Resolution of the Board of the National Bank of the Kyrgyz Republic No. 35/16 of September 25, 2013 on Amendments to Certain Regulatory Legal Acts

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of September 25, 2013 No. 35/16

On Amendments and Additions to Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic

(In the edition of the Resolutions of the Board of the National Bank of the Kyrgyz Republic of August 26, 2015 No. 49/9, May 17, 2017 No. 19/13, May 31, 2017 No. 21/7, June 15, 2017 No. 2017-P-12/25-4)

In order to improve the regulatory legal acts of the National Bank of the Kyrgyz Republic regarding the application of enforcement measures and to bring the regulatory legal acts of the National Bank of the Kyrgyz Republic into compliance with the Code of the Kyrgyz Republic on Administrative Offenses, guided by 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 attached amendments and additions to certain regulatory legal acts of the National Bank of the Kyrgyz Republic.

2. 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. The Department of Supervision and Licensing Methodology to bring this resolution to the attention of commercial banks, the State Development Bank of the Kyrgyz Republic, JSC "Financial Company of Credit Unions", Microfinance Organizations, Credit Unions.

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

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

Chairman		Z. Asankozhoeva

		Appendix to the resolution of the Board of the National Bank of the Kyrgyz Republic of September 25, 2013 No. 35/16

AMENDMENTS AND ADDITIONS in certain regulatory legal acts of the National Bank of the Kyrgyz Republic

(In the edition of the Resolutions of the Board of the National Bank of the Kyrgyz Republic of August 26, 2015 No. 49/9, May 17, 2017 No. 19/13, May 31, 2017 No. 21/7, June 15, 2017 No. 2017-P-12/25-4)

1*. (Lost force in accordance with the resolution of the Board of the National Bank of the Kyrgyz Republic of August 26, 2015 No. 49/9)

2. (Lost force in accordance with the resolution of the Board of the National Bank of the Kyrgyz Republic of May 17, 2017 No. 19/13)

3. Make the following change to the Regulation on Direct Banking Supervision approved by the resolution of the Board of the National Bank of the Kyrgyz Republic No. 22/4 of May 28, 2008, registered in the Ministry of Justice of the Kyrgyz Republic on June 26, 2008, registration number No. 47-08:

1. reword paragraph 2.2 as follows:

"2.2. To perform the tasks of direct banking supervision, the CPN sends an authorized employee/authorized employees of the External Supervision Department to the bank. In the event that several authorized employees (hereinafter - the inspector group) are sent to the bank, their Head is appointed (hereinafter - the Head of the inspector group). In the event that one authorized employee is sent to the bank (hereinafter - the Inspector), he performs the functions of the Head of the inspector group (if applicable).".

4. (Lost force in accordance with the resolution of the Board of the National Bank of the Kyrgyz Republic of June 15, 2017 No. 2017-P-12/25-4)

5. in paragraph 6.8.6 replace the words "Authorized Employee of the National Bank" with "Inspector/Head of the Inspector Group";

6. in paragraph 6.8.7 replace the words "Authorized Employee of the National Bank" with "Inspector/Head of the Inspector Group";

7. in paragraph 6.9.2 replace the words "UI and/or UMLN and/or UBN" with "structural unit of the supervisory block of the National Bank that detected the violation";

8. in paragraph 6.9.4 replace the words "UI and/or UMLN and/or UBN" with "structural unit of the supervisory block of the National Bank that detected the violation";

9. supplement paragraph 7.4 with a second paragraph of the following content:

"7.4. The fine must be paid by the bank within a period no later than one month from the date of delivery of the resolution on the imposition of the fine to it, and in case of appeal of the resolution - no later than fifteen days from the date of notification of the rejection of the complaint or refusal to satisfy it.".

5. (Lost force in accordance with the resolution of the Board of the National Bank of the Kyrgyz Republic of May 31, 2017 No. 21/7)

6. Make the following amendments and additions to the Regulation on enforcement measures applied to credit unions, approved by the resolution of the Board of the National Bank of the Kyrgyz Republic No. 7/5 of March 23, 2006, registered in the Ministry of Justice of the Kyrgyz Republic on April 21, 2006, registration number No. 45-06:

1. reword paragraph 2.5 as follows:

"2.5. The competence of the NBSR Supervisory Committee includes making decisions on the application of the following enforcement measures with respect to a credit union:

• introduction of higher economic standards;
• introduction of direct supervision by the NBSR;
• introduction of temporary management of the credit union;
• temporary suspension or restriction of certain operations;
• presentation of a requirement to change all or some officials;
• temporary suspension of the license;
• revocation of the license.";

2. reword paragraph 2.6 as follows:

"2.6. The Head of the structural unit of the supervisory block that detected the violation may apply the following enforcement measures with respect to a credit union:

• send a directive.";

3. recognize the third, fourth and fifth paragraphs of paragraph 2.7 as having lost force;

4. in paragraph 2.8 replace the words "Head of UBN/Regional Department of NBSR" with "Head of the structural unit of the supervisory block of NBSR that detected the violation/Head of the Regional Department of NBSR/Director of the NBSR Representation in the Batken Region (hereinafter - the authorized person)";

5. in paragraph 3.1 replace the words "Head of UBN/Regional Department of NBSR and Director of the NBSR Representation in the Batken Region" with "authorized person";

6. in paragraph 3.4 replace the words "Head of UBN/Regional Department of NBSR" with "authorized person";

7. in paragraph 3.5 replace the words "Head of UBN/Regional Department of NBSR and Director of the NBSR Representation in the Batken Region" with "NBSR Supervisory Committee";

8. in paragraph 3.7 replace the words "Head of UBN/Regional Department of NBSR and Director of the NBSR Representation in the Batken Region" with "NBSR Supervisory Committee";

9. in paragraph 9 of paragraph 3.8 after the words "obtaining a license" supplement with the words "and/or during the period of activity";

10. in paragraph 4.2:

• replace the words "Head of UBN/Regional Department of NBSR and Director of the NBSR Representation in the Batken Region" with "authorized person";
• exclude the word "working";
• throughout the text replace the words "supervising UBN" with "supervising the supervisory block".

7. Make the following amendments and additions to the Regulation on the Supervisory Committee of the National Bank of the Kyrgyz Republic, approved by the resolution of the Board of the National Bank of the Kyrgyz Republic No. 6/2 of March 19, 2005, registered in the Ministry of Justice of the Kyrgyz Republic on April 21, 2005, registration number No. 55-05:

1. in paragraph 1.1:

• after the words "licensed" supplement with the words "and regulated";
• replace the words "(hereinafter banks and FCU)" with "(hereinafter - banks and other FCUs)";

2. throughout the text of the Regulation replace the words "banks and FCUs" with "banks and other FCUs" in the corresponding grammatical forms;

3. in paragraph 2.1:

• in sub-item m) after the word "banking" supplement with the word "and antimonopoly";
• supplement with paragraphs u), f), h) of the following content:

"u) revocation of the license of an MFO for the right to carry out certain banking operations; f) temporary suspension/restriction of the license of a credit union/MFC or the certificate of registration of MKK/MKA; h) revocation of the certificate of registration of MKK/MKA.";

4. in paragraph 2.2:

• reword sub-item n) as follows:

"n) consideration of the plan of measures provided by the conservator for the next six months regarding the activity of a bank in conservatorship mode;";

• supplement the paragraph with sub-items o) and p) of the following content:

"o) consideration of issues related to antimonopoly regulation, competition development and protection of consumer rights of banking services (including issues of violation of pricing procedures, including the establishment, maintenance of monopolistically high (low) prices; abuse of dominant position in the banking services market); p) other issues delegated to the Committee by the Board of the National Bank.".