It is registered
Ministry of Justice
Kyrgyz Republic
On April 21, 2006 No. 45-06
of March 23, 2006 No. 7/5
About approval of the Provision "About the Corrective Actions Applied to Credit Unions"
Having considered the project of the Provision "About the Corrective Actions Applied to Credit Unions", being guided by articles 30 of the Law of the Kyrgyz Republic "About credit unions", 7, 43 Laws of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic", the Board of National Bank of the Kyrgyz Republic decides:
1. Approve the Provision "About the Corrective Actions Applied to Credit Unions" it (is applied).
2. To management of methodology of supervision and licensing together with Legal department in accordance with the established procedure to carry out state registration of this resolution in the Ministry of Justice of the Kyrgyz Republic.
3. This resolution becomes effective from the moment of official publication after state registration in the Ministry of Justice of the Kyrgyz Republic.
4. From the moment of enforcement of this resolution to recognize invalid:
- the resolution of Board of National Bank of the Kyrgyz Republic No. 19/7 of August 12, 1998 "About approval of the Provision "About the Preventive Measures and Sanctions Applied to Credit Unions";
- the resolution of Board of National Bank of the Kyrgyz Republic No. 22/11 of June 5, 2000 "About changes and amendments in the Provision "About the Preventive Measures and Sanctions Applied to Credit Unions".
5. After publication of the registered regulatory legal act to Legal department to inform the Ministry of Justice of the Kyrgyz Republic on publication source (the name of the edition, its number and date).
6. To impose control of execution of this resolution on the vice-chairman of National Bank Kyrgyz the Republics Dzhanybekova of Page E.
Acting Chairman
Ishenbayev M. B.
Approved by the Resolution of Board of National Bank of the Kyrgyz Republic of March 23, 2006 No. 7/5
1.1. Ceased to be valid according to the Resolution of Board of National Bank of the Kyrgyz Republic of 31.05.2017 No. 21/8
1.2. Corrective actions are applied to the credit unions including performing transactions according to the Islamic principles of banking and financing by National Bank of the Kyrgyz Republic (further - National Bank) on the bases and according to the procedure, stipulated by the legislation the Kyrgyz Republic and this Provision, and include preventive measures and sanctions.
1.3. The purposes of application of corrective actions is protection of interests of participants and creditors of credit unions, ensuring sustainable development of credit unions, counteraction to financing of terrorist activities and to legalization (washing) of the criminal income.
1.4. The National Bank has the right to apply corrective actions to credit union and/or its official in cases:
- violations of the legislation of the Kyrgyz Republic by it, regulations and requirements of National Bank, including legislation for counteraction to financing of terrorist activities and legalization (washing) of the criminal income;
- failure to provide information or provision of unreliable information and/or provision of information in incomplete amount;
- unsafe or unreliable financial activities;
- carrying out the transactions which are not conforming to standards of Sharia (for the credit unions performing transactions according to the Islamic principles of banking and financing);
- actions or failure to act which can entail threat to interests of members of credit union;
- violations of the charter of credit union;
- counteractions to execution of supervising functions by National Bank.
1.5. In cases of making by credit union of any violations which are not stipulated by this Provision, the National Bank has the right to apply to credit union of corrective action according to the legislation of the Kyrgyz Republic.
1.6. The Chairman of the board, the Chairman of credit committee, the Chairman of audit committee and the chief accountant are considered as officials of credit union (the accountant as the main thing).
2.1. This Provision determines the following corrective actions which can be applied to credit union:
a) the direction of the instruction about elimination of the revealed violations and shortcomings;
b) introduction of higher economic standard rates;
c) introduction of direct banking supervision;
d) requirement about discharge or release of officials, changes of governing bodies of credit union;
e) temporary suspension or restriction of carrying out separate transactions of credit union;
e) introduction of temporary administration in credit union;
g) imposing of penalty on credit union and its officials;
h) temporary suspension of action of the license of credit union;
i) revocation of license of credit union.
The National Bank has the right:
- publish the orders stopping any actual or the planned actions of credit union, in cases of identification of the facts testimonial of the fact that the credit union is engaged or as a result of specified actions/failure to act it will be involved in unsafe or unreliable financial activities or breaks provisions of the bank law or regulations, instructions of National Bank, and/or the charter of credit union;
- issue recommendations about improvement of financial position of credit union.
2.2. The corrective actions specified in subitems), c), e) Item 2.1 of this provision can be applied only to the credit unions having the license for attraction of deposits from participants and/or having debt to specialized financial credit institute JSC Finance Company of Credit Unions.
2.3. Corrective actions are applied depending on situation, nature of violation and possible consequences to credit union. The tough priority and the sequence of application of corrective actions is not provided.
2.4. The decision on application of corrective actions to credit union is made depending on:
- nature of violation and its influence on activities, financial condition of credit union;
- probabilities of causing damage to interests of participants and creditors of credit union;
- capabilities of officials of credit union to resolve the arising problems;
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The document ceased to be valid since January 13, 2021 according to Item 2 of the Resolution of Board of National Bank of the Kyrgyz Republic of December 23, 2020 No. 2020-P-33/73-12-(NFKU)