NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of 27 November 2014 No. 53/8

On Amending and Supplementing Certain Resolutions of the Board of the National Bank of the Kyrgyz Republic

(As amended by Resolutions of the Board of the National Bank of the Kyrgyz Republic of 17 May 2017 No. 19/13, 31 May 2017 No. 21/7, 8 June 2017 No. 2017-P-12/23-1, 8 June 2017 No. 2017-P-12/23-6, 8 June 2017 No. 2017-P-12/23-8)

In accordance with Articles 7 and 43 of the Law "On the National Bank of the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic

RESOLVES:

1. To introduce amendments and supplements to the following resolutions of the Board of the National Bank of the Kyrgyz Republic (attached):

- (paragraph 2 has lost force in accordance with Resolution of the Board of the National Bank of the Kyrgyz Republic of 17 May 2017 No. 19/13)

• "On approval of the Regulation 'On enforcement measures applied to credit unions' of 23 March 2006 No. 7/5;

- (paragraph has lost force in accordance with Resolution of the Board of the National Bank of the Kyrgyz Republic of 31 May 2017 No. 21/7)

- (paragraph has lost force in accordance with Resolution of the Board of the National Bank of the Kyrgyz Republic of 8 June 2017 No. 2017-P-12/23-6)

- (paragraph has lost force in accordance with Resolution of the Board of the National Bank of the Kyrgyz Republic of 8 June 2017 No. 2017-P-12/23-8)

• "On approval of the Regulation 'On the procedure for conducting exchange operations with cash foreign currency in the Kyrgyz Republic' of 30 November 2000 No. 42/1;

- (paragraph has lost force in accordance with Resolution of the Board of the National Bank of the Kyrgyz Republic of 8 June 2017 No. 2017-P-12/23-1)

(As amended by Resolutions of the Board of the National Bank of the Kyrgyz Republic of 17 May 2017 No. 19/13, 31 May 2017 No. 21/7, 8 June 2017 No. 2017-P-12/23-1, 8 June 2017 No. 2017-P-12/23-6, 8 June 2017 No. 2017-P-12/23-8)

2. This resolution enters into force upon expiry of 15 days from the day of official publication.

3. The Legal Department shall:

• 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.

4. The Supervision Methodology and Licensing Department shall bring this resolution to the attention of commercial banks, the State Development Bank of the Kyrgyz Republic, exchange bureaus, microfinance organizations, and credit unions.

5. Control over the execution of this resolution shall be assigned to the Deputy Chairman of the National Bank of the Kyrgyz Republic, L. Orozbaeva.

Chairman of the Board of the National Bank of the Kyrgyz Republic		T. Abdygulov

Annex

AMENDMENTS AND SUPPLEMENTS to certain resolutions of the Board of the National Bank of the Kyrgyz Republic

(As amended by Resolutions of the Board of the National Bank of the Kyrgyz Republic of 17 May 2017 No. 19/13, 31 May 2017 No. 21/7, 8 June 2017 No. 2017-P-12/23-1, 8 June 2017 No. 2017-P-12/23-6, 8 June 2017 No. 2017-P-12/23-8)

1. (Has lost force in accordance with Resolution of the Board of the National Bank of the Kyrgyz Republic of 17 May 2017 No. 19/13)

2. To introduce to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation 'On enforcement measures applied to credit unions' of 23 March 2006 No. 7/5, the following amendments and supplements:

in the Regulation "On enforcement measures applied to credit unions", approved by the above-mentioned resolution:

• throughout the text of the Regulation, replace the abbreviation "NBKR" with the words "National Bank" in the corresponding cases;

• in paragraph 1.2, after the words "to credit unions", supplement with the words ", including those carrying out operations in accordance with Islamic principles of banking and financing,";

• supplement paragraph 1.4 with a fifth paragraph of the following content:

"- conducting operations that do not comply with Sharia standards (for credit unions carrying out operations in accordance with Islamic principles of banking and financing);";

• restate subparagraph "g" of paragraph 2.1 as follows:

"g) the requirement to replace or temporarily suspend all or some officials of the credit union;";

• in paragraph 2.2, after the words "specified in subparagraphs", supplement with the letter "b),";

• supplement with paragraph 2.5-1 of the following content:

"2.5-1. Regional departments and the Batken representative office of the National Bank prepare draft documents for the meeting of the Supervisory Committee of the National Bank and send them to the relevant structural subdivisions of the supervisory block of the National Bank for their subsequent submission for consideration by the Supervisory Committee of the National Bank:

• to the External Supervision Department - upon detection of facts of violations within the framework of external supervision and monitoring of the implementation of recommendations and requirements/instructions based on the results of inspections;

• to the Inspection Department - upon detection of facts of violations within the framework of inspections;

• to the Supervision Methodology and Licensing Department - upon detection of facts of violation of legislative requirements on licensing matters.";

• in paragraph 2.8, after the words "(hereinafter - the authorized person)", exclude the words "and the director of the NBKR representative office in the Batken region";

• restate the title of chapter 3 as follows:

"3. Application of enforcement measures";

• supplement paragraph 3.3 with a sixth paragraph of the following content:

"- conducting operations that do not comply with Sharia standards (for credit unions carrying out operations in accordance with Islamic principles of banking and financing);";

• in paragraph 3.4:

restate the first paragraph of paragraph 3.4 as follows:

"3.4. The requirement to replace or temporarily suspend all or some officials of the credit union is adopted by the Supervisory Committee of the National Bank. The grounds for replacing or temporarily suspending all or some officials of the credit union are:";

in the fourth paragraph of the paragraph, exclude the word "intentional";

supplement with a fifth paragraph of the following content:

"- initiation of a criminal case against officials of the credit union (on charges of committing economic and official crimes) in connection with the performance of official duties;";

• in paragraph 3.5, after the words "established economic ratios,", supplement with the words "Sharia standards when conducting operations corresponding to Islamic principles of banking and financing,";

• in paragraph 3.7:

in the first paragraph of the paragraph, exclude the words "for a period of up to three months";

in the fourth paragraph of the paragraph, exclude the word "intentional";

• in the ninth paragraph of paragraph 3.8, after the word "credits", supplement with words of the following content:

"(for credit unions carrying out operations in accordance with Islamic principles of banking and financing - transactions under the terms of which funds are provided)";

• restate paragraph 3.10 as follows:

"3.10. The credit union must, within three days after receiving the decision of the Supervisory Committee of the National Bank on revocation of the licence, surrender the original licence (including the additional licence) to the National Bank, and within one month begin the liquidation procedure out of court.".

3. (Has lost force in accordance with Resolution of the Board of the National Bank of the Kyrgyz Republic of 31 May 2017 No. 21/7)

4. (Has lost force in accordance with Resolution of the Board of the National Bank of the Kyrgyz Republic of 8 June 2017 No. 2017-P-12/23-6)

5. (Has lost force in accordance with Resolution of the Board of the National Bank of the Kyrgyz Republic of 8 June 2017 No. 2017-P-12/23-8)

6. To introduce to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On approval of the Regulation 'On the procedure for conducting exchange operations with cash foreign currency in the Kyrgyz Republic' of 30 November 2000 No. 42/1, the following amendment:

in the Regulation "On the procedure for conducting exchange operations with cash foreign currency in the Kyrgyz Republic", approved by the above-mentioned resolution:

• restate the first paragraph of paragraph 7.6 as follows:

"7.6. In the event of provision of unreliable information on conducted exchange operations with cash foreign currency, detection of violations of the procedure for conducting exchange operations with cash foreign currency, as well as other requirements of normative documents regulating the activities of authorized banks, microfinance and microcredit companies, credit unions and exchange bureaus/points, the National Bank has the right:".

7. (Has lost force in accordance with Resolution of the Board of the National Bank of the Kyrgyz Republic of 8 June 2017 No. 2017-P-12/23-1)