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The document ceased to be valid since January 12, 2019 according to Item 3 of the Order of the Government of the Kyrgyz Republic of  December 25, 2018 No. 606

ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of March 5, 2010 No. 135

About measures for implementation of the Law of the Kyrgyz Republic "About counteraction to financing of terrorism and to legalization (washing) of income gained in the criminal way"

(as amended on 30-07-2015)

For the purpose of effective fulfillment of the Law of the Kyrgyz Republic "About counteraction to financing of terrorism and to legalization (washing) of income gained in the criminal way" the Government of the Kyrgyz Republic decides:

1. Approve enclosed:

- Regulations on general requirements to rules of internal control on counteraction to financing of terrorism (extremism) and legalization (washing) of income gained in the criminal way;

- Regulations on identification and verification of the client and beneficial owner (beneficiary) for the purpose of counteraction to financing of terrorism (extremism) and to legalization (washing) of income gained in the criminal way;

- Regulations on procedure for provision to Public service of financial investigation under the Government of the Kyrgyz Republic of information and documents the state bodies of the Kyrgyz Republic and persons representing data;

- Regulations on provision and consideration of the generalized material;

- Regulations on procedure for suspension of transactions (transactions), freezings and defrosting of means;

- Regulations on procedure for preparation and retraining of personnel concerning counteraction to financing of terrorism (extremism) and to legalization (washing) of income gained in the criminal way.

- Regulations on the list of supervisory authorities and on their powers;

- Regulations on the list of persons involved in terrorist and extremist activities or distribution of weapons of mass destruction.

2. To public service of financial investigation under the Government of the Kyrgyz Republic, Public service of regulation and supervision of the financial market under the Government of the Kyrgyz Republic, to National Bank of the Kyrgyz Republic (under approval) to take the necessary measures following from this resolution.

3. This resolution becomes effective from the date of signing.

4. Ceased to be valid according to the Order of the Government of the Kyrgyz Republic of 28.05.2012 No. 324

Prime Minister

D. Usenov

Approved by the Order of the Government of the Kyrgyz Republic of March 5, 2010 No. 135

Regulations on general requirements to rules of internal control on counteraction to financing of terrorism (extremism) and legalization (washing) of income gained in the criminal way

1. General provisions

1. This Regulations on general requirements to rules of internal control on counteraction to financing of terrorism (extremism) and legalization (washing) of income gained in the criminal way (further - general requirements), determine single approach to development by persons representing data, rules of the internal control exercised for the purpose of counteraction to financing of terrorism (extremism) and to legalization (washing) of income gained in the criminal way (further - rules of internal control).

2. For the purposes of these general requirements the following concepts are used:

rules of internal control - it is understood in that value which is specified in article 2 of the Law of the Kyrgyz Republic "About counteraction to financing of terrorism and to legalization (washing) of income gained in the criminal way";

persons representing data - it is understood in that value which is specified in article 2 of the Law of the Kyrgyz Republic "About counteraction to financing of terrorism and to legalization (washing) of income gained in the criminal way". The specific list of persons representing data (with indication of the name and legal address), is created by Public service of financial investigation under the Government of the Kyrgyz Republic (further - GSFR);

transactions (transaction) which are subject to mandatory control - transactions (transaction) with money or property provided in article 6 of the Law of the Kyrgyz Republic "About counteraction to financing of terrorism and to legalization (washing) of income gained in the criminal way";

suspicious transaction (transaction) - is understood in that value which is specified in article 2 of the Law of the Kyrgyz Republic "About counteraction to financing of terrorism and to legalization (washing) of income gained in the criminal way";

the client - the physical person or legal entity accepted on servicing or which is on servicing at persons representing data;

risk of financing of terrorism (extremism) or legalization (washing) of income gained in the criminal way (further - Risk) typical opportunities of making at person representing data, acts on financing of terrorism (extremism) and legalization (washing) of income gained in the criminal way as a result of acceptance on servicing or in case of customer service;

supervisory authorities - state bodies of the Kyrgyz Republic, authorized to exercise control of execution by persons representing data, provisions of the Law of the Kyrgyz Republic "About counteraction to financing of terrorism and to legalization (washing) of income gained in the criminal way";

service of internal control - the authorized employee or structural division of person representing the data responsible for implementation of rules of internal control for the purpose of counteraction to financing of terrorism (extremism) and to legalization (washing) of income gained in the criminal way and submission of messages in GSFR.

3. Rules of internal control generally determine procedure:

- the organizations of internal control, establishing powers and responsibility of officials in the field of counteraction to financing of terrorism (extremism) and to legalization (washing) of income gained in the criminal way;

- interactions and accountabilities between persons and divisions involved in process of counteraction to financing of terrorism (extremism) and to legalization (washing) of income gained in the criminal way;

- identifications of clients (measure for proper check of clients) and monitoring of activities of clients;

- identifications in activities of the client of transactions (transactions) with money or property (further - transactions (transactions)) which are subject to mandatory control and (or) suspicious transactions (transactions);

- provisions in GSFR of information on the revealed suspicious transactions (transactions) and (or) transactions (transactions) which are subject to mandatory control;

- risks assessments, income connected with financing of terrorism (extremism) and legalization (washing) gained in the criminal way;

- documentary fixation, storage and ensuring confidentiality of information obtained according to the Law of the Kyrgyz Republic "About counteraction to financing of terrorism and to legalization (washing) of income gained in the criminal way";

- training (preparation) of employees of persons representing data in the field of counteraction to financing of terrorism (extremism) and to legalization (washing) of income gained in the criminal way.

4. Rules of internal control are developed by persons representing data according to these general requirements and taking into account the following general principles:

1) need of preserving confidentiality of the data on internal documents of persons representing data, developed for the purpose of counteraction to financing of terrorism (extremism) and to legalization (washing) of income gained in the criminal way;

2) need of observance of bank, trade or other secrecy, and also confidentiality of messages of the transferred GSFR and other data determined by persons representing data;

3) exception of participation of employees of persons representing data in implementation of financing of terrorism (extremism) and to legalization (washing) of income gained in the criminal way;

4) ensuring participation of employees, persons representing data irrespective of post (within their competence) in identification in activities of the client, transactions (transactions) which are subject to mandatory control and (or) suspicious transactions (transactions), and also on prevention of other transactions (transactions) with money or property which are directly connected with financing of terrorism (extremism) and legalization (washing) of income gained in the criminal way;

5) advanced trainings of employees of persons representing data in the field of counteraction to financing of terrorism (extremism) and to legalization (washing) of income gained in the criminal way.

5. Function of control of implementation of rules of internal control at persons representing data is assigned to heads of persons representing data and to service of internal control.

6. Rules of internal control shall consist of procedures of their implementation.

2. Procedures of implementation of rules of internal control

7. Procedures of implementation of rules of internal control are developed by persons representing data according to the Law of the Kyrgyz Republic "About counteraction to financing of terrorism and to legalization (washing) of income gained in the criminal way" taking into account these general requirements, and also nature and the main activities of persons representing data, client base and level (category) of risks.

8. Persons representing data shall include the following procedures in rules of internal control:

1) Procedure of identification and verification of the client and beneficial owner (beneficiary):

Within implementation of rules of internal control, persons representing data develop the procedure of identification and verification of the client and beneficial owner (beneficiary) according to the requirements established by regulatory legal acts of the Kyrgyz Republic.

Persons representing data shall carry out repeated identification of the client and beneficial owner (beneficiary) if there are suspicions of reliability of earlier received data.

Persons representing data shall provide in the procedure:

- periodic updating of the data received as a result of identification of the client and the beneficial owner (beneficiary) (for persons with high risk level - at least once a year, for all others - at least once in three years);

- periodic review of the level (category) of Risk in process of change of identification data or change of the level (category) of Risk (category of the client, the place of its registration used by it products and services);

- actions for verification of the client and beneficial owner (beneficiary);

- procedure for identification of foreign politically significant persons among clients.

The banks and other financial credit institutes and the organizations having the right to opening and maintaining bank and other accounts when implementing cross-border correspondence relations shall:

- identify and carry out verification of organizations correspondents with which they establish or perform the correspondence bank relations;

- collect information on nature of activities of organization correspondent;

- on the basis of public information to make assessment of reputation of organization correspondent and to determine availability of supervisory authority in the field of counteraction to financing of terrorism (extremism) and to legalization (washing) of income gained in the criminal way;

- get approval of executive management before establishment of the correspondence bank relations;

- make assessment of the control mechanisms used by organization correspondent (being the client of bank) concerning counteraction to financing of terrorism (extremism) and to legalization (washing) of income gained in the criminal way.

The procedure for identification of the banks covers and banks registered in offshore zones, their branches and representations, and also registered in the states or in the territories which are providing preferential tax regime, and (or) not providing disclosure and (or) information to banking supervisor authorities shall be provided in the procedure.

The list of subjects, the states and the territories of offshore zones is determined by National Bank of the Kyrgyz Republic.

Persons representing data shall pay special attention to business relations, and also transactions (transactions) with physical persons and legal entities of the states and the territories which do not apply or apply in insufficient degree of the recommendation of FATF, and also with the affiliated organizations, branches and representations which main companies are registered in such states and the territories.

The list of such countries and the territories affirms GSFR together with National Bank of the Kyrgyz Republic and other supervisory authorities.

2) Assessment procedure of Risk of making by the client of transactions (transactions) connected with financing of terrorism (extremism) or legalization (washing) of income gained in the criminal way:

The risk assessment of making by the client of transactions (transactions) of the income connected with financing of terrorism (extremism) and legalization (washing) gained in the criminal way is made in case of establishment of business relations with the client and after carrying out identification of the client and the beneficial owner (beneficiary), and also other participants of transaction (transaction).

For subsequent assessment of the level (category) of Risk person representing data shall perform permanent monitoring of transactions (transactions) of the client.

The service of internal control based on the available information and documents, estimates the level (categories) of Risk and fixes it, with reasons for risk assessment.

The risk assessment consists of the following consecutive procedures:

a) accumulating of information on activities of the client in the territory of the Kyrgyz Republic and beyond its limits;

b) in case of suspicion that the client performs (or intends to perform) transactions (transaction) connected with financing of terrorism (extremism) and legalization (washing) of income gained in the criminal way the employee of person representing data shall report about it to service of internal control;

c) the service of internal control has the right to make the decision on monitoring of the client and the transactions (transactions) made by it, and also on refusal in the conclusion with such client of transaction (transaction).

The service of internal control depending on specifics of activities of person representing data, and his clients for risk assessment uses the typical criteria for evaluation of the level (category) of Risk established according to Appendix to these general requirements and also taking into account the additional criteria provided in rules of internal control.

If transaction (transaction) corresponds at least to one of the criteria established according to Appendix to these general requirements, the level (category) of Risk is estimated as high.

Persons representing data shall pay special attention to operations (transactions) performed by the client whose transactions (transaction) are referred to the high level (category) of Risk including by implementation of permanent monitoring of transactions (transactions) of such client.

Persons representing data are recommended to establish additional categories of criteria for evaluation of the level (category) of Risk (minimum), taking into account features of their activities.

The commercial banks and other financial credit institutes licensed by National Bank of the Kyrgyz Republic in addition use the criteria for evaluation of the level (category) of Risk established by National Bank of the Kyrgyz Republic.

Persons representing data annually shall carry out at themselves assessment of the used Risks. At the same time, the main mechanisms of risk assessment are determined by GSFR.

3) the Procedure of identification in activities of the client of transactions (transactions) which are subject to mandatory control and (or) suspicious transactions (transactions), and also other transactions (transactions) which are directly connected with financing of terrorism (extremism) or legalization (washing) of income gained in the criminal way:

The procedure of identification of transactions (transactions) which are subject to mandatory control and (or) suspicious transactions (transactions), shall contain the criteria of identification of such transactions (transactions) considering features of activities of persons representing data.

Identification of transactions (transactions) which are subject to mandatory control is made based on the criteria provided in article 6 of the Law of the Kyrgyz Republic "About counteraction to financing of terrorism and to legalization (washing) of income gained in the criminal way".

Identification of suspicious transactions (transactions), is made according to the list of criteria of suspicious transactions (transactions) established by GSFR.

The procedure shall provide identification, documentary fixation and transfer to GSFR along with suspicious transactions (transactions) and transactions (transactions) which are subject to mandatory control, transactions (transactions) with the following signs:

a) difficult, unusually large transactions (transactions);

b) the transactions (transaction) having tangled or unusual nature, i.e. which are carried out according to the unusual scheme and not making common economic intendment or the obvious legal purpose.

For the purposes of identification of transactions (transactions) with the above-stated signs, persons representing data develop criteria of identification of similar transactions (transactions), taking into account the list of signs of suspicious transactions (transactions) established by GSFR.

The requirement about obligatory informing (in the form approved by the head) services of internal control, by the employee of person providing the information shall be provided in the procedure in case of identification of transactions (transactions) which are subject to mandatory control, and (or) suspicious transactions (transactions), and also other transactions (transactions) of the income which is directly connected with financing of terrorism (extremism) and legalization (washing) gained in the criminal way.

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