ORDER OF THE MINISTER OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN AND RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of November 26, 2014 No. 518, on December 24, 2014 No. 236

About approval of Requirements to Rules of internal control for the purpose of counteraction of legalization (washing) of income gained in the criminal way and to financing of terrorism for the separate organizations performing separate types of banking activities

According to Item 3-2 of article 11 of the Law of the Republic of Kazakhstan of August 28, 2009 "About counteraction of legalization (washing) of income gained in the criminal way and to terrorism financing" the Minister of Finance of the Republic of Kazakhstan ORDERS and the Board of National Bank of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Requirements to Rules of internal control for the purpose of counteraction of legalization (washing) of income gained in the criminal way and to financing of terrorism for the separate organizations performing separate types of banking activities.

2. To the organizations performing separate types of banking activities, except for the operator of interbank money transfer system and the microfinancial organizations:

1) to bring internal documentation into accord with the presents the order and the resolution no later than three calendar months from the date of enforcement of the presents of the order and the resolution;

2) to hold events for completion of the automated information systems and determination of risk level of the existing clients according to the presents the order and the resolution no later than one calendar year from the date of enforcement of the presents of the order and the resolution.

3. (Tadzhiyakov B. Sh.) in the procedure established by the legislation to provide to committee on financial monitoring of the Ministry of Finance of the Republic of Kazakhstan:

1) state registration of the presents of the order and resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days after state registration of the presents of the order and the resolution their direction on official publication in periodic printing editions and in information system of law of Ad_let;

3) placement of the presents of the order and resolution on Internet resource of the Ministry of Finance of the Republic of Kazakhstan.

4. These order and the resolution become effective since December 15, 2014.

No. 518, No. 236 are approved on December 24, 2014 by the Order of the Minister of Finance of the Republic of Kazakhstan and the Resolution of Board of National Bank of the Republic of Kazakhstan of November 26, 2014

Requirements to Rules of internal control for the purpose of counteraction of legalization (washing) of income gained in the criminal way and to financing of terrorism for the separate organizations performing separate types of banking activities

Chapter 1. General provisions

1. These Requirements to Rules of internal control for the purpose of counteraction of legalization (washing) of income gained in the criminal way and to financing of terrorism in the separate organizations performing separate types of banking activities (further - Requirements), are developed according to the Law of the Republic of Kazakhstan of August 28, 2009 "About counteraction of legalization (washing) of income gained in the criminal way and to terrorism financing" (further - the Law on POD/FT) and extend on the legal entities performing activities only through exchange points based on the license of National Bank of the Republic of Kazakhstan for exchange transactions with cash foreign currency and also legal entities whose exclusive activities is collection of banknotes, coins and values (further - the organizations).

2. If Requirements do not provide other, then the concepts applied in Requirements are used in the values specified in the Law on POD/FT.

For the purposes of Requirements the following basic concepts are used:

1) unusual transaction (transaction) - transaction (transaction) which is subject to obligatory studying according to item 4 of article 4 of the Law on POD/FT taking into account the signs approved by the Government of the Republic of Kazakhstan and developed by the organization independently;

2) one-time transaction (transaction) - the relations on provision of services by the organization in the form of purchase, sale or exchange of the client of cash foreign currency through exchange point;

3) risks of legalization (washing) of income gained in the criminal way and terrorism financings - risks of deliberate or inadvertent involvement of the organization in processes of legalization (washing) of income gained in the criminal way and financings of terrorism or other criminal activities;

4) risk management of legalization (washing) of income gained in the criminal way, and terrorism financings - set of the measures for identification, assessment, monitoring of risks of legalization (washing) of income gained in the criminal way taken by the organization, and terrorism financings (further - OD/FT), and also their minimization (concerning services, clients, and also made by clients of transactions);

5) threshold transaction - the transaction with money and (or) other property which is subject to financial monitoring according to article 4 of the Law on POD/FT and equal or exceeding the threshold amount established by the Law on POD/FT;

6) business relations - the relations on provision by the organization to the client of services (products) based on the agreement signed in writing, except for services in purchase, sale or exchange of the client of cash foreign currency through exchange point.

3. Internal control for the purpose of counteraction of legalization (washing) of income gained in the criminal way and to terrorism financing (further - POD/FT) is performed by the organization for the purpose of:

1) ensuring accomplishment by the organization of requirements of the Law on POD/FT;

2) maintenance of system effectiveness of internal control of the organization at the level sufficient for risk management of OD/FT and the integrated risks (operational, reputation);

3) exceptions of involvement of the organization, her officials and workers in processes of OD/FT.

4. Within the organization of internal control for the purpose of POD/FT in the organization the rules of internal control including requirements to carrying out internal audit of the organization by service or other body authorized on carrying out internal audit, efficiency evaluation of internal control for the purpose of POD/FT are developed.

Rules of internal control consist of programs, the stipulated in Article 11 Laws on POD/FT, are developed by the organization independently according to Requirements and are the internal document of the organization or set of such documents.

Chapter 2. The organization of the POD/FT internal system and the program of the organization of internal control for the purpose of POD/FT

5. According to the procedure, established by internal documents of the organization, in the organization the official responsible for implementation of monitoring of observance of rules of internal control is designated (further - the ranking officer), and also workers or division of the organization which competence questions POD/FT enter (further - division on POD/FT) are determined.

6. Requirements to the ranking officer are:

1) availability of the higher education;

2) availability of length of service in the financial organizations at least two years (except for work experience on positions of technical or support personnel);

3) lack of not removed or unspent conviction.

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