LAW OF KYRGYZ REPUBLIC "ON ELECTRONIC 

TRANSFERS OF FUNDS" 

CHAPTER 1. GENERAL PROVISIONS 

Article 1. Terms and Definitions, Used in the Current Law 

Analogue of a physical signature (electronic digital signature) - is a code, which has formed on the bases of certificated program-technical facilities by one side transformation of the document to the numerical sequence, coded by means of personal secret key. It is performed by one person, but it's authenticity can be confirmed by many. The electronic digital signature is an integral part of a certain document. 

The analogue of a physical signature owners - individuals and legal entities confirming by an electronic digital signature the rights for using of money resources on accounts for own settlements. 

Maintenance of document integrity - is the impossibility of unauthorized or accidental changing of the document. 

Confirmation of the document's authenticity - is a procedure of checking the authenticity of the document, including the conformity or unconformity of the document author's identity with the presented or declared name. 

The participant of electronic payments - individuals and legal entities using or presenting the services of electronic payments. 

Electronic payment - is a payment, conducted by means of an electronic payment document in accordance with established procedures and the present Law. 

Electronic payment document - means a document, compiled in electronic form, which contains necessary information for payment execution and signed by electronic digital signature.  

Financial and Other Institutions, which Present the Services of Electronic Payments - commercial banks and other specialized financial Institutions realizing activity on presenting financial services, connected to electronic payments on bases of specializ licenses. 

Article 2. Area of Performance of Law. 

1. The current Law establishes the order of execution of electronic transfers of funds between the banks, located on the territory of the Kyrgyz Republic. 

2. The order of execution of international electronic payments and requirements to the electronic payment documents, used at such payments conduction (formats, procedures of the electronic digital signature formation, authenticity and security procedures) are determined by the correspondent agreements. 

3. The current Law is not applicable to mail transfers, executed through the post offices. 

Article 3. Regulation of the relations connecting with realization of electronic payments 

1. The National Bank of the Kyrgyz Republic executes functions connected to regulation of the relations on a realization of electronic payments with the purposes of maintenance of efficiency, safety and reliability of a payment system of republic 

In order to ensure the functioning of the payment system, the National Bank establishes: 

· the formats of electronic payment documents and the settlement procedures; determined requirements to the program-technical encryption facilities and electronic digital signature and the interbank settlement procedures.  

· the minimal requirements to the security of electronic payments, to the applicability of the certain protection measures, to the procedures of electronic digital signatures creation and the authenticity test of the digital signatures. The participants of electronic payments may establish additional requirements, rather than those, determined as obligatory (minimal). 

2. The National Bank of the Kyrgyz Republic realizes licensing and regulation of activity of financial and other Institutions which present the services of electronic payments on territory of republic. 

Article 4. Activity of Financial and Other Institutions, which Present the Services of Electronic Payments 

Financial and other institutions, which present services, connected with the electronic payments execution, do the following: 

· register the owners of the electronic digital signatures, which exchange the electronic payment documents; as well as the facilities, which they use for creation of electronic digital signatures and the facilities for checking the authenticity of electronic payment documents; 

· keep the standards of facilities for the electronic digital signatures creation and authenticity control of the electronic payment documents, as well as the standards of documentation for these facilities, in accordance with determined requirements and terms. 

· prepare the conclusions in the role of expert on authenticity of the electronic payment documents on inquiries of legal entities and individuals, executing non cash payments by means of electronic payment documents. 

Article 5. Legislation on Electronic Payments 

1. Relations between the participants of electronic payment systems are regulated by the legislation of the Kyrgyz Republic, normatives of the National Bank of the Kyrgyz Republic and by the bilateral agreements of the parties. 

2. The National Bank of the Kyrgyz Republic publishes the normatives on the organization and execution of electronic payments, execution of which are obligatory for the participants of the electronic payment systems. 

CHAPTER 2. ELECTRONIC PAYMENTS 

Article 6. Legal status of the Electronic Payments 

1. The non cash settlements between the participants can be used in form of electronic payments.  

For the execution of non cash settlements in the Kyrgyz Republic electronic payment documents can be used in accordance with the present Law. Electronic payments are executed on the basis of agreement (contract) between the participants of the payments. 

2. The electronic payments are executed on the basis of agreement (contract) by means of transfer of electronic payment documents from sender to recipient along communication channels. The communication channels may be telephone lines, telegraph and telex connection channels, radio and satellite communication channels as well as own leased lines and cable communication channels of Institutions. Sender and/or recipient may be individuals and legal entities, which are the participants of the electronic payments systems in accordance with the present Law. 

3.The electronic payment, executed in accordance with the determined requirements for formats and procedures of authenticity verification, signed by electronic digital signature has a legal status, equal to the legal status of the paper documents original, confirmed in accordance with the determined requirements, and is accepted as proof in case of judicial and other dispute. 

Article 7. Requirements to the Electronic Payment Agreement. 

Electronic payments are executed on the basis of agreement (contract) between the participants of the settlement. 

The agreement (contract) must be signed in writing and contain as minimum the following crucial issues: type of payment documents, used at payment; rights and obligations of the parties, including obligation on the electronic payments protection (security system); responsibilities of the parties; order and procedures of sending and receiving electronic payments; procedures of authenticity determination of electronic payment documents; biggest possible amount of money, which could be sent and received without a query of authenticity confirmation of the presented documents; amount of fee for the transaction execution; allocation of the responsibilities for risks, appearing in electronic payments execution; procedures of dispute solving by judicial organs and another issues, which do not contradict the present Law and the legislation of the Kyrgyz Republic. 

Article 8. Electronic Payment Document 

1. An electronic payment document is produced on the basis of the primary paper document, issued in accordance with the requirements, determined by the legislation of the Kyrgyz Republic. 

2. At execution of retail payments the documents, confirming the payment (cash receipts, bills, etc.), produced in accordance with the requirements, determined by the legislation of the Kyrgyz Republic can be considered as the primary payment documents. 

3. The electronic payment document contains all the information of the primary paper payment document, necessary for payment execution, must to has a determined format and is confirmed by electronic digital signature  

4. The electronic payment document is considered to be transferred at the moment of receipt confirmation of the transferred electronic payment document in form, determined by the National Bank of the Kyrgyz Republic. 

5. The order of electronic payments execution regulated the separate normatives of the National Bank of the Kyrgyz Republic 

CHAPTER 3. ELECTRONIC PAYMENTS SECURITY 

Article 9. Requirements for the Security of Electronic Transfers. 

1. With the aim of decreasing the risk of unauthorized access to the system of automatic data transfer and the maintenance of it in a working condition, the participants of electronic money transfers must execute and support the procedures of control and protection, as well as procedures against unauthorized access to the messages, making changes in the messages and loss or elimination of messages and also follow the established requirements of authenticity control of the electronic payment documents.  

2. At execution of electronic payments is possible the emergence of risks, which connected with interruption of data exchange technological process, use of the software, application of automation technical facilities and natural factors. The responsibility for these risks is distributed in the agreement. 

Article 10. Protection of Electronic Payments. 

1. For the transmission of the electronic payment documents, the certificates systems of cryptographic protection, as well as other protection facilities, which follow the minimal requirements for the security provision of the electronic payment documents in accordance with the legislation of the Kyrgyz Republic, are used. 

Besides established minimum requests the participants of the electronic payments can install additional facilities and methods connected with a protection of electronic payments. 

2. The participants of the electronic payments must keep secret the content of messages, defined as confidential by the sender, or messages, considered confidential by the legislation of the Kyrgyz Republic.  

Such messages are not subject to disclosure or unauthorized persons and can not be used for any other purposes, other than that which are determined by the participants of electronic payments.  

The participants of the electronic payments must to present of necessary information by the requests judicial, consecutives and taxing authority, in accordance with the requirements, determined by the legislation. 

The participants of electronic payments are responsible for default or wrong execution of the security determined requirement and confidentiality in accordance with the legislation of the Kyrgyz Republic and agreement. 

CHAPTER 4. FINAL PROVISIONS. 

Article 11. Consideration of Disputes, Appearing in Electronic Payments Execution. 

Disputes, which arise in electronic payments execution, are settled by the parties by means of negotiations; and if an agreement can not reached, in court. 

Article 12. Requirements to Registration and Storage for Electronic Payment Documents. 

1. The participants of electronic payments must ensure the safety of information on executed and non executed payments within the same time and on the same terms as in the case of the payment execution on the basis of paper payment documents, including the possibility of production of paper confirmation of execution (non execution) of the funds transfer transaction. 

2. The storage of electronic payments information must ensure the integrity of this information within the time, established by the legislation of the Kyrgyz Republic for the storage. 

Article 13. Introduction of the Present Law. 

The present Law is introduced from the moment of publishing. 

President of the Kyrgyz Republic