LAW OF THE REPUBLIC OF KAZAKHSTAN

of July 26, 2016 No. 11-VІ ZRK

About payments and payment systems

This Law governs the public relations arising in the sphere of the organization and functioning of payment systems, regulations of payment systems and supervision (oversight) of them, regulations of the market of payment services and control of it, and also implementation of payments and (or) money transfers in the Republic of Kazakhstan.

Chapter 1. General provisions

Article 1. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) the current account - the bank account opened by bank or the organization performing separate types of banking activities based on bank account agreement;

2) information banking services - services of the payment service provider serving the bank account of the client in provision to the client or the third party by order of and with the consent of the client of information on remaining balance and (or) movement of money according to its bank account, about payments and (or) money transfers made on this account, and other information on request of the client or on the agreement signed between the client and the payment service provider;

3) money transfer system - payment system through which money transfers with use of the software of the operator of this system with which the bank or the organization performing separate types of banking activities sign the agreement for implementation of payments and (or) money transfers are made;

4) money transfer - consecutive execution by the payment service provider of specifying of the client about transfer of money connected with implementation of payment or other purposes;

5) the sender of money - person at the expense of whom the payment and (or) money transfer are made;

6) bank of the sender of money - bank or the organization performing the separate types of banking activities serving the sender of money;

7) the permanent order of the sender of money - the order of the sender of money to bank of the sender of money about implementation of regular payments and (or) money transfers for benefit of one or several beneficiaries from his name according to the conditions and details specified in this order;

7-1) participating bank of the International financial center "Astana" - the member of the International financial center "Astana" having the license of Committee of the International financial center "Astana" on regulation of financial services on provision of services in acceptance of deposits and (or) opening and maintaining bank accounts for the territories of the International financial center "Astana";

7-2) payment transaction with fraud signs - the payment and (or) money transfer (including attempt of making of such payment and (or) money transfer, payment and (or) the money transfer which are in process of execution) performed as a result of actions of the third parties directed to plunder of money of the client by deception or confidence abuse;

7-3) center of data exchange for payment transactions with fraud signs (further - the antifrod-center) - the legal entity of National Bank of the Republic of Kazakhstan who performs the measures directed to prevention of payment transactions with fraud signs;

8) outsourcing - transfer by the payment service provider to the third parties based on the agreement on paid rendering services of execution of the information and technological functions necessary for ensuring rendering payment services with the payment service provider (the agreement on outsourcing);

9) interbank money transfer system - the payment system intended for implementation of payments and (or) money transfers between her participants with use of the money which is on the correspondent accounts opened in National Bank of the Republic of Kazakhstan by individual execution of each specifying of her participant with completion of money transfers during the operational day;

10) system of interbank clearing - the payment system intended for implementation of payments and (or) money transfers between its participating banks, the organizations performing separate types of banking activities by multilateral clearing of instructions of participants;

11) the bank account - method of reflection and accounting of movement of money of the client in bank or the organization performing separate types of banking activities, and also contractual relations between the client and bank or the organization performing separate types of banking activities for bank customer service;

12) direct debiting of the bank account - withdrawal by bank or the organization performing separate types of banking activities, money at the sender of money and their transfer for benefit of the beneficiary based on preliminary permission of the sender of money about such withdrawal;

13) the initiator - person who showed specifying for execution;

14) the beneficiary - person for benefit of whom the payment and (or) money transfer are made;

15) bank of the beneficiary - bank or the organization performing the separate types of banking activities serving the beneficiary;

16) value date - the date specified by the initiator of payment and (or) money transfer in the payment document when money be enlisted on the bank account of the beneficiary;

17) accounting registration - inclusion of payment institute in the register of payment institutes;

18) the savings account - the bank account opened by bank or the organization performing separate types of banking activities based on bank deposit agreement;

19) the summary payment order - the payment order used for implementation of payment and (or) money transfer from one sender of money for benefit of several beneficiaries which are served in one bank or from several senders of the money which is served in one bank for benefit of one beneficiary;

20) the sender - the sender of money or the beneficiary which instructs;

21) assessment of functioning of systemically significant or significant payment system - package of measures, performed by the operator of payment system, the operational center of payment service provider, National Bank of the Republic of Kazakhstan or international financial institutions for the purpose of determination of compliance of this payment system to international standards;

22) monitoring of systemically significant payment systems - the process of tracking and observation of systemically significant payment service providers performed by National Bank of the Republic of Kazakhstan for the purpose of management, minimization and forecasting of the risks arising when implementing payments and (or) money transfers within implementation of supervision (oversight) of payment systems;

23) systemically significant payment system - payment system which smooth operation promotes stable functioning of the financial market of the Republic of Kazakhstan and stops (failures) in to which work can lead to emergence of risks in the financial market of the Republic of Kazakhstan;

24) the collection order - the payment document used for money withdrawal from the bank account of the sender of money without its consent;

25) the client - the physical person or legal entity, branch or representation of the legal entity receiving payment service;

26) clearing - process of collection, reconciliation and offsetting of mutual monetary claims and obligations, and also determination of net line items of participants of this process;

27) correspondent account - the bank account of bank or the organization performing separate types of banking activities, opened based on the agreement of correspondent account for accomplishment of transactions of bank or the organization performing separate types of banking activities, and his (her) clients;

28) the payment service provider - the subject of the market of payment services rendering payment service;

29) the third-party payment service provider - the payment service provider who is not serving the bank account of the client and providing to the client electronic banking services by means of own systems of remote access;

30) the significant payment service provider - the payment service provider corresponding to the criteria established by this Law;

31) the market of payment services - set of the relations connected with rendering and use of payment services, and also release and use of payment instruments;

32) the state control and supervision of the market of payment services (control and supervision of the market of payment services) - the activities of National Bank of the Republic of Kazakhstan and authorized body for regulation, control and supervision of the financial market and the financial organizations directed to implementation within their competence of control of activities of payment service providers for observance of requirements of the legislation of the Republic of Kazakhstan on payments and payment systems;

33) payment service - the service rendered by the supplier of payment service to the client according to article 12 of this Law;

34) system of remote access - set of means of the telecommunications, digital and information technologies, the software and the equipment providing communication between the client and the payment service provider for receipt of electronic banking services;

35) the payment subagent - the legal entity or the individual entrepreneur who signed with the payment agent the agency agreement on rendering payment services;

35-1) system of instant payments - the payment system intended for the round-the-clock implementation of payments and (or) money transfers between her participants with use of the money which is in National Bank of the Republic of Kazakhstan with ensuring instant transfer of money for benefit of the beneficiary of payment and (or) money transfer;

35-2) mobile payments - the cashless payments initiated electronically for benefit of the physical person staying on the registration registry as the individual entrepreneur, person who is engaged in private practice, the legal entity in payment for purchase of goods, the performance of works, rendering services received by means of mobile application or other equipment (device) intended for acceptance of payments with use of bar code;

36) specifying - the order of the initiator of payment and (or) money transfer to the payment service provider about implementation of payment and (or) money transfer which is expressed in the form of the order, the requirement or as the consent of the client when using means of electronic payment or system of remote access;

37) operational day - period of time during which acceptance and processing of payment system by the operator or payment service provider of instructions, orders about suspension of execution of instructions or withdrawal of such instructions are performed;

38) other payment system - the payment system which is not systemically significant or significant payment system;

39) identification means - the digital signature of the sender of specifying or the unique identifier representing combination of letters, figures or symbols or other identifier (the personal password, disposable (one-time) identification code, means of biometric identification) established by the supplier of payment service for identification of the client and approved with it;

40) net line item - value of difference between the amount of instructions of all members of payment service provider sent to advantage of one member of payment service provider and the amount of the instructions of this member of payment service provider directed to advantage of other members of payment service provider in case calculations in payment system are perfromed by multilateral clearing of instructions of members of payment service provider. In case of negative value of net line item the participant has debit net line item, in case of positive value - credit net line item;

41) payment - execution of monetary commitment with use of cash and (or) payment instruments;

42) the payment agent - the legal entity or the individual entrepreneur who concluded with bank or the organization performing separate types of banking activities or payment institute the agency agreement on rendering payment services;

43) participants of payment and (or) money transfer - physical persons and legal entities, branches and representations of legal entities having the rights and (or) obligations on payment and (or) money transfer;

44) supervision (oversight) of payment systems - the activities of National Bank of the Republic of Kazakhstan performed for the purpose of ensuring effective, safe and smooth functioning of payment systems;

45) payment system - set of the relations providing implementation of payments and (or) money transfers by interaction of the operator of payment system and (or) members of payment service provider by means of application of procedures, infrastructure and rules established by the operator of this payment system;

46) the member of payment service provider - bank or the organization, performing separate types of banking activities which signed with the operator of payment system the contribution agreement in payment system and also payment institute in the case provided by this Law;

47) self-assessment of functioning of payment system - package of measures, performed by the operator of payment system, the operational center of payment system for the purpose of determination of compliance of this payment system to international standards;

48) infrastructure of payment system - set of the objects, resources and technologies providing functioning of payment system;

49) the operator of payment system - the legal entity who is performing activities for ensuring functioning of payment system and carrying out the obligations established by this Law relating to such activities;

50) the operational center of payment system - the legal entity to whom the operator of payment system implementation of operational and technological functions based on the agreement signed between this legal entity and the operator of payment system or by delegation is entrusted to it powers if the operator of payment system concerning this legal entity performs functions on regulation of its activities and decision making about change of legal status of the called organization;

51) payment card - means of electronic payment which contains information allowing her holder by means of electronic terminals or other communication channels to make payments and (or) money transfers either to receive cash, or to make the currency exchange and other transactions determined by the issuer of payment card and on its conditions;

52) release of payment card - the payment service providing issue of payment card to the holder of payment card;

53) the issuer of payment card - bank or the National operator of mail performing release of payment cards;

54) the payment document - the document constituted on paper or created electronically on the basis or by means of which the payment and (or) money transfer are made;

55) the payment instrument - the payment document or means of electronic payment, on the basis or with use of which the payment and (or) money transfer are made;

56) completeness (finality) of payment and (or) money transfer - timepoint in which the obligation of the participant of payment and (or) money transfer is considered fulfilled;

57) the payment order - the payment document used when implementing payments and (or) money transfers between the client and the bank serving it or the organization performing separate types of banking activities and (or) servicing of the bank account of the client;

58) payment request - the payment document shown by the beneficiary or bank of the beneficiary in bank of the sender of money about payment of the amount of money specified in the payment document from the bank account of the sender of money;

59) the payment order - the payment document providing specifying of the sender of money to the bank or the organization performing separate types of banking activities, about the translation determined in this payment document of amount of money for benefit of the beneficiary;

60) the register of payment institutes - the single list of the payment institutes which underwent accounting registration;

61) payment institute - the legal entity of the Republic of Kazakhstan created in form of business of limited liability partnership which according to this Law is competent to perform activities for rendering payment services;

62) the payment notice - the payment document used when implementing payments and (or) money transfers without opening of the bank account and containing the order of the sender of money to the bank serving it or the organization performing separate types of banking activities about money transfer for benefit of the beneficiary in the amount specified in the payment document;

63) the check - the payment document containing the written order of the issuer to the serving bank or the organization performing separate types of banking activities, about payment specified in this order of amount of money to the payee;

64) the issuer - person who drew the check;

65) the payee - person for benefit of whom the check was drawn, including the issuer if the check was drawn to them for itself;

66) foreign payment system - payment system which operator is the nonresident of the Republic of Kazakhstan;

67) electronic money - the unconditional and irrevocable monetary commitments of the issuer of electronic money which are stored electronically and accepted as instrument of payment in electronic payment system by other participants of system;

68) electronic payment system - set of program technical means, documentation and organizational and technical actions providing implementation of payments and other transactions with use of electronic money by interaction of the operator of electronic payment system with the issuer of electronic money and (or) owners of electronic money;

69) the agent of electronic payment system (further - the agent) - bank, the organization performing separate types of banking activities, the National operator of mail and the payment agent performing activities for acquisition of electronic money at the issuer and owners - physical persons for subsequent their realization to physical persons based on the agreement signed with the issuer of electronic money or the operator of electronic payment system;

70) the operator of electronic payment system - bank, the organization performing separate types of banking activities, or the payment institute providing functioning of electronic payment system, including collection, processing and information transfer, created when implementing transactions with use of electronic money, and also the determining rules of functioning of electronic payment system according to the contract signed with the issuer (issuers) of electronic money;

70-1) e-wallet of electronic money (further - e-wallet) - the method of accounting and storage of electronic money providing the order with them;

71) repayment of electronic money - the payment service providing implementation by the issuer of electronic money of exchange of electronic money shown by the owner of electronic money or subjects to exchange without their presentation by the owner in the cases provided by the laws of the Republic of Kazakhstan on amount of money, equal on their nominal value, issued by it;

72) use of electronic money - transfer of electronic money by their owner to other participant of electronic payment system for the purpose of implementation of payment according to civil transactions and (or) other transactions connected with transition of the property right to electronic money;

73) release of electronic money - the payment service providing issue of electronic money by the issuer of electronic money to physical person or agent by exchange for amount of money, equal on their nominal value;

74) the issuer of electronic money - the payment service provider having the right to release and repayment of electronic money according to this Law;

75) electronic banking services - the services connected with access for the client to the bank account by means of systems of remote access for receipt of payment services and information banking services;

76) the electronic terminal - the electronic and mechanical device intended for implementation of payments and (or) money transfers or transactions on acceptance and (or) cash disbursement of money or for implementation of exchange transactions with foreign currency or for implementation of other transaction types, and also forming of the relevant supporting documents;

77) means of electronic payment - the payment card or other electronic medium containing information which allows the sender of money having power to make payment and (or) money transfer to initiate implementation of payment and (or) money transfer, and also to perform other transactions provided by the contract between him and the issuer of means of electronic payment;

78) the holder of means of electronic payment - the physical person using or owning means of electronic payment in accordance with the terms of the agreement signed with the issuer of means of electronic payment;

79) the issuer of means of electronic payment - the legal entity performing release of means of electronic payment;

80) escrow account - the current or savings account opened by the client addressed to the third party with restriction of the right of this person for making of account transactions according to the bank account before approach or accomplishment for them the conditions determined by the client.

Article 2. Coverage of this Law

1. Operation of this Law extends on the physical persons and legal entity which are subjects of the relations arising when implementing payments and money transfers in the Republic of Kazakhstan and also in the course of functioning of payment systems and the market of payment services.

2. The relations connected with the international payments and (or) money transfers made by the banks, the organizations performing separate types of banking activities with banks (financial institutions) - nonresidents of the Republic of Kazakhstan, are regulated by contracts between the them and business customs applied in banking practice taking into account the requirements established by the laws of the Republic of Kazakhstan "About counteraction of legalization (washing) of income gained in the criminal way and to terrorism financing" and "About gaming". If actions for the international payments and (or) money transfers are performed in the territory of the Republic of Kazakhstan, then such relations are governed by this Law, the specified agreements and business customs in the part which is not contradicting the legislation of the Republic of Kazakhstan.

3. The requirements of this Law applied in relation to banks extend to the branches of nonresident banks of the Republic of Kazakhstan created in the territory of the Republic of Kazakhstan.

4. And other legal entities performing activities within the specific mode of regulation, regulation of this Law and the regulatory legal acts of National Bank of the Republic of Kazakhstan adopted according to this Law entered according to the laws of the Republic of Kazakhstan "About National Bank of the Republic of Kazakhstan", "About state regulation, control and supervision of the financial market and the financial organizations" extend to subjects of the market of payment services in the limits provided by conditions of specific mode of regulation.

Article 3. Legislation of the Republic of Kazakhstan on payments and payment systems

1. The legislation of the Republic of Kazakhstan on payments and payment systems is based on the Constitution of the Republic of Kazakhstan, consists of this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. If the international treaty ratified by the Republic of Kazakhstan establishes other rules, than those which are provided by this Law then are applied rules of the international treaty.

Article 4. Powers of National Bank of the Republic of Kazakhstan in the field of payments and payment systems

1. The National Bank of the Republic of Kazakhstan claims:

1) rules of the organization of activities of payment institutes;

2) rules of representation by the operator or operational center of systemically significant or significant payment system of data for payments and (or) money transfers by which are determined procedure for their representation, including forms, the list, frequency and terms of their representation;

3) rules of implementation of interbank payments and (or) money transfers on transactions with use of payment cards in the Republic of Kazakhstan;

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