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RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF BELARUS

of December 24, 2014 No. 818

About internal control in case of banking operations

(as amended on 19-11-2020)

Based on part one of article 39 of the Bank code of the Republic of Belarus, paragraph two of part two of article 16 of the Law of the Republic of Belarus of June 30, 2014 "About measures for prevention of legalization of income gained in the criminal way of financing of terrorist activities and financing of distribution of weapons of mass destruction" the Board of National Bank of the Republic of Belarus DECIDES: No. 165-Z

1. Approve the Instruction about requirements to rules of internal control in the sphere of prevention of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction in case of banking operations it (is applied).

2. In six-months time after entry into force of this resolution to provide to banks, the non-bank credit and financial organizations and "Development Bank of the Republic of Belarus" open joint stock company completion of the electronic database of questionnaires of clients according to the Instruction about requirements to rules of internal control of banks, the non-bank credit and financial organizations, "Development Bank of the Republic of Belarus" open joint stock company in the sphere of prevention of legalization of the income received in the criminal way, financings of the terrorist activities and financing of distribution of weapons of mass destruction approved by this resolution.

3. This resolution becomes effective after its official publication.

Chairman of the board

N. A. Ermakova

Approved by the Resolution of Board of National Bank of the Republic of Belarus of December 24, 2014 No. 818

The instruction about requirements to rules of internal control in the sphere of prevention of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction in case of banking operations

Chapter 1. General provisions

1. This Instruction establishes requirements to rules of internal control of banks, non-bank credit and financial organizations, "Development Bank of the Republic of Belarus" open joint stock company (further - JSC Development Bank Republic of Belarus), Belarusian Currency and Stock Exchange open joint stock company (further - JSC Belarusian Currency and Stock Exchange) regarding implementation of separate banking activities by it (further, unless otherwise specified, - banks) in the sphere of prevention of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction.

2. For the purposes of this Instruction terms in the values determined by the Law of the Republic of Belarus "About measures for prevention of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction" and also the following terms and their determinations are used:

identification agents - persons performing identification of clients of bank, their representatives at the request of bank based on the agreement or the legal act;

the analyzed period - the interval of time averaging one calendar month determined by bank depending on type of the financial transactions performed by the client for which the bank analyzes financial transactions of the client at stage of the subsequent control;

the questionnaire of the client - data set in electronic form, collected by bank concerning the client during its identification and the verification containing the information about the client and his activities, the stipulated in Clause 8 Laws of the Republic of Belarus "About measures for prevention of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction", by this Instruction and rules of internal control of bank;

questioning - creation of the questionnaire of the client by bank;

corresponding bank - bank in which correspondent, other account of bank respondent is opened;

bank respondent - the bank which opened correspondent, other account in other bank;

banking service (product) - banking activity (set of banking activities) reflected according to rules of conducting financial accounting in banks on the separate account or account group grouped in sign of economic uniformity;

the client performing one-time transaction, - person, except for bank respondent, performing financial transaction without the signed contract for implementation of financial transactions in writing, including the agreement signed the digital signature, in electronic form without use, in the cases provided by legal acts (further - the contract for implementation of financial transactions in writing);

the correspondence bank relations - provision of banking services (products) by one bank (corresponding bank) to other bank (bank respondent);

the same financial transactions - the financial transactions of one type performed repeatedly during the analyzed period by one person or concerning the same person;

suspicious financial transaction - financial transaction concerning which the bank had suspicions that it is performed for the purpose of obtaining and (or) legalization of income gained in the criminal way, financings of terrorist activities, distribution or financing of distribution of weapons of mass destruction after adoption by bank of the decision on its reference to the financial transaction which is subject to special control;

the client's representative - person performing financial transactions on behalf of the client of bank which powers are confirmed according to the procedure, determined by the legislation, or appear from situation in which the representative acts;

systematicity of implementation of financial transactions - implementation by the client of financial transactions 3 and more times during the analyzed period;

special division - structural division of bank which competence includes implementation of measures in the sphere of prevention of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction;

physical persons are the physical persons who are not individual entrepreneurs;

the financial transaction causing suspicion - financial transaction concerning which the bank had suspicions that it is performed for the purpose of obtaining and (or) legalization of income gained in the criminal way, financings of terrorist activities, distribution or financing of distribution of weapons of mass destruction before adoption by bank of the decision on reference its (not reference) to the financial transaction which is subject to special control.

The terms "operator of cryptoplatform", "operator of exchange of cryptocurrencies", "digital sign (token)" are used in the values determined respectively in Items 1, of the 6 and 12 list of the used terms and their determinations according to appendix 1 to the Decree of the President of the Republic of Belarus of December 21, 2017 No. 8 "About development of digital economy".

The term "identification number" is used in the value determined by the paragraph the fifth article 2 of the Law of the Republic of Belarus of July 21, 2008 No. 418-Z "About the register of the population".

Terms "banking group" and "bank holding" are used in the values determined respectively by parts two and third article 35 of the Bank code of the Republic of Belarus.

For the purposes of this Instruction the notaries performing notarial activities in notarial bureau and the lawyers performing lawyer activities individually are equated to individual entrepreneurs.

Chapter 2. The organization of internal control system in the sphere of prevention of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction

3. The internal control system of bank in the sphere of prevention of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction will be organized within internal control system of bank and risk management system of bank and shall provide non-admission of intentional or involuntary involvement of bank in process of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction.

4. The parent organization of banking group and (or) bank holding which is bank will organize internal control system in the sphere of prevention of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction in banking group and (or) bank holding on the consolidated basis so that to provide timely receipt of information on activities of members of banking group and (or) bank holding from among persons performing financial transactions for the purpose of implementation of efficiency evaluation of activities of such participants and observance by them of requirements of the legislation and local legal acts.

The internal control system in the sphere of prevention of legalization of income gained in the criminal way, provides financings of terrorist activities and financing of distribution of weapons of mass destruction in banking group, bank holding:

data exchange for the purposes of internal control and risk management;

observance of requirements in the specified sphere, carrying out audit, provision if necessary the member of banking group, bank holding of identification information about the client and his financial transactions;

adequate protection of confidentiality and use of data;

receipt of information on activities of members of banking group, bank holding for the purpose of implementation of efficiency evaluation of activities of such participants and observance by them of requirements of the legislation and local legal acts.

5. The basic principle of the organization of internal control system of bank in the sphere of prevention of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction is participation of employees of bank within their job responsibilities in processes of identification of clients and their representatives, questioning of clients and identification of the financial transactions which are subject to special control.

6. The internal control system in the sphere of prevention of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction is implemented in the following main directions:

identification and verification in cases, stipulated by the legislation, the clients of bank performing financial transactions, monitoring of their activities in the course of servicing;

identification, documentary fixation of the financial transaction which is subject to special control and transfer of the corresponding data in body of financial monitoring;

freezing of means and (or) blocking of financial transactions of persons involved in terrorist activities;

storage of data and documents (their copies) during the term established by the legislation.

7. The bank develops rules of internal control taking into account features of the organizational structure, nature and amount of the performed banking activities, and also level of the risks connected with legalization of income gained in the criminal way, financing of terrorist activities and financing of distribution of weapons of mass destruction.

8. The special division shall perform the following functions:

development of rules of internal control;

internal risks assessment, the income connected with legalization gained in the criminal way, financing of terrorist activities and financing of distribution of weapons of mass destruction;

development of procedures of risk management, income gained in the criminal way, the financing of terrorist activities and financing of distribution of weapons of mass destruction connected with legalization;

self-assessment of involvement of bank into carrying out the suspicious transactions connected with obtaining and (or) legalization of income gained in the criminal way, financing of terrorist activities, distribution or financing of distribution of weapons of mass destruction;

introduction to the head of bank or the deputy of suggestions for improvement authorized by it and increase in overall performance of internal control system;

coordination of the organization of internal control system in the sphere of prevention of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction;

participation in process of implementation of new banking services (products);

consultation of employees of bank on the questions arising in case of accomplishment of rules of internal control of bank, including identification of clients, creation of messages and filling of special forms;

the organization and participation in training of employees of bank for prevention of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction;

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