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

of October 12, 2020 No. 96

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 professional participants of the security market and central depositary

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" 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 professional participants of the security market and central depositary.

2. To provide to department of methodology and prudential 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 action provided by the subitem 2) of this Item.

3. 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.

4. This resolution becomes effective since November 15, 2020 and is subject to official publication.

"Is approved" Ministry of Finance of the Republic of Kazakhstan

Approved by the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market of October 12, 2020 No. 96

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 professional participants of the security market and central depositary

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 professional participants of the security market and central depositary (further – Requirements) are developed according to the laws of the Republic of Kazakhstan "About the security market" (further – the Law on the security market), "About counteraction of legalization (washing) of income gained in the criminal way and to terrorism financing" (further – the Law on POD/FT), the resolution of Board of National Bank of the Republic of Kazakhstan of December 28, 2018 No. 318 "About approval of Rules of forming of risk management system and internal control for the central depositary" (it is registered in the Register of state registration of regulatory legal acts at No. 18180), the resolution of Board of National Bank of the Republic of Kazakhstan of August 24, 2012 No. 276 "About approval of Requirements for availability of risk management system for the organization performing activities for maintaining system of registers of security holders and modification of some regulatory legal acts of the Republic of Kazakhstan" (it is registered in the Register of state registration of regulatory legal acts at No. 7993), and also the resolution of Board of National Bank of the Republic of Kazakhstan of August 27, 2013 No. 214 "About approval of Rules of forming of risk management system and internal control for the organizations performing broker and dealer activities in the security market, activities for management of investment portfolio" (it is registered in the Register of state registration of regulatory legal acts at No. 8796).

Requirements extend to professional participants of the security market and central depositary, except for banks of the second level, the National operator of mail and stock exchange (further – the organizations).

2. The concepts used in Requirements are applied in the values specified in the Law on POD/FT and the Law on the security market.

For the purposes of Requirements the following basic 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) according to Item 2 of article 10 of the Law on POD/FT, and also developed by the organizations independently;

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

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

4) 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 the organizations 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);

5) digital asset – the property created in electronic and digital form using means of cryptography and computer calculations, which is not the financial instrument and also electronic and digital form of the certificate of property rights;

6) threshold transaction – the transaction of the client with money and (or) other property which is subject to financial monitoring according to Item 1 of article 4 of the Law on POD/FT;

7) the account – method of reflection of the business relations between the organizations and clients providing implementation of accounting of assets of clients by the organizations including money, securities and other financial instruments;

8) business relations – the relations on provision by the organizations to the client of services (products) relating to professional activity in the security market.

3. Internal control for the purpose of counteraction of legalization (washing) of income gained in the criminal way, financings of terrorism and financing of distribution of weapons of mass destruction (further – POD/FT) is performed by the organizations for the purpose of:

1) ensuring fulfillment of requirements of the Law on POD/FT;

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

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

4. Within the organization of internal control for the purpose of POD/FT the rules of internal control including requirements to carrying out internal audit of the organizations of efficiency evaluation of internal control by services for the purpose of POD/FT are developed and accepted by governing body or executive body of the organizations.

Rules of internal control are performed by the organizations taking into account results of assessment of degree of exposure of services of the organizations to risks of OD/FT, the size, nature and complexity of the organizations.

Rules of internal control include programs, the stipulated in Article 11 Laws on POD/FT which are developed by the organizations independently according to Requirements and are internal documents of the organizations or set of such documents approved by governing bodies or executive bodies of the organizations.

Chapter 2. 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 person is designated, from among leading employees of the organization or other heads of the organization is not lower than the level of the head of the relevant structural division of the organization, responsible for realization and observance of rules of internal control (further – the ranking officer) which has the higher education, length of service in the organization at least one year or length of service in the field of POD/FT at least two years, or length of service in the field of provision and (or) regulation of financial services at least three years and faultless goodwill according to the Law on the security market, and also workers or division of the organization which competence questions POD/FT enter (further – division on POD/FT) are determined.

6. The program of the organization of internal control for the purpose of POD/FT includes, but is not limited:

1) procedure for fixation of data, and also document storages and information received during realization of internal control for the purpose of POD/FT;

2) procedure for application of target financial sanctions and check of the client (his representative) and the beneficial owner on availability in the list of the organizations and faces tied with financing of terrorism and extremism, constituted according to article 12 of the Law on POD/FT (further – the List) and the list of the organizations and faces tied with financing of distribution of weapons of mass destruction, constituted according to article 12-1 of the Law on POD/FT (further – the List of FROMU);

3) procedure for cancellation of target financial sanctions in case of exception of information about the client (his representative) and the beneficial owner from the List and the List of FROMU;

4) procedure for informing the organizations by workers, including ranking officers, governing bodies and executive bodies of the organizations about the facts of violation of the law which became to them known about POD/FT, and also the rules of internal control allowed by employees of the organizations;

5) the requirement description on POD/FT, established by legal entities who have control over the organizations (in the presence);

6) procedure for preparation and representation to governing bodies and executive bodies of the organizations of the management reporting, including on the consolidated basis within financial group (in the presence), by results of efficiency evaluation of internal control for the purpose of POD/FT services of internal audit of the organizations;

7) assessment procedure, determinations, documentary fixation and updating of results of risks assessment of OD/FT;

8) the description of functions of division on POD/FT, including the procedure of interaction with other divisions of the organizations, branches, the affiliated organizations when implementing internal control for the purpose of POD/FT, and also functions, powers of the ranking officer, the procedure of interaction of the ranking officer with governing bodies and executive bodies of the organizations;

9) procedure for observance and implementation of rules of internal control, including procedure for application of additional control measures and procedure for risk management of OD/FT and their decrease, the branches, representations, the affiliated organizations of the organizations located both in the Republic of Kazakhstan and beyond its limits if it does not contradict the legislation of the state of their location.

7. Functions of the ranking officer and employees of division on POD/FT according to the program of the organization of internal control for the purpose of POD/FT include, but are not limited:

1) ensuring availability of the organizations of rules of internal control and (or) changes (amendments) to them developed and approved with governing bodies or executive bodies, and also monitoring of their observance in the organizations;

2) the organization of representation and control of submission of messages to authorized body according to the Law on POD/FT;

3) informing governing bodies and (or) executive bodies of the organizations on the revealed clients consisting in the List, the List of FROMU and the taken measures for application of target financial sanctions;

4) decision making about recognition of transactions of clients as suspicious and need of the direction of messages in authorized body according to the procedure, provided by internal documents of the organizations;

5) acceptance or approval of governing bodies and (or) executive bodies of the organizations of decisions on the suspension or refusal of carrying out transactions of clients in the cases provided by the Law on POD/FT and (or) contracts with clients, and according to the procedure provided by internal documents of the organizations;

6) the direction of requests to governing bodies and (or) executive bodies of the organizations for decision making about establishment, continuation or the termination of business relations with clients in the cases and procedure provided by the Law on POD/FT and (or) internal documents of the organizations;

7) informing governing bodies and officials of the organizations on the revealed abuses of regulations of internal control according to the procedure, provided by internal documents of the organizations;

8) preparation and approval of governing bodies and (or) executive bodies of the organizations of information on results of implementation of rules of internal control and recommended measures for improvement of risk management systems of OD/FT and internal control for the purpose of POD/FT, including within financial group (in the presence), for report generation to governing bodies of the organizations;

9) coordination on collection of quantitative and qualitative indexes for risk assessment of involvement of the organizations into processes of OD/FT and transfer of required information in authorized body on regulation, control and supervision of the financial market and the financial organizations annually no later than February 5 of the year following after accounting year.

8. For accomplishment of the assigned functions the ranking officer and employees of division of the organization for POD/FT are allocated with the following powers, including without limitation:

1) receipt of access to all premises of the organization, to information systems, means of telecommunications, documents and files, in the limits allowing to perform the functions in full, and according to the procedure, provided by internal documents of the organization;

2) giving to divisions of the organization of the instructions concerning carrying out transaction;

3) ensuring confidentiality of information obtained when implementing the functions;

4) ensuring safety of the documents and files received from divisions of the organization.

9. In the presence in branches of employee organization to whom the functions and powers provided by Items 7 and 8 of Requirements are fully or partially assigned coordination of activities of such workers is performed by the ranking officer.

10. Functions of the ranking officer, and also employees of the organization to whom functions, stipulated in Item 7 Requirements are assigned are not combined with functions of service of internal audit, and also the functions performed by business divisions of the organization.

11. The organization for automation of processes for internal control for the purpose of POD/FT uses the automated information systems conforming to requirements of internal control of the organization.

Chapter 3. Management program risks of OD/FT

12. For the purpose of the organization of risk management of OD/FT the organization develops the management program risks (risks assessment) of OD/FT.

Results of risks assessment are reported upon the demand of authorized body on regulation, control and supervision of the financial market and the financial organizations according to part one of article 14 of the Law of the Republic of Kazakhstan "About state regulation, control and supervision of the financial market and the financial organizations".

13. In case of program implementation of risk management of OD/FT the organization considers the published information from the report of risks of legalization (washing) of the income and financing of terrorism according to Item 6 of article 11-1 of the Law on POD/FT.

14. The management program risks of OD/FT includes, but is not limited:

1) procedure for the organization of risk management of OD/FT of the organization by its structural divisions;

2) OD/FT risks assessment technique taking into account the main categories of risks (as the client, to country risk and risk of services/products) in the relation:

risk level of the client;

degrees of exposure of services (products) of the organization to risks of OD/FT;

3) the procedure of regular monitoring, the analysis and control of risks of clients and degree of exposure of products (services) of the organization to risks of OD/FT providing the list of precautionary actions, procedure and terms of their carrying out, control of results according to the taken measures;

4) procedure for assignment, terms and bases for review of levels of risks of clients;

15. The organization on annual basis performs assessment of degree of exposure of services of the organization to risks of OD/FT taking into account, at least, following specific categories of risks: risk as clients, country (geographical) risk, risk of service and (or) method of its provision.

Assessment of degree of exposure of services of the organization to risks of OD/FT is followed by the description of the possible actions directed to minimization of the revealed risks including change of procedures of identification and monitoring of transactions of clients, establishment of limits on carrying out transactions, change of conditions of provision of services (products), refusal of provision of services (products).

16. Types of clients, whose status and (or) whose activities increase risk of OD/FT, include, but are not limited:

1) public officials, their spouses and close relatives;

2) foreign financial organizations;

3) legal entities and individual entrepreneurs whose activities are connected with intensive cash turnover, including:

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;

the organizations which exclusive activities is collection of banknotes, coins and values (except for the affiliated organizations of banks of the second level which observe the requirements for POD/FT established by banks of the second level);

the organizations performing microfinancial activities;

the legal entities registered as pawnshops;

agents (attorneys) of service providers (except financial) performing acceptance from consumers of cash including via electronic terminals;

organizers of gaming, and also persons providing services or the gaining income from activities of online casino outside the Republic of Kazakhstan;

persons providing tourist services, and also other services connected with intensive cash turnover;

4) persons providing services in financial leasing (except for the affiliated organizations of banks of the second level which observe the requirements for POD/FT established by banks of the second level);

5) persons performing release and the address of secure digital assets;

6) persons performing release and turnover of unsecured digital assets in the territory of the International financial center "Astana";

7) credit partnerships;

8) persons performing intermediary activities for purchase and sale of the real estate;

9) persons whose activities are connected with production and (or) arms trade, explosives;

10) persons whose activities are connected with production and (or) processing, and also purchase and sale of precious metals, gemstones or products from them;

11) non-profit organizations in form of business of funds, religious associations;

12) persons located (registered) in the foreign states specified in Item 18 of Requirements and also the branches located in the Republic of Kazakhstan and representations of such persons.

17. Types of clients, whose status and (or) whose activities lower risk of OD/FT, include, but are not limited:

1) state bodies of the Republic of Kazakhstan, including National Bank of the Republic of Kazakhstan, authorized body on regulation, control and supervision of the financial market and the financial organizations, and also legal entities over whom control is exercised by state bodies of the Republic of Kazakhstan;

2) the legal entities created in form of business of public institutions or state companies and also to the national managing director of holding or legal entities whose hundred percent of voting shares (shares) belong to national managing holding;

3) banks of the second level, the insurance (reinsurance) organizations - residents of the Republic of Kazakhstan, professional participants of the security market - residents of the Republic of Kazakhstan.

18. The organization performs assessment of the country (geographical) risk connected with conducting activities in the foreign states specified in this Item, the customer service delivery from such foreign states, by implementation of transactions with participation of such foreign states.

Foreign states with which transactions increase risk of OD/FT are:

1) foreign states (territories) included in the list of the states (territories) which are not implementing or not enough financial measures of anti-money laundering (FATF) implementing recommendations of Group of development, constituted by authorized body according to item 4 of article 4 of the Law on POD/FT;

2) foreign states (territories) to which the international sanctions (embargo) accepted by resolutions of the Security Council of the United Nations are applied;

3) foreign states (territories) included in the list of offshore zones according to the resolution of Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market of February 24, 2020 No. 8 "About establishment of the List of offshore zones for the purposes of banking and insurance activity, activities of professional participants of the security market and other licensed types of activity in the security market, activities of joint-stock investment funds and the organization activity performing microfinancial activities" (it is registered in the Register of state registration of regulatory legal acts at No. 20095);

4) foreign states (territories) determined by the organization as representing high risk of OD/FT on the basis of other factors (data on the level of corruption, illegal production, turnover and (or) transit of drugs, data on support of the international terrorism and another).

19. Services (products, transactions) of the organization, and also the methods of their provision increasing risk of OD/FT include, but are not limited:

1) remote customer service, including servicing by means of personal computers, phones, electronic terminals;

2) personal broker servicing in the international markets;

3) trust management of assets;

4) accounts of the financial organizations, mutual investment funds at the nominee holder;

5) accounts of custodians, brokers in the central depositary;

6) accounts of the foreign financial organizations in the organization;

7) the new products and business practicians who are turning on the information transfer mechanisms new and the developing technologies, both for new, and for already existing products, the organizations determined in rules of internal control.

20. In case of assessment of degree of exposure of services of the organization to risks of OD/FT according to the factors of risks specified in Items 16, of 17, of 18 and 19 Requirements, the organization the additional data influencing final risk degree, including without limitation are considered:

1) the number of the messages on suspicious transactions of clients sent by the organization to authorized body;

2) the number of the messages on threshold transactions of clients sent by the organization to authorized body.

21. Within program implementation of risk management of OD/FT by the organization measures for classification of clients taking into account the categories and risk factors specified in Items 16, of 17, of 18 and 19 Requirements, and also other categories and factors of the risks established by the organization are taken.

Risk level of the client (customer group) is established by the organization for analysis results of the data which are available for the organization and customer information (clients) and estimated on the scale of determination of risk level developed by the organization which consists at least of two levels.

Review of risk level of the client (customer group) is performed by the organization for measure of updating of information about the client (customer group).

22. The risk assessment with use of the categories and risk factors specified in Items 16, of 17, of 18 and 19 Requirements is carried out concerning clients (customer groups) on the basis of results of monitoring of transactions (business relations).

On clients (customer groups) concerning which the risk assessment was not carried out earlier and (or) with which business relations were not established earlier the organization on the basis of the data obtained before establishment of business relations carries out initial risk assessment.

22-1. The organizations determine and estimate risks of OD/FT which can arise in connection with:

1) new product development and new business practice, including new mechanisms of transfer;

2) use of the new or developing technologies, both for new, and for already operating products.

The risks assessment of OD/FT is carried out before start of new products, business practice or use of the new or developing technologies.

Chapter 4. Program of identification of clients

23. For the purpose of implementation of requirements of the Law on POD/FT for proper check of the client (his representative) and the beneficial owner of the organization develop the program of identification of clients (their representatives) and beneficial owners.

Identification of the client (his representative) and the beneficial owner consists in holding by the organizations actions for fixation and check of reliability of information about the client (his representative), to identification of the beneficial owner and fixation of information about him, establishment and fixation of the expected purpose of business relations, and also obtaining and fixation of other information about the client (his representative) provided by Requirements.

For identification of the beneficial owner, the data provided by the client (his representative) and the beneficial owner are verified with the data reflected in the register of beneficial owners of legal entities (further - the Register). In case of absence in the Register of data on such persons, the provided data are verified with the data received from other sources.

In the presence of reasons for doubt whether the physical person which directly or indirectly belongs more than twenty five percent of shares in the authorized capital is or placed (less exclusive and redeemed by society) shares of the client legal entity, foreign structure without formation of legal entity, the beneficial owner, allows recognition by the beneficial owner of the physical person exercising control over the client legal entity, foreign structure without formation of legal entity otherwise or for the benefit of which the client legal entity, by foreign structure without formation of legal entity makes transactions with money and (or) other property.

If as a result of taking measures to proper check, the beneficial owner of the client legal entity, foreign structure without formation of legal entity is not revealed, recognition by the beneficial owner of sole executive body or the head of collegiate executive body of the client legal entity, foreign structure without formation of legal entity is allowed.

The organizations according to Item 7 of article 5 of the Law on POD/FT apply the strengthened measures of proper check of clients to the client to whom high risk level is appropriated or apply the simplified measures of proper check of clients concerning which low risk level is appropriated.

23-1. Taking into account requirements of Items 2, of 3-1 Article 5 and Item 1 of article 7 of the Law on POD/FT of the organization carry out identification of the client (his representative) and the beneficial owner, verification of business relations and studying of transactions, including if necessary obtaining and fixation of data on source of financing of the made transactions, taking into account risk level of the client, and also perform reliability of the received information about the client (his representative) and the beneficial owner and establish the expected purpose of business relations in cases:

1) making by the client of threshold transaction (transaction);

2) making (making attempt) by the client of suspicious transaction (transaction);

3) making by the client of transaction (transaction) having the characteristics corresponding to tipologiya, schemes and methods OD/FT;

4) making by the client of unusual transaction (transaction);

5) availability of reasons for doubt in reliability of earlier obtained data on the client (his representative), the beneficial owner.

In the presence of reason for doubt in reliability of earlier received information about the client (his representative), the beneficial owner updating of information about the client (his representative) and the beneficial owner is performed within 15 (fifteen) working days following behind day of acceptance by the subject of financial monitoring of the decision on availability of such doubt.

When making by the client of transaction within the established business relations, identification of the client (his representative) and the beneficial owner is not carried out if it was carried out in case of establishment of such business relations, except as specified, provided by subitems 2), 3), 4) and 5) of part one of this Item, and also the need of updating which is earlier received or receipts of additional data according to risk level of the client and Requirements.

24. Taking into account requirements of article 6 of the Law on POD/FT the organization carries out identification of the client (his representative) and the beneficial owner to establishment of business relations.

25. The data received according to Item 23 of Requirements are introduced by the organizations in the file of the client which is stored by the organizations throughout the entire period of business relations with the client and at least 5 (five) years from the date of their termination.

Customer groups on which the organizations according to internal documents keep files include, but are not limited:

1) physical persons;

2) legal entities;

3) foreign structures without formation of legal entity.

In case of application of the subitem by the organizations 1) of Item 6 of article 5 of the Law on POD/FT of the organization without delay receive the information about the client (his representative) and the beneficial owner from other subjects of financial monitoring on which measures of proper check of clients the organizations rely, for introduction (inclusion) in the file of the client, and also on demand without delay receive copies of supporting documents to which, including information, statements from information systems or databases of other subjects of financial monitoring belong.

If the organizations rely on measures of proper check of clients (their representatives) and the beneficial owners accepted by the foreign financial organization, determine the organizations that activities of such foreign financial organization are subject to licensing, regulation and supervision in the state in which it is registered and that the foreign financial organization takes the measures for proper check similar to requirements of article 5 of the Law on POD/FT, and also stores the documents and data received by results of proper check, at least 5 (five) years from the date of the termination of business relations with the client (his representative) and the beneficial owner.

The organizations, being members of financial group, if necessary rely on measures of proper check of clients (their representatives) and the beneficial owners provided by subitems 1), 2), 2-1), 2-2), the 4) and 6) Item 3 of article 5 of the Law on POD/FT accepted concerning the corresponding clients (their representatives) and beneficial owners by other participants of such group in case of observance of conditions of stipulated in Item 6-1 article 5 of the Law on POD/FT.

26. When implementing by the client or receipt in its advantage of cashless payment or money transfer by the central depositary availability in the payment document and transfer to the financial participating organization of payment (transfer) of money of information about the client, stipulated in Item 2 articles 7 of the Law on POD/FT is controlled.

27. In the course of identification of the client (his representative) and the beneficial owner by the organizations it is performed on availability of such client (his representative) and the beneficial owner in the List and the List of FROMU.

Verification of presence of the client (his representative) and the beneficial owner in the List and the List of FROMU (inclusion in the List and List of FROMU) does not depend on risk level of the client and is performed in process of modification of the List and the List of FROMU (updating of the List and the List of FROMU).

By the organizations in the course of identification of the client (his representative) and identification of the beneficial owner it is performed on accessory of such client (his representative) and the beneficial owner to public officials, their spouses and close relatives.

The organizations concerning public officials, the specified in paragraphs six, the seventh and eighth subitem 3-2) of article 1 of the Law on POD/FT, their spouses and close relatives:

1) perform assessment of reputation of the public official concerning participation it to OD/FT cases;

2) get the written permission of the leading employee of the organizations for establishment, continuation of business relations with such clients (their representatives) and beneficial owners;

3) is undertaken by available measures for establishment of source of origin of money and (or) other property of such client (his representative) and the beneficial owner;

4) is undertaken on permanent basis by the strengthened measures of proper check of clients (their representatives) and beneficial owners.

Concerning the public officials specified in paragraphs the second, the third, fourth and fifth subitem 3-2) of article 1 of the Law on POD/FT, their spouses and close relatives to whom high risk level, the organizations, in addition to measures, stipulated in Item 3 articles 5 of the Law on POD/FT is appropriated are in addition applied by the measures established by subitems 1), 2), 3) and 4) of part four of this Item.

Data on migratory cards are not required to be received concerning citizens of the states entering into the Eurasian Economic Union.

The organizations in case of identification of physical person (the head, founders (participants) of the legal entity, foreign structure without formation of legal entity, the beneficial owner) are established and fix the following data:

surname, name, middle name (in the presence);

nationality;

birth date and birth place;

legal address (for founders (participants), beneficial owners of foreign structure without formation of legal entity (in the presence) the residential address (locations);

details of the identity document, and (or) other document based on which identification is carried out;

individual identification number (except as specified when individual identification number according to the legislation of the Republic of Kazakhstan is not assigned to physical person);

type of activity (for individual entrepreneurs).

The organizations in case of identification of the client legal entity (founders (participants) of the client of the legal entity, foreign structure without formation of legal entity) are established and fix the following data:

name;

registration number and date of state registration of the legal entity, the name of registering body (in case of their availability);

location address or registration;

business and identification number (except as specified when business and identification number according to the legislation of the Republic of Kazakhstan is not assigned to the legal entity), or number at which legal nonresident person is registered in foreign state;

data on the head (the other person, authorized to act on behalf of the client legal entity and the client, foreign structure without formation of legal entity), person having right to sign on financial records;

nature of activities;

data on beneficial owners.

The organizations in case of identification of the client - foreign structure without formation of legal entity are established and fix the following data:

the name, number (in the presence) at which the foreign structure without formation of legal entity is registered in foreign state (in the territory),

location address;

place of maintaining the main activities;

nature of activities;

structure of the property which is in management (property) (concerning trusts and other foreign structures without formation of legal entity with similar structure or function).

28. The documents submitted by the client (his representative) for the purpose of confirmation of information about the client (his representative) and the beneficial owner are checked for their reality.

29. The program of identification of the client, his representative and beneficial owner includes, but is not limited:

1) procedure for acceptance of clients on servicing, including the procedure, the bases and terms of adoption by the organizations of the decision on refusal in establishment of business relations and (or) in carrying out transaction, and also the termination of business relations;

2) procedure for identification of the client (his representative) and the beneficial owner, including feature of procedures of the simplified and strengthened measures of proper check of the client;

3) the description of the measures directed to identification by the organizations among clients (their representatives) and beneficial owners who are on servicing or accepted on servicing of public officials, their spouses and close relatives;

4) procedure for test of the client (his representative) and the beneficial owner on availability in the List and the List of FROMU;

5) features of identification in case of remote establishment of business relations (without personal presence of the client or his representative);

6) features of exchange of the data received in the course of identification of the client (his representative) and the beneficial owner, and also storage and ensuring confidentiality of such data within accomplishment of group requirements for POD/FT (in the presence);

7) features of interaction with other organizations for the purpose of receipt of the data necessary for identification of the client (his representative) and the beneficial owner;

8) procedure for test of reliability of information about the client (his representative) and beneficial owner;

9) requirements to form, content and procedure for maintaining the file of the client, updating of the data containing in the file with indication of frequency of updating of data;

10) evaluation procedure of risk level of the client, basis of assessment of such risk;

11) procedure for obtaining and representation at the request of the organizations of information about beneficial owners of clients for form and according to the procedure, determined by authorized body by financial monitoring according to parts three and the fourth Item 5 of article 5 of the Law on POD/FT.

If the organizations according to the Law on POD/FT based on the agreement charged to the other person application concerning clients (their representatives) and beneficial owners of the measures provided by subitems 1), 2), 2-1), 2-2) and 4) of Item 3 of article 5 of the Law on POD/FT, the organizations develop rules of interaction with such persons who include:

the procedure of the conclusion the organizations of contracts with persons to which carrying out identification is entrusted, and also the list of officials of the organizations, representatives to sign such agreements;

the procedure of identification of the client (his representative) and the beneficial owner according to the agreements signed between the organizations and persons to whom carrying out identification is entrusted;

the procedure and terms of transfer to the organizations of the data received when carrying out identification of the client (his representative) and the beneficial owner, persons to whom carrying out identification is entrusted;

the procedure of implementation by the organizations of control of observance by persons to whom carrying out identification, requirements for identification of the client (his representative) and the beneficial owner, including the procedure, terms and completeness of transfer to the organizations of the received data, and also the measures taken by the organizations for elimination of the revealed violations is entrusted;

the bases, the procedure and terms of adoption by the organizations of the decision on unilateral refusal of agreement performance with persons to whom carrying out identification, in case of non-compliance by them with requirements for identification, including procedures, terms and completeness of transfer to the organizations of the received data is entrusted;

the list of officials of the organizations, representatives to make the decision on unilateral refusal of agreement performance with persons to whom carrying out identification is entrusted;

regulations on responsibility of persons to whom the organizations charged carrying out identification, for non-compliance by them with requirements for identification of the client (his representative) and the beneficial owner, including the procedure, terms and completeness of transfer to the organizations of the received data;

the procedure of interaction of the organizations with persons to whom carrying out identification, concerning rendering the methodological help to them for the purpose of fulfillment of requirements on identification of the client (his representative) and the beneficial owner is entrusted.

Inclusion of additional terms by the organizations in rules of interaction is allowed.

The organizations which charged based on the agreement the foreign financial organization application of measures of proper check of clients (their representatives) and the beneficial owners provided by subitems 1), 2), 2-1), 2-2) and 4) of Item 3 of article 5 of the Law on POD/FT consider possible risks of legalization (washing) of income gained in the criminal way and terrorism financings.

29-1. Check of reliability of the provided data is performed by reconciliation with data of originals or notarially certified copies of the relevant documents submitted by the client (his representative) or reconciliations with data from available sources (databases), or verifications of data by other methods.

29-2. The organizations do not make the actions provided by Items 6, of the 6-1 and 8 article 5 of the Law on POD/FT in case of registration, stay or findings of other subject of financial monitoring or the foreign financial organization in the state (in the territory) which (which) does not carry out and (or) implements recommendations of Group of development of financial measures of anti-money laundering (FATF) insufficiently.

Chapter 5. Program of monitoring and studying of transactions of clients

30. For the purpose of implementation of requirements of the Law on POD/FT for proper check of the client, and also on identification and the direction in authorized body of messages on threshold and suspicious transactions, the organization develops the program of monitoring and studying of transactions of clients.

31. Within the program of monitoring and studying of transactions of clients by the organization events for updating and (or) receipt of additional information about clients (their representatives) and the beneficial owners, including data on source of financing made by clients of transactions and also on studying of transactions of clients and identification of threshold, unusual and suspicious transactions are held.

Results of monitoring and studying of transactions of clients are used for annual assessment of degree of exposure of services of the organization to risks of OD/FT, and also for review of levels of risks of clients.

The data received within program implementation of monitoring and studying of transactions of the client are entered in the file of the client, stipulated in Item 25 Requirements, and (or) also at least five years from the date of their termination are stored at the organization throughout the entire period of business relations with the client.

32. Frequency of updating and (or) need of receipt of additional information about the client (his representative) and the beneficial owner are established taking into account risk level of the client (customer group) and (or) degree of exposure of services of the organization which the client, to risks of OD/FT uses.

Updating of information about the client (his representative) and the beneficial owner with high risk level is performed at least once a year.

Verification of presence of the client (the beneficial owner) in the List does not depend on risk level of the client and is performed in process of modification of the specified lists (updating of lists).

33. Extent of studying of transactions of the client is determined by the organizations taking into account risk level of the client (customer group) and (or) degree of exposure of services (products) of the organizations which the client, to risks of OD/FT, and also taking into account the scenarios (schemes) of OD/FT and (or) signs of unusual and suspicious transactions which are available for the organizations uses.

In case of assignment to the client of high risk level, and also in case of making by the client of suspicious transaction by the organizations operations which performs are studied the client for certain period of time (saw off), but at least for the last month.

34. The program of monitoring and studying of transactions of clients includes, but is not limited:

1) the list of signs of suspicious transactions constituted on the basis of the signs of determination of suspicious transaction determined by authorized body compliance with Item 2 of article 10 of the Law on POD/FT, and also developed by the organizations independently;

2) distribution of obligations between divisions (workers) of the organizations for updating which are earlier received and (or) to receipt of additional information about the client (his representative) and the beneficial owner in the cases provided by Items 21, of 31 and 32 Requirements;

3) distribution of obligations between divisions (workers) of the organizations for identification and transfer between divisions (workers) of data on threshold, unusual and suspicious transactions;

4) procedure, the bases and term of acceptance by the ranking officer and employee of division on POD/FT of the decision on qualification of transaction of the client;

5) procedure for fixation (including fixation methods) and storages of data on results of studying of unusual transactions, and also data on threshold and suspicious transactions;

6) procedure for acceptance and the description of the measures taken by the organizations concerning the client and his transactions in case of implementation by the client systematically and (or) in considerable amounts of unusual and (or) suspicious transactions;

7) procedure for submission to authorized body of messages on threshold and suspicious transactions;

8) procedure for informing (if necessary) governing bodies, executive bodies of the organizations and officials of the organizations about identification of threshold and suspicious transaction.

35. In case of doubts regarding legitimacy of qualification of transaction as threshold, and also in case of identification of unusual or suspicious transaction, the employee of the organization who revealed the specified transaction sends the message on such transaction to division on POD/FT according to the procedure, form and the terms established by internal documents of the organization.

In one message contents of information on several transactions are allowed.

Messages on the transactions specified in parts one of this Item, and also results of their studying are stored by the organization at least five years from the date of the termination of business relations with the client.

Chapter 6. Program of preparation and training of employees of the organization for POD/FT

36. The purpose of the Program of preparation and training of employees of the organization for POD/FT (further - the Training program) is receipt of knowledge by employees of the organization and forming of the skills necessary for execution of requirements of the legislation of the Republic of Kazakhstan by them, and also rules of internal control and other internal documents of the organization in the field of POD/FT.

37. The training program is developed according to the requirements to subjects of financial monitoring on preparation and training in the field of POD/FT specified in Item 8 of article 11 of the Law on POD/FT.

38. No. 69 is excluded according to the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market of 12.09.2022

 

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