LAW OF THE KYRGYZ REPUBLIC

of January 21, 2015 No. 21

About payment system of the Kyrgyz Republic

Accepted by Jogorku Kenesh of the Kyrgyz Republic on December 17, 2014)

Chapter 1. General provisions

Article 1. The relations regulated by this Law

1. This Law establishes procedure and forms of implementation of payments and calculations, carrying out money transfers in the territory of the Kyrgyz Republic, determines characteristics of payment systems, procedure for relations between participants of payments and calculations, supervision (oversight) of payment systems and determines powers of National Bank of the Kyrgyz Republic (further - National Bank) in payment system of the Kyrgyz Republic.

2. The relations arising in case of payments and payment under transactions between business entities of the Kyrgyz Republic and foreign countries money transfers between legal entities and physical persons (international/cross-border payments and money transfers) are regulated by this Law and other regulatory legal acts in the part which is not contradicting this Law.

3. Operation of this Law does not extend to the activities for operation of communication networks and provision of services of electric and mail service in the Kyrgyz Republic regulated by the law in the sphere of electric and mail service. In case of implementation of payments for the goods/services which are not relating to communication services, operations are performed directly through payment systems according to the procedure, established by this Law.

Article 2. The concepts used in this Law

In this Law the following concepts are used:

1) the agent on distribution of electronic money - the legal entity or the individual entrepreneur, resident of the Kyrgyz Republic which makes repayment (exchange) of electronic money for cash or non-cash extends electronic money according to the bank law of the Kyrgyz Republic;

2) the acceptor of electronic money (acceptor) - the legal entity, and also the individual entrepreneur who according to the signed contract with emitting bank of electronic money or the agent accepts electronic money for payment of goods or services with provision of the documents confirming making of transactions with electronic money;

3) clearing settlement - form of currency circulation in case of which cash flow happens without participation of cash, by cash write-off from the bank account of the payer and their transfer for the bank account of the receiver according to the submitted payment documents, and also calculations to use of electronic money according to the bank law of the Kyrgyz Republic. Calculation is payment completion;

4) interstate payment - the payment made in national currency in the territory of the Kyrgyz Republic including with use of bank payment cards of various payment systems and electronic money issued in the territory of the Kyrgyz Republic;

5) house banking (home-banking) - method of remote bank servicing "at home" and provisions of retail services by banks to clients (physical persons and legal entity) by means of connection of home or office terminals (the personal computer, stationary phone) to computer network of bank;

6) Internet banking - remote control of the client of the bank accounts on the Internet. Payments with use of Internet banking are made with use of public channels of the Internet;

7) clearing - process of collection, processing, payment confirmation and calculation of cross liabilities of participants of system;

8) the international electronic money - the electronic money, electronic money, monetary commitments electronically issued (considered) nonresidents of the Kyrgyz Republic within legislation countries of source outside the Kyrgyz Republic;

9) interbank clearing system - set of rules, procedures and methods by means of which participants of clearing system represent and is exchanged by data, transfer payments or securities to other participants through clearing center. The system can be based on determination of bilateral or multilateral net line items of participants;

10) mobile banking - remote management of the bank account by means of the messages sent by the client to bank from the mobile phone;

11) the operator of payment system - the legal entity having license/registration of National Bank depending on type and category of payment system, providing functioning of payment system and who signed with participants the contribution agreement in payment system according to which the operator and members of payment service provider shall perform the activities within payment system according to this Law and regulatory legal acts of National Bank;

12) payment - execution of monetary commitment with use of cash or transfer process by the payer of non-cash;

13) the payment document - the document of the established form which is drawn up by legal entity or physical person based on which payment is made;

14) bank payment card (payment card) - the payment instrument used when carrying out payments upon purchase of goods, services, receipt of cash in national and foreign currencies, implementation of money transfers and also for calculations in the form of electronic money via terminals, ATMs or other devices (peripheral devices);

15) payment system - the interconnected system of technologies, procedures, rules, payment instruments and money transfer systems providing currency circulation. Depending on types of the registered payments payment systems are subdivided into systems of large payments and system of retail payments;

16) payment institute - the legal entity having the license of National Bank for implementation of activities in the field of rendering services in acceptance and carrying out payments and calculations for the goods and services which are not result of the activities, for benefit of the third parties by means of the payment systems based on information technologies and electronic means and methods of carrying out payments, according to the contract between payment institute and suppliers of goods/services, and also the contract between payment institute and the bank concluded according to the procedure, established by this Law and regulatory legal acts of National Bank;

17) money transfer system - type of payment system on acceptance of payment system of money by the operator from the population on condition that this money will be paid to the addressee;

18) settlement system payment cards - set of regulations, rules, organizations and program technical means for the organization of clearing settlements with use of cards;

19) electronic money - monetary value which is kept in electronic form on the program and technical device including prepaid cards and e-wallet, and is accepted as instrument of payment;

20) the electronic payment document - the type of the payment document constituted electronically, containing necessary information for implementation of calculations and certified by the digital signature;

21) processing - the licensed activities including the interconnected processes on acceptance, processing and issue to members of payment service provider of financial information;

22) issuer of electronic money (issuer) - National Bank, and also the bank having the right of release of electronic money according to the list of the permitted banking activities to the license of bank for the right of banking operations and assuming unconditional and irrevocable obligations on repayment of electronic money to the holders showing electronic money to cashing in;

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