RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of August 21, 2019 No. 2019-P-33/43-7-(NFKU)

About approval of the Provision "About the Minimum Requirements to the Organization of Internal Control in Exchange Bureaus in the Kyrgyz Republic for the purpose of Counteraction to Financing of Terrorist Activities and to Legalization (Washing) of the Criminal Income"

According to articles 20 and 68 of the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic, banks and banking activity" the Board of National Bank of the Kyrgyz Republic decides:

1. Approve the Provision "About the Minimum Requirements to the Organization of Internal Control in Exchange Bureaus in the Kyrgyz Republic for the purpose of Counteraction to Financing of Terrorist Activities and to Legalization (Washing) of the Criminal Income" it (is applied).

2. Recognize invalid:

- the resolution of Board of National Bank of the Kyrgyz Republic "About approval of the Provision "About the Minimum Requirements to the Organization of Internal Control in Exchange Bureaus in the Kyrgyz Republic for the purpose of Counteraction of Legalization (Washing) of the Criminal Income and to Financing of Terrorist or Extremist Activities" of June 30, 2010 No. 52/5;

- the paragraph third Item 1 of the resolution of Board of National Bank of the Kyrgyz Republic "About modification and amendments in some resolutions of Board of National Bank of the Kyrgyz Republic" of January 29, 2014 No. 2/15;

- Item 2 of Appendix to the resolution of Board of National Bank of the Kyrgyz Republic "About modification and amendments in some resolutions of Board of National Bank of the Kyrgyz Republic" of January 29, 2014 No. 2/15;

- the paragraph the fourth Item 1 of the resolution of Board of National Bank of the Kyrgyz Republic "About modification and amendments in some resolutions of Board of National Bank of the Kyrgyz Republic" of February 10, 2016 No. 7/2;

- Item 3 of Appendix to the resolution of Board of National Bank of the Kyrgyz Republic "About modification and amendments in some resolutions of Board of National Bank of the Kyrgyz Republic" of February 10, 2016 No. 7/2.

3. To legal management:

- publish this resolution on the official website of National Bank of the Kyrgyz Republic;

- after official publication to send this resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State register of regulatory legal acts of the Kyrgyz Republic.

4. This resolution becomes effective after fifteen days from the date of official publication.

5. To management of supervision of non-bank financial credit institutions to bring this resolution to the attention of exchange bureaus, regional managements and representative office of National Bank of the Kyrgyz Republic in Batken Province.

6. To impose control of execution of this resolution on the board member of the National Bank of the Kyrgyz Republic supervising Management of supervision of non-bank financial credit institutions.

Approved by the resolution of Board of National Bank of the Kyrgyz Republic of August 21, 2019 No. 2019-P-33/43-7-(NFKU)

Regulations on the minimum requirements to the organization of internal control in exchange bureaus in the Kyrgyz Republic for the purpose of counteraction to financing of terrorist activities and to legalization (washing) of the criminal income

Chapter 1. General provisions

1. The purpose of this provision is determination of the minimum requirements on the organization of internal control in the exchange bureaus having the license of National Bank of the Kyrgyz Republic (further - National Bank), for the purpose of counteraction to financing of terrorist activities and to legalization (washing) of the criminal income (further - PFTD/LPD).

2. The National Bank carries out inspection of activities of exchange bureaus concerning the organization of internal control for the purpose of PFTD/LPD and sends information on its results to authorized state body in the sphere of PFTD/LPD (further - body of financial investigation) in accordance with the established procedure.

3. For the purposes of this provision the following concepts are used:

Internal control - set of measures for identification of transactions (transactions) which are subject to control and the message and suspicious transactions (transactions), and also on prevention of other transactions (transactions) with money which are directly connected with financing of terrorist activities and legalization (washing) of the criminal income.

Identification - the procedure of establishment of identification data on the client and (or) the beneficial owner.

Verification - the procedure of verification of identification data of the client and (or) beneficial owner.

The beneficial owner - physical person (physical persons) which finally (through chain of ownership and control) directly or indirectly (through the third parties) owns the property right or controls the client or the physical person, from name or for the benefit of which transaction (transaction) is made.

Identification of the transactions which are subject to control and the message - stage of the organization of internal control for the purpose of PFTD/LPD which includes activity definition, subject to control and the message.

Transactions (transaction) which are subject to control and the message - transactions (transaction) with money provided in Articles 23, of 24, of 25, 26 Laws of the Kyrgyz Republic "About counteraction to financing of terrorist activities and to legalization (washing) of the criminal income".

The threshold amount - the value established by the Cabinet of Ministers of the Kyrgyz Republic.

The concept "Extremist Activities" meets standards of conceptual framework of the Law of the Kyrgyz Republic "About counteraction of extremist activities".

Chapter 2. Internal control system on PFTD/LPD

4. Exchange bureaus shall develop and apply the program of internal control, including based on risk - the oriented approach, the regulations of the legislation of the Kyrgyz Republic allowing to perform effectively in the sphere of PFTD/LPD. The program of internal control of exchange bureau shall correspond to the legislation of the Kyrgyz Republic in the sphere of PFTD/LPD, and also is developed and applied taking into account features of activities, the number of staff, client base and level of risks of exchange bureau.

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