The Board of the National Bank of the Kyrgyz Republic considered Resolution "On introduction of amendments and additions to some regulatory legal acts of the National Bank of the Kyrgyz Republic"(№4/5) at the meeting held on February 19, 2014. 

Measure taken by the National Bank of the Kyrgyz Republic with regard to the financial institutions, which violated procedures on transactions in foreign currency  

Within the period since February 13 till February 15, 2014, the National Bank carried out inspections in 130 exchange offices, including inspections conducted together with the State Tax Service.  

Based on the results of inspections carried out in the exchange offices in order to verify compliance with the legislation of the Kyrgyz Republic when carrying out transactions in foreign currency, prescriptions were forwarded to separate exchange offices and licenses of several exchanges offices were suspended for breaching cash discipline, rejection in foreign currency exchange, including currencies of small denominations, improper record keeping of exchange transactions, including transactions falling within the requirements of anti-money laundering and anti-terrorist financing legislation. 

The list of exchange offices, which licenses, giving the right to conduct transactions in foreign currency were suspended (for the period of 7 days, during which the exchange offices should take measures in order to eliminate violations and submit reports to the NBKR): 

1. Private Entrepreneur N. Ismailov 

2. Private Entrepreneur O.Yu. Starzhinskaya 

3. Private Entrepreneur M.O. Osokeev 

4. Private Entrepreneur Sh. Adbrakhmanov 

5. Private Entrepreneur S.S. Myrzaliev 

6. Private Entrepreneur M. Asylbekov 

7. Private Entrepreneur A. Akymbaev 

8. Private Entrepreneur O.I. Bezdornov 

9. Private Entrepreneur G. Usenova 

10. Private Entrepreneur A. Timoshkin 

11. Private Entrepreneur K.K. Ibragimov 

12. Private Entrepreneur Kalygul uulu Toktosun. 

Prescriptions were forwarded to the following exchange offices:  

1. Private Entrepreneur N.D. Ismailova 

2. Private Entrepreneur D.B. Zhoobazarov 

3. Private Entrepreneur B.T. Seidinaliev 

4. Private Entrepreneur D.S. Kurmanaliev 

5. Private Entrepreneur M.S. Urazov 

6 Private Entrepreneur S.Sh. Bekmanbetov 

Exchange offices should, in compliance with the prescriptions, submit report on elimination of violations during 3 working days.  

Generally, based on the results of inspections carried out in the commercial banks, it should be noted that commercial banks conducted their activity within the framework of operations stipulated by their license. Funds in foreign currency were used for making settlements with partners, on behalf of the clients, and for smoothing foreign exchange position. 

Certificates/licenses of the following non-bank financial institutions have been cancelled/revoked: 

License of CU "Abdykahar" № 406 dated March 17, 2005 has been cancelled since February 12, 2014 according to the minutes of the general meeting of CU "Abdykahar" dated February 16, 2014 and the statement about cancellation of the FC Chairman of the Board dated February 19, 2014. Legal address: Jany-Nookat village, Nookat district, Osh region. 

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