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Appendix

to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated December 9, 2015 No. 76/9

REGULATIONS  

on the establishment and operation of microcredit companies and microcredit agencies 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 5, 2016 No. 5/1, February 24, 2016 No. 10/4, May 17, 2017 No. 19/14, June 15, 2017 No. 2017-P-12/25-11, February 27, 2019 No. 2019-P-33/9-7, July 8, 2020 No. 2020-P-12/39-1, September 28, 2021 No. 2021-P-33/53-8) 

The Regulation on the Establishment and Operation of Microcredit Companies and Microcredit Agencies (hereinafter referred to as the Regulation) determines the procedure for the establishment and licensing of microcredit companies (hereinafter referred to as MCC) and microcredit agencies (hereinafter referred to as MCA), including MCCs and MCAs that carry out operations in accordance with Islamic principles banking and financing (taking into account the special terminology provided for by banking legislation), as well as the requirements for officials of the MCC and MCA, the procedure for creating separate structural divisions, making changes and additions to the constituent documents of the MCC and MCA, the procedure for expanding the activities of the MCC.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

1. General Provisions 

1. An MCC is created in any organizational and legal form of a commercial organization provided for by the legislation of the Kyrgyz Republic.

The MCA is created in the organizational and legal form of a non-profit organization provided for by the legislation of the Kyrgyz Republic, with the exception of political parties, trade unions and religious organizations.

2. MCC/MCA receives the status of a legal entity from the moment of state registration in a single authorized state body that registers legal entities.

3. Founders (participants, shareholders) of an MCC and founders (participants) of an MCA may be individuals and legal entities - residents or non-residents of the Kyrgyz Republic in accordance with the requirements of the Law "On Microfinance Organizations in the Kyrgyz Republic".

4. To start its activities and / or agency functions of donors, the MCC/MCA must a ( o) obtain a certificate from the National Bank of the Kyrgyz Republic (hereinafter referred to as the National Bank) on accounting registration (hereinafter referred to as the certificate).

5. MCC/MCA carries out its activities on the basis of constituent documents that meet the requirements of the civil legislation of the Kyrgyz Republic and the Law "On Microfinance Organizations in the Kyrgyz Republic".

6. The charter of the MCC/MCA should contain provisions regulating the achievement of the goal established by Article 2 of the Law "On Microfinance Organizations in the Kyrgyz Republic", including in accordance with the Islamic principles of banking and financing (for an MCC/MCA intending to ( it is possible) to carry out activities in accordance with Islamic principles of banking and financing), list of operations, main region of activity, total maximum amount of microcredit (financing in accordance with Islamic principles of banking and financing) issued to the same person or group of related persons , in accordance with the regulatory legal acts of the National Bank, as well as other issues established by the civil legislation of the Kyrgyz Republic.

7. On the basis of the relevant certificate of the National Bank, the MCC/MCA can carry out operations in accordance with the Islamic principles of banking and financing, with the exception of attracting funds from individuals and / or legal entities under the transactions " Kard-Hasan " and "Mudaraba".

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

8. The minimum authorized capital of an MCC must be at least 5,000,000 (five million) soms.

9. The authorized capital of an MCC is formed only in the national currency of the Kyrgyz Republic at the expense of the funds of the founders (participants, shareholders) in accordance with the provisions of the Law "On Microfinance Organizations in the Kyrgyz Republic".

10. Documents provided by the MCC/MCA in accordance with the requirements of these Regulations shall be submitted in the state and/or official languages of the Kyrgyz Republic:

- to the Central Office of the National Bank - MCC/MCA, located in Bishkek and Chui region;

- to the regional departments of the National Bank - MCC/MCA, located in the regions of the Kyrgyz Republic, except for the Chui region;

- to the representative office of the National Bank in Batken region - MCC/MCA located in Batken region.

11. Each copy of the founding document or other decision of the MCC/MCA, provided to the National Bank in accordance with these Regulations, containing more than one sheet, must be individually stitched, numbered and signed by the head of the MCC/MCA or another authorized person. At the same time, another authorized person must also provide a copy of the relevant document on his authority to sign and submit such documents to the National Bank.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated September 28, 2021 No. 2021-P-33/53-8) 

12. The Memorandum of Association must be signed by all participants (authorized representatives of the participants) of the MCC/MCA. The signature of a participant - an individual must be notarized, the signature of an authorized person who is a representative of a participant - a legal entity, must be sealed by a legal entity or certified by a notary.

The founding document of an MCC/MCA established by one person is the charter.

13. Copies of documents submitted by the MCC/MCA to the National Bank must be certified in accordance with the established procedure.

Documents provided by foreign founders (participants, shareholders) must be legalized in accordance with the procedure established by the legislation of the Kyrgyz Republic, including international agreements that have entered into force in accordance with the procedure established by law, to which the Kyrgyz Republic is a party, and translated (if necessary) into a state and / or the official languages of the Kyrgyz Republic (a notarized translation is provided).

14. In the event that the MCC/MCA provides the documents established by this Regulation to the National Bank not in full or if they do not meet the requirements established by the legislation of the Kyrgyz Republic and this Regulation, the National Bank, within the period allotted for consideration of the submitted package of documents, has the right to return the documents for revision with a written statement of the reasons.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

15. If the MCC/MCA submits finalized documents to the National Bank on the grounds specified in paragraph 14 of these Regulations, or if additional documents are submitted during the period of consideration of the documents by the National Bank, then the countdown of the period for their consideration begins again, from the date of receipt of documents that satisfy the requirements of this Regulation.

16. In case of change during the period of consideration by the National Bank of the documents of the name, location, composition of the founders (participants, shareholders) of the MCC/MCA, etc., requiring amendments and/or additions to the constituent documents of the MCC/MCA, the applicant must, within 3 (three) business days from the date of adoption by the authorized management body of the MCC/MCA of such a decision, notify the National Bank about this and submit the constituent documents with the amendments and/or additions.

16-1. The decision or information on the decisions taken by the National Bank within the framework of these Regulations are brought to the attention of the applicants (MCC/MCA) by the National Bank in writing, within three working days from the date of such a decision, unless otherwise provided in this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

16-2. Acts of the National Bank adopted within the framework of this Regulation (with the exception of a license, resolutions of the Board of the National Bank and the Supervisory Committee of the National Bank) do not require certification with the seals of the National Bank.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

2. Documents to be submitted for obtaining a certificate 

17. To obtain an MCC/MCA certificate (including an MCC/MCA intending to carry out operations in accordance with the Islamic principles of banking and finance) at its location, submit the following documents to the National Bank:

1) an application for a certificate (Appendix 1);

2) decision (with one founder) or minutes of the general meeting of founders (with more than one founder) of the MCC/MCA (in two copies), containing the decisions:

- on the formation of the MCC/MCA;

- on the election/appointment of the head ( s) of the management bodies (the head(s) of the supervisory (if any) and executive management bodies and his/her deputy) (hereinafter referred to as the head);

- on the election of the Chairman and members of the Sharia Council (in case the MCC/MCA intends to carry out operations in accordance with Islamic principles of banking and financing);

- on other issues stipulated by the legislation of the Kyrgyz Republic;

3) decision of the authorized management body of the MCC/MCA:

- on the appointment of a chief accountant (an accountant or an invited accountant with the rights of a chief accountant in the absence of a position of a chief accountant in the staff) (hereinafter referred to as the chief accountant);

- on the appointment of the head of the lending unit (if any), the head of the unit / employee for financing in accordance with the Islamic principles of banking and financing (if the MCC/MCA intends to carry out operations in accordance with the Islamic principles of banking and financing);

- on the appointment of an employee responsible for the development and implementation of an internal control program for compliance with legislation on combating the financing of terrorist activities and the legalization (laundering) of criminal proceeds;

- on the organizational structure of the MCC/MCA (governing bodies, structural subdivisions (departments, departments), their functional duties, range of issues under consideration, subordination);

4) founding agreement on the establishment of the MCC/MCA (if the number of founders is more than one) (two copies);

5) charter of the MCC/MCA (two copies);

6) questionnaires of the head, chief accountant, head of the MCC/MCA lending unit (if any) (Appendix 2), as well as information and documents confirming their compliance with the minimum qualification requirements established by this Regulation and regulatory legal acts of the National Bank.

If the MCC/MCA intends to carry out operations in accordance with the Islamic principles of banking and financing, the questionnaires of the Chairman and members of the Sharia Council, the head of the division / employee for financing in accordance with the Islamic principles of banking and financing are also provided (Appendix 2);

7) documents containing information and allowing to determine the sources of origin of funds, when the founders (participants, shareholders) contribute funds to the authorized capital of the MCC/MCA in the amount of more than 20% of the minimum amount of the authorized capital established by the National Bank for the MCC:

a) legal entities may be represented by :

- copies of financial statements, tax returns or other documents on financial condition, confirmed by the authorized bodies of the Kyrgyz Republic;

- a copy of the auditor's report (if any or if this requirement is established by law);

- other documents confirming the sources of origin of funds contributed to the authorized capital, not prohibited by the legislation of the Kyrgyz Republic, or duly certified copies thereof;

- copies of constituent documents of a legal entity certified by this legal entity;

b) individuals can be represented by :

- certificates, declarations of income, contracts of sale / donation, the right to inherit the amount, property and others, or their duly certified copies;

- other documents confirming the sources of origin of funds contributed to the authorized capital, not prohibited by the legislation of the Kyrgyz Republic, or their duly certified copies;

8) copies of passports of founders (participants) - individuals and persons specified in subparagraph 6 of this paragraph;

9) information about the founders (participants) - legal entities (copies of constituent documents and a document on state registration of a legal entity, certified by the seal of this legal entity).

In the constituent documents specified in subparagraphs 2 and 4 of this paragraph, the signatures of the founders - individuals must be notarized, the signatures of authorized persons who are representatives of the participant - a legal entity, must be sealed by a legal entity or certified by a notary.

Along with the provision of the documents provided for by this Regulation, the MCC/MCA, individuals and legal entities must provide consent to the collection and processing of personal data in accordance with Appendix 11 to this Regulation in relation to persons whose personal data are provided to the National Bank. Failure to provide the above consent is the basis for refusal to consider the submitted documents, including on the issues of coordination of officials of the MCC/MCA, including managers, chief accountants of separate structural divisions of the MCC/MCA, founders (participants, shareholders) of the MCC and founders (participants) of the MCA .

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14, September 28, 2021 No. 2021-P-33/53-8) 

18. The National Bank has the right to request additional information (documents) confirming the sources of origin of funds contributed to the authorized capital, in addition to the documents listed in subparagraph 7 of paragraph 17 of these Regulations.

19. The National Bank considers the application for a certificate and the attached package of documents of the MCC/MCA within 30 (thirty) calendar days from the date of their submission to the National Bank that meet the requirements established by this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

20. In case of completeness and compliance of the submitted documents with the established requirements and there are no grounds for refusal, the National Bank issues to the head of the MCC/MCA a letter of consent for the MCC/MCA to undergo state registration with one copy of the documents specified in subparagraphs 2, 4 and 5 of paragraph 17 attached of this Regulation.

3. Requirements for officials 

21. Candidates for the position of Head, Chief Accountant, Head of Lending Unit (if any) and Head of Unit/Finance Officer in accordance with Islamic principles of banking and finance (if any) of the MCC/MCA must meet the following minimum requirements:

1) for the head:

a) higher education or 2 (two) years of work experience in banks or financial and credit organizations (in the presence of secondary vocational education);

b) knowledge of the legislation of the Kyrgyz Republic in the field of activities of microfinance organizations, including the regulatory legal acts of the National Bank;

c) availability of knowledge in the field of Islamic principles of banking and financing, confirmed by relevant certificates or other documents - for the head of the MCC/MCA, carrying out (his) operations in accordance with the Islamic principles of banking and financing;

2) for the chief accountant:

a) higher education in the field of economics and finance or 1 (one) year of work experience in the field of accounting (if you have a secondary professional education in the field of economics and finance);

b) the availability of a certificate or other document confirming that the candidate has completed accounting training;

c) availability of knowledge in the field of standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) - for the chief accountant of the MCC/MCA, carrying out (his) operations in accordance with Islamic principles of banking and financing;

3) for the head of the lending unit and the head of the unit/finance officer in accordance with the Islamic principles of banking and finance (if any):

a) higher education in the field of economics and finance or 1 (one) year of work experience in a lending unit (financing in accordance with Islamic principles of banking and finance) in banks or financial and credit organizations (if you have a secondary professional education in the field of economics and finance);

b) knowledge of the legislation of the Kyrgyz Republic in the field of activities of microfinance organizations, including the regulatory legal acts of the National Bank;

c) availability of knowledge in the field of Islamic principles of banking and financing, confirmed by certificates or other documents on successful completion of training in this area - for the head of the division / employee in charge of financing in accordance with the Islamic principles of banking and financing.

22. The National Bank may determine the non-compliance of candidates for the position of head, chief accountant, head of the lending unit, Chairman and members of the Shariah Council, head of the unit/financing officer in accordance with the Islamic principles of banking and financing of the MCC/MCA with the minimum requirements in the following cases:

a) the presence of one or more decisions of the National Bank, recognizing it:

- who committed violations of the legislation governing banking and microfinance activities, including the regulatory legal acts of the National Bank, which resulted in the application of enforcement measures against the financial and credit organization by the National Bank (with the exception of warnings and instructions sent to the financial and credit organization based on the results of inspections for which the financial institution has submitted a performance report, if such measures of influence, including bringing an official to administrative responsibility, have not been applied more than once on the same issue), including revocation of a license and / or certificate, introduction of a temporary administration during the last 3 (three) years;

- involved in actions (inaction) that led to the involvement of financial and credit organizations in unhealthy banking practices;

b) the presence of confirmed written information from state bodies of the Kyrgyz Republic or other states, indicating the candidate's improper business reputation;

c) the presence of materials of inspections of the regulatory bodies of the Kyrgyz Republic, indicating the occurrence of financial or administrative problems in the areas for which the candidate was responsible;

d) the presence of a court decision prohibiting the candidate from engaging in this type of activity.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14, June 15, 2017 No. 2017-P-12/25-11) 

23. When electing/appointing (re-electing) the officials of the MCC/MCA specified in paragraph 22 of this Regulation, the MCC/MCA shall, within 10 (ten) business days from the date of adoption of the relevant decision by the authorized management body of the MCC/MCA, submit to the National Bank a copy of such decision, certified by the seal of the MCC/MCA, with the application of questionnaires of elected/appointed persons (Appendix 2), as well as information and documents confirming their compliance with the minimum qualification requirements established by these Regulations.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

24. If the officials of the MCC/MCA, specified in paragraph 22 of this Regulation, do not comply with the requirements of this Regulation, the National Bank shall send a corresponding letter of notification to the MCC/MCA within 30 (thirty) calendar days. The MCC/MCA shall submit alternative candidates to the National Bank within the period specified in the National Bank's letter.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

4. Requirements for members of the Sharia Council 

25. In the MCC/MCA, which carries out operations in accordance with Islamic principles of banking and financing, it is mandatory to have a Sharia Council, which must consist of at least 3 (three) members elected for a period of 5 (five) years. At least one third of the composition of the Sharia Council must be made up of independent members of the Sharia Council. Independence criteria are determined by banking legislation. At least 1 (one) one member of the Sharia Council must be a citizen of the Kyrgyz Republic who speaks the state and / or official language.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated July 8, 2020 No. 2020-P-12/39-1) 

26. The Chairman and members of the Sharia Council must meet the following minimum requirements:

1) have a diploma of higher education; for the Chairman - a diploma of higher education in the field of Sharia in the direction of law and / or financial activity;

2) have knowledge in the field of Islamic principles of banking and finance, confirmed by certificates or other documents on successful completion of training in this area, and knowledge of banking legislation in the field of Islamic principles of banking and finance, including the main regulatory legal acts of the National Bank;

3) not fall under the terms of paragraph 22 of these Regulations.

The Chairman of the Sharia Council, in addition to the requirements established in this paragraph, must have at least 1 (one) year of work experience in the Sharia Council of a financial and credit organization that carries out operations in accordance with Islamic principles of banking and finance, or have experience in the field of teaching or research Islamic principles of banking and finance for at least 4 (four) years (scientific papers, articles, reports, etc.).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-11) 

27. If there is no Sharia Council in the MCC/MCA, the MCC/MCA has the right to apply to the services of the Sharia Council established by associations (associations) of microfinance organizations/credit unions, provided that the members of such Sharia Council meet the minimum qualification requirements established by these Regulations.

5. Procedure for issuing a certificate 

28. After state registration, in order to obtain a certificate, the MCC/MCA at its location must submit the following documents to the National Bank:

1) application for issuance of a certificate (Appendix 3);

2) notarized copies of the constituent documents of the MCC/MCA with a mark of state registration;

3) a copy of the certificate of state registration of the MCC/MCA, certified by the stamp of the MCC/MCA;

4) for an MCC - a document confirming, as of the date of application, the deposit of funds in the amount of the minimum authorized capital in accordance with paragraph 8 of these Regulations to a savings account opened with a commercial bank of the Kyrgyz Republic.

The funds on the savings account cannot be used by the founders (participants, shareholders) of the MCC for any purpose until the receipt of the certificate.

29. The certificate (Appendix 4) is issued within 10 (ten) calendar days from the date of submission to the National Bank of an application for issuing a certificate and the attached package of documents specified in paragraph 28 of this Regulation.

30. The certificate is issued to the head of the MCC/MCA upon presentation of a document proving his identity, or to another authorized person upon presentation of an appropriate power of attorney (document of authorization) and a document proving his identity.

31. Information about the certificate is entered in the MCC/MCA register maintained by the National Bank.

32. In case of loss (damage) of the original copy of the certificate, the MCC/MCA submits at the place of its / its location to the National Bank an application for issuing a duplicate with explanations and supporting documents about the loss (damage) (in case of damage - a damaged certificate; in case of loss - an announcement in the media about the loss, indicating the details of the certificate and a certificate from the lost and found office).

33. A duplicate of the certificate is issued within 5 (five) working days from the date of submission of the application and relevant documents to the National Bank.

If an original copy of the certificate is found, the MCC/MCA must submit an original copy of the certificate with clarifications to the National Bank within 3 (three) business days.

6. Procedure for opening branches and representative offices 

34. MCC/MCA has the right to open its separate subdivisions in the territory of the Kyrgyz Republic - branches and representative offices, acting in accordance with the legislation of the Kyrgyz Republic and on the basis of regulations on branches and representative offices approved by the MCC/MCA.

35. The activities of branches and representative offices of the MCC/MCA on the territory of foreign states are carried out on the basis of the legislation of the country in which they are opened, and / or international agreements that have entered into force in the manner prescribed by law, to which the Kyrgyz Republic is a party.

The opening of a branch and a representative office in the territory of foreign states is carried out on the basis of the permission of the National Bank, obtained in accordance with the requirements established by this Regulation.

36. The opening of a branch and representative office of the MCC/MCA is carried out by decision of the authorized management body of the MCC/MCA. The charter of the MCC/MCA must contain information about the opened branches and representative offices.

37. To open a branch and representative office of an MCC/MCA in the territory of the Kyrgyz Republic at its/his location, submits the following documents to the National Bank:

1) application for opening a branch/representative office (Appendix 5);

2) an original copy and a copy of the decision of the authorized management body on opening a branch/representative office and making appropriate changes and/or additions to the charter of the MCC/MCA certified by the seal of the MCC/MCA;

3) an original copy and a copy of the new edition of the charter, certified by the seal of the MCC/MCA, containing relevant information in connection with the opening of a branch / representative office;

4) an original copy and a copy of the Regulations on the branch / representative office of the MCC/MCA certified by the seal of the MCC/MCA;

5) a copy of the order of the authorized governing body on the appointment of the head, chief accountant (if any), head of the lending unit and head of the unit / employee for financing in accordance with the Islamic principles of banking and financing (if any) of the branch certified by the seal of the MCC/MCA / representative offices of the MCC/MCA;

6) information (name, education, work experience) about the persons specified in subparagraph 5 of this paragraph.

When opening a branch and a representative office on the territory of foreign states, the MCC/MCA, in order to obtain permission from the National Bank at its location, submits to the National Bank the documents specified in subparagraphs 1-4 of this paragraph.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

38. Regulations on the branch and representative office of the MCC/MCA must contain the following information:

1) the name and location of the branch and representative office;

2) the name and location of the MCC/MCA that established (its) branch and representative office;

3) the period of activity of the branch and representative office;

4) purpose of activities and powers of the branch and representative office;

5) powers of the head of the branch and representative office;

6) conditions for terminating the activities of a branch and a representative office.

The regulation on the branch and representative office is approved by the authorized management body of the MCC/MCA and signed by the head of the MCC/MCA.

39. The National Bank considers the application for opening a branch and representative office and the attached package of documents within 30 (thirty) calendar days from the date of submission to the National Bank of those satisfying the requirements established by this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

40. In case of completeness and compliance of the submitted documents with the established requirements and there are no grounds for refusal, the National Bank issues a letter of consent for the state registration of a branch / representative office and a letter of consent for the state re-registration of an MCC/MCA with the attachment of original copies of the documents specified in subparagraphs 2 -4 paragraph 37 of this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

41. An MCC/MCA, within 10 (ten) calendar days after the state registration of a branch/representative office and changes and/or additions to the charter related to the opening of a branch and representative office, is obliged to submit to the National Bank a corresponding letter of notification with the following attached documents:

1) a copy of the charter of the MCC/MCA with a mark of state re-registration, certified by the seal of the MCC/MCA;

2) a copy of the certificate of state re-registration of the MCC/MCA, certified by the stamp of the MCC/MCA;

3) a copy of the certificate of state registration of the branch and representative office, certified by the seal of the MCC/MCA;

4) a copy of the Regulations on the branch (representative office) with a mark of state registration, certified by the seal of the MCC/MCA;

5) (repealed in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

41-1. When closing a branch or representative office in the territory of the Kyrgyz Republic or a foreign state, the MCC/MCA within 10 (ten) calendar days from the date of termination of the activity of the branch/representative office specified in the relevant decision, at the place of its/its location, submits to the National Bank an appropriate notification letter with the following documents, certified by the seal of the MCC/MCA:

- copies of the decision of the authorized management body of the MCC/MCA to close the branch/representative office;

- copies of the registration application for registration of the termination of the activities of the branch/representative office, sent to the authorized state body in charge of registration of legal entities.

Amendments and/or additions to the charter of the MCC/MCA due to the closure of the branch/representative office are carried out by the MCC/MCA at the next amendment and/or addition to the charter.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

41-2. The MCC/MCA, within 10 (ten) calendar days after the state registration of the termination of the activities of the branch and representative office, is obliged (o) to submit to the National Bank an appropriate notification letter with a copy of the document of the authorized state body that registers legal entities on registration of the termination of the activities of the branch / representative office, certified by the seal of the MCC/MCA.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

42. MCC/MCA and branches of the MCC/MCA may have structural subdivisions located outside their location and performing only the following functions:

- collection of information;

- collection and processing of applications for the provision of microcredits or financing in accordance with Islamic principles of banking;

- cash service of the specified operations.

Structural subdivisions carry out activities on behalf of the MCC/MCA and/or their branches.

The MCC/MCA is obliged to notify the National Bank of the opening/closing of such structural units within 10 (ten) calendar days from the date of the decision to open/close them.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated September 28, 2021 No. 2021-P-33/53-8) 

7. Amendments and / or additions to the constituent documents and state re-registration of the MCC/MCA 

43. Changes and/or additions made to the constituent documents of an MCC/MCA are subject to agreement with the National Bank in cases stipulated by the legislation of the Kyrgyz Republic. The change in the name of the MCC/MCA is carried out after prior agreement with the National Bank.

44. In order to agree with the National Bank on the amendments and/or additions to the constituent documents of the MCC/MCA at its/his location, submit the following documents to the National Bank:

1) a petition for amendments and/or additions to the constituent documents (Appendix 6);

2) an original copy and a copy of the decision of the authorized governing body of the MCC/MCA on introducing amendments and/or additions to the charter, certified by the seal of the MCC/MCA;

3) an original copy of the constituent agreement (in case of a change in the composition of participants / founders) and / or the charter in a new edition, as well as their copies certified by the seal of the MCC/MCA;

4) in case of an increase in the authorized capital - a document confirming, as of the date of application, the availability of funds in full to account for the increase in the authorized capital in an account in a commercial bank of the Kyrgyz Republic (extracts from a bank account), with the exception of an increase in the authorized capital due to retained earnings .

At the same time, the amount of funds allocated to increase the authorized capital must be accounted for in the additional capital account and can be used by the MCC until complete re-registration only for the main statutory purposes (crediting, financing in accordance with Islamic principles of banking and financing).

If the capital increase is made:

- at the expense of additional capital contributed by the founders (participants, shareholders) - an agreement / agreement / (with one participant - a decision) on the contribution of funds as additional capital and on the irrevocableness of such capital, as well as extracts from a current account in a commercial bank of the Kyrgyz Republic on the introduction of the said funds;

- at the expense of retained earnings - a decision of the general meeting of founders (participants, shareholders) to increase the authorized capital at the expense of retained earnings is submitted;

5) documents containing information allowing to determine the sources of origin of funds, when the founders (participants, shareholders) contribute funds to the authorized capital of the MCC/MCA in the amount of more than 20% of the minimum authorized capital established by the National Bank for the MCC, according to the list of documents , established in subparagraph 7 of paragraph 17 of these Regulations (with the exception of an increase in the authorized capital at the expense of retained earnings);

6) when reducing the authorized capital:

- forecast calculations on the financial condition of the MCC/MCA after the reduction of the authorized capital (trial financial statement) and the impact on the compliance of the MCC/MCA with the requirements of the National Bank and the fulfillment of obligations to the creditors of the MCC/MCA;

- written consent of creditors - financial and credit organizations to reduce the authorized capital of the MCC/MCA (if any);

7) other information and documents in accordance with the legislation of the Kyrgyz Republic.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

45. The documents required for approval are provided by the MCC/MCA to the National Bank within 20 (twenty) calendar days from the date of the relevant decision on making changes and/or additions to the constituent documents of the MCC/MCA.

46. The National Bank has the right to additionally request other necessary documents from the applicant in accordance with the legislation of the Kyrgyz Republic, including the regulatory legal acts of the National Bank.

47. The National Bank considers an application for amendments and / or additions to the constituent documents of the MCC/MCA and the attached package of documents within 30 (thirty) calendar days from the date of submission to the National Bank that meet the requirements established by this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

48. In case of completeness and compliance of the submitted documents with the established requirements and there are no grounds for refusal, the National Bank issues a letter of consent for the MCC/MCA to undergo state re-registration with the original copies of the documents specified in subparagraphs 2 and 3 of paragraph 44 of these Regulations.

49. The MCC/MCA, within 10 (ten) calendar days after passing the state re-registration, is obliged (o) at the place of its / its location to submit to the National Bank a corresponding letter of notification with the following documents attached:

1) copies of the constituent documents of the MCC/MCA with a mark of state re-registration, certified by the seal of the MCC/MCA;

2) copies of the certificate of state re-registration of the MCC/MCA, certified by the stamp of the MCC/MCA.

50. In the event of a change in the information in the certificate (for the MCC - also a license) (for example, a change in name, location), the MCC/MCA is obliged to reissue the certificate (for the MCC - a license).

1) In the event of a change in the name and / or location of the MCC/MCA, entailing state re-registration, the MCC/MCA, in addition to the requirements and documents established in paragraph 49 of these Regulations, must submit an application for reissuing a certificate with the following documents attached:

- copies of the decision of the authorized management body of the MCC/MCA on the renewal of the certificate (license of the MCC), certified by the seal of the MCC/MCA;

- an original copy of the previously issued MCC/MCA certificate (MCC license).

2) In the event of a change in the location of the MCC/MCA, which does not entail state re-registration, within 10 (ten) calendar days from the date of the adoption by the authorized management body of the MCC/MCA of the relevant decision, the MCC/MCA at its location is obliged to submit to the National bank application for reissuance of the certificate with the following documents attached:

- copies of the decision of the authorized management body of the MCC/MCA on reissuing the certificate, certified by the seal of the MCC/MCA;

- copies of the MCC/MCA confirmation notification sent to the authorized state body that carries out the registration of legal entities, certified by the seal of the MCC/MCA;

- an original copy of the previously issued MCC/MCA certificate.

51. In case of completeness and compliance of the submitted documents with the established requirements, the National Bank, within 5 (five) working days from the date of submission of all necessary documents, reissues the MCC/MCA certificate (MCC license).

52. The location of the MCC/MCA is determined by the place of its state registration. Within 3 (three) working days from the date of receipt of the reissued certificate (MCC license), the MCC/MCA is obliged to give notice of the change in its name and/or location in the mass media.

53. The MCC/MCA, within 10 (ten) calendar days from the date of the change in telephone numbers, fax and e-mail address, the MCC/MCA is obliged to notify the National Bank of such changes.

8. The order of opening the "Islamic window" 

54. The MCC/MCA has the right to open an "Islamic window" for carrying out operations in accordance with the Islamic principles of banking and financing in accordance with the requirements of this Regulation.

55. To open an Islamic window, an MCC/MCA must fulfill the following requirements:

1) operate as an MCC/MCA for at least 1 (one) year prior to the date of filing an application for opening an "Islamic window";

2) comply with the requirements for the authorized capital (for MCC) established by the regulatory legal acts of the National Bank;

3) not be subject to measures of influence from the National Bank during the last 12 (twelve) months of activity until the date of filing an application to the National Bank to open an "Islamic window" (with the exception of accepted and executed warnings and instructions sent to the financial and credit organization following the results of audits for which the financial and credit organization submitted a report on the implementation, if such measures of influence were not applied more than once on the same issue).

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-11) 

56. In order to operate through an Islamic window, an MCC/MCA must obtain a certificate to conduct operations in accordance with Islamic principles of banking and finance through an Islamic window.

57. The opening of the "Islamic window" is carried out by the decision of the participant (with one participant) or the general meeting of participants (with more than one participant) of the MCC/MCA.

58. In order to obtain a certificate for conducting operations in accordance with the Islamic principles of banking and financing through the "Islamic window", the MCC/MCA at its location submits the following documents to the National Bank:

1) an application for opening an "Islamic window" (Appendix 1);

2) a copy of the decision of the authorized management body of the MCC/MCA, certified by the seal of the MCC/MCA, containing the decisions:

- about the open "Islamic window";

- on amendments and/or additions to the charter of the MCC/MCA;

- on the election of members of the Sharia Council;

3) a copy of the decision of the authorized management body of the MCC/MCA on the appointment / election of the head of the "Islamic window" / employee responsible for financing in accordance with Islamic principles of banking and financing, certified by the seal of the MCC/MCA;

4) a copy of the Regulations on the "Islamic Window" certified by the seal of the MCC/MCA;

5) a copy of the Regulations on the Sharia Council certified by the seal of the MCC/MCA;

6) a copy of the decision of the Sharia Council on the election of the Chairman, certified by the seal of the MCC/MCA;

7) questionnaires of candidates for the positions of the Chairman and members of the Sharia Council (Appendix 2), as well as information and documents confirming their compliance with the minimum qualification requirements established by this Regulation and the regulatory legal acts of the National Bank;

8) documents confirming that one of the managers, a member of the Board of Directors (if any), personnel (head of a division / specialist in financing in accordance with Islamic principles of banking and financing) has qualifications in Islamic principles of banking and financing. Qualification is confirmed by a certificate, certificate or letter of completion of relevant educational classes/lectures/seminars, etc., except for the cases established by these Regulations;

9) predictive calculations of prospective transactions with a forecast balance in terms of the amount of financing and the number of clients;

10) the organizational structure of the MCC/MCA (governing bodies, structural subdivisions (departments, departments), their functional responsibilities, range of issues under consideration, subordination) with the inclusion of subdivisions on Islamic principles of banking and financing;

11) an original copy and a copy of the charter of the MCC/MCA, certified by the seal of the MCC/MCA, containing a list of operations in accordance with the Islamic principles of banking and financing, which the MCC/MCA intends to carry out within the "Islamic window" in the manner prescribed by the regulatory legal acts of the National Bank ;

12) the financing policy, operational, accounting and other basic policies of the MCC/MCA, approved by the Sharia Council and approved by the authorized management body and providing for measures to identify, measure, control, monitor and minimize all possible risks to which the MCC/MCA are exposed as a result of transactions in accordance with Islamic principles of banking and finance; accounting policies for prospective transactions;

13) a copy of the agreement of the MCC/MCA with the association of microfinance organizations/credit unions on the provision of services by the Shariah Board operating under this association (in the absence of the Shariah Board under the MCC/MKA) certified by the seal of the MCC/MCA.

59. The National Bank considers the application for opening an "Islamic window" and the attached package of documents within 30 (thirty) calendar days from the date of submission to the National Bank of those satisfying the requirements established by this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

60. In case of completeness and compliance of the submitted documents with the established requirements, there are no grounds for refusal and there is sufficient justification for opening the "Islamic window", the National Bank issues a letter of consent for the state re-registration of the MCC/MCA in connection with the opening of the "Islamic window" with the application of a genuine a copy of the charter submitted in accordance with the requirements of paragraph 58 of these Regulations.

61. The MCC/MCA, within 10 (ten) calendar days after the state re-registration, is obliged to submit the following documents to the National Bank at its/his location:

1) an application for issuing a certificate for conducting operations in accordance with the Islamic principles of banking and financing through the "Islamic window" (Appendix 3);

2) a copy of the charter of the MCC/MCA with a mark of state re-registration, certified by the seal of the MCC/MCA;

3) a copy of the certificate of state re-registration of the MCC/MCA, certified by the seal of the MCC/MCA.

62. The certificate (Appendix 4) of the MCC/MCA for conducting operations in accordance with the Islamic principles of banking and financing through the "Islamic window" is issued within 10 (ten) calendar days from the date of submission to the National Bank of the application and the attached package of documents specified in paragraph 61 of this Regulation.

9. Procedure for the transformation of the MCC/MCA into an MCC/MCA, carrying out (its) operations in accordance with the Islamic principles of banking and financing 

63. An MCC/MCA can be transformed (o) into an MCC/MCA operating in accordance with Islamic principles of banking and finance, only if the MCC/MCA has an “Islamic window”, experience in the Islamic financial services market at least 1 (one) year prior to the date of filing the application for transformation and subject to compliance with the requirements of subparagraphs 2 and 3 of paragraph 55 of these Regulations.

64. At least 6 (six) months prior to the transformation, the MCC/MCA must notify the creditors of the MCC/MCA (if any) and the National Bank about this, submit the decision of the participant (if there is one participant) or the minutes of the general meeting of participants (if more than one participant) MCC/MCA on the transformation of the MCC/MCA into an MCC/MCA, carrying out operations in accordance with the Islamic principles of banking and financing, with an action plan for the transformation approved by the decision of the authorized management body of the MCC/MCA. The action plan should include, but not be limited to, the timing of the action plan, the procedure for the transformation / redemption of assets and liabilities that do not comply with Shariah standards, staff training, etc.

65. After notifying the National Bank of the transformation of an MCC/MCA into an MCC/MCA operating in accordance with Islamic principles of banking and finance, the National Bank, if necessary, conducts a targeted inspection of the MCC/MCA or the results of the inspection may be taken into account conducted within the last 6 (six) months prior to the date of such notification of the National Bank.

66. After 6 (six) months from the date of notification of the National Bank of the intention to transform into an MCC/MCA carrying out operations in accordance with Islamic principles of banking and financing, in the absence of grounds for refusal by the National Bank, including Based on the results of the audit and consideration of the action plan specified in paragraph 64 of this Regulation, the MCC/MCA shall submit the following documents to the National Bank to obtain the relevant certificate:

1) an application for issuance of a certificate for carrying out operations in accordance with Islamic principles of banking and finance (Appendix 1);

2) the organizational structure of the MCC/MCA, revised in connection with the transformation of the MCC/MCA (governing bodies, structural subdivisions (departments, departments), their functional duties, the range of issues under consideration, subordination);

3) an original copy and a copy of the charter of the MCC/MCA, certified by the seal of the MCC/MCA, containing the issues of carrying out operations in accordance with the Islamic principles of banking and financing in the manner prescribed by the regulatory legal acts of the National Bank;

4) predictive calculations with a forecast balance in terms of the volume of financing and the number of clients of the MCC/MCA;

5) a copy of the decision of the authorized management body of the MCC/MCA certified by the seal of the MCC/MCA that a comprehensive analysis of the proposed operations and their impact on the activities of the MCC/MCA has been carried out, and that the founders (participants, shareholders) have identified the risks associated with the transformation;

6) documents confirming that the personnel of the MCC/MCA have qualifications in Islamic principles of banking and finance;

7) written consent of creditors - financial and credit organizations to the transformation (if any);

8) the action plan specified in paragraph 64 of these Regulations.

67. The deadlines for submitting the documents specified in paragraph 66 of this Regulation for obtaining a certificate for carrying out operations in accordance with the Islamic principles of banking and financing may be suspended by the National Bank based on the results of a targeted inspection until the MCC/MCA eliminates violations and shortcomings in order to the submitted documents corresponded to the established requirements.

Suspension of the procedure for issuing a certificate to the MCC/MCA for operations in accordance with the principles of Islamic banking and finance, suspends the timing of the decision to issue a certificate.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

68. The National Bank considers an application for issuing a certificate for conducting operations in accordance with the Islamic principles of banking and financing and the attached package of documents within 30 (thirty) calendar days of the date of submission to the National Bank of the documents satisfying the requirements established by this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

69. In case of completeness and compliance of the submitted documents with the established requirements and there are no grounds for refusal, the National Bank may give consent to the MCC/MCA to transform into an MCC/MCA, carrying out operations in accordance with the Islamic principles of banking and financing, with the issuance of consent to state re-registration of MCC/MCA in connection with the transformation.

70. After the state re-registration of the MCC/MCA for the issuance by the National Bank of a certificate for conducting operations in accordance with the Islamic principles of banking and financing at the place of its / its location, it is obliged to submit the following documents to the National Bank:

1) an application for issuing a certificate for carrying out operations in accordance with Islamic principles of banking and financing (Appendix 3);

2) a copy of the charter of the MCC/MCA with a mark of state re-registration, certified by the seal of the MCC/MCA;

3) a copy of the certificate of state re-registration of the MCC/MCA, certified by the seal of the MCC/MCA.

71. The certificate for carrying out operations in accordance with the Islamic principles of banking and financing is issued by the MCC/MCA by the National Bank within 10 (ten) calendar days from the date of submission to the National Bank of a properly executed package of documents in accordance with the requirements of paragraph 70 of this Regulation.

72. Within 30 (thirty) calendar days from the date of completion of the action plan specified in subparagraph 8 of paragraph 66 of these Regulations, the MCC/MCA is obliged to submit a notification letter to the National Bank with a report on the implementation of this action plan for transformation and financial statements of the MCC/MCA as of the last reporting date, confirmed by an external audit company (if any or if this requirement is established by law).

73. Members of the executive body of the management of the MCC/MCA, carrying out (its) operations in accordance with the Islamic principles of banking and finance, who do not have certificates of training in the field of Islamic principles of banking and finance, within 1 (one) calendar year from the date of notification of the National Bank about the intention of the MCC/MCA to be transformed into an MCC/MCA, carrying out operations in accordance with the principles of Islamic banking and financing, must undergo appropriate educational courses and submit supporting documents to the National Bank.

10. Grounds for refusal to issue a certificate and / or consent to state registration / re-registration of the MCC/MCA, branches and representative offices of the MCC/MCA 

(Chapter name  

as amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

74. The MCC/MCA may be denied the issuance of a certificate and/or consent to the state registration/re-registration of the MCC/MCA, branches and representative offices of the MCC/MCA in the following cases:

1) MCC/MCA violated the requirements of the Law "On Microfinance Organizations in the Kyrgyz Republic" and regulatory legal acts of the National Bank to MCC/MCA;

2) constituent or other submitted documents do not comply with the requirements established by the legislation of the Kyrgyz Republic and these Regulations, as well as established Sharia standards (for an MCC/MCA carrying out (its) operations in accordance with Islamic principles of banking and financing);

3) if the head and / or chief accountant, head of the lending unit (if any), the Chairman and members of the Shariah Council, the head of the unit / employee for financing in accordance with the Islamic principles of banking and financing, (for the MCC/MCA, carrying out (his) transactions in accordance with the Islamic principles of banking and finance) established minimum qualification requirements;

4) non-submission in full of documents containing information on the sources of origin of funds contributed to the authorized capital;

5) lack of written consent of creditors (if any) to the transformation of the MCC/MCA (during state re-registration in connection with the reduction of the authorized capital, the opening of the "Islamic window", the transformation into the MCC/MCA, carrying out (its) operations in accordance with the Islamic principles of banking business and financing) or other grounds that may affect the compliance of the MCC/MCA with the requirements of the National Bank.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

75. If the applicant refuses to issue a certificate and / or consent to the state registration / re-registration of the MCC/MCA, branches and representative offices of the MCC/MCA, the National Bank gives a reasoned response in writing, and the original copies of the submitted constituent documents are returned to the applicant within the time period established for issuance certificates, the second copy of the submitted documents is not subject to return.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

76. (No longer valid in accordance with the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

11. Licensing features of the MCC 

77. The MCC may additionally carry out the following banking operations, provided that these operations are specified in the license issued by the MCC:

1) purchase and subsequent sale of debt obligations (factoring)(1), except for one-time transactions;

2) retail banking services under an agency agreement with a bank - without opening accounts for clients in a microcredit company;

3) purchase and sale of foreign currency on its own behalf in accordance with the regulatory legal acts of the National Bank.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated September 28, 2021 No. 2021-P-33/53-8) 

78. To obtain a license, the MCC submits the following documents to the National Bank:

1) an application for a license (Appendices 7, 9);

2) an original copy and a copy of the charter certified with the seal of the MCC with the amendments and / or additions made on the operations specified in clause 77 of these Regulations (if these operations are not specified in the current version of the charter);

3) the general organizational structure of the MCC/MCA (governing bodies, structural subdivisions (departments, departments), their functional duties, the range of issues under consideration, subordination);

4) business plan containing:

a) determination of the goals pursued by the MCC when conducting operations provided for in paragraph 77 of these Regulations;

b) forecast calculations and economic results expected from these operations;

5) a document confirming the payment of the state fee for the issuance of a license.

Upon receipt by the MCC of a license to conduct operations for the purchase and sale of foreign currency on its own behalf, the premises of the MCC, including the premises of its branches, must comply with the requirements for technical strength, equipment, fire safety established by the Ministry of Internal Affairs of the Kyrgyz Republic jointly with the National Bank, about which the relevant acts should be drawn up between the MCC and the authorized state bodies. Copies of the above survey acts must be submitted to the National Bank in addition to the documents listed in this paragraph.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated February 27, 2019 No. 2019-P-33/9-7) 

79. A license for the right to conduct operations specified in paragraph 77 of these Regulations may be issued no earlier than 1 (one) year after the implementation of activities as an MCC.

80. An application for a license and the attached package of documents are considered by the National Bank within 60 (sixty) calendar days from the date of submission to the National Bank of those satisfying the requirements established by this Regulation. If the submitted documents are complete and comply with the established requirements and there are no grounds for refusal, the National Bank issues consent for the state re-registration of the MCC in connection with the introduction of amendments and / or additions to the charter (if necessary) in accordance with the requirements established in Chapter 7 of these Regulations.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

81. In the event that an MCC undergoes state re-registration in connection with the introduction of amendments and / or additions to the charter of the MCC, it is obliged (o) within 10 (ten) calendar days after passing the state re-registration to submit to the National Bank a corresponding notification letter with the following documents attached:

1) an application for a license (Appendix 3);

2) copies of the charter of the MCC/MCA with a mark of state re-registration, certified by the seal of the MCC/MCA;

3) copies of the certificate of state re-registration of the MCC/MCA, certified by the stamp of the MCC/MCA.

82. If the MCC fulfills the requirements established by this Regulation, the National Bank issues a license to the MCC for the right to additionally carry out banking operations provided for in paragraph 77 of this Regulation (Appendices 8, 10).

The term for consideration of documents may be extended by 10 (ten) calendar days by the Deputy Chairman/member of the Board of the National Bank in charge of supervision and licensing issues.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 5, 2016 No. 5/1, May 17, 2017 No. 19/14) 

83. The MCC may be denied the issuance of a license for the right to additionally carry out banking operations, provided for in paragraph 77 of this Regulation, in the following cases:

1) if the documents submitted for obtaining a license contain incomplete, inaccurate information and / or do not meet the requirements established by the legislation of the Kyrgyz Republic, including the regulatory legal acts of the National Bank;

2) the presence of problems in the financial position of the MCC;

3) submission of a business plan that does not contain sufficient economic justification for obtaining a license to conduct operations specified in paragraph 77 of this Regulation;

4) failure to pay the state fee for the issuance of a license;

5) the presence of a court decision prohibiting the applicant from carrying out this type of activity;

6) in other cases provided for by the legislation of the Kyrgyz Republic, including the regulatory legal acts of the National Bank.

83-1. If the applicant (MCC) disagrees with the decision of the National Bank to refuse to issue a license, this decision may be appealed by the applicant in accordance with paragraph 92 of this Regulation.

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14, February 27, 2019 No. 2019-P-33/9-7) 

84. An MCC that has received a license to conduct banking operations specified in paragraph 77 of this Regulation may be subject to the requirements and norms provided for by the legislation and regulatory legal acts of the National Bank regulating the activities of financial and credit organizations licensed by the National Bank.

85. The license of the MCC for the right to additionally carry out banking operations, provided for in paragraph 77 of this Regulation, may be revoked by the National Bank in accordance with the legislation of the Kyrgyz Republic, including the regulatory legal acts of the National Bank.

86. The MCC must hand over the license to the National Bank within 3 (three) working days from the date of notification of the MCC about the withdrawal of the license and stop carrying out the operations provided for by the license.

12. Reorganization and liquidation 

87. An MCC/MCA may be reorganized (merge) (merger, transformation, accession, separation, spin-off) by decision of its (its) founders (participants, shareholders) or a body of a legal entity authorized to do so by constituent documents, or in the manner prescribed by the legislation of the Kyrgyz Republic.

88. An MCC/MCA may be liquidated by the decision of its (its) founders (participants, shareholders) in accordance with the legislation of the Kyrgyz Republic.

Upon termination of the activities of a legal entity as an MCC/MCA in accordance with the decision of the authorized management body of the MCC/MCA, such a legal entity intending to continue its activities as a legal entity without carrying out microfinance activities, is obliged to change its name, consisting in the exclusion of the words "microcredit company" /"microcredit agency" from the name, with the introduction of appropriate amendments to the constituent documents and state re-registration in accordance with the procedure established by the legislation of the Kyrgyz Republic and in accordance with the requirements of this Regulation.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

89. It is not allowed to make a decision on liquidation on a voluntary basis if the MCC/MCA has not fulfilled all obligations to creditors, including to financial and credit organizations.

90. When making a decision on liquidation, the MCC/MCA shall, within 10 (ten) calendar days from the date of the decision, submit the original copy of the license and / or certificate to the National Bank with the original copy of the decision on liquidation attached.

91. From the moment the decision on liquidation is taken, the MCC/MCA must (o) stop carrying out the operations provided for by the license and/or certificate. Otherwise, the MCC/MCA and their officials bear the responsibility provided for by law.

The liquidation of a legal entity takes place in accordance with the legislation of the Kyrgyz Republic, while the obligations to liquidate the organization, including when the license and / or certificate of the MCC/MCA are revoked by the National Bank, are assigned to its participants (shareholders) or to the management body authorized to liquidate the charter of the organization, except for the case of insolvency (bankruptcy).

 

(1) According to Shari'ah standards, trading in debt instruments is prohibited due to the fact that they contain elements of riba (interest rate).

13. Procedure for appealing decisions of the National Bank 

(Chapter  

as amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

92. Decisions made by the National Bank within the framework of this Regulation may be appealed by applicants and/or other interested persons in respect of whom decisions have been made or whose interests are affected by the decisions made, in accordance with the banking legislation of the Kyrgyz Republic, including with mandatory observance of pre-trial appeal procedure.

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

 

 

 

Appendix 1

to the Regulation on the establishment and operation of microcredit companies and microcredit agencies

 

 

 

National Bank of the

Kyrgyz Republic

Sample Application 

I do hereby request to issue a certificate of registration of a microcredit company / microcredit agency; a microcredit company/microcredit agency intending to carry out operations in accordance with Islamic principles of banking and finance; a microcredit company/microcredit agency that intends to carry out operations in accordance with the principles of Islamic banking and finance within the framework of the "Islamic window"

____________________________________________________________________________

(full name and legal address)

Information about the founders:

____________________________________________________________________________

____________________________________________________________________________

List of senior officials (full name of the head(s), chief accountant, head of the credit unit (if any)). For a company operating in accordance with the Islamic principles of banking and financing, additional information about the head of the division/employee for financing in accordance with the Islamic principles of banking and financing, the Chairman and members of the Shariah Council, who comply with the requirements of the regulatory legal acts of the National Bank:

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

 

Manager's signature

"___" ____________________ 20__

 

 

 

Appendix 2

to the Regulation on the establishment and operation of microcredit companies and microcredit agencies

QUESTIONNAIRE 

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated June 15, 2017 No. 2017-P-12/25-11) 

(place for photo)

 

No.

 

1

Full name

 

2

Position

 

3

Name of MCC/MCA

 

4

Date and place of birth

The date:

Place:

the country:

city:

mailing address:

5

Passport

Series:

Issued by:

Date of issue:

Valid until:

6

Citizenship

 

7

Home address, phone number according to documents

Place:

the country:

city:

mailing address:

Phone number:

8

Home address, telephone number of the real place of residence at the time of filling out the questionnaire

Place:

the country:

city:

mailing address:

Phone number:

9

Email address

 

10

Family status

 

 

 

 

 

 

 

 

11. Information about the availability of knowledge in the field:

- legislation regulating the activities of microfinance organizations:

- accounting and financial reporting:

- Islamic principles of banking and finance, including Shariah standards established by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Islamic Financial Services Board (IFSB).

12. Education (higher, incomplete higher, secondary specialized, secondary) (underline as appropriate)

Name of educational institution (city, country) 

Faculty or department 

Year of admission / graduation 

Specialty according to the received diploma 

 

 

 

 

 

 

 

 

13. Learning in courses

Topic of the seminar or courses 

Seminar organizer 

Place of passage (city, country) 

Date of passage (year) 

Availability of a certificate (courses on IFRS and audit, AAOIFI standards) 

 

 

 

 

(yes, no)

14. Work performed since the beginning of employment:

Total work experience _________, including in the financial or economic sphere ___________

Start date (year, month) 

Departure date (year, month) 

Position held 

Organization name, location (city, country) 

Reason for leaving 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15. Additional information

Is there a court order prohibiting you from engaging in this type of activity?

Not really _____

Are you related to a bank or other financial and credit organization that is in the process of bankruptcy or has terminated its activities due to bankruptcy?

Not really _____

If yes, then indicate the name of the bank or financial-credit organization, the position you held, give a detailed explanation of your responsibility ______________________________________________________________________________________________

Have you been subjected to enforcement measures by the National Bank?

Not really _____

If "Yes", specify when and for what violation ________________________________________________________________________________

Information indicating your bad business reputation

Not really _____

If “Yes”, please specify when and for what violation _________________________________________________________________________

Information indicating financial or administrative problems at the sites for which you were responsible

Not really _____

If “Yes”, please specify when and for what violation _________________________________________________________________________

I, ______________________________________________________________________________

(Full Name)

I confirm that the above information is true and complete, and I undertake to further submit to the National Bank information on all changes that have occurred in it. I acknowledge that if misrepresentations and omissions are made on my part, this may entail further application of measures of influence against me and the microcredit company (microcredit agency) in accordance with the legislation of the Kyrgyz Republic.

 

"___" _______________ 20__ (signature)

 

 

 

Appendix 3

to the Regulation on the establishment and operation of microcredit companies and microcredit agencies

 

 

 

National Bank of the

Kyrgyz Republic

Sample Application 

I do hereby request to issue a certificate of registration of a microcredit company / microcredit agency; a microcredit company/microcredit agency carrying out operations in accordance with Islamic principles of banking and finance; a microcredit company/microcredit agency carrying out operations in accordance with the principles of Islamic banking and financing within the "Islamic window"

_______________________________________________________________________________

(full name and legal address)

Data on state registration of a microcredit company/microcredit agency:

Registration number and date of state registration:

_______________________________________________________________________________

TIN: _____________________________ OKPO code: __________________________________

Service (contact) phone numbers, fax numbers and e-mail addresses of the MCC/MCA:

_______________________________________________________________________________

 

Seal of the MCC/MCA "___" __________________ 20__

 

Signature of the head of the MCC/MCA

 

 

 

Appendix 4

to the Regulation on the establishment and operation of microcredit companies and microcredit agencies

 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 24, 2016 No. 10/4, September 28, 2021 No. 2021-P-33/53-8) 

The National Bank of the Kyrgyz Republic certifies that ___________________

____________________________________________________________________________

(full name of the microcredit company/microcredit agency)

____________________________________________________________________________

legal address

____________________________________________________________________________

(name of the city, district, settlement, street, house)

is (a microcredit company/microcredit agency; a microcredit company/microcredit agency carrying out operations in accordance with Islamic principles of banking and finance; a microcredit company/microcredit agency carrying out operations in accordance with Islamic principles of banking and finance in "Islamic Window"), created to provide affordable microfinance services to help overcome poverty, increase employment, promote entrepreneurship and social mobilization of the population of the Kyrgyz Republic in accordance with the Law "On Microfinance Organizations in the Kyrgyz Republic".

 

The registration record was made on "___" _______________ 20__ under No. _________

 

Head of Department

(Head / director of the regional department / representative office of the National Bank)

 

 

 

Appendix 5

to the Regulation on the establishment and operation of microcredit companies and microcredit agencies

 

 

 

National Bank of the

Kyrgyz Republic

Sample Application 

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 17, 2017 No. 19/14) 

Hereby __________________________________________________________________

(full name and legal address of the microcredit company/microcredit agency)

requests to issue consent for the state registration of a branch (representative office),

located at:

_____________________________________________________________________________

_____________________________________________________________________________

(name of locality, postal address)

according to the decision

_____________________________________________________________________________

(name of the management body of the microcredit company/microcredit agency,

_____________________________________________________________________________

who, in accordance with the charter, decided to open a branch (representative office)

This branch (representative office) is empowered to conduct

the following operations and transactions:

- ____________________________________________________________________________

- ____________________________________________________________________________

(indicate all operations and transactions, the right to perform which is delegated

branch (representative office) in accordance with the Regulations adopted by the microcredit

campaign/microcredit agency)

Head and chief accountant, head of the credit department

(if any) branch (representative office) appointed:

_____________________________________________________________________________

(Full Name)

_____________________________________________________________________________

(Full Name)

(_______________________________________________________________________________

Full Name)

Service (contact) phone numbers, fax numbers and e-mail addresses

branch (representative office): __________________________________________________

_____________________________________________________________________________

 

Seal of the MCC/MCA "___" ___________________ 20__

 

Signature of the head of the MCC/MCA

 

 

 

Appendix 6

to the Regulations on the establishment and operation of microcredit companies and microcredit agencies

 

 

 

National Bank of the

Kyrgyz Republic

Sample Application 

Hereby ________________________________________________________________ __________ ______ _

(full name of the microcredit company/microcredit agency)

requests for consent to the state re-registration of the charter of the microcredit

company/microcredit agency located at:

____________________________________________________________________________________

____________________________________________________________________________________

(name of locality, postal address)

according to the decision

____________________________________________________________________________________

(name of the management body of the microcredit company/microcredit agency,

____________________________________________________________________________________

who, in accordance with the charter, has made a decision to introduce amendments and/or additions to the charter).

 

Seal of the MCC/MCA "___" ________________________ 20__

 

Signature of the head of the MCC/MCA

 

 

 

Appendix 7

to the Regulation on the establishment and operation of microcredit companies and microcredit agencies

 

 

 

National Bank of the

Kyrgyz Republic

Sample Application 

I request for a license for a microcredit company

____________________________________________________________________________________

(full name and legal address)

for the right to conduct operations on:

- _________________________________________________________________________________

- _________________________________________________________________________________

(operations are indicated, the right to perform which in accordance with the Law "On

microfinance organizations in the Kyrgyz Republic" have microcredit companies')

Information about changes in constituent documents:

____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

 

Seal of the MCC "___" _______________________ 20__

 

Signature of the head of the MCC

 

 

 

Appendix 8

to the Regulations on the establishment and operation of microcredit companies and microcredit agencies

NATIONAL BANK OF THE KYRGYZ REPUBLIC 

LICENSE No. _______ 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 5, 2016 No. 5/1, February 24, 2016 No. 10/4, September 28, 2021 No. 2021-P-33/53-8) 

____________________________________________________________________________________

____________________________________________________________________________________

(full name of the microcredit company)

____________________________________________________________________________________

(short name)

created with the aim of providing affordable microfinance services to help overcome poverty, increase employment, promote entrepreneurship and social mobilization of the population of the Kyrgyz Republic, in accordance with the Law "On Microfinance Organizations in the Kyrgyz Republic" has the right to carry out the following operations:

1. Purchase and subsequent sale of debt obligations (factoring);

2. Retail banking services under an agency agreement with a bank - without opening accounts for clients in a microcredit company.

3. Purchase and sale of foreign currency on its own behalf, in accordance with the regulatory legal acts of the National Bank.

This license comes into force from the moment of its signing.

This license grants the right to carry out operations expressly specified in the license.

The license is inalienable (nominal). The rights arising from this license are not transferable to third parties.

The license was registered on _______________________ 20__.

 

Seal

 

Deputy Chairman/Member of the Board of the National Bank of the Kyrgyz Republic

(Head/Director of the Regional Department of the National Bank)

 

 

 

Appendix 9

to the Regulation on the establishment and operation of microcredit companies and microcredit agencies

 

 

 

National Bank of the

Kyrgyz Republic

Sample Application 

I do hereby request to issue a license for a microcredit company ___________________________

____________________________________________________________________________________

(full name and legal address)

for the right to conduct operations on:

- __________________________________________________________________________________

- __________________________________________________________________________________

- __________________________________________________________________________________

- __________________________________________________________________________________

(operations are indicated, the right to perform which in accordance with the Law "On

microfinance organizations in the Kyrgyz Republic" have microcredit companies,

carrying out operations in accordance with Islamic principles of banking and

financing; microcredit companies that carry out operations in accordance with

with Islamic principles of banking and financing within the "Islamic window")

 

Information about changes in constituent documents:

____________________________________________________________________________________

 

Seal of the MCC "___" ____________________________ 20__

 

Signature of the head of the MCC

 

 

 

Appendix 10

to the Regulation on the establishment and operation of microcredit companies and microcredit agencies

NATIONAL BANK OF THE KYRGYZ REPUBLIC 

LICENSE No. _______ 

(As amended by the Resolutions of the Board of the National Bank of the Kyrgyz Republic dated February 5, 2016 No. 5/1, February 24, 2016 No. 10/4, September 28, 2021 No. 2021-P-33/53-8) 

____________________________________________________________________________________

____________________________________________________________________________________

(full name of the microcredit company carrying out operations in accordance with

with Islamic principles of banking and finance; microcredit company,

carrying out operations in accordance with Islamic principles of banking and

financing within the "Islamic window")

____________________________________________________________________________________

(short name)

created with the aim of providing affordable microfinance services to help overcome poverty, increase employment, promote entrepreneurship and social mobilization of the population of the Kyrgyz Republic, in accordance with the Law "On Microfinance Organizations in the Kyrgyz Republic" has the right to carry out the following operations:

1. financing by transactions:

Mudaraba;

Sharika/Musharaka and Sharika/Musharaka muntahiya bittamlik;

Murabaha;

Ijara and Ijara muntahiyya bittamlik;

Salam;

2. retail banking services under an agency agreement with a bank - without opening accounts for clients in a microcredit company;

3. purchase and sale of foreign currency on its own behalf, in accordance with the regulatory legal acts of the National Bank.

This license comes into force from the moment of its signing. This license grants the right to carry out operations expressly specified in the license. The license is inalienable (nominal). The rights arising from this license are not transferable to third parties.

The license was registered on ______________________ 20__.

 

Seal

 

Deputy Chairman/Member of the Board of the National Bank of the Kyrgyz Republic

(Head of the regional department / representative office of the National Bank)

 

 

 

Appendix 11

to the Regulation "On the establishment and operation of microcredit companies and microcredit agencies"

Consent of the subject of personal data to the collection and processing of his personal data 

(As amended by the Resolution of the Board of the National Bank of the Kyrgyz Republic dated September 28, 2021 No. 2021-P-33/53-8) 

Locality, date

 

 

I, _______________________________________________________________________

                                             (Full Name)

residing at: _________________________________________________

___________________________________________________________________________

Identification document: ______________________________________________

                                                                                   (document type)

series ________________________________ № ________________________________

issued by __________________________________________________________________

                                                (date of issue) (issued by)

________________________________________________________________________

                                                    (for authorized persons)

acting on behalf of __________________________________________________________

                                                                  (Full Name)

residing at: __________________________________________________

Identification document: _______________________________________

                                                                                        (document type)

series ____________________________ No. ____________________________________

issued by _________________________________________________________________

                                                        (date of issue) (issued by)

based_____________________________________________________________

                                          (power of attorney, law, other legal act)

 

freely, consciously, of my own free will, I give full and unconditional consent to the National Bank of the Kyrgyz Republic:

- for processing (any operation or set of operations performed, regardless of the methods, by the National Bank or on its behalf, by automatic means or without them for the purpose of collecting, recording, storing, updating, grouping, blocking, erasing and destroying personal data), as well as on the:

- transfer of personal data (provision by the National Bank to third parties in accordance with the Law of the Kyrgyz Republic "On Personal Information" and international treaties;

- cross-border transfer of personal data (transfer by the National Bank of personal data to holders under the jurisdiction of other states) of all personal data provided by me in accordance with the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic, banks and banking activities" and the Regulation on the establishment and operation of microcredit companies and microcredit agencies.

The above consent applies, among other things, to the following personal data: last name, first name and patronymic (former last name, first name, patronymic, date, place and reason for the change (in the event of a change); date and place of birth; information about citizenship (including the previous citizenship, other citizenships); information on education (name and year of graduation of the educational organization, name and details of the document on education, qualification, field of study or specialty according to the document on education); information on the presence of an academic degree; information on the knowledge of foreign languages, the level of knowledge ; address of the place of residence (place of stay); contact phone number or information about other means of communication; type, series, number of the identity document, name of the authority that issued it, date of issue; taxpayer identification number; marital status, composition of the family and close relatives ; information about labor activity (including military service, joint work statehood, entrepreneurial activity, activity on the basis of service contracts, etc.); state awards, other awards and distinctions (who was awarded and when); information on the presence or absence of a criminal record, including the applied measures of disciplinary, administrative responsibility and liability for misconduct and violations; information on income, expenses, property and liabilities of a property nature; personal photo).

I provide the above personal data for processing in order to carry out licensing procedures by the National Bank (including approval of officials, acquisition of shares, expansion of MCC activities) provided for by the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic, banks and banking activities" and the Regulation "On the establishment and activities of microcredit companies and microcredit agencies.

I hereby confirm that I have been notified of the transfer of my personal data to other government agencies, credit bureaus and foreign banking and financial supervisory and regulatory authorities in order to verify their authenticity and to identify information on issues of impeccable business reputation and qualifications, including knowingly and I unconditionally confirm that I do not require subsequent notification of me in accordance with Article 24 of the Law of the Kyrgyz Republic "On Personal Information" and paragraph 12 of the Procedure for obtaining the consent of the subject of personal data to collect and process his personal data, the procedure and forms for notifying subjects of personal data about their transfer personal data to a third party, approved by Decree of the Government of the Kyrgyz Republic dated November 21, 2017 No. 759, when the National Bank transfers my personal data to the above persons as part of the implementation of supervision and licensing procedures.

Consent to the processing of personal data is perpetual (permanently valid for the purposes of supervision and licensing) and is valid from the date of signing this consent.

 

 

" ____________________ 20__

 

____________________ ____________________________________

           Signature                                          Full name