Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 43 of 16 July 2024 on Approval of Requirements for the Procedure of Operation of the Data Exchange Center for Payment Transactions with Fraud Indicators and Its Interaction with Persons Participating in Its Activities

REPUBLICAN STATE INSTITUTION "NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN"		REPUBLICAN STATE INSTITUTION "NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN"
RESOLUTION OF THE BOARD 16 July 2024, Astana city		RESOLUTION OF THE BOARD No. 43, Astana city

On Approval of the Requirements for the Procedure of Operation of the Data Exchange Center for Payment Transactions with Fraud Indicators and Its Interaction with Persons Participating in Its Activities

In accordance with part one of paragraph 3, paragraphs 6, 8 and 10 of Article 25-1 of the Law of the Republic of Kazakhstan "On Payments and Payment Systems", the Board of the National Bank of the Republic of Kazakhstan RESOLVES:

1. To approve the attached Requirements for the Procedure of Operation of the Data Exchange Center for Payment Transactions with Fraud Indicators and Its Interaction with Persons Participating in Its Activities.

2. The Department of Payment Systems of the National Bank of the Republic of Kazakhstan shall, in the manner established by the legislation of the Republic of Kazakhstan, ensure:

1) together with the Legal Department of the National Bank of the Republic of Kazakhstan, state registration of this resolution with the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this resolution on the official internet resource of the National Bank of the Republic of Kazakhstan after its official publication;

3) within ten working days after the state registration of this resolution, submission to the Legal Department of the National Bank of the Republic of Kazakhstan of information on the fulfillment of the measure provided for by subparagraph 2) of this paragraph.

3. Control over the fulfillment of this resolution shall be assigned to the supervising Deputy Chairman of the National Bank of the Republic of Kazakhstan.

4. This resolution is subject to official publication and shall enter into force on 22 July 2024.

Acting Chairman of the National Bank		A.M. Baimagambetov

AGREED

Agency of the Republic of Kazakhstan

for Regulation and Development of the

Financial Market

AGREED

Ministry of Internal Affairs

of the Republic of Kazakhstan

AGREED

Ministry of Digital Development,

Innovation and Aerospace

Industry

of the Republic of Kazakhstan

Approved

by resolution of the Board

of the National Bank

of the Republic of Kazakhstan

No. 43 of 16 July 2024

Requirements for the Procedure of Operation of the Data Exchange Center for Payment Transactions with Fraud Indicators and Its Interaction with Persons Participating in Its Activities

Chapter 1. General provisions

1. These Requirements for the Procedure of Operation of the Data Exchange Center for Payment Transactions with Fraud Indicators and Its Interaction with Persons Participating in Its Activities (hereinafter referred to as the Requirements) have been developed in accordance with part one of paragraph 3, paragraphs 6, 8 and 10 of Article 25-1 of the Law of the Republic of Kazakhstan "On Payments and Payment Systems" (hereinafter referred to as the Law on Payments and Payment Systems), and determine the requirements for the procedure of operation of the data exchange center for payment transactions with fraud indicators (hereinafter referred to as the anti-fraud center) and the interaction of the anti-fraud center with persons participating in the activities of the anti-fraud center (hereinafter referred to as the participants of the anti-fraud center), the procedure for the anti-fraud center's formation and maintenance of databases on events and attempts of payment transactions with fraud indicators, the procedure and timeframes for refusal or suspension by financial organizations, payment organizations (hereinafter referred to as the organization, organizations) upon receipt of information from the anti-fraud center about persons connected with payment transactions with fraud indicators, and the procedure, forms and timeframes for organizations to send information about all events and (or) attempts of payment transactions with fraud indicators.

2. These Requirements use the concepts provided for by the Law on Payments and Payment Systems, the Law of the Republic of Kazakhstan "On Communications" and the Rules for Issuing Payment Cards, as well as the requirements for activities servicing transactions with their use on the territory of the Republic of Kazakhstan, approved by resolution of the Board of the National Bank of the Republic of Kazakhstan No. 205 of 31 August 2016 "On Approval of the Rules for Issuing Payment Cards, as well as the Requirements for Activities Servicing Transactions with Their Use on the Territory of the Republic of Kazakhstan" (registered in the Register of State Registration of Normative Legal Acts under No. 14299).

3. The anti-fraud center is the joint-stock company "National Payment Corporation of the National Bank of the Republic of Kazakhstan" (hereinafter referred to as the anti-fraud center operator), which implements measures aimed at preventing payment transactions with fraud indicators on a round-the-clock basis.

4. In accordance with part two of paragraph 3 of Article 25-1 of the Law on Payments and Payment Systems, the participants of the anti-fraud center are:

1) financial organizations;

2) payment organizations;

3) mobile operators;

4) criminal prosecution bodies;

5) the National Bank of the Republic of Kazakhstan (hereinafter referred to as the National Bank);

6) the authorized body for regulation, control and supervision of the financial market and financial organizations.

Chapter 2. Implementation of the activities of the anti-fraud center and interaction of the anti-fraud center with its participants

5. The anti-fraud center operator:

1) carries out collection, consolidation and storage of information on events and attempts of payment transactions with fraud indicators, including on other suspicious and (or) unlawful operations, received from organizations, mobile operators and criminal prosecution bodies;

2) processes and analyzes data on payments and (or) money transfers classified in accordance with established criteria as payment transactions with fraud indicators, necessary for organizations, mobile operators and criminal prosecution bodies;

3) provides information necessary to prevent payment transactions with fraud indicators to organizations, mobile operators and criminal prosecution bodies, including information on threats, vulnerabilities, preconditions for the occurrence of events, as well as methods for their prevention and liquidation of consequences;

4) ensures the appropriate regime of storage, protection and security of information, data and documents received in the course of its activities that constitute official, commercial, banking or other secrets protected by law;

5) carries out collection, processing and storage of personal data in anonymized form.

6. A participant of the anti-fraud center connects to the anti-fraud center by establishing technical interaction with the information system of the anti-fraud center operator in the manner determined by the internal documents of the anti-fraud center operator and agreed with the authorized body in the field of personal data protection, in compliance with the requirements for ensuring the security of protected information established by the Laws of the Republic of Kazakhstan "On Informatization", "On Personal Data and Its Protection", "On Banks and Banking Activity in the Republic of Kazakhstan" and "On Electronic Document and Electronic Digital Signature".

7. A message about a payment transaction with fraud indicators received from an organization and a criminal prosecution body through the information system of the anti-fraud center operator for inclusion of the sender of money and (or) the beneficiary (recipient of money) in the database on events of payment transactions with fraud indicators (hereinafter referred to as the database on events) and (or) on attempts of payment transactions with fraud indicators (hereinafter referred to as the database on attempts) is updated immediately after receipt by the anti-fraud center operator and becomes available to all participants of the anti-fraud center.

The information system of the anti-fraud center operator ensures sequential recording of the message about a payment transaction with fraud indicators sent by the organization to the anti-fraud center, confirming:

1) sending of the message by the organization to the anti-fraud center;

2) receipt of this message by the anti-fraud center and its further sending to the participants of the anti-fraud center;

3) delivery and receipt of the message by the participants of the anti-fraud center.

8. Organizations shall, without fail, before executing an instruction on payment and (or) money transfers, reconcile the identification data of their clients – the sender and the recipient – with the databases of the anti-fraud center.

9. The National Bank daily receives from the anti-fraud center operator information on payment transactions with fraud indicators in the form established by the internal documents of the anti-fraud center operator.

10. The anti-fraud center operator sends to mobile operators information on mobile numbers of persons for whom there is information about participation in fraudulent payment transactions, in accordance with agreements concluded between them.

Chapter 3. Formation and maintenance of the anti-fraud center's databases on events and attempts of payment transactions with fraud indicators

11. To ensure the activities of the anti-fraud center, the anti-fraud center operator forms databases on events and on attempts.

12. The database on events is formed on the basis of messages about payment transactions with fraud indicators received from the criminal prosecution body regarding persons for whom there is confirmed information about participation in fraudulent payment transactions.

Exclusion of a person from the database on events is carried out on the basis of a message sent to the anti-fraud center operator by the criminal prosecution body that included this person in the database on events, in the form established by the internal documents of the anti-fraud center operator.

13. The database on attempts is formed on the basis of messages about payment transactions with fraud indicators received from organizations regarding their clients for whom, in accordance with internal documents, grounds (suspicions) are confirmed to believe that these clients participate in payment operations connected with a payment transaction with fraud indicators.

The organization sends a message to the anti-fraud center operator upon fulfillment of the following sequential conditions for inclusion in the database on attempts:

1) the organization, in accordance with internal documents, identifies payment transactions with fraud indicators of the client and blocks this operation;

2) within 3 (three) working days conducts a substantive (detailed) analysis of the activities and (or) operation of its client, including obtaining additional information from the client to clarify the circumstances and make a decision;

3) in case of confirmation of grounds (suspicions) that the client participates in payment operations connected with a payment transaction with fraud indicators, sends a message to the anti-fraud center operator.

Exclusion of a person from the database on attempts is carried out on the basis of a message sent to the anti-fraud center operator by the criminal prosecution body following the results of the conducted investigation, in the form established by the internal documents of the anti-fraud center operator, as well as on the grounds and in the case provided for by paragraph 15 of the Requirements.

14. Removal of a restriction in respect of a beneficiary in the database on events is carried out by the anti-fraud center on the basis of a decision of the criminal prosecution body that included him in the said database.

15. The organization excludes a client from the database on attempts on the basis of its own decision, following:

1) study and analysis of the client's operation;

2) consideration of the client's application about his unjustified or erroneous inclusion.

Chapter 4. Refusal to execute or suspension of execution of an instruction by organizations

16. Before executing an instruction on payment and (or) money transfers, the organization conducts the relevant measures provided for by paragraph 8 of the Requirements.

17. The organization refuses to carry out a payment and (or) money transfer when the information about the beneficiary of the payment and (or) money transfer matches the information about the beneficiary contained in the database on events confirmed by the criminal prosecution body.

When refusing to execute an instruction on payment and (or) money transfer, the organization provides the client – the sender of money, in the manner established by the agreement concluded with the client, with information about the refusal to carry out the payment and (or) money transfer, indicating the reasons and grounds.

18. The organization suspends and (or) blocks the amount of money for executing the instruction on payment and (or) money transfer when the information about the beneficiary of the payment and (or) money transfer matches the information about the beneficiary contained in the database on attempts in accordance with subparagraph 1) of paragraph 5 of Article 25-1 of the Law on Payments and Payment Systems, and provides the client, in the manner established by the agreement concluded with the client, with information about the suspension of the payment and (or) money transfer, indicating the reasons and grounds.

If the client – the sender of money – accepts all risks, the organization resumes this payment and (or) money transfer in favor of the beneficiary included in the database on attempts.

If the client does not accept the risks and does not wish to continue the payment and (or) money transfer, the organization rejects this payment and (or) money transfer.

19. Resumption of execution of subsequent instructions of the client is carried out after removal of the restriction in respect of the beneficiary in the database on events and attempts.

20. Upon receipt by the organization of the client's application about his detection of a payment transaction with fraud indicators:

1) the organization servicing the sender of money conducts an analysis (study) of the operation, based on the results of which it sends to the anti-fraud center operator a message about a payment transaction with fraud indicators, indicating the details of the client and the organization servicing the beneficiary;

2) the anti-fraud center operator, after receiving the message specified in subparagraph 1) of this paragraph, immediately includes information about the beneficiary in the database on attempts, with simultaneous notification of the organization servicing the beneficiary, in order to suspend execution of the instruction on crediting money to the bank account and (or) electronic wallet of the beneficiary and clarify the grounds for the beneficiary to receive the money;

3) after receiving from the anti-fraud center the notification specified in subparagraph 2) of this paragraph, the organization servicing the beneficiary suspends crediting of money to the bank account and (or) electronic wallet of the beneficiary within the amount of the operation;

4) if it is impossible to suspend crediting of money to the bank account of the beneficiary and (or) electronic wallet, the organization servicing the beneficiary blocks the amount of money in the bank account and (or) electronic wallet of the beneficiary and immediately notifies the beneficiary thereof in the manner established by the agreement. Blocking of money is carried out in order to clarify the grounds for the beneficiary to receive the money;

5) in case of further transfer and (or) withdrawal of money from the bank account and (or) electronic wallet, the organization servicing the beneficiary suspends expenditure operations on the bank account and (or) electronic wallet and immediately notifies the beneficiary, in the manner established by the agreement with the beneficiary, about the suspension of expenditure operations. Suspension of expenditure operations is carried out in order to clarify the grounds for the beneficiary to receive the money;

6) the organization servicing the beneficiary, in the cases provided for by subparagraphs 3), 4) and 5) of this paragraph, within 3 (three) working days from the day of determining the payment transaction with fraud indicators, carries out an analysis of the payment transaction, based on the results of which, in case of:

non-confirmation of suspicions, sends a notification to the anti-fraud center operator about the exclusion of the beneficiary from the database on attempts, and also within 3 (three) working days from the moment of making the decision credits the money to the bank account and (or) electronic money to the electronic wallet of the beneficiary and (or) removes the blocking of the bank account and (or) electronic wallet of the beneficiary and (or) resumes expenditure operations on the bank account and (or) electronic wallet of the beneficiary. The anti-fraud center operator excludes this beneficiary from the database on attempts;

confirmation of suspicions, sends a notification thereof to the anti-fraud center operator, and also within 3 (three) working days from the moment of making the decision carries out the return of the amount of money to the sender of money with sending to the criminal prosecution body materials for conducting an investigation in respect of the beneficiary.

Chapter 5. Sending by organizations to the anti-fraud center of information about all events and (or) attempts of payment transactions with fraud indicators

21. A message about a payment transaction with fraud indicators sent by an organization to the anti-fraud center operator contains information about the role of its client:

who suffered from the actions of third parties aimed at embezzling the client's money by fraud or abuse of trust;

who committed actions in respect of the client aimed at embezzling the client's money by fraud or abuse of trust.

22. A message about a payment transaction with fraud indicators is sent by the organization and the criminal prosecution body in electronic form and contains details for identifying the client in the form established by the internal documents of the anti-fraud center operator, but not limited to the following details when making a payment and (or) money transfer using:

1) a bank account: account number, amount and time of the payment transaction;

2) a payment card: card number and (or) unique identifier of the payment transaction (if any), assigned by the acquirer during its processing, amount and time of the payment transaction;

3) an electronic wallet of electronic money: wallet details, amount and time of the payment transaction.

23. The organization identifies a payment transaction with fraud indicators, but not limited to them, on the basis of the following criteria (signs) approved by internal documents:

1) discrepancy in the nature (atypical) of the operation conducted by the client, identified by the organization based on analysis of usually performed operations (activities carried out by the client), in particular:

time (days) of the operation;

place of the operation (physical location of the client, place of the operation, and so on);

the device used to carry out the operation;

2) discrepancy in the parameters of the operation conducted by the client:

amount of the operation;

periodicity (frequency) of operations;

recipient (beneficiary) of money;

3) discrepancy in the volume of operations conducted by the client:

in favor of foreign service providers, including digital asset platforms;

in favor of suppliers of goods, works and services whose activity is not connected with the receipt of large payments.