Temporary Instruction on Deposit Operations (Approved by Resolution of the Board of the National Bank of the Kyrgyz Republic dated February 19, 2003 No. 4/4)

LOST FORCE in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated October 31, 2012 No. 41/12

Registered with the Ministry of Justice of the Kyrgyz Republic on March 25, 2003. Registration number 25-03

Approved by Resolution of the Board of the National Bank of the Kyrgyz Republic dated February 19, 2003 No. 4/4

INSTRUCTION on Deposit Operations

(As amended by Resolutions of the Board of the National Bank of the Kyrgyz Republic dated October 16, 2006 No. 30/2, June 27, 2008 No. 25/9, July 29, 2009 No. 32/4, February 24, 2010 No. 3/9, June 1, 2011 No. 31/4, September 29, 2011 No. 55/9)

1. General Provisions

2. Terms and Definitions Used

3. Types of Deposits

4. Legal Regime of Deposits. Client Rights

5. Procedure for Opening Bank Accounts under a Bank Deposit (Deposit) Agreement

6. Procedure for Opening Accounts under a Bank Account Agreement

7. Re-registration and Closure of a Deposit Account

Appendix 1. Requirements for the "Know Your Client" Policy

Appendix 2. Minimum Requirements for the Signature and Seal Impression Card

Appendix 3. Requirements for Bank Operations with Correspondent Accounts

This Instruction was developed in accordance with the Civil Code of the Kyrgyz Republic, the Laws of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic", "On Banks and Banking Activities in the Kyrgyz Republic", "On Counteracting the Financing of Terrorism and Legalization (Laundering) of Criminal Proceeds" and defines the procedure for opening, maintaining and closing bank accounts for individuals and legal entities and individual entrepreneurs, residents and non-residents of the Kyrgyz Republic (hereinafter referred to as clients) in commercial banks licensed by the National Bank of the Kyrgyz Republic (hereinafter referred to as the bank).

The purpose of this Instruction is to establish minimum requirements for the operation of bank accounts (deposits) and the procedure for conducting transactions on them.

(As amended by Resolutions of the Board of the National Bank of the Kyrgyz Republic dated October 16, 2006 No. 30/2, June 27, 2008 No. 25/9)

1. General Provisions

Attracting deposits is one of the main types of bank operations and, in accordance with the Law of the Kyrgyz Republic "On Banks and Banking Activities in the Kyrgyz Republic", only banks that have received a license from the National Bank of the Kyrgyz Republic (hereinafter - the National Bank) can carry it out. The procedure for opening, maintaining and closing bank accounts is carried out in accordance with the legislation of the Kyrgyz Republic and regulatory acts of the National Bank.

In order to develop a mechanism for working with deposits, each bank is obliged to develop appropriate internal regulatory documents for attracting and working with deposits (policy, procedure, etc.), which are subject to approval by the bank's management bodies (Board of Directors, Management Board). These documents must reflect all the main provisions concerning deposit operations: rules for opening bank accounts, procedures for managing funds in them, procedures for paying deposits and interest on them, client rights and bank obligations to depositors, procedures for closing bank accounts, procedures for storing information in the bank, etc., as well as the procedure for identifying and studying clients by commercial banks, developed in accordance with the recommendations in Appendix 1.

In order to prevent operations related to the financing of terrorism (extremism) and the legalization (laundering) of criminal proceeds, the bank must develop internal control policies and procedures that correspond to the complexity and scale of the bank's activities, including for remote access operations without direct contact with the client (e.g., internet banking), and which are subject to mandatory and full compliance.

The policy and relevant procedures developed by the bank must comply with the requirements of the National Bank set forth in this Instruction.

In addition, the bank's regulatory documents must include all types and forms of internal reporting developed by the bank.

In order to exclude the possibility of one bank employee performing operations from beginning to end, the functions of bank employees must be clearly delineated and reflected in the job descriptions of employees of the relevant bank departments. Bank employees are personally responsible for the performance of their duties.

The bank may prepare recommendations for clients on filling out documentation forms, calculating accrued interest, and other explanations. Interest is accrued on each bank deposit (deposit) agreement on the deposit amount from the day following the day it is received by the bank until the day preceding its return to the client or its debiting from the client's account on other grounds provided for by the legislation of the Kyrgyz Republic.

Records containing information about operations with monetary funds or other property must be stored by the bank in the prescribed manner. Banks must store information and records related to client identification, as well as information about operations with monetary funds or other property, for at least ten years from the date of account closure. The information in such records must be sufficient to be able to reconstruct individual operations in order to provide relevant evidence for consideration and investigation, and must contain, at least, the following information: transaction amount, account number, account type, transaction currency, account name, date, transaction type, purpose of payment. Documents submitted by the client for opening an account, including a copy of the identity document, must be filed and stored in the bank in a special file opened for each client together with the original agreement.

(As amended by Resolutions of the Board of the National Bank of the Kyrgyz Republic dated June 27, 2008 No. 25/9, February 24, 2010 No. 3/9, September 29, 2011 No. 55/9)

2. Terms and Definitions Used

For the purposes of this Instruction, the following terms and definitions are used:

Deposit (bank deposit) - is a sum of money, both in national and foreign currency, received by the bank from a depositor or a third party on terms of return (regardless of whether it is full or partial return or return of a larger amount) and stored in the bank in a bank account.

Bank account - is a method of reflecting contractual relations between the bank and the client for accepting a deposit (bank deposit) and/or for the bank to perform operations related to providing banking services to the client, as provided for by the bank account agreement, legislation and business customs applied in banking practice.

Depositor - is a person who has deposited a sum of money into the bank or in whose name a sum of money has been received by the bank from a third party and has a corresponding agreement for opening and maintaining a bank account.

Individuals - are citizens of the Kyrgyz Republic, foreign citizens, as well as stateless persons.

Legal entity - is an organization that owns, manages, or operates separate property and is liable for its obligations with this property, can acquire and exercise property and personal non-property rights and obligations in its own name.

Individual entrepreneur - is a citizen of the Kyrgyz Republic, a foreign citizen or a stateless person permanently or temporarily residing in the territory of the Kyrgyz Republic and engaged in individual entrepreneurial activity in its territory in accordance with the current legislation of the Kyrgyz Republic.

Identification - the establishment by the bank of data regarding individuals and legal entities based on originals or duly certified copies of documents provided by individuals and legal entities in accordance with the requirements of the Law of the Kyrgyz Republic "On Counteracting the Financing of Terrorism and Legalization (Laundering) of Criminal Proceeds" and this Instruction.

Verification - measures to clarify or duly check the results of identification, carried out by the bank within the framework of internal control.

Beneficiary for the purposes of this Instruction - a person who owns monetary funds or property, and on whose behalf and/or at whose expense the client performs an operation (transaction) with monetary funds or property, or a person in whose favor an operation (transaction) with monetary funds or property is ultimately performed.

Savings certificate - a security certifying the fact of depositing money into a bank as a deposit and the right of the depositor to receive, upon expiration of the established period, the amount of the deposit and interest on it at any institution of that bank. Only an individual can be the holder of a savings certificate.

Deposit certificate - a security similar to a savings certificate, but only a legal entity can be its holder.

The relationship between the issuing bank of a deposit or savings certificate and its client is based on a bank deposit relationship.

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2010 No. 3/9, September 29, 2011 No. 55/9)

3. Types of Deposits

3.1. Bank accounts can be opened and maintained in both national and foreign currency. Bank accounts can be intended either for making payments and settlements with third parties, or for saving and accumulating client funds. Bank accounts can be interest-bearing and non-interest-bearing depending on the terms of the agreement and are divided into:

• settlement accounts;

• demand deposits;

• time deposits.

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic dated September 29, 2011 No. 55/9)

3.1.1. Settlement account - an account intended for storing monetary funds and carrying out current settlements made by legal entities and individual entrepreneurs (receipts, payments, mutual settlements with other individuals or legal entities, transfers to other financial and credit institutions) under a bank account agreement.

Funds from a settlement account are paid out upon the first request of the depositor, without prior notice. All settlement and cash operations must be carried out using payment documents with the mandatory indication of all necessary details.

All settlement operations on a settlement account are carried out at the discretion of the client - the account holder in accordance with the requirements of the legislation of the Kyrgyz Republic and the Regulation "On Non-Cash Settlements in the Kyrgyz Republic", approved by Resolution of the Government of the Kyrgyz Republic and the National Bank of the Kyrgyz Republic dated 09.09.2005 No. 420/21/4.

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2010 No. 3/9)

3.1.2. Demand deposit account - an account used for storing and accumulating monetary funds under a bank deposit agreement and not intended for settlements related to the account holder's entrepreneurial and/or similar activities with third parties. Funds from a demand deposit account are paid out upon the first request of the depositor.

The rules of a bank account agreement apply to the relations between the bank and the depositor for a demand deposit, unless otherwise follows from the nature of the bank deposit agreement.

To a demand deposit account of individuals, in addition to the client's personal cash and non-cash payments, the following can be credited by transfer: wages, author's fees, pensions, alimony, social benefits, funds from another individual's bank account, payments related to inheritance, payment for the sale of personal property belonging to the account holder, and other receipts and payments not related to the account holder's entrepreneurial and/or similar activities. From an individual's demand deposit account, the client can make payments of a personal nature, including payments for goods purchased for personal purposes (services rendered), utility payments, and other similar payments of a personal nature and not related to the account holder's entrepreneurial and/or similar activities.

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2010 No. 3/9)

3.1.3. Time deposits - funds in a deposit account, deposited by individuals and legal entities, as well as individual entrepreneurs under a bank deposit (deposit) agreement for a certain period of time, and bringing the owner income from accrued interest. This account is used for storing monetary funds and is not intended for settlements with third parties.

Interest on the deposit amount is paid to the depositor upon his request according to the terms of the bank deposit (deposit) agreement or transferred to another account upon his request.

In cases where a time deposit or another deposit, other than a demand deposit, is returned to the depositor upon his request before the expiration of the term or before the occurrence of other circumstances specified in the agreement, interest on it is paid at a rate corresponding to the interest rate paid by the bank on demand deposits, unless the agreement provides for a higher interest rate. Partial contributions to the principal amount of a time deposit are possible in accordance with the bank deposit agreement.

In cases where the depositor does not demand the return of the amount of a time deposit upon expiration of the term or the amount of a deposit made on other terms of return - upon the occurrence of circumstances provided for by the agreement, the agreement is considered extended on the terms of a demand deposit, unless otherwise provided by the agreement.

Upon expiration of the time deposit storage period, the client has the right to re-register it for a new period. The deposit can be re-registered for a new storage period with an increase or decrease in the amount of the time deposit.

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2010 No. 3/9)

3.1.4. (Excluded in accordance with Resolution of the Board of the National Bank of the Kyrgyz Republic dated September 29, 2011 No. 55/9)

4. Legal Regime of Deposits. Client Rights

4.1. Individuals and legal entities have the right to open bank accounts in one or more banks and manage their funds in the deposit account independently.

When opening and maintaining bank accounts, foreign individuals and legal entities have equal rights and obligations with individuals and legal entities of the Kyrgyz Republic, unless otherwise provided by law.

The bank does not have the right to open and maintain anonymous bank accounts (deposits), bank accounts (deposits) to bearer, without identifying counterparties and/or clients and establishing the beneficial owner of clients in accordance with this Instruction and other regulatory legal acts of the Kyrgyz Republic.

The bank must refuse to open a bank account for a client or suspend operations on the account if:

• the client has not provided the relevant documents necessary to fulfill the requirements for opening a bank account, client identification and establishment of the beneficial owner, and conducting operations on the account;

• unreliable documents have been submitted;

• there is information regarding this client's involvement in the legalization (laundering) of criminal proceeds and/or in terrorist activities, obtained in accordance with the norms of the legislation of the Kyrgyz Republic.

When opening and maintaining a bank account, the bank must comply with the "know your client" policy in accordance with the requirements specified in Appendix 1.

(As amended by Resolutions of the Board of the National Bank of the Kyrgyz Republic dated October 16, 2006 No. 30/2, September 29, 2011 No. 55/9)

4.2. Opening a deposit entails the emergence of ongoing legal relations between the bank and the client, which cease only after full repayment of mutual obligations by the parties under the deposit (i.e., principal amount and interest, commissions, etc.) and closure of the account. These relations are formalized by a bank deposit (deposit) or bank account agreement, which is considered concluded from the day the deposit amount is received by the bank.

The bank account agreement may provide for the certification of rights to manage monetary amounts in the account by electronic means of communication and other documents using analogues of a handwritten signature, electronic digital signature, codes, passwords and other means confirming that the order was given by an authorized person.

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2010 No. 3/9)

4.3. Monetary funds received in the name of the depositor from third parties with the indication of the necessary data about his deposit account may be credited to the deposit account of individuals and legal entities, unless otherwise provided by the bank deposit (deposit) or bank account agreement. It is assumed that the depositor has expressed consent to receive monetary funds from such persons and has appropriately notified this third party by providing them with the necessary data about the deposit account.

In the event that a client opens a deposit account in the name of a third party, who acquires the rights of a depositor from the moment money is received into his account or from the moment he makes the first claim to the bank based on these rights, or expresses to the bank in another way his intention to exercise such rights, unless otherwise provided by the bank deposit (deposit) agreement, the bank is obliged to obtain information and documents allowing identification and study of the said third party. Upon receipt of a deposit in the name of a third party, the bank is obliged to notify this third party within 3 working days of the receipt of monetary funds into his deposit account. In cases where the third party in whose name the deposit was made has refused it, the person who concluded the bank deposit agreement in the name of the third party has the right to demand the deposit back or transfer it to his own name.

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2010 No. 3/9)

4.4. Deposits are issued upon the first request of the client in parts or in full, with the exception of deposits made by legal entities on other terms of return provided for by the agreement. The safety of monetary funds and their issuance upon the first request of the client are guaranteed by the bank.

4.5. Information constituting banking secrecy may be provided only to the clients themselves or their legal representatives, as well as to the National Bank for the exercise of its functions of supervision and regulation of banking activities. Information to other persons is provided in accordance with the legislation of the Kyrgyz Republic.

4.6. Arrest on deposits of legal entities may be imposed only by a court order or decision (verdict), or by a resolution of investigative bodies in accordance with the legislation of the Kyrgyz Republic. Collection may be enforced only on executive documents issued by courts.

Arrest on deposits of individuals may be imposed only by a court order, decision, verdict, resolution of investigative bodies, with the sanction of the prosecutor in cases under production, and collection may be enforced only on the basis of a court verdict or decision.

Confiscation of deposits of individuals may be carried out only on the basis of a court verdict or decision that has entered into legal force and contains a provision on property confiscation.

5. Procedure for Opening Bank Accounts under a Bank Deposit (Deposit) Agreement

When opening an account under a bank deposit (deposit) agreement, the bank undertakes to accept monetary funds (deposit) from the depositor, pay remuneration on them in the amount and manner provided for by the bank deposit agreement, and return the deposit on the terms and in the manner provided for a deposit of this type by legislative acts of the Kyrgyz Republic and the bank deposit agreement, and provide other services provided for by the bank deposit agreement.

The bank deposit agreement is concluded on the terms of issuing the deposit upon first demand (demand deposit) or on the terms of returning the deposit upon expiration of a certain period specified in the agreement (time deposit).

The agreement may provide for depositing funds on other terms of their return that do not contradict the legislation of the Kyrgyz Republic.

When opening an account under a bank deposit (deposit) agreement, monetary funds may be deposited in the name of the depositor himself, or in the name of a specific third party, who must also be identified by providing an identity document, and will subsequently be a client of the bank.

The bank deposit (deposit) agreement must contain the following:

• subject of the agreement;

• parties to the agreement (full name, addresses and passport data);

• obligations of the parties;

• terms of the agreement (deposit storage period, procedure for calculating and paying interest, etc.) and payment procedure;

• special conditions, if any;

• dispute resolution procedure;

• term of the agreement;

• signatures of the parties, and if a legal entity or individual entrepreneur, then a seal.

The agreement may contain other conditions agreed upon by the parties.

The bank deposit agreement must also contain additional requirements established by law.

The agreement must be drawn up in the state and official languages and concluded in writing, in no less than two copies, one in each of the specified languages for each of the parties. Failure to comply with the written form of the bank deposit (deposit) agreement entails the invalidity of this agreement. One copy is kept by the bank, the other is given to the client.

A bank deposit (deposit) agreement with an individual is recognized as a public agreement, therefore, for its conclusion, the individual's signature indicating that he is familiar with the terms of the agreement is sufficient. The bank is obliged to provide the agreement or terms (term, interest rates, etc.) to the depositor before accepting the deposit.

After concluding a bank deposit agreement with an individual, the bank is obliged to issue to the depositor a document certifying the individual's right to claim the amount deposited with the bank and the amount of interest on it specified in the agreement (deposit document), issued in the name of the bank's client.

Deposit documents are a savings (deposit) certificate, a depositor's book (savings book), an agreement or other documents approved by the bank.

The issuance of a deposit document is carried out in accordance with the bank's internal rules and on its terms.

The deposit document must indicate and be certified by the bank: the name and location of the bank or its relevant branch, the name of the deposit owner, the deposit account number, as well as the date, the amount of interest, all amounts of funds credited to the account, all amounts of funds debited from the account, and the balance of funds in the account at the time the deposit document is presented to the bank. The issuance of the deposit, payment of interest on it and execution of the depositor's instructions to transfer funds from the deposit account to other persons are carried out by the bank upon presentation of the deposit document, unless otherwise stipulated in the bank deposit (deposit) agreement.

To open a bank account under a bank deposit agreement, individuals (residents and non-residents) must submit:

1) an application to open an account, signed by the client, which must indicate:

• the client's surname, name, patronymic (in accordance with passport data), maiden name (if any);

• date and place of birth;

• citizenship;

• full address((1) see note) of permanent place of residence (registration), telephone number, fax, email address;

• full address((1) see note) of temporary place of stay, telephone number, fax;

• information about the identity document (name, series, authority that issued the document, date of issue of the document), personal number, if any;

• a certificate from the tax service authority on the fact of tax registration of the taxpayer;

• taxpayer identification number (if available) - on the basis of a certificate of registration with the tax authority;

• place of work and occupation;

• the purpose and expected nature of the business relationship with the bank;

• other information at the bank's discretion;

• data of the document confirming the right of a foreign citizen or stateless person to stay (reside) in the Kyrgyz Republic;

2) the client's identity document (the original is provided for review, from which a copy is taken);

3) a card of specimen signatures with the client's specimen signature and the seal imprint of the individual entrepreneur (if any).

Individuals engaged in individual entrepreneurial activity without forming a legal entity, in addition to the above documents, must additionally submit to the bank a copy of a document of the established form issued by an authorized body and confirming the fact of state registration (re-registration) as an individual entrepreneur, or a copy of a document confirming the fact of engaging in entrepreneurial activity without state registration, in cases provided for by the legislation of the Kyrgyz Republic.

If the client in whose favor the account is opened by parents, other legal representatives or third parties is a minor, an application is submitted containing information about the client in whose favor the account is opened, as well as information about the person opening the account; the identity document of the parents, other legal representatives or third parties, and the identity document of the minor client (for minors under 16 years of age - a birth certificate, upon reaching 16 years of age - a passport); a card with specimen signatures of persons entitled to dispose of the funds in the account.

A deposit made in the name of a minor is disposed of by:

• until the minor reaches 14 years of age - by parents or legal representatives;

• upon the minor reaching 14 years of age - by the minor himself.

To open a bank account under a bank deposit agreement, legal entities (residents) must submit, except in cases provided for by separate decisions of the National Bank:

1) an application to open an account, signed by the persons indicated in the card of specimen signatures, vested with the authority to sign contracts and financial documents with the right of first and second signature and certified by the seal of the legal entity, which must contain:

• the full and abbreviated (if any) name of the legal entity and its name in a foreign language;

• information about the state registration of the legal entity: date, number, name of the registering authority, place of registration;

• a certificate from the tax service authority on the fact of tax registration of the taxpayer;

• taxpayer identification number (if available) or code of the foreign organization (if any);

• OKPO codes;

• location;

• postal address((1) see note);

• contact telephone and fax numbers;

• type of activity of the legal entity;

• the purpose and expected nature of the business relationship with the bank;

• other information at the bank's discretion;

2) permission of the Central Treasury to open an account in a bank (for state enterprises and institutions);

3) certificate of state registration (re-registration) of the legal entity with the Ministry of Justice of the Kyrgyz Republic. For legal entities registered in the Free Economic Zone, such a document will be the Registration Certificate issued by the FEZ Directorate;

4) a copy of the Charter (Regulation), with amendments and additions, certified by a notary or by the seal of the legal entity and the signature of the head in cases where, in accordance with legislation, notarization is impossible;

5) a copy, certified in the established procedure, of the license for the right to carry out activities subject to licensing in accordance with the requirements of the legislation of the Kyrgyz Republic;

6) a document certifying the authority of the head of the legal entity to dispose of the legal entity's funds (such a document may be either the minutes of the meeting of founders or shareholders on the election of the head of the legal entity, or the decision of the founders or shareholders on the appointment of the head of the legal entity, determining the scope of authority, if they are not established by the Charter);

7) a card with specimen signatures and seal imprint, certified by a notary (the minimum requirements for this document are given in Annex 2);

8) Legal entities registered in the Free Economic Zone must additionally submit a document confirming the registration of the legal entity with the statistical authorities of the Kyrgyz Republic;

9) the identity document of the person authorized to dispose of the legal entity's funds (the original is provided for review, from which a copy is taken).

To open a bank account under a bank deposit agreement, legal entities (non-residents) must submit:

1) an application to open an account, signed by the persons indicated in the card of specimen signatures, vested with the authority to sign contracts and financial documents with the right of first and second signature and certified by the seal of the legal entity, which must contain:

• the full and abbreviated (if any) name of the legal entity and its name in a foreign language;

• information about the state registration (re-registration) of the legal entity: date, number, name of the registering authority, place of registration;

• a certificate from the tax service authority on the fact of tax registration of the taxpayer;

• taxpayer identification number (if available) or code of the foreign organization (if any);

• location;

• postal address((1) see note);

• contact telephone and fax numbers;

• type of activity of the legal entity;

• the purpose and expected nature of the business relationship with the bank;

• other information at the bank's discretion;

2) an extract from the trade register of the country of origin on the registration of the company as a legal entity or another document confirming the registration of the client as a legal entity in accordance with the requirements of the legislation of the country of origin;

3) a copy, certified in the procedure established by legislation, of the Charter (or another document determining the procedure of activity), including amendments and additions;

4) a copy, certified in the procedure established by legislation, of the founding agreement;

5) a copy, certified in the procedure established by legislation, of the license for the right to carry out activities subject to licensing in accordance with the requirements of the legislation of the country of origin;

6) a document certifying the authority of the head of the legal entity to dispose of the legal entity's funds (such a document may be either the minutes of the meeting of founders or shareholders on the election of the head of the legal entity, or the decision of the founders or shareholders on the appointment of the head of the legal entity, determining the scope of authority, if they are not established by the Charter);

7) a card with specimen signatures and seal imprint, certified in the procedure established by legislation;

8) the identity document of the person authorized to dispose of the legal entity's funds (the original is provided for review, from which a copy is taken).

Branches and representative offices of legal entities (residents and non-residents) carrying out economic activity in the Kyrgyz Republic, in order to open a bank account under a bank deposit agreement, must submit to the bank:

1) an application to open an account, signed by the persons indicated in the card of specimen signatures, vested with the authority to sign contracts and financial documents with the right of first and second signature and certified by the seal of the legal entity, which must contain:

• the full and abbreviated (if any) name of the legal entity and its name in a foreign language;

• information about the state registration of the legal entity: date, number, name of the registering authority, place of registration;

• a certificate from the tax service authority on the fact of tax registration of the taxpayer;

• taxpayer identification number (if available) or code of the foreign organization (if any);

• OKPO codes;

• location;

• postal address((1) see note);

• contact telephone and fax numbers;

• type of activity of the legal entity;

• the purpose and expected nature of the business relationship with the bank;

• other information at the bank's discretion;

2) a copy of the Charter (Regulation) on the activity of the parent organization, with amendments and additions: for residents - certified by a notary or by the seal of the legal entity (if any) and the signature of the head in cases where, in accordance with legislation, notarization is impossible; for non-residents - certified by a notary;

3) a copy of the document with amendments and additions, on the basis of which the subdivision carries out its activity (for example, the Regulation on the branch, etc.): for residents - certified by a notary or by the seal of the legal entity (if any) and the signature of the head in cases where, in accordance with legislation, notarization is impossible; for non-residents - certified by a notary;

4) certificate of registration (re-registration) with the Ministry of Justice of the Kyrgyz Republic;

5) a document certifying the authority of the head of the subdivision of the legal entity to dispose of the account (a power of attorney drawn up in accordance with the requirements of legislation);

6) a document with a list of operations and official consent from the legal entity to carry out these operations, if this is not reflected in the regulation on the structural subdivision and/or in the power of attorney issued to the head of the structural subdivision;

7) a card with specimen signatures and seal imprint, certified in the procedure established by the legislation of the Kyrgyz Republic.

To open a bank account under a bank deposit agreement, international organizations, their projects, diplomatic and consular missions carrying out their activities in accordance with international agreements ratified in the established procedure must submit documents in accordance with the following list, unless a different procedure for opening an account is provided for in the relevant international agreement:

1) an application to open an account, signed by the persons indicated in the card of specimen signatures, vested with the authority to sign contracts and financial documents with the right of first and second signature and certified by the seal of the legal entity, which must contain:

• the full and abbreviated (if any) name of the organization or mission, including in a foreign language;

• information about the state registration of the organization or mission: date, number, name of the registering authority, place of registration;

• taxpayer identification number (if available) or code of the foreign organization or mission (if any);

• location;

• postal address((1) see note);

• contact telephone and fax numbers;

• type of activity of the organization or mission;

• the purpose and expected nature of the business relationship with the bank;

• other information at the bank's discretion;

2) an international treaty ratified by the Jogorku Kenesh of the Kyrgyz Republic, within the framework of which the international organization, its project, diplomatic or consular mission operates;

3) the regulation on the international organization, or its project (if any);

4) an order (contract, letter of the relevant superior organization) confirming the authority of persons to sign contracts and financial documents with the right of first and second signature;

5) a letter of the authorized state body (Ministry of Foreign Affairs of the Kyrgyz Republic) confirming the accreditation of the international organization (its project) and its employees;

6) cards with specimen signatures, certified by the authorized state body or the embassy of the relevant country in the Kyrgyz Republic, of which the international organization or its project is a resident.

If the original document submitted to the bank in accordance with this section is executed in a foreign language, a translation of the documents into the state and/or official language of the Kyrgyz Republic, legalized in the established procedure in accordance with the requirements of the legislation of the Kyrgyz Republic, must be submitted to the bank.

When opening a settlement account, the bank is prohibited from requiring from a legal entity, branch and (or) representative office any other documents besides those provided for by the legislation of the Kyrgyz Republic.

The bank has the right to require from the client additional documents and information necessary for the identification and verification of the beneficial owner and not to open an account until the relevant documents are submitted.

(As amended by resolutions of the Board of the National Bank of the Kyrgyz Republic of 16 October 2006 No. 30/2, 29 July 2009 No. 32/4, 24 February 2010 No. 3/9, 1 June 2011 No. 31/4, 29 September 2011 No. 55/9)

6. Procedure for opening accounts under a bank account agreement

When opening a settlement or correspondent account under a bank account agreement, the bank undertakes to accept funds received in favor of the client, execute the client's instructions on the transfer (issuance) to the client or third parties of the corresponding amounts of money and provide other services provided for by the bank account agreement.

The bank account agreement must contain the following:

• the subject of the agreement;

• the procedure for disposing of the money held in the bank;

• the terms of the bank's provision of services and the procedure for their payment.

The bank account agreement may provide for other terms agreed by the parties.

The bank account agreement must also contain additional requirements established by the legislation of the Kyrgyz Republic.

When opening a settlement account under a bank account agreement, residents and non-residents must submit the same documents as for opening an account under a bank deposit agreement for residents and non-residents, respectively.

(As amended by resolution of the Board of the National Bank of the Kyrgyz Republic of 16 October 2006 No. 30/2)

6.1. The bank does not have the right to refuse to open an account, except in cases where the bank's activity has a certain specificity or restrictions in activity, as a result of which the bank can open accounts for certain clients or perform certain settlement operations (for example, in the case where the bank works only with legal entities, or has a limited license), as well as cases provided for by the legislation of the Kyrgyz Republic.

(As amended by resolution of the Board of the National Bank of the Kyrgyz Republic of 29 September 2011 No. 55/9)

6.2. The procedure for the bank's work with correspondent accounts is determined in accordance with the requirements specified in Annex 3.

(As amended by resolution of the Board of the National Bank of the Kyrgyz Republic of 16 October 2006 No. 30/2)

7. Re-issuance and closure of a deposit account

7.1. When re-issuing an account in connection with the reorganization of a legal entity (merger, accession, transformation, division and spin-off), the account holder submits to the bank the same documents as when opening an account for a new legal entity.

When changing the name not caused by reorganization, as well as when changing subordination, the account holder's application notifying of the changes, a copy of the decision of the supreme management body and other documents confirming the re-registration of the name in the established procedure are submitted to the bank.

When changing the name and subordination, the account holder submits a new notarized card with specimen signatures and seal imprint.

7.2. When re-issuing an account in the case of the commencement of liquidation (conservation), the following must be submitted to the bank:

• the decision of the supreme management body of the legal entity or a body authorized by it, and in the case of bankruptcy - the decision of the meeting of creditors (in case of out-of-court declaration of bankruptcy) or a court decision indicating the surname, name, patronymic of the liquidator (conservator);

• a notarized card with specimen signatures and seal imprint of the legal entity.

(As amended by resolution of the Board of the National Bank of the Kyrgyz Republic of 16 October 2006 No. 30/2)

7.3. Account closure is carried out upon the client's application, unless otherwise provided by the legislation of the Kyrgyz Republic or the agreement. The client's file must indicate the ground for closing the account.

The balance of funds in the account is issued to the client or, upon his written instruction, transferred to another account no later than five working days.

(As amended by resolutions of the Board of the National Bank of the Kyrgyz Republic of 16 October 2006 No. 30/2, 24 February 2010 No. 3/9)

7.4. The bank has the right to terminate the bank deposit agreement (bank account agreement) unilaterally with the mandatory inclusion of this condition in the bank deposit agreement (bank account agreement) and notification of the client one calendar month before closing the account in the event that:

• the client has not submitted the relevant documents necessary to fulfill the requirements for opening a bank account, identifying the client, and conducting operations on the account;

• false documents have been submitted;

• there is information about this client's participation in the legalization (laundering) of proceeds from crime and/or in terrorist activity, obtained in accordance with the norms of the legislation of the Kyrgyz Republic.

(As amended by resolution of the Board of the National Bank of the Kyrgyz Republic of 16 October 2006 No. 30/2)

7.5. In the absence of funds in the bank account for a period specified by the agreement or when the funds in the client's account fall below the minimum amount provided for by the agreement, the bank may close the account, if this is provided for by the agreement, with mandatory notification of the account holder of its closure at least one month before closing the account. In this case, the funds must be accounted for in a separate consolidated account in the deposits section with mandatory off-system accounting for each client in accordance with the legislation of the Kyrgyz Republic.

(As amended by resolution of the Board of the National Bank of the Kyrgyz Republic of 24 February 2010 No. 3/9)

7.6. If funds are received into a client's bank account that has been closed:

1) from the holder of the previously closed account - the bank must conclude a new bank deposit agreement (bank account agreement) with mandatory compliance with the client identification requirements established by this Instruction;

2) from a third party in the form of cash - the bank must not accept the funds;

3) from a third party in the form of a non-cash payment - the bank must, within the next working day, return the funds back to the sender with a note on the closure of the account.

(As amended by resolutions of the Board of the National Bank of the Kyrgyz Republic of 16 October 2006 No. 30/2, 24 February 2010 No. 3/9)

Annex 1

Requirements for the "know your client" policy

(As amended by resolutions of the Board of the National Bank of the Kyrgyz Republic of 16 October 2006 No. 30/2, 24 February 2010 No. 3/9, 29 September 2011 No. 55/9)

1. The "know your client" policy determines the procedure for proper verification of clients and includes:

1.1. the procedure for identifying the client and establishing the beneficial owner when opening a bank account.

Information about the client and the beneficial owner obtained as a result of identification is recorded in the client's questionnaire (file), drawn up in accordance with the requirements of the authorized body;

(As amended by resolution of the Board of the National Bank of the Kyrgyz Republic of 24 February 2010 No. 3/9)

1.1-1. conducting verification of the client's data after opening a bank account;

(As amended by resolution of the Board of the National Bank of the Kyrgyz Republic of 24 February 2010 No. 3/9)

1.2. monitoring operations on the client's account and other measures at the bank's discretion.

2. The client must provide a complete package of required documents for opening an account and/or conducting a banking operation.

3. The client identification procedure involves establishing the identity of the person opening the account on the basis of an identity document with a photograph, collecting information about the client in accordance with sections 5 and 6 of this Instruction.

4. When opening a bank account and conducting operations on the account of a client - legal entity, the bank must verify the authority and authenticity of the persons (on the basis of an identity document) entitled to dispose of the funds in the client's account.

4-1. The opening by an individual (resident or non-resident) of a bank account for conducting operations (transactions) with remote access without direct contact (for example, internet banking) must be carried out in the mandatory presence of the client. In this case, the responsible bank officer must take a copy of the client's passport, on the reverse side of which the responsible officer must put their signature, full name, and the day, month and year of account opening. The said record must also be made by the client. The copy of the passport must be filed in the client's file. The bank officer's responsibility for the accuracy of copies of clients' passports must be set out in the officer's job description. The client's passport data must be registered in a special registration journal (on paper or electronic media).

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic of 29 September 2011 No. 55/9)

4-2. When establishing relations with a client that is a legal entity (resident or non-resident) for conducting operations (transactions) with remote access without direct contact with the client (for example, internet banking), the bank must request from the client, in addition to the information in accordance with sections 5 and 6 of this Instruction, also documents confirming that the client carries out economic activity in the Kyrgyz Republic (agreements, contracts, customs declarations, tax declarations, etc.).

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic of 29 September 2011 No. 55/9)

4-3. In the bank account servicing agreement for conducting operations (transactions) with remote access without direct contact with the client (for example, internet banking), the bank must provide for the client's obligations to comply with legislation on countering the financing of terrorism and the legalization (laundering) of proceeds obtained by criminal means, in particular, the provision of supporting documents on conducted operations at the bank's request.

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic of 29 September 2011 No. 55/9)

5. If the bank establishes that a representative is acting on behalf of the client, the bank identifies and studies the representative, verifies their authority, and also identifies and studies the represented client in compliance with the requirements of this Instruction.

6. When studying documents, in particular, the constituent documents of a legal entity and documents confirming its state registration, banks, for the purpose of more thorough study of their client, must pay special attention to the legalization of documents, and also study:

• all constituent documents of the client legal entity, including all registered amendments and additions thereto, as well as other necessary documents confirming the state registration of the client as a legal entity;

• the composition of the founders (participants) of the legal entity, identifying persons who have the ability to influence decision-making by the legal entity's bodies;

• the structure of the legal entity's management bodies and their powers.

7. If a third party opens a bank account in the name of a client, the bank must obtain from the third party information and documents allowing the identification and study of the client in whose name the account is being opened and of the third party opening the account, in accordance with the requirements of this Instruction.

For the opening by a third party of an account under a bank account agreement in the name of a client, a power of attorney must also be submitted, executed in accordance with the requirements of the legislation of the Kyrgyz Republic, for the right to open and (or) dispose of the account.

Submission of a power of attorney is not required for a representative of a legal entity authorized to open accounts in accordance with the legislation of the Kyrgyz Republic, or the constituent documents of that legal entity.

Submission of a power of attorney is not required for an individual authorized to open accounts in accordance with the legislation of the Kyrgyz Republic (parents or other legal representatives).

8. In the procedure established by the bank's internal documents, and within a period not exceeding five working days after the opening of a bank account, a bank officer must verify the information specified:

1) in an individual's application, using at least one of the following methods:

• confirmation of information from official documents((2) see note);

• contacting the client by telephone, letter or email to confirm the information provided by the client((3) see note);

• confirmation of the legality of the client's documents((4) see note);

• another method at the bank's discretion;

2) in a legal entity's application, using at least one of the following methods:

• obtaining information from a state body in order to verify the submitted documents, whether the legal entity has been closed, liquidated, or is in the process of liquidation;

• contacting the client by telephone to confirm information after account opening;

• another method at the bank's discretion.

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic of 24 February 2010 No. 3/9)

9. The bank must initiate client verification if the bank has doubts about the reliability of information obtained during identification, and also if:

• a significant operation occurs (for example, in an amount exceeding the average balance or turnover on the client's account) and/or an operation not typical for the activity of that client;

• significant changes are observed in the manner of conducting work on the client's account;

• the bank realizes that the available information about the client is insufficient for it.

In this case, the bank should undertake additional inquiries or verification of information, which may include the following:

• personal recommendations (for example, from a long-standing client of the bank);

• recommendations from a bank that previously serviced that client;

• a certificate from the place of employment, official confirmation of the position held (where applicable).

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic of 24 February 2010 No. 3/9)

10. When conducting operations on a bank account, the client must provide the bank with payment documents drawn up in accordance with the requirements established by the regulatory legal acts of the Kyrgyz Republic. If the bank has doubts about the economic expediency and/or legality of conducting an operation, the bank has the right to require the client to provide documents confirming the legality and economic expediency of the operation((5) see note). If the client refuses to provide the required documents, the bank must refuse to conduct the operation on the account. This condition must be stipulated in the bank account agreement between the bank and the client.

11. The bank must constantly monitor operations on clients' accounts. The bank must have an understanding of the normal and reasonable activity on its clients' accounts in order to identify operations not typical for the activity of that client.

The bank should pay attention to operations of the client that are irrational from an economic or commercial point of view, operations with large amounts of cash (for example, exceeding the average turnovers on transactions and operations of that client) and other operations that do not correspond to the client's usual practice.

In order to recognize unusual or suspicious operations, the bank must establish key indicators of such accounts, taking into account general information about the client, for example, information about the country of origin and the source of funds, the type of operation and other risk factors.

For all accounts, banks are recommended to establish information systems for recognizing unusual or suspicious operations.

12. In relation to unusual or suspicious operations, the bank must determine whether the client is acting on behalf of another person and then take steps to obtain data to establish the identity of that other person (the ultimate beneficial owner).

When determining the ultimate beneficial owner in relation to legal entities, special attention must be paid to shareholders, persons with the right of signature or other persons who have a significant share in the capital, or in any other way exercise control over the client. If the owner is another legal entity, the bank needs to establish the owners or persons exercising control over that legal entity.

If necessary, the bank may use sources of information available to it on lawful grounds.

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic of 29 September 2011 No. 55/9)

13. Conclusions made by the bank in relation to suspicious operations must be documented and kept for at least five years from the moment of the operation.

Appendix 2

Minimum requirements for the card with specimen signatures and seal impression

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic of 24 February 2010 No. 3/9)

The card with specimen signatures and seal impression is the main document confirming the authority of certain officials of a legal entity to dispose of the funds held in its account, and also confirming the authenticity of the signatures of the above-mentioned officials.

The purpose of the card and its necessity are conditioned, first of all, by the fact that a signature is a mandatory requisite of documents serving as the basis for the movement of funds on a legal entity's account. Persons having the right of first and second signature are indicated in the card with specimen signatures and seal impression. The right of first signature is held by the head and/or other persons authorized by them. The right of second signature is granted to the chief accountant and/or other authorized persons. The right of first signature cannot be granted to the chief accountant and other persons having the right of second signature.

These powers are granted on the basis of constituent documents, or orders of the heads of the relevant legal entities, branches or representative offices, or other documents on the basis of which such powers are granted. If the staff of a legal entity, branch or representative office does not include persons to whom the right of second signature may be granted, the document is accepted by the bank with a specimen of only the first signature, with a corresponding record made in that document.

Documents with specimen signatures and seal impression must contain a specimen of the seal impression of the legal entity, branch or representative office of the legal entity.

This requirement does not apply to legal entities that are non-residents of the Kyrgyz Republic, their branches and representative offices, which do not have a seal due to the specifics of the legislation of the country of origin of such legal entities.

The card with specimen signatures and seal impression must necessarily include a specimen of a clearly distinguishable impression of the seal assigned to the legal entity, in which its name must necessarily correspond to the name according to registration. It is prohibited to accept specimens of impressions of seals intended for special purposes ("human resources department", "for packages" and others).

The card with specimen signatures and seal impression must contain the bank's note on the validity period of the identity document of the persons authorized to dispose of the legal entity's funds.

The bank has the right to require notarization of the signatures of persons entered in the document with specimen signatures and seal impression. In settlements where there are no notaries, the signatures of persons entered in the document with specimen signatures and seal impression are certified by the local executive authority.

In the event of renaming of a legal entity, loss or wear of the seal, the bank has the right to grant the client the necessary period for making a new seal. During the period of making the seal, the bank and the client establish a procedure for processing payment documents without the client's seal, which must be specified in the agreement.

The necessary number of copies of documents with specimen signatures and seal impression submitted by the client for opening an account is determined by the bank.

In this case, one of the copies must be permanently held by the bank's operations officer, another in the bank's client file. The remaining copies are stored in the procedure established by the bank's internal rules.

When at least one specimen signature or seal impression is replaced, a new document with specimen signatures and seal impression, certified in the procedure specified in this Instruction, is submitted to the bank.

When there is a change of officials of a legal entity authorized to dispose of the legal entity's funds held in its account, a document certifying the authority of the new officials of the legal entity to dispose of the legal entity's funds and a new document with specimen signatures and seal impression, certified in the procedure specified in this Instruction, are submitted to the bank.

Appendix 3

Requirements for the bank's work with correspondent accounts

(As amended by Resolutions of the Board of the National Bank of the Kyrgyz Republic of 16 October 2006 No. 30/2, 24 February 2010 No. 3/9)

1. Correspondent accounts are divided into two types: the "loro" account - an account opened in a bank in the name of its correspondent bank; the "nostro" account - an account of a bank opened with its correspondent bank. A "nostro" account in a bank is a "loro" account with the correspondent bank.

2. This Instruction does not regulate the procedure for the bank's work with a correspondent account opened with the National Bank.

3. A bank does not have the right to establish direct correspondent relations with banks that are registered in offshore zones((6) see note), with their affiliates, subsidiary banks and separate subdivisions that are not independent legal entities, as well as those registered in states or territories providing a preferential tax regime and/or not providing for the disclosure and/or provision of information to banking supervision bodies in accordance with the requirements and recommendations of the Basel Committee on Supervision. This restriction does not apply to the establishment of direct correspondent relations with branches registered in offshore zones whose parent organizations are located (registered) outside offshore zones.

4. A bank does not have the right to establish or continue correspondent relations with shell banks. The bank must also take precautionary measures against the conclusion of transactions and operations with foreign correspondent banks that allow shell banks to use their accounts.

If a bank establishes correspondent relations with banks from states and territories that do not apply or insufficiently apply the recommendations of the intergovernmental organization (group) for the development and implementation of international standards for combating money laundering and the financing of terrorism (FATF), the bank's risk of involvement in the financing of terrorism (extremism) and the legalization (laundering) of proceeds obtained by criminal means increases.

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic of 24 February 2010 No. 3/9)

5. In all cases of establishing correspondent relations, the bank must carry out the following measures in relation to the correspondent bank with which the bank intends to establish correspondent relations:

• establishing the fact that the correspondent bank was established in its country in accordance with legislation;

• establishing in the correspondent relations agreement the duties and powers of the parties regarding measures carried out for the purposes of countering the financing of terrorism (extremism) and the legalization (laundering) of proceeds obtained by criminal means;

• obtaining the annual financial report of the correspondent bank (with the conclusion of the audit commission);

• analysis of the measures applied by the correspondent bank for the purposes of countering the financing of terrorism (extremism) and the legalization (laundering) of proceeds obtained by criminal means, including on the basis of information obtained from conversations with employees of the correspondent bank;

• analysis of reports on the assignment of a credit rating to the correspondent bank (if available and the information on the report is publicly available);

• determination of the main lines of business of the correspondent bank;

• assessment of the creditworthiness of the correspondent bank;

• requesting information on whether the correspondent bank has clients such as shell banks, banks registered in the territory of offshore zones;

• determining whether the correspondent bank is state or private;

• identification and verification of the main owners of private correspondent banks;

• on the basis of publicly available information, conducting an assessment of the reputation of the correspondent bank and determining the presence of a supervisory body in the sphere of countering the financing of terrorism (extremism) and the legalization (laundering) of proceeds obtained by criminal means;

• identification and verification of the correspondent bank's data.

When opening a "loro" account, the bank must additionally request from the correspondent bank the following documents:

• an application/letter of intent to establish correspondent relations;

• a copy of the document confirming the registration of the correspondent bank as a legal entity in the country of origin, legalized and certified in accordance with the requirements of the legislation of the Kyrgyz Republic;

• a copy of the license certifying the correspondent bank's right to carry out operations that the bank intends to conduct within the framework of the correspondent relations being established, legalized and certified in accordance with the requirements of the legislation of the Kyrgyz Republic;

• information about the expected activity of the correspondent bank that will be carried out through this correspondent account.

After establishing correspondent relations, the bank must monitor information about the correspondent bank on the issues specified in this paragraph. If the bank discovers that the correspondent bank fails to comply with measures to counter the financing of terrorism (extremism) and the legalization (laundering) of proceeds obtained by criminal means, the bank should take appropriate measures up to and including termination of the correspondent relations.

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic of 24 February 2010 No. 3/9)

6. The decision to establish correspondent relations, including the opening of a correspondent account, must be taken by the head of the bank or a collegial body headed by a member of the bank's Board whose competence includes taking decisions on this matter. This procedure for taking decisions on establishing correspondent relations must be reflected in the bank's internal documents.

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic of 27 June 2008 No. 25/9)

7. If the correspondent bank is registered in the territory of a country that is a member of FATF and has a long-term creditworthiness rating assigned by the rating agency Standard and Poor's Corporation of not lower than "BB", or a rating corresponding to that value assigned by the agency Moody's Investors Service or Fitch IBCA, the bank may establish simplified procedures for assessing the creditworthiness, reputation and analyzing the financial condition of the correspondent bank.

8. All information relating to the establishment of correspondent relations must be documented and kept for at least five years from the moment of termination of the correspondent relations.

Note:

(1) It is not permitted for the client to indicate only a post office box number instead of a full address.

(2) The following may be used as a document for confirmation: a birth certificate, a passport, identity documents (for foreign citizens and stateless persons - a foreign citizen's passport, residence permit, temporary residence permit, refugee certificate; an officer's, warrant officer's identity card or a military ID of a conscript serviceman).

(As amended by Resolution of the Board of the National Bank of the Kyrgyz Republic of 24 February 2010 No. 3/9)

(3) In this case, a disconnected telephone, returned letters or non-working email addresses must necessitate continuation of the verification of the information obtained.

(4) For example, through embassies, representative offices of the Kyrgyz Republic, a notary.

(5) Such documents may be invoices issued to the client, agreements concluded by the client, etc.

(6) The List of offshore zones is determined in accordance with the Resolution of the Board of the National Bank "On establishing requirements for determining subjects and the list of offshore zones" No. 13/2 of 16 April 2003.