RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of April 10, 2019 No. 64

About approval of Rules of implementation of currency transactions in the Republic of Kazakhstan

According to the subitem 41) of paragraph two of part two of Item 19 of the Regulations on National Bank of the Republic of Kazakhstan approved by the Presidential decree of the Republic of Kazakhstan of December 31, 2003 No. 1271 "About approval of the Provision and structure of National Bank of the Republic of Kazakhstan" and the subitem 2) of Item 3 of article 16 of the Law of the Republic of Kazakhstan "About the state statistics" the Board of National Bank of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Rules of monitoring of currency transactions in the Republic of Kazakhstan.

2. To department of paying balance and currency control (Kuandykov A. A.) in the procedure established by the legislation of the Republic of Kazakhstan to provide:

1) together with Legal department (Sarsenov N. V.) state registration of this resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days from the date of state registration of this resolution its direction in the Kazakh and Russian languages in the Republican state company on the right of economic maintaining "The republican center of legal information" for official publication and inclusion in Reference control bank of regulatory legal acts of the Republic of Kazakhstan;

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

4) within ten working days after state registration of this resolution submission to Legal department of data on execution of the actions provided by subitems 2), 3) of this Item and Item 3 of this resolution.

3. To management on consumer protection of financial services and external communications (Terentyev A. L.) provide within ten calendar days after state registration of this resolution the direction it to the copy on official publication in periodic printing editions.

4. To impose control of execution of this resolution on the vice-chairman of National Bank of the Republic of Kazakhstan Smolyakov O. A.

5. This resolution is subject to official publication and becomes effective since July 1, 2019.

Approved by the Resolution of Board of National Bank of the Republic of Kazakhstan of April 10, 2019 No. 64

Rules of monitoring of currency transactions in the Republic of Kazakhstan

Chapter 1. General provisions

1. Rules of monitoring of currency transactions in the Republic of Kazakhstan (further – Rules) are developed according to the subitem 41) of paragraph two of part two of Item 19 of the Regulations on National Bank of the Republic of Kazakhstan approved by the Presidential decree of the Republic of Kazakhstan of December 31, 2003 No. 1271 "About approval of the Provision and structure of National Bank of the Republic of Kazakhstan" (further – Regulations on National Bank), the subitem 2) of Item 3 of article 16 of the Law of the Republic of Kazakhstan "About the state statistics" and determine procedure of monitoring of currency transactions in the Republic of Kazakhstan.

2. The concepts and terms used in Rules are applied in the values specified in the Digital Code of the Republic of Kazakhstan and in the Law of the Republic of Kazakhstan "About currency control and currency exchange control" (further – the Law on currency control and currency exchange control).

For the purposes of Rules also following concepts are used:

1) securities of nonresident issuers – the financial instruments recognized by securities according to the legislation of the Republic of Kazakhstan and (or) the country of the issuer including depositary receipts which underlying asset are securities of nonresident issuers;

2) the register of accounting numbers – the list of the existing accounting numbers assigned by National Bank of the Republic of Kazakhstan (further – National Bank) to currency agreements, on the basis and (or) in pursuance of which operations of capital flow and transactions equated to them, and to foreign bank accounts, international financial institutions, and also the existing numbers of registration certificates, certificates on the notification are performed;

3) investment object – the legal entity, mutual investment fund, shares, shares which shares are acquired (are acquired), and also the legal entity, particular partnership, consortium in which property are brought (are brought) property fees. In case of implementation of transactions with depositary receipts investment object is the issuer of the security which is their underlying asset;

4) the investor – the physical person or legal entity to which passes (passed) the property right to investment object;

5) the currency agreement on capital movement – agreements, constituent documents, including changes and (or) amendments to them, and also other documents, on the basis and (or) in pursuance of which transactions of capital flow and transactions equated to them are performed;

6) own transactions – the transactions of the resident which is the party of the currency agreement, performed on its own behalf;

7) securities of resident issuers – the financial instruments recognized by securities according to the legislation of the Republic of Kazakhstan including depositary receipts which underlying asset are securities of resident issuers;

8) the registration certificate – the document issued by National Bank in case of registration of the currency agreement before enforcement of Rules and not invalid;

9) the certificate on the notification – the document issued by National Bank on the currency agreement or the foreign bank account before enforcement Governed also not invalid;

3. Assignment of accounting numbers to currency agreements on capital flow and transactions equated to them, accounts of residents in foreign banks, international financial institutions is performed without any obligations from National Bank. Availability of accounting number is not the basis for discharge for violation of requirements of the legislation of the Republic of Kazakhstan.

4. The document confirming approach of the circumstances provided by the subitem 9) of part one of Item 15 and the subitem 4) of part one of Item 22 of Rules is the judgment or the document of authorized state body of foreign state on registration of death, the announcement the dead, recognition incapacitated or is limited capable physical nonresident person, liquidation of legal nonresident person. If these documents are constituted in foreign language, then also their transfer on Kazakh or Russian is represented.

5. If the term of submission of data, reports and (or) other documents established by Rules expires in non-working day, then the corresponding date is postponed for the working day following it.

6. If Rules do not provide other, the provisions of Rules established concerning legal entities (except for banks, branches of the nonresident banks of the Republic of Kazakhstan performing activities in the territory of the Republic of Kazakhstan), extend concerning their branches and representations.

7. The register of accounting numbers is placed on official Internet resource of National Bank.

Chapter 2. Procedure for monitoring of currency transactions

Paragraph 1. Assignment of accounting numbers to currency agreements on capital movement

8. The currency agreement on capital movement within which it is provided is subject to assignment of accounting number:

1) receipt of property (money) to the Republic of Kazakhstan and (or) emergence of obligations at resident on return of property (money) to the nonresident for the amount exceeding 500 000 (five hundred thousand) dollars of the United States of America (further – the USA) in equivalent (without charge of remuneration, commission charges, penalties and other payments);

2) cession of property (money transfer) from the Republic of Kazakhstan and (or) origin at resident of requirements for return of property (money) by the nonresident of the amount exceeding 500 000 (five hundred thousand) US dollars in equivalent (without charge of remuneration, commission charges, penalties and other payments).

9. If in the currency agreement on capital movement the agreement amount is not specified date of its signing (in case of its absence - on the effective date), then the currency agreement on capital movement is considered as the agreement which is subject to assignment of accounting number.

For the purposes of determination of need of assignment of accounting number the currency agreement on capital flow in which the amount of the agreement is expressed in other currency than US dollar, and does not have specifying on the exchange rate to US dollar, calculation of equivalent of the amount of the currency agreement in US dollars is perfromed with use of the market rate of currency exchange for signature date of the currency agreement (in case of its absence - for date of the introduction of the currency agreement in force).

In case of modification and (or) the amendments in the currency agreement on capital movement increasing its amount, increase in the amount of currency transaction by the conclusion of the agreement of innovation, calculation of equivalent in US dollars of increase in the amount of the currency agreement is perfromed with use of the market rate of currency exchange for signature date of the supplementary agreement, agreement of innovation (in case of its absence - for date of the introduction of the supplementary agreement, agreement of innovation in force).

Under the currency agreement on capital movement which amount does not exceed the threshold value specified in Item 8 of Rules in case of the actual increase in the amount of the agreement without entering of corresponding changes into the currency agreement, calculation of equivalent in US dollars of the amount of actually fulfilled obligations under the currency agreement it is perfromed with use of the market rate of currency exchange for date of implementation of the corresponding transactions.

In case of acceptance by the resident of right to claim against the nonresident or debt to the nonresident as a result of concession of the requirement or transfer of debt, the amount of the currency agreement the transferred (accepted) amount of the requirement or debt respectively, including the amount of the requirement or debt on remuneration, commission charges, penalties and other payments is recognized.

10. The participating resident of the currency agreement on capital movement addresses for assignment of accounting number to the currency agreement on capital movement in the territorial branch of National Bank located in the place of the permanent residence (for physical person) or stays (for the legal entity).

The physical resident person living outside the Republic of Kazakhstan addresses for assignment of accounting number to the currency agreement on capital movement in territorial branch of National Bank in place of registration (registration).

11. The participating resident of the currency agreement on capital movement addresses for assignment of accounting number to the currency agreement on capital movement prior to obligation fulfillment under such currency agreement of any of its parties. If obligation fulfillment under the currency agreement with the first there begins it nonresident participant, and this execution is connected with cession of property (receipt of money) for benefit of resident, then the participating resident of the currency agreement on capital movement addresses for assignment of accounting number to such currency agreement before receipt of property (money) in the order.

The participating resident of the currency agreement on capital movement addresses for assignment of accounting number to the currency agreement on capital movement which amount does not exceed the threshold value specified in Item 8 of Rules prior to execution of one of the parties of the currency agreement of the obligation which will entail the actual exceeding of the amount of the currency agreement of the threshold value specified in Item 8 of Rules.

The resident which accepted right to claim against the nonresident or accepted debt to the nonresident as a result of concession of the requirement or transfer of debt, voluntary conveyance, inheritance, approach of warranty case, by a court decision, addresses for assignment of accounting number to the currency agreement on capital movement no later than 60 (sixty) calendar days from the date of emergence of such requirement (debt), but prior to obligation fulfillment according to the arisen requirement (debt) of any of its parties.

The resident to which passes the property right to the real estate abroad (except for physical resident persons) on equity interest of legal nonresident person as a result of acquisition at resident, voluntary conveyance, inheritance, by a court decision, addresses for assignment of accounting number to the currency agreement on capital movement no later than 60 (sixty) calendar days from the date of transition of the property right, but before alienation of such property right.

When replacing the initial obligation existing between resident (the exporter or the importer) and the nonresident, other obligation between the same persons providing other subject or method of obligation fulfillment and relating to capital movement transactions, the resident addresses for assignment of accounting number to the currency agreement on capital movement no later than 60 (sixty) calendar days from the date of replacement, but prior to obligation fulfillment of any of its parties.

The participating resident of the currency agreement on capital movement addresses for assignment of new accounting number to the currency agreement on capital movement on the bases, stipulated in Item 14 Rules, no later than 60 (sixty) calendar days from the date of approach of the specified changes.

12. For assignment of accounting number the participating resident of such currency agreement represents to the currency agreement on capital movement to National Bank:

1) the statement on assignment of accounting number to the currency agreement on capital movement in form according to appendix 1 to Rules;

2) the copy of the document confirming the right of permanent residence in the Republic of Kazakhstan (for foreigners or stateless persons);

3) copies of the currency agreement on capital movement and changes and (or) amendments to it concerning obligations under the currency agreement on capital movement. If the currency agreement on capital movement is signed in foreign language, then its transfer on Kazakh or Russian is represented.

In case of obligation fulfillment under the currency agreement on capital movement to the request for assignment of accounting number the participating resident represents to such currency agreement to territorial branch of National Bank of the copy of the documents confirming origin, execution and discharge.

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