NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

of 13 September 2018 No. 2018-P-14/37-3-(PS)

On Amending and Supplementing the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Rules for Making Money Transfers through Money Transfer Systems in the Kyrgyz Republic" of 15 July 2009 No. 30/6

In accordance with Articles 20 and 68 of the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic, Banks and Banking Activity", the Board of the National Bank of the Kyrgyz Republic

RESOLVES:

1. To introduce amendments and supplements to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Rules for Making Money Transfers through Money Transfer Systems in the Kyrgyz Republic" of 15 July 2009 No. 30/6 (attached).

2. To 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 Normative Legal Acts of the Kyrgyz Republic.

3. This resolution enters into force upon the expiry of fifteen days from the day of official publication.

4. Commercial banks and operators of money transfer systems shall comply with the requirements of point 3.7 of the Rules for Making Money Transfers through Money Transfer Systems in the Kyrgyz Republic by 1 December 2018.

5. To the Payment Systems Department to bring this resolution to the attention of commercial banks of the Kyrgyz Republic and operators of money transfer systems.

6. To assign control over the execution of this resolution to the Deputy Chairman of the National Bank of the Kyrgyz Republic M. A. Momunkulova.

Chairman	T. Abdygulov

	Annex to the resolution of the Board of the National Bank of the Kyrgyz Republic of 13 September 2018 No. 2018-P-14/37-3-(PS)

AMENDMENTS AND SUPPLEMENTS

to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Rules for Making Money Transfers through Money Transfer Systems in the

Kyrgyz Republic" of 15 July 2009 No. 30/6

To introduce to the resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Rules for Making Money Transfers through Money Transfer Systems in the Kyrgyz Republic" of 15 July 2009 No. 30/6 the following amendments and supplements:

in the Rules for Making Money Transfers through Money Transfer Systems in the Kyrgyz Republic, approved by the above-mentioned resolution:

• point 1.2 shall be supplemented with paragraphs of the following content:

"A money transfer through an international money transfer system on the territory of the Kyrgyz Republic shall be provided to the recipient in the currency of transfer/payment specified by the sender and different from the national currency of the Kyrgyz Republic - the som.

Conversion of a money transfer received through a money transfer system from the currency of transfer/payment into another currency shall be carried out in accordance with the legislation of the Kyrgyz Republic.".

• point 1.5 shall be supplemented with a paragraph of the following content:

"The activity of an operator of a money transfer system - a resident of the Kyrgyz Republic - in making money transfers outside the Kyrgyz Republic through its own money transfer system shall be carried out in accordance with the legislation of the country in which it carries out such activity.".

• point 2.3 shall be supplemented with a paragraph of the following content:

"A money transfer may be made from a demand bank deposit (deposit) account of an individual to another individual (recipient) in the Kyrgyz Republic or outside it through money transfer systems in accordance with the normative legal acts of the Kyrgyz Republic, provided that this operation is of a personal, non-commercial nature.".

• point 2.5 shall be set out in the following wording:

"2.5. Sender - an individual initiating the sending of a money transfer without opening a bank account by transferring cash funds to a bank or funds from a demand bank deposit (deposit) account of an individual for their sending in favor of the recipient of funds specified by the sender.".

• Chapter 2 shall be supplemented with point 2.10 of the following content:

"2.10. Batch transfer in accordance with FATF recommendations - a transfer composed of a number of individual money transfers that are sent to one financial institution (bank) and may be addressed to one or different persons.".

• in point 3.1:

the words "payment system operator" in various case forms shall be replaced by the words "money transfer system operator";

the tenth paragraph shall be set out in the following wording:

"- certificate of registration of the money transfer system operator, license/certificate for the right to carry out money transfers issued by the authorized body for financial supervision of the country of origin, or confirmation of the authorized body for financial supervision of the country of origin/legal company that, in accordance with the national legislation of the country of origin of the money transfer system operator, the presence of such documents is not mandatory/is not a licensed type of activity;";

the thirteenth paragraph shall be set out in the following wording:

"If the money transfer system belongs to a bank, a duly certified copy of the license for carrying out banking operations issued by the central (national) bank of the country of origin shall additionally be provided to the National Bank."

paragraphs fourteen, fifteen and sixteen shall be recognized as having lost force.

• subpoint 7 of point 3.5 shall be set out in the following wording:

"7) carrying out mutual settlements on a daily basis.".

• point 3.7 shall be set out in the following wording:

"3.7. The operator, except for the operator of local money transfer systems, in order to guarantee monetary obligations to a participant of the payment system must ensure the fulfillment of one of the conditions:

1) place on the correspondent account specified by the participating bank a mandatory insurance deposit in an amount covering the average daily turnover for all operations performed (for a month/quarter/year as agreed). The calculation of the amount of the insurance deposit also includes the amounts of money transfers falling on weekends and holidays. The amount of the insurance deposit is established monthly.

In case of non-fulfillment or improper fulfillment of obligations by the operator, the funds of the insurance deposit are used by the participant to satisfy claims under such obligations.

In case of termination of the contract for the provision of money transfer services without opening an account at the initiative of the operator or the participant, the funds of the insurance deposit are returned to the operator in the manner and within the timeframes provided for by the contractual relations;

2) provide the participant one day before the next operational day a prepayment (advance/security payment) by placing it on the correspondent account specified by the participating bank in the amount of the average daily volume of money transfers paid by the participant to recipients. The amount of the prepayment (advance/security payment) is determined by agreement of the parties based on data for a month/quarter/year and is established at least once a month. On the operational day preceding weekends and holidays, the amount of the prepayment (advance/security payment) is increased by the amount of the average daily volume falling on weekends and holidays.".

• point 4.4 shall be set out in the following wording:

"4.4. The participant, when providing money transfer services without opening a bank account through money transfer systems, must comply with the requirements of the legislation of the Kyrgyz Republic on countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds.".

• point 4.9 shall be set out in the following wording:

"4.9. The participant must keep records for each money transfer operation, for batch files, in case several transfers are combined into one batch transfer, and store information about the sender and recipient of the money transfer (full name, year of birth, home address, passport data or data of an identity document, bank account number when sending/receiving a money transfer by non-cash method), purpose of transfer, transfer amount in figures and in words, and other information in accordance with the requirements of the normative legal acts of the Kyrgyz Republic on the storage of payment documents.

If the participant in the process of transferring funds is not the sender and recipient when making the transfer (that is, performs the functions of a transit financial institution (bank)), it must ensure compliance with the following requirements in accordance with FATF recommendations and legislation on countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds:

1) ensure the preservation of all information accompanying the cross-border money transfer about the sender and recipient (full name, year of birth, home address, passport data or data of an identity document, bank account number when sending/receiving a money transfer by non-cash method);

2) store for at least five years the record of all information accompanying the cross-border money transfer received from the sending financial institution (bank/money transfer system operator);

3) take measures to identify cross-border money transfers that do not contain information about the recipient or sender accompanying the money transfer, and have risk-oriented procedures for executing/rejecting/suspending such transfers;

4) carry out monitoring in order to identify cross-border money transfers that do not contain information about the sender accompanying the money transfer.".

• the second paragraph of point 4.11 shall be recognized as having lost force.

• the first sentence of point 5.2 shall be set out in the following wording:

"The participant must develop and agree with the operator a set of measures for the application of various risk management methods, including those related to the possible excess of the amount of current monetary obligations of the operator over the amount of the insurance deposit or prepayment (advance/security payment), and provide for the distribution of responsibility between the parties in the contract for participation in the money transfer system.".

• point 6.2 shall be set out in the following wording:

"6.2. The participant is obliged to store information and documentation on operations carried out through money transfer systems in accordance with the storage periods for payment documents determined by the normative legal acts of the Kyrgyz Republic and legislation on countering the legalization/laundering of criminal proceeds and the financing of terrorist or extremist activities.".

• the first sentence of point 6.6 shall be set out in the following wording:

"6.6. The operator, at the request of the National Bank, must provide detailed information about the operation for the requested money transfer, about the sender and/or recipient of the money transfer (full name, year of birth, home address, passport data or data of an identity document, bank account number when sending/receiving a money transfer by non-cash method), purpose of transfer, transfer amount in figures with copies of all supporting documents attached.".

• Annex 2 shall be set out in the following wording:

	Annex 2 To the Rules for Making Money Transfers through Money Transfer Systems in the Kyrgyz Republic

Information on the fulfillment of point 3.7 of the Rules*

Name of the money transfer system	Type of security under point 3.7	Contract number	Date of contract signing	Contract validity period	Average daily turnover in the money transfer system (amount, currency)	Contract terms						Note/Other
Amount of insurance deposit, currency		Terms of placement of insurance deposit		Prepayment (advance/security payment)
amount	currency	% rate	term	amount	currency

*Data must be submitted on an A4 landscape sheet.

Executor ______

indicate full name of the person responsible for preparing the Information, position, department/division,

signature

Head of department ______

indicate full name of the head of department responsible for preparing the information, signature

Deputy Chairman ______

indicate full name of the person supervising this block, signature