Approved by
Resolution No. 2019-П-12/31-2-(НПА)
of the National Bank of the
Kyrgyz Republic Board
as of June 13, 2019
REGULATION
On Working with Bank Accounts, Bank Deposit Accounts Opened in accordance with the Principles of Islamic Banking and Finance
(As amended by the Resolutions of the National Bank of the KR Board No.2021-П-12/14-5-(RLA) dated March 31, 2021, No.2022-П-12/17-5-(RLA) dated March 23, 2022)
This Regulation defines the minimum requirements for the mode of work with bank accounts, bank deposit accounts opened in accordance with the Principles of Islamic Banking and Finance and the procedure for carrying out transactions in them.
This Regulation applies to banks and deposit-taking microfinance companies and credit unions that carry out transactions in accordance with the Principles of Islamic Banking and Finance, including within the framework of the “Islamic Window” (hereinafter referred to as the banks).
This Regulation does not apply to the procedure for opening and closing accounts other than a bank account or bank deposit contract in accordance with the legislation of the Kyrgyz Republic.
CHAPTER 1
General Provisions
1. The right to attract deposits belongs to banks operating on the basis of a license issued by the National Bank of the Kyrgyz Republic (hereinafter referred to as the National Bank).
Bank regulations (policies, regulations, etc.) governing the procedure for working with bank accounts, bank deposit accounts must be approved by the Shariah Council.
2. The internal documents of the bank must reflect all the main provisions concerning transactions with bank accounts, bank deposit accounts:
- the procedure for opening bank accounts;
- the procedure for opening bank deposit accounts;
- conditions for the disposal of funds placed on these accounts;
- the procedure for the payment of funds and accrued remuneration/profit share under bank deposit contracts;
- the rights of the customer and the obligations of the bank to him;
- the procedure for closing bank accounts, bank deposit accounts;
- the procedure for storing information in the bank, etc., in addition, they should contain all types of internal reporting provided by the bank, as well as the procedure for identifying and studying their customers by banks, developed in accordance with the requirements of this Regulation.
3. In order to prevent the transactions related to the legalization (laundering) of criminal proceeds and the financing of terrorist or extremist activities, banks are required to develop policies and procedures for internal control corresponding to the complexity and scale of the bank’s activities, including operations (transactions) from remote access without direct contact with the customer, which are subject to mandatory and full compliance.
4. In order to prevent one bank employee from performing customer service operations from beginning to end, the functions of bank employees should be clearly delineated and reflected in the job descriptions of employees of the relevant departments of the bank. Bank employees are personally responsible for the performance of their duties.
5. When opening an account for a customer, the bank must explain the rules for filling out the prescribed forms of documents and the procedure for calculating the accrued interest/profit share on the deposit, as well as provide other explanations.
6. The basis for opening a bank account and a bank deposit account is the conclusion of a bank account contract and a bank deposit contract, respectively.
Opening a bank account, bank deposit account is carried out only if the bank has received all the documents stipulated by the legislation of the Kyrgyz Republic and regulatory legal acts of the National Bank, and identified the customer and the beneficial owner in accordance with the legislation of the Kyrgyz Republic.
Banks are obliged to comply with the requirements of the legislation of the Kyrgyz Republic, including regulatory legal acts of the National Bank, establishing other requirements not specified in this Regulation, and describing the procedure for opening and maintaining bank accounts, bank deposit accounts, accounting for funds and submitting reports to the National Bank on these accounts, as well as servicing individual legal entities when working with their bank accounts.
7. Banks must comply with the procedure and terms of keeping records containing information on transactions with customers’ funds, as well as information and records related to the identification of the customer and the beneficial owner, established by the legislation of the Kyrgyz Republic. The information in such records should be sufficient to be able to recover information about individual transactions in order to provide appropriate evidence for consideration and investigation, and contain at least the following information: transaction amount, account number, account type, transaction currency, account name, date, type of transaction, purpose of payment. The documents submitted when opening an account must be filed and stored in the bank in a special case file for each customer, together with the original contract in accordance with the requirements of this Regulation.
8. The basis for closing a bank account, bank deposit account is the termination of the bank account contract, bank deposit contract in the manner prescribed by the legislation of the Kyrgyz Republic.
CHAPTER 2
Terms and Definitions Used in this Regulation
9. The following terms and definitions are used in this Regulation:
Bank deposit - funds in national or foreign currency placed by individuals and legal entities in the bank in order to store and receive income for a period either on demand or before the occurrence (non-occurrence) of a circumstance (event) specified in the signed contract.
Bank account - a way of reflecting the contractual relationship between the bank and the customer on accepting a bank deposit and/or the bank’s transactions related to the delivery of banking services to the customer, as provided for by the bank account contract, bank deposit accounts, the legislation of the Kyrgyz Republic, Shariah standards and business customs applied in banking practice.
Wadi’ah Yad Dhamanah is a contract of safe custody, according to the terms of which the bank has the right to dispose the funds entrusted to it and receive profit from their placement. With respect to the Wadi'ah Yad Dhamanah deposit, the demand deposit rules apply.
Qard Hasan is a contract under which one party (the lender) provides the other party with capital (cash) in a loan (storage) on the basis of guaranteed repayment on demand.
Mudarabah is a contract according to which one party (investor) provides capital (funds), and the other party - a Mudarib (bank), accepts this capital and manages it in order to obtain profit, which is proportionally distributed between the parties in accordance with the terms of the contract.
Hibah (remuneration) is a type of material incentive paid to bank depositors who have placed funds on the terms of Qard Hasan, Wadi’ah Yad Dhamanah contracts.
Other terms and definitions used in this Regulation are understood in accordance with their generally accepted meaning in the legislation of the Kyrgyz Republic.
CHAPTER 3
Types of Bank Accounts, Bank Deposit Accounts
10. Bank accounts, bank deposit accounts can be opened and maintained both in national and foreign currencies.
Bank accounts are intended for making payments and settlements with third parties and are subdivided into:
- correspondent accounts;
- settlement (current) accounts;
- special accounts;
- bank deposit accounts.
11. Correspondent account is a bank account that reflects settlements made by one bank on behalf of and at the expense of another bank under the contract.
12. Settlement (current) account is an account intended for keeping funds and making current settlements, including settlements using bank payment cards by legal entities other than banks and individual entrepreneurs (receipts, payments, mutual settlements with other individuals or legal entities, transfers to other financial and credit organizations) under a bank account contract, as well as individuals (residents) - agricultural producers in accordance with the requirements of this Regulation. A current account can be opened by concluding a Qard Hasan contract.
(The second paragraph shall be considered to have lost force in accordance with Resolution No.2022-П-12/17-5-(RLA) of the National Bank Board dated March 23, 2022)
Funds from the settlement (current) account are paid at the first request of the customer without prior notice. All settlement and monetary transactions must be carried out according to payment documents with the obligatory indication of all the necessary details.
All transactions on the settlement (current) account are carried out by order of the customer in accordance with the requirements of the legislation of the Kyrgyz Republic and the Regulation “On Cashless Payments in the Kyrgyz Republic” approved by Resolution No. 420/21/4 of the Government of the Kyrgyz Republic and the National Bank of the Kyrgyz Republic dated September 9, 2005.
13. Special accounts are accounts opened by the bank to legal entities and individuals, intended for accounting and blocking of funds until certain circumstances occur or certain obligations stipulated in the contract are fulfilled in accordance with the requirements of the legislation of the Kyrgyz Republic.
14. Bank deposit accounts are intended for keeping and accumulating funds, as well as for making payments and settlements. Bank deposits may provide for the payment of remuneration. Depending on the terms of the contract, bank deposit accounts can be of the following types:
- A bank deposit on-demand account Qard Hasan/Wadi’ah Yad Dhamanah;
- A fixed-term bank deposit account (hereinafter referred to as the investment account of Mudarabah);
- A deposit contract on other terms of return (may be formed on the basis of an investment agency agreement (hereinafter referred to as an investment account of an agency agreement).
15. A bank on-demand deposit account is an account used for keeping and accumulating funds under an on-demand bank deposit contract, as well as for making payments and settlements. The on-demand deposit account is serviced under the of Qard Hasan/Wadi’ah Yad Dhamanah contract.
According to the terms of the Qard Hasan contract, the depositor provides the bank with funds as a loan on terms of repayment and without charging a fee, giving the customer ability to freely dispose them, and the bank, in its turn, can use the attracted resources in accordance with its investment policy.
A guaranteed profitability is not provided under the Qard Hasan, Wadi’ah Yad Dhamanah contracts, the payment of remuneration (Hibah) is made at the discretion of the bank.
According to the terms of the Qard Hasan and Wadi’ah Yad Dhamanah contract, the bank can provide the account holder with services using a checkbook or payment card.
The Qard Hasan and Wadi’ah Yad Dhamanah contract may also indicate the amount to be paid for the bank’s services on maintaining a current account.
In banking, funds attracted under the terms of the Qard Hasan/Wadi’ah Yad Dhamanah contract constitute the bank’s resource base and are considered as demand deposits.
In order to maintain the required level of current liquidity and the ability to fulfill its obligations in time under the Qard Hasan and Wadi’ah Yad Dhamanah contract, it is necessary to maintain a sufficient amount of funds in cash or on a correspondent account.
A feature of the Qard Hasan and Wadi’ah Yad Dhamanah contract is the guarantee of the bank to return the funds received from customers in full. The customer does not share the risks with the bank and does not claim to participate in the bank’s income.
In addition to the customer’s personal funds, salaries, royalties, pensions, alimony, social benefits, funds from another bank, bills, payments related to inheritance, payments for the sale of personal property belonging to the account holder, remittances and other receipts and payments, including payments for financing, can be credited to the bank on-demand deposit account of individuals opened under the Qard Hasan and Wadi’ah Yad Dhamanah contract. The customer can make payments of a personal nature, including payments for personal goods (services rendered), repayments for financing, utility bills and other similar payments of personal nature from a Qard Hasan and Wadi’ah Yad Dhamanah bank on-demand deposit account of an individual.
16. Mudarabah investment accounts are customer’s accounts that reflect funds raised by a bank based on a Mudarabah contract. Depending on the type of a Mudarabah contract, the investment account can be unlimited or limited. The Mudarabah investment account is used for keeping and accumulating funds and is not intended for making settlements with third parties.
The procedure for distributing profits must be clear and there must be no reason for any uncertainty or disagreement. The profit received under the Mudarabah contract is distributed in the manner prescribed by the contract, in a percentage of the profit received. It is not allowed to determine the profit shares of the parties in the form of a share of the capital of any of the parties or in the form of a fixed amount.
The distribution of the profit share between the depositor and the bank is established by the profit sharing ratio (PSR). The bank must approve the PSR matrix/grid depending on the type of contract, the degree of risk, the size and term of the deposit, as well as methodological guidelines for their calculation.
The share of profit on investment accounts is accrued by each Mudarabah contract for the amount of the deposit from the day following the day it was received by the bank until the day preceding its return to the customer, or its debiting from the customer’s account on other grounds provided for by the legislation of the Kyrgyz Republic.
If losses are incurred during the execution of the Mudarabah contract, the depositor incurs losses in the amount of funds provided to the bank. In this case, the bank does not receive remuneration for its work. This rule of distributing losses applies if the losses have arisen through no fault of the bank.
The Mudarabah contract may be signed in the following types:
1) a limited (special) Mudarabah contract, under which the investor establishes the types of assets or investment objects by the bank. At the same time, a separate contract is signed by the bank and the depositor for each asset/investment object;
2) an unlimited (general) Mudarabah contract, under which the bank is entitled to use the funds provided by the investor in accordance with its investment policy;
3) an open Mudarabah contract, under which the investor has the right to receive the funds provided to him from the bank ahead of schedule (on demand). In this case, the bank pays the investor the profit for the last full period.
Partial contributions to the principal amount of the bank deposit or/and the gradual withdrawal of the principal amount of the bank deposit are possible on the Mudarabah investment account in accordance with the signed bank deposit contract. The bank can set the amount at which, in the event of a gradual withdrawal of the principal amount of the bank deposit, the profit will not be accrued or will be accrued in a smaller amount.
In cases where the depositor does not require to return the amount of the bank deposit under the Mudarabah after the expiration of the term, the contract is considered to be extended on the terms of the Qard Hasan on-demand deposit, unless otherwise provided by the contract.
Upon the expiration of the term of the Mudarabah investment account contract, it can be reissued for a new term with an increase or decrease in the amount of the contribution (deposit).
The bank must provide statements of the depositor’s accounts upon his request no later than 3 (three) business days from the date, on which the request was received.
Holders of investment accounts have the right to full access to all the necessary information regarding their investment accounts, which will help them make a correct and informed decision about their choice of investment accounts to place their funds with the bank, and also have the right to monitor the result of the bank investing their funds, which does not interfere with the bank’s investment management activities.
17. When opening an investment account of the agency agreement, the customer appoints the bank as the agent for managing his funds.
An investment agency agreement is the provision of funds by a customer to a bank to make a profit on a reimbursable or free basis.
If the agency agreement is refundable, then the remuneration should be determined in such a way that it is known, in the form of a fixed amount or in the form of a share of the funds invested. All profit is considered the right of the depositor, except for the case when the expected profit has been determined, and the bank is entitled to receive the amount exceeding it in whole or in part, as an incentive, in addition (bonus) to a certain agency fee.
It is allowed to provide for the condition that, along with the remuneration, the investment agent bank will receive a certain part or all of the excess of the actual profit of the planned indicator as an incentive for the good performance of its functions.
Losses incurred during the execution of the investment agency agreement are covered by the depositor in the amount of the losses incurred, but not more than the amount of funds provided to the bank by him, except for cases of abuse/negligence or cases of violation of the terms of the agency agreement by the bank. In this case, the bank acting on a fiduciary basis is liable for losses. Regardless of the size and reasons for the losses incurred, the bank acting on a fiduciary basis receives an agreed amount of remuneration.
CHAPTER 4
Legal Regime of Bank Accounts, Bank Deposit Accounts
18. Individuals and legal entities have the right to open bank accounts, bank deposit accounts (hereinafter referred to as the account) in one or several banks and manage their funds on these accounts independently.
19. When opening and maintaining accounts, foreign individuals and legal entities have equal rights and obligations with individuals and legal entities of the Kyrgyz Republic, unless otherwise provided by the legislation of the Kyrgyz Republic.
20. The bank does not have the right to open and maintain anonymous accounts, bearer accounts (deposits) and carry out any transactions without identifying the correspondent bank, customers and establishing the beneficial owner in accordance with the requirements of the legislation of the Kyrgyz Republic and this Regulation.
21. The bank must refuse the customer to open an account or carry out transactions against the account if:
- the relevant documents necessary to fulfill the requirements for opening an account and carrying out transactions against it, identifying the customer and establishing the beneficial owner have not been submitted;
- clearly inaccurate documents have been submitted.
At the same time, the bank must, in the prescribed manner, send an appropriate message (stating its suspicions) to the authorized state body in the field of combating the legalization (laundering) of criminal proceeds and financing of terrorist or extremist activities in case of suspicion or if there is reason to suspect that money or property is criminal proceeds or associated with the financing of terrorist or extremist activities, or will be used for this purpose.
If there is the information that a customer participates in terrorist and extremist activities or proliferates weapons of mass destruction, obtained in accordance with the legislation of the Kyrgyz Republic, the bank must, without prior notice to the customer, suspend the operation (transaction) and/or block the funds of this customer for 3 (three ) working days and notify the authorized state body in the field of combating the legalization (laundering) of criminal proceeds and financing of terrorist or extremist activities in accordance with the procedure established by the legislation of the Kyrgyz Republic.
Further carrying out of the suspended operation (transaction) or unblocking of funds is carried out on the basis of the decision of the authorized state body in the field of combating the legalization (laundering) of criminal proceeds and financing of terrorist or extremist activities.
22. When opening and maintaining an account, the bank must comply with the “know your customer” policy in accordance with the requirements specified in Appendix 1 of this Regulation.
23. Opening an account entails the continuing legal relations between the bank and the customer, which cease only after the parties repay their mutual obligations in full under the bank account or bank deposit contract and after the account is closed. A bank account contract is considered to be signed from the date of its signing, and a bank deposit contract - from the date, on which the bank deposit amount is credited by the bank to the bank deposit account.
The bank account contract may provide for the certification of rights to manage funds on the account, electronic means of communication and other documents using analogs of a handwritten signature, electronic signature, facsimile signature (facsimile) in accordance with the Law of the Kyrgyz Republic “On Rights and Guarantees of Persons with Disabilities”, codes, passwords and other means confirming that the order was given by an authorized person.
24. When opening an account, the bank must establish whether the customer is acting in his own interests or in the interests of the beneficial owner. If the customer acts in the interests of the beneficial owner, the bank must identify the beneficial owner in the manner prescribed by the legislation of the Kyrgyz Republic. The bank must request from the customer information about the beneficial owner in accordance with the requirements established by the legislation of the Kyrgyz Republic.
The following can be submitted as documents on the basis of which the customer disposes the funds of the beneficial owner and acts in the interests of the beneficial owner:
- Agency agreement;
- Power of attorney of the beneficial owner, which grants the right to dispose the property and represent his interests;
- A contract on the provision of nominee services signed between the beneficial owner and the nominal owner of capital shares;
- A notarized power of attorney from the beneficial owner that the nominal owner of the securities provides services in the interests of the beneficial owner;
- A general power of attorney from the beneficial owner that the nominee director is authorized to conduct business by the organization;
- Confirmation (statement) of the nominee owner that he is acting in the interests of the beneficial owner (declaration of trust, etc.);
- Confirmation of the beneficial owner on the appointment of the nominee director;
- Certificate of owned shares of capital in the name of the beneficial owner or with a letterhead (handover note) indicating their transfer to the beneficial owner.
This list of documents is not exhaustive. The bank has the right to demand from the customer additional documents and information necessary to identify the beneficial owner and not open an account until the relevant documents are submitted.
25. If the documents submitted to the bank in accordance with the requirements of Clause 24 of this Regulation are issued in a country that is not a member state of The Hague Convention abolishing the requirement of legalization of foreign official documents dated October 5, 1961, they must be legalized at the Consular Service of the authorized body of the Kyrgyz Republic.
26. If the documents submitted to the bank in accordance with the requirements of Clause 24 of this Regulation are issued in a country that is a member state of The Hague Convention, abolishing the requirement of legalization of foreign official documents, dated October 5, 1961, their authenticity must be confirmed by an apostille.
27. If the original document submitted to the bank in accordance with the requirements of this Regulation is drawn up in a foreign language, a notarized translation of the documents into the state or official language of the Kyrgyz Republic must be submitted to the bank.
28. When opening an account, the bank is prohibited from demanding any other documents from the customer, except for those stipulated by the legislation of the Kyrgyz Republic.
29. The customer’s account can be credited with funds received in his name from third parties, indicating the necessary information about his account, subject to the requirements of the legislation of the Kyrgyz Republic.
If the customer opens an account in the name of a third party, which acquires the rights of a depositor from the moment of crediting the money to his account or his first claim to the bank based on these rights, or when he expresses his intention to use such rights to the bank in another way, unless otherwise provided by a bank deposit contract, the bank is obliged to obtain information and documents that allow identifying and examining the specified third party. Upon receipt of a bank deposit in the name of a third party, the bank is obliged to notify this third party of crediting the funds to his account. In cases where a third party, in whose name a bank deposit was made, refused it, the person who entered into a bank deposit contract in the name of a third party has the right to claim the bank deposit back or transfer it to his own name.
30. Funds from the account are issued at the first request of the customer in parts or in full, with the exception of deposits made on other terms of return provided for by the contract. The safety of funds, their issuance at the first request of the customer is guaranteed by the bank.
31. The bank does not have the right to refuse to open an account, except in cases where the bank’s activities have certain specifics or restrictions in activities, as a result of which the bank can open accounts for certain customers or carry out certain settlement operations (for example, in the case when the bank works only with legal entities, or has a limited license), as well as in cases provided for by the legislation of the Kyrgyz Republic.
32. The bank is prohibited from entering into agency agreements, as well as other agreements and transactions with individuals, legal entities and individual entrepreneurs acting as intermediaries for the performance of work or the provision of services related to:
- Opening/closing customer’s accounts;
- Opening/closing a correspondent bank account;
- Debiting funds from customer accounts. Crediting funds to customers’ accounts is possible through fast money transfer systems, provided that the customer’s account is identified;
- Crediting/debiting funds to the bank’s correspondent account;
- Provision of an account for a term bank deposit as a collateral to the bank;
- Carrying out other transactions against customer and bank accounts;
- Purchase/sale of securities for a bank customer.
This prohibition does not apply to banks when concluding with legal entities acting as intermediaries, agency and other agreements on:
- Purchase/sale of securities for the bank;
- Participation of the bank in the system of settlements by bank payment cards in accordance with the Regulation “On Bank Payment Cards in the Kyrgyz Republic”, approved by Resolution No.76/8 of the National Bank of the Kyrgyz Republic Board as of December 9, 2015;
- Participation of the bank in the money transfer system;
- Participation of the bank in the postal savings system;
- The provision of retail banking services by the bank in accordance with the Regulation “On Basic Requirements for the Activities of Commercial Banks When Signing an Agency Agreement for the Provision of Retail Banking Services”, approved by Resolution No.36/7 of the National Bank of the Kyrgyz Republic Board as of May 26, 2010.
33. Information constituting banking secrecy is provided in accordance with the legislation of the Kyrgyz Republic.
34. Accounts may be seized in the cases stipulated by the laws of the Kyrgyz Republic.
When an account is seized, the bank must immediately cease any debit transactions against the account. In the event of a seizure of a certain amount of funds in the account, any expenditure transactions are terminated within the minimum balance in the amount of this amount.
Confiscation of funds from accounts can be carried out only on the basis of a court verdict (resolution) that has entered into legal force.
CHAPTER 5
The Procedure for Opening Bank Accounts Under a Bank Deposit Contract
35. When opening an account under a bank deposit contract, the bank undertakes to accept funds from individuals and legal entities, pay remuneration in the amount and in the manner provided for by the bank deposit contract, and return the bank deposit on the terms and in the manner provided for a deposit of this type by legislative acts of the Kyrgyz Republic and a bank deposit contract, deliver other services provided for by a bank deposit contract.
When opening an account under a bank deposit contract, funds can be deposited in the name of the depositor or in the name of a certain third party, which must also be identified before the transaction and who will be the depositor of the bank in the future.
36. The bank deposit contract must contain the following:
- The subject of the contract;
- Parties to the contract;
- Obligations of the parties;
- The term of the bank deposit, the procedure for calculating and paying remuneration/profit share;
- Procedure of dispute settlement;
- Life of contract;
- Signatures of the parties, and if a contract is signed by a legal entity or individual entrepreneur, then it shall bear a seal (if any);
- Other conditions stipulated hereby.
The contract may provide for other terms and conditions agreed by the parties.
The bank deposit contract must also contain additional requirements established by the legislation of the Kyrgyz Republic.
The contract must be drawn up in the state or official languages at the choice of the customer, and signed in writing in at least 2 (two) copies, one party holding one copy. Failure to comply with the written form of the bank deposit contract entails its invalidity. In this case, one copy is kept in the bank, another is given to the customer. The bank is obliged to provide the contract to the customer before accepting the bank deposit.
37. The person acting on behalf of the customer must provide an identity document, as well as documents confirming that he has the appropriate authority to open an account.
38. Opening of accounts under the bank deposit contract must be carried out in the presence of the depositor (if the depositor is an individual) or a person who has duly executed documents confirming that he has the appropriate authority to open an account (if the depositor is an individual or legal entity), or a person who opens an account in the name of a third party (for example, parents or legal representatives of a minor or third parties), in order to identify him.
38. Opening of accounts under a bank deposit contract should be carried out in the presence of the depositor (if the depositor is an individual) or a person who has duly executed documents confirming that he has the appropriate authority to open an account (if the depositor is an individual or legal entity) , or a person opening an account in the name of a third party (for example, parents or legal representatives of a minor or a third party), for the purposes of his identification.
In the case of identifying a customer in accordance with the requirements of the Procedure for Remote Identification and Verification of Customers, opening accounts under a bank deposit contract is carried out without the personal attendance of the depositor.
(As amended by Resolution No.2021-П-12/14-5-(RLA) of the National Bank of the KR Board dated March 31, 2021)
39. To open a bank account under a bank deposit contract, individuals (residents and non-residents) must submit:
1) an application for opening an account, signed by the customer, which indicates:
- Surname, name, patronymic of the depositor (in accordance with passport data), maiden name (if any);
- Date and place of birth;
- Citizenship;
- Full address of the place of residence (registration) or place of stay, telephone number, fax number, e-mail;
- Information about the identity document (name, series, issuing authority, date of issue of the document), personal number (if any);
- Place of work and occupation;
- Purpose and intended nature of the business relationship with the bank;
- Data of a document confirming the right of a foreign citizen or stateless person to stay (reside) in the Kyrgyz Republic;
- Other information at the discretion of the bank;
2) a document certifying the identity of the customer (the original, from which a copy was made, is provided for review, except for the cases specified in Appendix 1);
2) A document proving the customer’s identity (the original is provided for review, from which a copy has been taken, except for the cases specified in Paragraph 38);
3) Became null and void in accordance with Resolution No.2022-П-12/17-5-(RLA) of the National Bank of the KR Board dated March 23, 2022).
(As amended by the Resolutions of the National Bank of the KR Board года No.2021-П-12/14-5-(RLA) dated March 31, 2021 No.2022-П-12/17-5-(RLA) dated March 23, 2022)
40. Individual entrepreneurs, in addition to the documents specified in Clause 39 of this Regulation, must provide the bank with:
1) a copy of a document in the established form issued by an authorized body and confirming the fact of state registration (re-registration) (certificate) as an individual entrepreneur, or a copy of a document confirming the fact of engagement in entrepreneurial activity without state registration (patent) in cases stipulated by the legislation of the Kyrgyz Republic;
2) a certificate of the tax service body on the fact of tax registration of the taxpayer;
40. Individual entrepreneurs, in addition to the documents specified in Paragraph 39 hereof, shall provide the bank with the following list of documents on paper or in the electronic format:
1) A copy of the standard document, issued by the authorized body and confirming the fact of state registration (reregistration) (certificate) as an individual entrepreneur, or a copy of the document confirming the fact of entrepreneurial activity without state registration (patent) in the cases provided for by the legislation of the Kyrgyz Republic;
If there is an electronic patent of an individual entrepreneur, a bank official should check the authenticity of the electronic patent on paper or in the form of an electronic document by scanning the QR code printed on the electronic patent using a mobile or other device with the appropriate software, or verify the patent data through information systems of the relevant state bodies of the Kyrgyz Republic.
Note: A QR code is a matrix code (two-dimensional barcode) containing information about a patent, created specifically to be recognized by mobile devices.
2) Peasant (farm) enterprises submit to the bank documents certifying the right to use land, or a document on the availability of livestock in accordance with the requirements of the legislation of the Kyrgyz Republic;
(As amended by Resolution No.2022-П-12/17-5-(RLA) of the National Bank of the KR Board dated March 23, 2022)
3) Became null and void in accordance with Resolution No.2022-П-12/17-5-(RLA) of the National Bank of the KR Board dated March 23, 2022)
When opening a bank account under a bank deposit contract, a bank official should verify and confirm the availability of documents, according to the list specified in this paragraph. At the same time, the fact of verification of the documents received on paper or in the electronic format through the information systems of the relevant state bodies of the Kyrgyz Republic or through a mobile or other device with the appropriate software should be confirmed (recorded) in the paper or electronic file of a customer.
(As amended by Resolution No.2021-П-12/14-5-(RLA) of the National Bank of the KR Board dated March 31, 2021)
41. If the customer (parent, other legal representative or third party) opens an account in favor of a minor, he must submit a statement containing information about the person in whose favor the account is opened; information about the person opening the account (identity document of the parent, other legal representative or third party); identity document of a minor (birth certificate or passport); a signature card with specimen signatures of persons entitled to dispose the funds deposited in the account.
A bank deposit made in the name of a minor is disposed by:
- parents or legal representatives until a minor reaches the age of 14;
- the minor himself/herself upon reaching 14 years of age.
42. To open a bank account under a bank deposit contract, legal entities (residents and non-residents) must submit the following documents, with the exception of cases stipulated by separate decisions of the National Bank:
1) an application for opening an account signed by the persons indicated in the signature card, authorized to sign contracts and financial documents with the right of the first and second signatures and certified by the seal of the legal entity, which must contain:
- Full name, as well as abbreviated name and name in a foreign language, if any;
- Information on state registration: date, number, name of the registering authority, place of registration;
- Taxpayer identification number;
- Payer codes in accordance with the All-Republican Classifier of Enterprises and Organizations, developed by the National Statistical Committee of the Kyrgyz Republic;
- Location;
- Postal address;
- Contact telephone and fax numbers;
- Kind of activity;
- Purpose and intended nature of the business relationship with the bank;
- Other information at the discretion of the bank;
2) permission of the Central Treasury of the Ministry of Finance of the Kyrgyz Republic to open a bank account for state bodies, enterprises and institutions financed from the state budget in accordance with the requirements as specified in the legislation of the Kyrgyz Republic;
2) Peasant (husbandry) farms provide the bank with documents certifying the right to land use, or a document on the availability of livestock in accordance with the requirements of the legislation of the Kyrgyz Republic;
(As amended by Resolution No.2022-П-12/17-5-(RLA) of the National Bank of the KR Board dated March 23, 2022)
3) Became null and void in accordance with Resolution No.2022-П-12/17-5-(RLA) of the National Bank of the KR Board dated March 23, 2022)
4) a copy of the constituent documents, depending on the organizational legal form of the organization with amendments and additions, certified by the seal of the legal entity and signed by the head;
5) in cases where a legal entity carries out activities subject to compulsory licensing in accordance with the legislation of the country of origin, it shall provide a copy of the license certified in accordance with the established procedure. If the legislation of the Kyrgyz Republic provides for the granting of a license after opening an account, a copy of the license is provided after it is received;
6) a certificate from the tax service body on the fact of tax registration of the taxpayer;
7) legal entities registered in the FEZ must additionally submit a document confirming the registration of the legal entity with the statistics authorities of the Kyrgyz Republic;
8) a signature and seal imprint card, certified by a notary (the minimum requirements for this document are given in Appendix 2); documents confirming the authority of the persons indicated in the card to dispose the funds on the account;
9) a document proving the identity of the person authorized to dispose the funds of the legal entity (the original, from which a copy was made, is provided for review, except for the cases given in Appendix 1).
9) An identity document of a person authorized to manage the funds of a legal entity (when serving in person, the original, from which a copy was taken, is provided for review).
When opening a bank account under a bank deposit contract, a bank official should verify and confirm the availability of documents, according to the list specified in this paragraph. At the same time, the fact of verification of the documents received on paper or in the electronic format through the information systems of the relevant state bodies of the Kyrgyz Republic or through a mobile or other device with the appropriate software should be confirmed (recorded) in the paper or electronic file of a customer.
(As amended by Resolution No.2021-П-12/14-5-(RLA) of the National Bank of the KR Board dated March 31, 2021)
43. Branches and representative offices of legal entities (residents and non-residents) carrying out economic activities in the Kyrgyz Republic are required to provide the bank with the following documents in addition to the documents listed in Clause 42 hereof in order to open a bank account under the bank deposit contract:
1) a copy of the constituent documents of the parent organization with amendments and additions, certified by a notary or by the seal of a legal entity and signed by the head in the case when notarization is impossible according to the legislation of the country of origin;
2) a copy of the document with amendments and additions, on the basis of which the unit carries out its activities (for example, the Regulations on the branch, etc.), certified by a notary or the seal of the branch/representative office and signed by the head in the case when notarial certification is impossible in accordance with the legislation of the country of origin;
3) a document with a list of transactions and official consent from the legal entity to carry out these transactions, if this is not reflected in the Regulations on the structural unit and/or in the power of attorney issued to the head of the structural unit.
44. To open a bank account under the bank deposit contract, the international organizations, their projects, diplomatic and consular missions operating in accordance with international agreements ratified in accordance with the established procedure are required to provide the following documents in addition to the documents listed in sub-clause 1 of Clause 42 of this Regulation, unless another procedure for opening an account is provided for in the relevant international treaty:
1) An international treaty, ratified by the Jogorku Kenesh of the Kyrgyz Republic, within the framework of which an international organization, its project, diplomatic or consular representation operates;
2) Regulations on the international organization or its project (if any);
3) An order (contract, letter to the corresponding superior body), confirming the authority of persons to sign contracts and financial documents with the right of the first and second signature;
4) a letter from the authorized state body (Ministry of Foreign Affairs of the Kyrgyz Republic) confirming the accreditation of the international organization (its project) and the heads/managers of the international organization (its project);
5) signature cards, certified by the authorized state body or the embassy of the relevant country in the Kyrgyz Republic, the resident of which is the international organization or its project.
45. Opening of a special account requires the same documents to be submitted to the bank as for opening of a bank account. The procedure for working with special accounts is determined by the legislation of the Kyrgyz Republic and the internal documents of the bank.
46. After signing the bank deposit contract with the customer, the bank is obliged to issue him a document certifying the right to claim the amount deposited to the bank and the remuneration/profit share determined by the contract (deposit document), drawn up in the name of the bank’s depositor.
The deposit documents are a savings/deposit certificate, a depositor’s book (savings book), a contract or other documents approved by the bank.
The procedure for drawing up and issuing a deposit document to a customer must comply with the legislation of the Kyrgyz Republic.
CHAPTER 6
The Procedure for Opening Bank Accounts Under a Bank Account Contract
47. When opening an account under the bank account contract, the bank undertakes to accept funds received in favor of the customer, fulfill the customer’s orders to transfer (issue) the appropriate amounts of funds to the customer or third parties and deliver other services provided for by the bank account contract.
48. The bank account contract must contain the following:
- The subject of the contract;
- The order of disposing funds placed in the bank;
- Conditions for the delivery of services by the bank and the procedure for their payment.
The bank account contract may provide for other conditions agreed by the parties.
The bank account contract must also contain additional requirements established by the legislation of the Kyrgyz Republic.
Opening an account for an individual entrepreneur under a bank account contract must be carried out in the presence of the depositor himself or a person who has properly executed documents confirming that he has the appropriate authority to open an account in order to identify him.
Opening an account for a legal entity under a bank account contract must be carried out in the presence of a person who has properly executed documents confirming that he has the appropriate authority to open an account in order to identify him.
When opening a settlement (current) account under a bank account contract, residents and non-residents must submit the same documents as the ones for opening an account under a bank deposit contract for residents and non-residents, respectively.
49. The order of the bank’s work with correspondent accounts is determined in accordance with the requirements specified in Appendix 3.
CHAPTER 7
Reissuance and Closure of a Bank Account,
Bank Deposit Account
50. When reissuing an account in connection with the reorganization of a legal entity (consolidation, merger, split-up, spin-off, transformation), the account holder shall submit to the bank the same documents as the ones when opening an account for a new legal entity.
When the name is changed, not caused by the reorganization, as well as when the subordination is changed, an application from the account holder notifying the changes, a copy of the decision of the supreme governing body and other documents confirming the re-registration of the name in the prescribed manner are submitted to the bank.
When changing the name and subordination, the account holder submits a new notarized signature and seal imprint card.
51. When reissuing an account in case of liquidation, the bank must be provided with:
- the decision of the supreme governing body of the legal entity or its authorized body, and in case of bankruptcy - the decision of the meeting of creditors (in case of out-of-court declaration of bankruptcy) or a court decision indicating the full name of the special administrator (liquidator);
- a notarized signature and seal imprint card.
52. Closing an account is carried out at the request of the customer, unless otherwise provided by the legislation of the Kyrgyz Republic or by a contract. The customer’s file must indicate the basis for closing the account.
The balance of funds on the account is issued to the customer or, upon his written instruction, is transferred to another account no later than 5 (five) business days.
The Bank notifies the customer at the last known address and/or via a telephone/electronic message to the customer’s mobile number/e-mail about the need to receive the balance of funds, and in the absence of the customer and/or lack of confirmation of receiving the mobile/electronic message, the balance of funds is kept on system accounting (on the balance sheet) of the bank. At the same time, funds should be accounted for on a separate consolidated account in the group of on-demand bank deposits (for microfinance companies, credit unions that attract deposits - in the group of deposits) with mandatory non-systemic accounting for each customer in accordance with the legislation of the Kyrgyz Republic.
53. Funds of legal entities under a bank account contract may be recorded on a separate consolidated account for at least 3 (three) years.
After the expiration of the specified period, if the probability of an outflow of funds in connection with the customers’ request for a refund of funds is low, the bank has the right to write off the above obligations from the balance sheet and take them into account indefinitely with mandatory non-systemic accounting for each customer.
If the customer applies for a refund under the bank deposit contract after debiting from the balance sheet, the bank is obliged to refund the money to the customer at its own expense.
54. The bank has the right to terminate the bank account or bank deposit contract on an unilateral basis with the obligatory fixation of this condition in the contract and notifying the customer 1 (one) calendar month before closing the account if:
- the amount of funds placed in the customer’s account will be lower than the minimum amount stipulated by the bank account contract;
- there are no funds on the customer’s account during the period specified in the contract, or no transactions were made on the account at the customer’s order;
- the customer has not submitted the relevant documents necessary to fulfill the requirements of identification and verification of the customer and to establish the beneficial owner, carry out transactions against the account;
- the customer has not provided the relevant documents required for carrying out transactions against the account, confirming the economic feasibility of the transaction carried out and the validity of the customer’s real economic activity;
- unreliable documents have been submitted.
If there is the information that a customer participates in terrorist and extremist activities or proliferates weapons of mass destruction, obtained in accordance with the norms of the legislation of the Kyrgyz Republic, the bank must, without prior notice to the customer, block the funds of this customer for 3 (three ) working days and notify the authorized state body in the field of combating the legalization (laundering) of criminal proceeds and financing of terrorist or extremist activities in accordance with the procedure established by the legislation of the Kyrgyz Republic.
Further unblocking of funds is carried out on the basis of the decision of the authorized state body in the field of combating the legalization (laundering) of criminal proceeds and financing of terrorist or extremist activities.
55. If the customer’s bank account, which has been closed, is credited with funds:
1) from the holder of a previously closed account - the bank may sign a new bank account or bank deposit contract with mandatory compliance with the customer’s identification requirements established by this Regulation;
2) from a third party in the form of cash - the bank should not accept cash;
3) from a third party in the form of a non-cash payment - the bank must return the funds back to the sender with a note about closing the account within the next working day.
|
|
Appendix 1 to the Regulation On Working with Bank Accounts, Bank Deposit Accounts Opened in accordance with the Principles of Islamic Banking and Finance |
REQUIREMENTS
To the “Know Your Customer” Policy
1. The “Know Your Customer” Policy defines the customer due diligence process and includes:
1) the procedure for identifying the customer and establishing the beneficial owner when opening a bank account, bank deposit account.
Information about the customer and the beneficial owner obtained as a result of identification is recorded in the questionnaires (dossiers) of the customer and the beneficial owner, drawn up in accordance with the requirements of the authorized state body in the field of combating the legalization (laundering) of criminal proceeds and financing of terrorist or extremist activities;
2) verification of customer’s data after opening a bank account;
3) tracking of transactions on the customer’s account and other activities at the discretion of the bank.
2. The customer must provide a complete package of required documents for opening an account and/or carrying out a bank transaction.
3. The customer identification procedure involves establishing the identity of the customer based on an identity document with a photo (for minors - without a photo), identifying the beneficial owner, collecting information about the customer and the beneficial owner in accordance with the Regulation.
4. If a third party opens a bank account in the name of a customer, the bank must receive information and documents from the third party to identify and examine the customer in whose name the account is opened and the third party opening the account, in accordance with the requirements of this Regulation.
The opening of an account by a third party under a bank account contract in the name of a customer requires the submission of documents certifying the authority to open and/or dispose an account, drawn up in accordance with the requirements of the legislation of the Kyrgyz Republic. The submission of such documents is not required for a representative of a legal entity authorized to open accounts in accordance with the legislation of the Kyrgyz Republic, or the constituent documents of this legal entity, as well as an individual authorized to open accounts in accordance with the legislation of the Kyrgyz Republic (parents, other legal representatives or third parties).
When opening a bank account and carrying out transactions against the account of a customer-legal entity, the bank must also verify the authenticity of individuals (on the basis of an identity document) entitled to open and/or dispose funds placed in the customer’s account.
The bank’s transactions related to the transfer/withdrawal of funds from the customer’s account must be carried out in the presence of the customer himself (the depositor, if the depositor is an individual) or a person who has properly executed documents confirming that he has the appropriate authority to execute the order on the account (if the depositor is an individual or legal entity). This requirement does not apply to transactions carried out from remote access without direct contact.
If the customer has submitted a payment order to the bank in advance, which was registered in accordance with the established procedure on the day of application indicating a specific date for the transfer of funds, then, the presence of the customer is optional on the day of the transfer.
At the same time, the bank must take the necessary measures in order to minimize the bank’s operational risks, including those associated with fraud.
5. The following documents are accepted to verify the identity of individuals:
1) for citizens of the Kyrgyz Republic:
- Passport of a citizen of the Kyrgyz Republic (ID card);
- A regular passport (passport for traveling abroad) of a citizen of the Kyrgyz Republic with a stamp of a diplomatic mission or consular office of the Kyrgyz Republic in their regular passport on consular registration or permanent residence and a valid residence permit of the host country, as well as a note on marital status;
- Birth certificate (for opening an account in favor of minors under the age of 14, as well as for opening an account for minors themselves between the ages of 14 and 16);
- identity card of an officer, warrant officer or military card of an army conscript.
2) for foreign citizens:
- Passport of a foreign citizen or other document established by law or recognized in accordance with international treaties of the Kyrgyz Republic as an identity document;
- A document confirming the right of a foreign citizen or stateless person to stay (reside) in the Kyrgyz Republic: residence permit, temporary residence permit, visa or other document issued in accordance with the procedure established by the legislation of the Kyrgyz Republic, for refugees - refugee certificate.
2) For foreign citizens:
- Passport of a foreign citizen or other document established by law or recognized in accordance with international agreements of the Kyrgyz Republic as an identity document;
- A document confirming the right of a foreign citizen or stateless person to stay (reside) in the Kyrgyz Republic: a residence permit, temporary residence permit, visa or other document issued in accordance with the procedure established by the legislation of the Kyrgyz Republic, for refugees - a refugee certificate.
(As amended by Resolution No.2021-П-12/14-5-(RLA) of the National Bank of the KR Board dated March 31, 2021)
6. Became null and void in accordance with Resolution No.2021-П-12/14-5-(RLA) of the National Bank of the KR Board dated March 31, 2021)
7. When establishing relations with a customer-legal entity (resident, non-resident) for carrying out operations (transactions) from remote access without direct contact with the customer, the bank must request from the customer documents confirming the customer’s economic activities in the Kyrgyz Republic (agreements, contracts, customs declarations, tax declarations, etc.) in addition to the information in accordance with this Regulation.
8. To carry out operations (transactions), the bank must provide the customer’s obligations to comply with the legislation on countering the financing of terrorism and legalization (laundering) of proceeds from crime, as well as on the provision of supporting documents on the transactions carried out at the request of the bank in the bank account, bank deposit contract.
9. When studying the documents, in particular, constituent documents of a legal entity and documents confirming its state registration, banks should pay special attention to the legalization of documents, and study the following in order to insight their customer more thoroughly:
- All constituent documents of the customer-legal entity, including all registered changes and additions to them, as well as other necessary documents confirming the state registration of the customer as a legal entity;
- The composition of the founders (participants) of the legal entity, defining the list of persons who have the ability to influence decision-making by the bodies of the legal entity;
- The structure of the governing bodies of the legal entity and their powers.
10. In accordance with the procedure established by the internal documents of the bank, and within a period not exceeding 5 (five) business days after opening a bank account, a bank employee must verify the information specified:
1) in the application of an individual using at least one of the following methods:
- Confirmation of information from official documents., The following can be used as a document for confirmation: birth certificate, passport, identity documents (for foreign citizens and stateless persons - foreign citizen’s passport, residence permit, temporary residence permit, refugee certificate; identity card of an officer, warrant officer or military card of an army conscript);
- Contacting the customer by phone, letter or e-mail to confirm the information provided by the customer. In this case, the disconnected phone, returned letters or non-working e-mail addresses should cause the continuation of verification of the information received;
- Confirmation of the legality of the customer’s documents, for example, through the embassies, representative offices of the Kyrgyz Republic, notary;
- By another method at the discretion of the bank;
2) in the application of a legal entity, using at least one of the following methods:
- Obtaining information from a state body in order to verify the declared documents, whether the legal entity was closed, liquidated or is in the process of liquidation;
- Contacting the customer by phone to confirm information after opening an account;
- By another method at the discretion of the bank.
11. The bank must initiate customer verification if the bank has doubts about the reliability of the information obtained in the identification process, and also if:
- there is a significant transaction (for example, for an amount exceeding the average balance or turnover on the customer’s account) and/or a transaction that is not typical for the customer’s business;
- there are significant changes in the procedure for conducting work on the customer’s account;
- the bank realizes that the available information about the customer is insufficient for it.
In this case, the bank should undertake additional inquiries or reconciliation of information, which may include the following:
- Personal recommendations (for example, from a regular customer of the bank);
- Recommendations from the bank that previously served this customer;
- Certificate from the place of work, official confirmation of the position held (where applicable).
12. When carrying out transactions against a bank account, the customer must indicate the purpose of the payment and provide the bank with payment documents drawn up in accordance with the requirements established by the regulatory legal acts of the Kyrgyz Republic. If the bank has doubts about the economic feasibility and/or legality of the transaction, the bank has the right to require the customer to provide documents confirming the legality and economic feasibility of the transaction. Such documents can be invoices issued to the customer, contracts signed by the customer, payment documents (for example, invoices), etc.
If the customer refuses to provide the required documents, the bank must refuse to carry out the transaction against the account. This condition must be stipulated in the bank account contract between the bank and the customer.
13. The bank must constantly monitor transactions against customer accounts. The bank must be aware of the normal and reasonable activities on the accounts of its customers in order to identify transactions that are not typical of this customer’s activities.
The bank should pay attention to economically or commercially irrational transactions of the customer, transactions with large amounts of cash (for example, exceeding the average turnover for the transactions and operations of the given customer) and other transactions that do not correspond to the usual practice of the customer.
In order to recognize unusual or suspicious transactions, the bank should establish key indicators of such accounts, taking into account general information about the customer, for example, information about the country of origin and source of funds, type of transaction and other risk factors.
For all accounts, banks are advised to install information systems to recognize unusual or suspicious transactions.
14. For unusual or suspicious transactions, the bank must determine whether the customer is acting on behalf of another person and then take steps to obtain data to identify that other person’s beneficial owner.
In determining the beneficial owner of legal entities, special consideration should be given to shareholders, signatories or other persons who have a significant share of the capital or otherwise exercise control over the customer. If the owner is another legal entity, the bank needs to identify the owners or persons exercising control over this legal entity.
If necessary, the bank can use sources of information that are legally available to it.
15. The conclusions made by the bank in relation to suspicious transactions must be documented and stored for at least 5 (five) years from the date of the transaction.
|
|
Appendix 2 to the Regulation On Working with Bank Accounts, Bank Deposit Accounts Opened in accordance with the Principles of Islamic Banking and Finance |
MINIMUM REQUIREMENTS
to a Signature and Seal Imprint Card
1. A signature and seal imprint card is the main document confirming the powers of certain officials of a legal entity to dispose the funds placed in its account, as well as confirming the authenticity of the signatures of the above officials.
2. The purpose of the card and its necessity are primarily due to the fact that the signature is a mandatory requisite of the documents that serve as the basis for the movement of funds through the account of a legal entity. Individuals entitled to the first and second signatures are indicated in the signature and seal imprint card. The head and/or other persons authorized by him have the right of first signature. The second signature is granted to the chief accountant and/ or other authorized persons. The right of the first signature cannot be granted to the chief accountant and other persons who have the right of the second signature.
These powers are granted on the basis of constituent documents, or orders of the heads of the relevant legal entities, branches or representative offices, or other documents on the basis of which such powers were granted. If there are no persons in the staff of a legal entity, branch or representative office who can be granted the right of a second signature, the document is accepted by the bank with a sample of only the first signature, whereof a corresponding entry is made in this document.
3. The documents with samples of signatures and seal imprints must contain a seal imprint of a legal entity, branch or representative office of a legal entity.
This requirement does not apply to non-resident legal entities of the Kyrgyz Republic, their branches and representative offices that do not have a seal due to the specifics of the legislation of the country of origin of such legal entities.
4. The signature and seal imprint card must include a sample of a clearly distinguishable seal imprint assigned to a legal entity, in which its name must necessarily correspond to the registration name. It is forbidden to take samples of seal imprints intended for special purposes (“personnel department”, “for the package” and others).
5. The signature and seal imprint card must contain a note of the bank on the validity period of the identity document of the persons authorized to dispose the funds of the legal entity.
6. The bank shall be obliged to demand notarization of the signatures of individuals included in the document with sample signatures and seal imprints. In settlements where there are no notaries, signatures of individuals included in a document with samples of signatures and seal imprints are certified by the local executive authority.
7. In case of renaming a legal entity, loss or wear of the seal, the bank has the right to provide the customer with the necessary period to make a new seal. During the period of making a seal, the bank and the customer establish the procedure for processing payment documents without the customer’s seal, which must be specified in the contract.
8. The required number of copies of documents with signature specimens and seal imprints submitted by the customer to open an account is determined by the bank.
In this case, one of the copies must be constantly kept by the operational employee of the bank, the other - in the file of the bank customer. The rest of the copies are kept in the order established by the internal rules of the bank.
8. The required number of document copies with specimens and seal imprints submitted by a customer for opening an account is determined by the bank.
In this case, one of the copies should always be kept in the case bank customerґs file. The other copies in paper or electronic form are stored in the manner prescribed by the internal rules of the bank. An electronic version of the card with specimens and seal imprints should be stored in the banks automated system.
(As amended by Resolution No.2021-П-12/14-5-(RLA) of the National Bank of the KR Board dated March 31, 2021
9. When replacing at least one signature specimen or seal imprint, a new document with signature specimens and seal imprint, certified in accordance with the procedure specified in this Regulation, is submitted to the bank.
10. When changing officials of a legal entity authorized to dispose the funds of a legal entity in its account, a document is submitted to the bank confirming the authority of new officials of a legal entity to dispose the funds of a legal entity, and a new document with signature specimens and seal imprints, certified in in the order specified in this Regulation.
|
|
Appendix 3 to the Regulation On Working with Bank Accounts, Bank Deposit Accounts Opened in accordance with the Principles of Islamic Banking and Finance |
REQUIREMENTS
for the Bank on Working with Correspondent Accounts
1. Correspondent accounts are subdivided into two types: “loro” account - an account opened in a bank in the name of its correspondent bank; “nostro” account - a bank account opened with its correspondent bank. A “nostro account” with a bank is a “loro” account with a correspondent bank.
2. This Regulation does not govern the procedure for the work of the bank with a correspondent account opened with the National Bank.
3. The bank does not have the right to establish direct correspondent relations with banks that are registered in offshore zones, with their affiliates, subsidiary banks and separate divisions that are not independent legal entities, as well as registered in states or territories that provide preferential tax treatment and/or not providing for disclosure and/or provision of information to banking supervisors in accordance with the requirements and recommendations of the Basel Committee on Banking Supervision. The list of offshore zones is determined in accordance with Resolution No.13/2 of the National Bank Board “On the Establishment of Requirements for the Identification of Entities and the List of Offshore Zones” dated April 16, 2003.
This restriction does not apply to the establishment of direct correspondent relations with branches registered in offshore zones, which parent organizations are located (registered) outside the offshore zones.
4. The bank has no right to establish or continue correspondent relations with shell banks. The bank should also take precautions against transactions and operations with foreign correspondent banks allowing shell banks to use their accounts.
If the bank establishes correspondent relations with banks from states and territories that do not apply or insufficiently apply the recommendations of the intergovernmental organization (group) on the development and implementation of international standards for combating money laundering, financing of terrorism and the proliferation of weapons of mass destruction (FATF), the bank increases the risk of being involved in legalization (laundering) of criminal proceeds and financing of terrorist or extremist activities.
5. The bank has no right to establish or continue correspondent relations on accounts in national and foreign currencies with resident banks.
6. Clause 5 does not apply to guarantee accounts in foreign currency opened for resident banks in order to make settlements with international payment systems serving transactions in plastic cards.
7. Clause 5 does not apply to accounts in foreign currency opened for resident banks created as a result of re-registration of microfinance companies with a bank in order to ensure the implementation of core activities. These accounts may be valid until a correspondent account with a non-resident bank is opened by a resident bank created as a result of re-registration of microfinance companies with a bank, but no more than 6 (six) months from the date of obtaining a banking license.
8. In all cases of establishing correspondent relations, the bank must take the following measures in relation to the correspondent bank with which the bank intends to establish correspondent relations:
- determining the fact that the correspondent bank was established in its country in accordance with the legislation;
- establishing the obligations and powers of the parties on measures taken in order to counteract the legalization (laundering) of criminal proceeds and the financing of terrorist or extremist activities in the contract on correspondent relations;
- receiving the annual financial report of the correspondent bank (with the conclusion of the audit commission);
- analysis of the measures used by the correspondent bank in order to counter the legalization (laundering) of criminal proceeds and the financing of terrorist or extremist activities, including on the basis of information obtained from conversations with employees of the correspondent bank;
- analysis of reports on assigning a credit rating to a correspondent bank (if there is information on the report, which is available to the public);
- determining the main lines of business of the correspondent bank;
- analysis of the financial condition of the correspondent bank;
- demanding information on the availability of such customers as banks shells, banks registered in the territory of offshore zones from the correspondent bank;
- determining whether the correspondent bank is public or private;
- identification and verification of the main owners of private correspondent banks;
- assessing the reputation of the correspondent bank and determining the presence of a supervisory authority in the field of combating the legalization (laundering) of criminal proceeds and financing of terrorist or extremist activities on the basis of publicly available information;
- identification and verification of the correspondent bank’s data.
When opening a “loro” account, the bank must additionally request the following documents from the correspondent bank:
- A statement/letter of intent to establish correspondent relations;
- A copy of the document confirming the registration of the correspondent bank as a legal entity in the country of origin, legalized and certified in accordance with the requirements of the legislation of the Kyrgyz Republic;
- A copy of the license certifying the right of the correspondent bank to carry out transactions that the bank intends to carry out within the framework of the established correspondent relations, legalized and certified in accordance with the requirements of the legislation of the Kyrgyz Republic;
- Information on the expected activity of the correspondent bank, which will be carried out through this correspondent account.
After establishing correspondent relations, the bank must track information about the correspondent bank on the issues specified in this clause. If the bank detects that the correspondent bank has failed to comply with measures to counter the legalization (laundering) of criminal proceeds and the financing of terrorist or extremist activities, the bank should take appropriate measures up to the termination of correspondent relations.
9. The decision to establish correspondent relations, including opening a correspondent account, must be made by the head of the bank or a collegial body headed by a member of the Bank’s Management Board, whose competence includes making decisions on this issue. This procedure for making decisions on the establishment of correspondent relations should be reflected in the bank’s internal documents.
10. If the correspondent bank is registered in the territory of a country that is a member of the FATF and has a long-term credit rating set by the rating agency Standard and Poor's Corporation not lower than “BB”, or a rating corresponding to this value set by the agency Moody's Investors Service or Fitch IBCA, the bank may establish simplified procedures for assessing the creditworthiness, reputation and analysis of the financial condition of the correspondent bank.
11. All the information related to the establishment of correspondent relations must be documented and stored for at least 5 (five) years from the date, on which the correspondent relationships were terminated.