RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of August 19, 2020 No. 2020-P-14/46-4-(PS)

About approval of the Provision "About the Minimum Requirements to the Organization of Internal Control in Payment Institutes and Operators of Payment Systems for the purpose of Counteraction to Financing of Criminal Activities and to Legalization (Washing) of the Criminal Income"

According to articles 20 and 68 of the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic, banks and banking activity", article 26 of the Law of the Kyrgyz Republic "About payment system of the Kyrgyz Republic" the Board of National Bank of the Kyrgyz Republic decides:

1. Approve the Provision "About the Minimum Requirements to the Organization of Internal Control in Payment Institutes and Operators of Payment Systems for the purpose of Counteraction to Financing of Criminal Activities and to Legalization (Washing) of the Criminal Income" it (is applied).

2. This resolution becomes effective after fifteen days from the date of official publication.

3. To legal management:

- publish this resolution on the official website of National Bank of the Kyrgyz Republic;

- after official publication to send this resolution to the Ministry of Justice of the Kyrgyz Republic for entering into the State register of regulatory legal acts of the Kyrgyz Republic.

4. To management of payment systems to bring this resolution to the attention of payment institutes and operators of payment systems.

5. To department of development of state language and document flow to bring this resolution to the attention of the relevant structural divisions, regional managements and representative office of National Bank in Batken Province.

6. To impose control of execution of this resolution on the board member of the National Bank of the Kyrgyz Republic supervising Management of payment systems.

Appendix

to the Resolution of Board of National Bank of the Kyrgyz Republic of August 19, 2020 No. 2020-P-14/46-4-(PS)

Regulations on the minimum requirements to the organization of internal control in payment institutes and operators of payment systems for the purpose of counteraction to financing of criminal activities and to legalization (washing) of the criminal income

Chapter 1. General provisions

1. This Provision "About the Minimum Requirements to the Organization of Internal Control in Payment Institutes and Operators of Payment Systems for the purpose of Counteraction to Financing of Criminal Activities and to Legalization (Washing) of the Criminal Income" (further - the Provision) determines the minimum requirements by the organization of internal control in payment institutes and operators of payment systems of calculations with use of the electronic money which is not commercial banks (further - the payment organizations / operators of payment systems) for the purpose of counteraction to financing of criminal activities and to legalization (washing) of the criminal income (further - PFPD/LPD).

2. The National Bank of the Kyrgyz Republic (further - National Bank) exercises supervision of activities of the payment organizations / operators of payment systems, including concerning the organization of internal control for the purpose of compliance with law in the field of PFPD/LPD, and directs information in case of identification of payments for benefit of the third parties having signs of suspicious transactions, to authorized state body in the field of PFPD/LPD (further - body of financial investigation).

3. Activities of the commercial banks performing services in acceptance and carrying out payments and calculations for the goods and services which are not result of the activities for benefit of the third parties by means of the payment systems based on information technologies and electronic means, and methods of carrying out payments, and also being operators of payment systems of calculations with use of electronic money and agents (distributors) of electronic money being partner banks are regulated by the Provision "About the Minimum Requirements to the Organization of Internal Control in Commercial Banks for the purpose of Counteraction to Financing of Criminal Activities and to Legalization (Washing) of the Criminal Income" approved by the resolution of Board of National Bank of August 14, 2019 No. 2019-P-12/42-1-(NPA).

Chapter 2. Concept and determinations

4. For the purposes of this provision the following concepts are used:

The beneficial owner - physical person (physical persons) which finally (through chain of ownership and control) directly or indirectly (through the third parties) owns the property right or controls the client or the physical person, from name or for the benefit of which transaction (transaction) is made.

Close relatives are the parents, adoptive parents adopted, full and not full brothers and sisters, the grandfather, the grandmother, grandsons concerning whom the public official incurs finance costs, regarding covering of expenses on accommodation, education, health care and other necessary expenses.

Verification - the procedure of verification of identification data of the client and (or) beneficial owner.

The high risk countries - the states and the territories (education) which do not apply or apply in insufficient degree international standards on counteraction to money laundering, financing of terrorism and financing of distribution of weapons of mass destruction, and also offshore zones.

Identification of the transactions which are subject to control and the message - stage of the organization of internal control of the payment organizations / operators of payment systems for the purpose of PFPD/LPD which includes activity definition, subject to control and the message in body of financial investigation according to requirements of regulatory legal acts of the Kyrgyz Republic.

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