RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of September 30, 2019 No. 2019-P-14/50-3-(PS)

About approval of the Provision "About the Corrective Actions Applied to Operators of Payment Systems / to Payment Institutes"

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 Corrective Actions Applied to Operators of Payment Systems / to Payment Institutes" it (is applied).

2. Recognize invalid the following resolutions of Board of National Bank of the Kyrgyz Republic:

- "About approval of the Provision "About the Corrective Actions Applied to Operators of Payment Systems / to Payment Institutes" of December 28, 2016 No. 51/1;

- "About modification and amendments in the resolution of Board of National Bank of the Kyrgyz Republic "About approval of the Provision "About the Corrective Actions Applied to Operators of Payment System / to Payment Institutes" of December 28, 2016 No. 51/1" of June 8, 2017 No. 2017-P-14/23-12-(PS).

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 payment systems to bring this resolution to the attention of payment institutes and operators of payment systems, OYuL "Association of Operators of KG Payment Service Providers", OYuL "Association of Telecom Operators", Interbank Processing Center Ltd and commercial banks.

6. To department of development of official language and document flow to bring this resolution to the attention of the relevant structural divisions, regional managements and representative office of National Bank in Batken Province.

7. To impose control of execution of this resolution on the board member of the National Bank of the Kyrgyz Republic supervising Management of payment systems.

Appendix

to the Resolution of Board of National Bank of the Kyrgyz Republic of September 30, 2019 No. 2019-P-14/50-3-(PS)

Regulations on the corrective actions applied to operators of payment systems / to payment institutes

Chapter 1. General provisions

1. This Provision determines corrective actions, procedure for application of corrective actions to operators of payment systems (except banks and other financial credit institutions), to payment institutes which perform the activities in the territory of the Kyrgyz Republic according to the legislation of the Kyrgyz Republic.

2. Corrective actions are applied by National Bank of the Kyrgyz Republic (further - National Bank) according to the procedure, stipulated by the legislation the Kyrgyz Republic and this Provision.

3. The purpose of application by National Bank of corrective actions is protection of the rights and legitimate interests of users of payment systems, maintenance and ensuring efficiency, safety and reliability of payment systems, counteraction to financing of terrorist activities and to legalization (washing) of the criminal income.

4. The basis for application of corrective actions concerning operators of payment systems / payment institutes and (or) their officials is violation of regulations, the requirements and restrictions set by the constitutional law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic", the laws of the Kyrgyz Republic "About banks and banking activity", "About payment system of the Kyrgyz Republic", "About counteraction to financing of terrorist activities and to legalization (washing) of the criminal income", regulatory legal acts of National Bank and other regulatory legal acts of the Kyrgyz Republic. The National Bank applies adequate measures of impact to operators of payment systems / to payment institutes and (or) their officials in case of identification of the violations provided by this Provision.

5. The National Bank has the right to direct the written prevention according to the procedure of informing the operator of payment system / payment institute that they can break certain regulations of the legislation of the Kyrgyz Republic or are engaged in the activities menacing to safety and reliability of payment system and also for the purpose of the prevention that further adequate measures of impact can be applied to them. The prevention is not corrective action. The written prevention goes signed by the chief of the structural division performing functions of regulation, supervision and control of operators of payment systems and payment institutes or person replacing it.

Chapter 2. Corrective actions and their application

6. This Provision determines the following corrective actions applied to operators of payment systems / to payment institutes:

- instruction;

- penalty on operators of payment systems / payment institutes and their officials;

- discharge or replacement of officials;

- restriction for acceptance of payments and/or restriction for carrying out separate payment types and transactions within the license;

- introduction of the special mode in type:

direct banking supervision;

temporary administration;

- temporary suspension of the license;

- revocation of license.

7. Corrective actions are applied depending on situation, complexity and gravity of violation and consequences to users and members of payment service providers. In case of application of corrective actions their priority and the sequence is not provided. The National Bank has the right for one violation to apply several measures of impacts.

8. The decision on application of adequate measures of impact is made by Committee on payment system of National Bank in the form of the resolution.

The decision on application of corrective action in the form of the instruction is made by the chief of the structural division performing functions of regulation, supervision and control of operators of payment systems and payment institutes.

9. The instruction about elimination of the revealed violations goes to certain time to operators of payment systems / to payment institutes in case:

- failure to provide the financial reporting or other reporting determined by regulatory legal acts of National Bank;

- failure to provide the conclusion of substantive financial audit, audit of information systems and appendix to them in certain terms and according to regulatory legal acts of National Bank;

- provisions in National Bank of untimely/unreliable/incomplete information;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info