THE RESOLUTION OF BOARD OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION AND DEVELOPMENT OF THE FINANCIAL MARKET

of March 22, 2020 No. 18

About approval of Requirements to Rules of internal control for the purpose of counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction for banks of the second level, branches of nonresident banks of the Republic of Kazakhstan and the National operator of mail

According to Item 3-2 of article 11 of the Law of the Republic of Kazakhstan "About counteraction of legalization (washing) of income gained in the criminal way and to terrorism financing", the Presidential decree of the Republic of Kazakhstan of March 16, 2020 No. 286 "About measures for providing it is social - economic stability" Board of the Agency of the Republic of Kazakhstan on regulation and development of the DECIDES: financial market

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, to financing of terrorism and financing of distribution of weapons of mass destruction for banks of the second level, branches of nonresident banks of the Republic of Kazakhstan and the National operator of mail.

2. To provide to department of methodology and regulation of the financial organizations in the procedure established by the legislation of the Republic of Kazakhstan:

1) together with Legal department state registration of this resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this resolution on official Internet resource of the Agency of the Republic of Kazakhstan on regulation and development of the financial market after its official publication;

3) within ten working days after state registration of this resolution submission to Legal department of data on execution of the actions provided by the subitem 2) of this Item and Item 3 of this resolution.

3. To management of the international relations and external communications within ten calendar days after state registration of this resolution to provide the direction it to the copy on official publication in periodic printing editions.

4. To impose control of execution of this resolution on the supervising vice-chairman of the Agency of the Republic of Kazakhstan on regulation and development of the financial market.

5. This resolution becomes effective from the date of its first official publication.

Approved by the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market of March 22, 2020 No. 18

Requirements to Rules of internal control for the purpose of counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction for banks of the second level, branches of nonresident banks of the Republic of Kazakhstan and the National operator of mail

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, to financing of terrorism and financing of distribution of weapons of mass destruction for banks of the second level, branches of nonresident banks of the Republic of Kazakhstan and the National operator of mail (further – Requirements) are developed according to the paragraph the second Item 3-2 of article 11 of the Law of the Republic of Kazakhstan "About counteraction of legalization (washing) of the income received in the criminal way and to terrorism financing" (further – the Law on POD/FT) and extend to banks of the second level, branches of nonresident banks of the Republic of Kazakhstan and the National operator of mail (further – bank).

2. If Requirements do not provide other, the concepts applied in Requirements are used in the values specified in the Law on POD/FT, the Law of the Republic of Kazakhstan "About payments and payment systems" and the Law of the Republic of Kazakhstan "About joint-stock companies".

For the purposes of Requirements the following concepts are used:

1) unusual transaction (transaction) – transaction (transaction) of the client which is subject to obligatory studying according to item 4 of article 4 of the Law on POD/FT taking into account the signs of determination of suspicious transaction determined by the authorized body performing financial monitoring and taking other measures for counteraction of legalization (washing) of income gained in the criminal way, to terrorism financing, financing of distribution of weapons of mass destruction (further - authorized body on financial monitoring) according to Item 2 of article 10 of the Law on POD/FT, and also developed by bank independently;

2) one-time transaction (transaction) – provision of services by bank by carrying out transactions on transfer of money for the bank account of physical person or carrying out payment for benefit of the service provider by means of the equipment (device) intended for acceptance of cash, to cashless payment or money transfer without use of the bank account, to purchase, sale or exchange of cash foreign currency in exchange point, to use of the payment card which is not access facility to the bank account of such client, debt repayment within enforcement proceeding for benefit of state bodies by means of the equipment (device), purchase of the affined ingot gold through exchange points, and also provision by bank of services to not identified owners of electronic money by carrying out transactions on acquisition and use of electronic money;

3) risk management of OD/FT – set of the measures for identification, assessment, monitoring of risks of OD/FT, and also their minimization taken by bank (concerning services (products), clients, and also made by clients of transactions);

4) the client – the physical, legal entity or foreign structure without formation of legal entity receiving services of bank;

5) risks of legalization (washing) of income gained in the criminal way, financings of terrorism and financing of distribution of weapons of mass destruction (further – risks of OD/FT) - risks of deliberate or inadvertent involvement of bank in processes of legalization (washing) of income gained in the criminal way, financings of terrorism and financing of distribution of weapons of mass destruction (further – OD/FT) or other criminal activities;

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