RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of June 30, 2010 No. 52/5

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"

According to article 7 and 43 of the Law 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 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" it (is applied).

2. This resolution becomes effective after one month after official publication.

3. After official publication to send to Legal department 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. To management of supervision of non-bank organizations to bring this resolution to the attention of exchange bureaus, regional managements and the Batken representative office of National Bank of the Kyrgyz Republic.

5. To impose control of execution of this resolution on the board member of National Bank of the Kyrgyz Republic Alybayeva S. K.

Approved by the Resolution of Board of National Bank of the Kyrgyz Republic of June 30, 2010 No. 52/5

Regulations on 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

Chapter 1 General provisions

1. This Provision is developed according to the Laws of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic", "About banks and banking activity in the Kyrgyz Republic", "About foreign currency transactions" and "About counteraction of legalization (washing) of the criminal income and to financing of terrorist or extremist activities" (further - the Law KR "About POD/FTE").

2. 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 legalization counteraction (to laundering of the criminal income and financing of terrorist or extremist activities (further - POD/FTE).

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

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

Transactions (transaction) which are subject to mandatory control - transactions (transaction) with money or property provided in article 6 of the Law KR "About POD/FTE".

Suspicious transaction (transaction) - transaction (transaction) falling under signs of suspicious transactions (transactions) according to the Law KR "About POD/FTE", that is transactions (transaction) made with money or other property which have no clear economic or obvious legal aim and are not characteristic of activities of this legal entity or physical person (persons) according to the list of signs of suspicious transactions approved by authorized state body.

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

Identification - establishment of data concerning physical persons and legal entities on the basis of the originals provided by physical persons or legal entities or properly certified copies of documents according to the Law KR "About POD/FTE".

Identification of the transactions which are subject to mandatory control - stage of the organization of internal control for the purpose of POD/FTE which includes activity definition, subject to mandatory control, on the basis of the criteria and signs established in regulatory legal acts of the Kyrgyz Republic.

The registration amount - value in the amount of 50 000 som (or the equivalent foreign currency amount calculated for the official rate of National Bank on the date of making of transaction (transaction)).

The threshold amount - the transaction amount determined by the Law "About POD/FTE" in the amount of 1000 000 som (or the equivalent foreign currency amount calculated for the official rate of National Bank on the date of making of transaction (transaction)), in case of equality or excess of which this transaction (transaction) is subject to mandatory internal control according to the Law "About POD/FTE" and this Provision.

Verification - the actions for refining or proper check of results of identification performed by exchange bureaus for the purpose of internal control.

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

The beneficial owner (beneficiary) is person:

- having property right to money or property, and from name and/or at the expense of which the client makes transaction (transaction) with money or property, and/or;

- having opportunity directly or indirectly to influence making by the client of transactions (transactions) with money or property, according to the signed contract between such person and the client, and/or;

- for benefit of which finally transaction (transaction) with money or property is made.

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