:

"In banks carrying out operations in accordance with Islamic principles of banking and finance, at least one member of the Committee must know the standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).".

8. In paragraph 3.6, replace the words "period of two years" with the words "one year".

9. Supplement paragraph 6.1 with the following paragraph:

"- in banks carrying out operations in accordance with Islamic principles of banking and finance - analyze and evaluate the bank's activities for compliance with Shariah standards, also based on reports from the department responsible for monitoring Shariah compliance (or the authorized internal auditor checking Shariah compliance);".

10. Supplement Section 6 "Duties of the Committee" with paragraph 6.2 of the following content:

"6.2. In banks carrying out operations in accordance with Islamic principles of banking and finance, one member of the Audit Committee must be a member of the Corporate Governance Committee, the minimum requirements for which are defined in the Regulation "On Corporate Governance in Banks of the Kyrgyz Republic carrying out operations in accordance with Islamic principles of banking and finance", approved by the Resolution of the Board of the National Bank of the Kyrgyz Republic No. 67/9 of November 30, 2011.".

11. Paragraph 7.1:

• after the words "internal and external auditor", add the words "for banks carrying out operations in accordance with Islamic principles of banking and finance, also with the Corporate Governance Committee, the Department responsible for monitoring Shariah compliance (or the authorized internal auditor checking Shariah compliance), the Shariah Board";

• after the words "independently", add the words "and in accordance with the regulatory legal acts of the National Bank".

12. Paragraph 7.2 after the words "internal and external auditor" add the words "for banks carrying out operations in accordance with Islamic principles of banking and finance, also with the Corporate Governance Committee, the Department responsible for monitoring Shariah compliance (or the authorized internal auditor checking Shariah compliance), the Shariah Board".