Resolution of the Board of the National Bank of the Kyrgyz Republic No. 55/9 of September 29, 2011 on Amendments and Additions to Certain Regulatory Legal Acts

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

dated September 29, 2011 No. 55/9

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

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. To introduce amendments and additions to certain regulatory legal acts of the National Bank of the Kyrgyz Republic (attached).

2. This Resolution shall enter into force one month after its official publication.

3. After official publication, the Legal Department shall 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.

4. The Supervision and Licensing Methodology Department shall bring this Resolution to the attention of commercial banks.

5. Control over the execution of this Resolution shall be entrusted to the Deputy Chairman of the National Bank of the Kyrgyz Republic, B.Zh. Zheenbaeva.

For the Chairman Acting Chairman of the Board of the National Bank of the Kyrgyz Republic Z. Chokoev

Appendix to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated September 29, 2011 No. 55/9

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

I. To introduce the following amendments and additions to the Regulation "On Minimum Requirements for the Organization of Internal Control in Commercial Banks for the Purpose of Counteracting the Financing of Terrorism (Extremism) and Legalization (Laundering) of Criminal Proceeds", approved by Resolution of the Board of the National Bank of the Kyrgyz Republic No. 96/2 dated December 29, 2010 "On Approval of the New Edition of the Regulation "On Minimum Requirements for the Organization of Internal Control in Commercial Banks for the Purpose of Counteracting the Financing of Terrorism and Legalization (Laundering) of Criminal Proceeds":

1. In the second paragraph of point 4 of section 2, after the word "Beneficiary", add the words "for the purposes of this Regulation".

2. In the eighth paragraph of point 4 of section 2, after the word "Verification", add the words "for the purposes of this Regulation".

3. Point 7 of section 3 shall be reworded as follows:

"7. The bank's Board is responsible for ensuring effective internal control and implementing measures to comply with the requirements of the Law "On CFT/AML", including requirements related to opening bank accounts (including identification and verification of clients), conducting operations on accounts, and terminating agreements with clients (account holders) and depositors.

The bank's Board must take comprehensive measures to prevent the bank from being involved in operations that show signs of suspicious operations."

4. Section 4 shall be supplemented with point 9-1 of the following content:

"9-1. Banks need to develop internal control rules for CFT/AML, taking into account the requirements of the authorized state body, which do not contradict banking legislation and regulatory legal acts of the National Bank."

5. Subpoint 2 of point 25 of section 6 shall be reworded as follows:

"2) results of the analysis of client operations conducted to identify operations showing signs of suspicious operations (transactions), including information regarding:

• significant dynamics of fund movement in client accounts (active client accounts, bank employee accounts);
• operations for the largest amounts;
• purchase or sale of foreign currency to clients for an amount exceeding the threshold amount;
• client operations whose amounts significantly exceed the turnovers indicated in the questionnaire;
• cash operations (cash withdrawal, asset exchange, cash deposit to replenish a bank account via specialized peripheral devices of the bank);
• operations for issuing loans and accepting deposits (term deposits);
• operations with guarantees, letters of credit, and other contingent liabilities;
• transfers without opening an account via money transfer systems, as well as via the SWIFT system (or other systems acting as primary in banks);
• client and bank operations for the purchase and sale of securities;
• movement of client funds located in other countries."

6. In subpoint 4 of point 25 of section 6, replace the word "ней" with the word "них".

7. Subpoint 9 of point 25 of section 6 shall be reworded as follows:

"9) analytical information regarding:

• possible interrelationship of clients;
• correspondent banks;
• trust management (trust) operations with property under agreements with clients;
• introduction of new banking products and technologies and risks associated with their introduction."

8. Point 38 of section 8 shall be supplemented with a sentence of the following content:

"Operations not included in the list determined by the authorized state body, but showing signs of suspicious operations, are also subject to mandatory control."

9. Appendix 1 shall be supplemented with subpoints 14-17 of the following content:

"14) contribution of cash by an individual to the charter capital of an organization;
15) operations (transactions) if at least one of the parties is an individual or legal entity having, respectively, registration, place of residence or location in a state (territory) where disclosure or provision of information during financial operations is not provided, or one of the parties is a person who is an account holder in a bank registered in the specified state (territory);
16) operations (transactions) with monetary funds or property if at least one of the parties participating in these operations (transactions) is an individual or legal entity regarding whom there is information about participation in terrorist or extremist activities (financing of terrorism or extremism), obtained in the manner established by the laws or international treaties of the Kyrgyz Republic;
17) suspicious operations (transactions)."

II. (Lost force in accordance with Resolution of the Board of the National Bank of the Kyrgyz Republic No. 41/12 dated October 31, 2012)