THE JOINT ORDER OF THE CHAIRMAN OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON FINANCIAL MONITORING AND THE MINISTER OF JUSTICE OF THE REPUBLIC OF KAZAKHSTAN

of February 24, 2022 No. 15, on February 24, 2022 No. 152

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 notaries

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" we ORDER:

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 notaries.

2. Declare invalid the joint order of the Chairman of the Agency of the Republic of Kazakhstan on financial monitoring of August 6, 2021 No. 5 and the acting minister of justice of the Republic of Kazakhstan of August 19, 2021 No. 722 "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 notaries" (it is registered in the Register of state registration of regulatory legal acts No. 24068).

3. In the procedure established by the legislation to provide to financial monitoring agency of the Republic of Kazakhstan (further - the Agency):

1) state registration of this joint order in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this joint order on Internet resource of the Agency.

4. This joint order becomes effective after ten calendar days after day of its first official publication.

Minister of Justice of the Republic of Kazakhstan

K. Musin

The chairman of the Agency of the Republic of Kazakhstan on financial monitoring

Zh. Elimanov

No. 15, No. 152 are approved on February 24, 2022 by the joint Order of the Chairman of the Agency of the Republic of Kazakhstan on financial monitoring and the Minister of Justice of the Republic of Kazakhstan of February 24, 2022

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 notaries

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 notaries (further – Requirements) are developed according to 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 International standards of Group of development of financial measures of anti-money laundering (FATF).

2. In these Requirements to subjects of financial monitoring the notaries performing notarial actions with money and (or) other property belong (further - Subjects).

3. The concepts used in Requirements are applied in the values specified in the Law on POD/FT and the Law of the Republic of Kazakhstan "About notariate".

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

1) the allocated communication channel – the network of the authorized body performing financial monitoring, used for electronic interaction with the Subject;

2) the FM-1 form – form of data and information on the transaction which is subject to financial monitoring, the subjects of financial monitoring of the data approved by authorized body on financial monitoring in the field 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 provided by Rules of representation (further – POD/FTFROMU), according to Item 2 of article 10 of the Law on POD/FT;

3) risks of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction (further – OD/FT/FROMU) – possibility of deliberate or inadvertent involvement of Subjects in processes of legalization of OD/FT/FROMU or other criminal activities;

4) risk management of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction – set of the measures for monitoring, identification of risks of legalization of OD/FT/FROMU, and also their minimization taken by Subjects (concerning services of clients);

5) faultless goodwill – availability of the facts confirming professionalism, conscientiousness, lack of not removed or unspent conviction, including lack of the judgment which took legal effect about application of criminal penalty in the form of deprivation of the right to hold leading employee position of the financial organization, bank and (or) insurance holding and to be large member (large shareholder) of the financial organization for life;

6) authorized body – the state body performing financial monitoring and taking other measures for POD/FT/FROMU according to the Law on POD/FT.

5. Internal control is exercised for the purpose of:

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

2) maintenance of system effectiveness of internal control at the level sufficient for risk management of legalization of OD/FT/FROMU;

3) risk minimizations of legalization of OD/FT/FROMU.

6. Within the organization of internal control for the purpose of POD/FT/FROMU with Subjects it is provided:

1) development and adoption of rules of internal control according to the Requirements including 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/FROMU and also substantive audit in case of decision availability on its carrying out;

2) availability of the allocated communication channel.

7. Subjects are persons responsible for realization and observance of rules of internal control (further – PVK).

8. PVK are the document which regulates the organizational bases of work directed to POD/FT/FROMU and establishes operations procedure of Subjects for the purpose of POD/FT/FROMU.

9. PVK include programs, stipulated in Item 3 articles 11 of the Law on POD/FT which are developed by Subjects independently according to these Requirements and are the internal document of Subjects or set of such documents.

10. In case of modification and (or) amendments in the legislation on POD/FT, Subjects within 30 (thirty) calendar days from the moment of their acceptance, make corresponding changes and (or) amendments to PVK.

Chapter 2. The program of the organization of internal control for the purpose of POD/FT, including requirements imposed to the workers of Subjects responsible for realization and observance of PVK

11. The program of the organization of internal control for the purpose of POD/FT/FROMU includes procedures:

1) applications of the automated information systems and software used by the Subject for implementation of internal control for the purpose of POD/FT/FROMU;

2) refusal to clients in establishment of business relations and the termination of business relations, refusal in carrying out transaction with money and (or) other property, and taking measures to freezing of transactions with money and (or) other property;

3) recognitions of transaction of the client having the characteristics corresponding to tipologiya, schemes and methods of legalization of OD/FT/FROMU as suspicious;

4) provisions of data and information on the transactions which are subject to financial monitoring about the refusal facts to the client in establishment of business relations, the terminations of business relations with the client, refusal in carrying out transaction with money and (or) other property, about measures for freezing of transactions with money and (or) other property to authorized body, including instructions and regulations of work in the automated information systems and the software used for transfer of data, information and documents in authorized body.

Documentary fixation of the transactions which are subject to financial monitoring and directed to authorized body is performed according to the procedure, established by Subjects;

5) preparation and representation of the management reporting to authorized bodies by results of efficiency evaluation of internal control for the purpose of POD/FT/FROMU service of internal audit of the organization or other body authorized on carrying out internal audit, and also carrying out substantive audit in case of decision availability on its carrying out;

6) identifications of the client (his representative) and the beneficial owner, including feature of procedures of application of the simplified and strengthened measures of check of the client (his representative) and the beneficial owner, legal nonresident person, other foreign structure without formation of legal entity;

7) recognitions by Subjects of the difficult, unusually large transaction which is subject to studying as suspicious transaction;

8) estimates, determinations, documentary fixation and updating of results of risks assessment of legalization of OD/FT/FROMU;

9) developments of control measures, procedures for risk management of legalization of OD/FT/FROMU and decrease in risks of legalization of OD/FT/FROMU;

10) classifications of the clients taking into account risk degree, risks assessment of legalization of OD/FT/FROMU;

11) storages of all documents and data, including on one-time transactions, and also, received by results of proper check of the client (his representative) and the beneficial owner, including the file of the client (his representative) both the beneficial owner and correspondence with it, at least five years from the date of the termination of business relations with the client (his representative) and the beneficial owner or after date of the one-time transaction, taking into account possibility of their use as the proof in court that they could be timely available to authorized body, and also other state bodies according to their competence.

Inclusion by the Subject in the program of additional measures for the organization of internal control for the purpose of POD/FT/FROMU is allowed.

12. Functions of Subjects according to the program of the organization of internal control include:

1) development, modification and (or) amendments in PVK;

2) the organization and control of submission of data and information on the transactions which are subject to financial monitoring in authorized body according to the Law on POD/FT;

3) decision making about recognition of transactions of clients suspicious;

4) decision making about reference of transactions of clients to difficult, unusually large transactions, to the transactions having the characteristics corresponding to tipologiya, schemes and methods of legalization of OD/FT/FROMU;

5) decision making about suspension or about refusal of carrying out transactions of clients and need of the direction in authorized body;

6) execution of decisions of authorized body on suspension of carrying out suspicious transaction;

7) decision making about establishment, continuation or the termination of business relations with clients;

8) documentary fixation of the made decisions concerning transaction of the client (his representative) and the beneficial owner;

9) forming of the file of the client based on the data obtained as a result of realization of PVK;

10) taking measures to improvement of risk management system and internal control;

11) providing measures for storage of all documents and data;

12) ensuring the confidentiality data received when implementing the functions.

13. Subjects according to the assigned functions:

1) provide information to the relevant state bodies for control of execution of the legislation on POD/FT;

2) provide in authorized body on its request necessary information, data and documents according to Item 3-1 of article 10 of the Law on POD/FT.

Inclusion by Subjects of additional functions and powers is allowed.

According to Item 5 of article 11 of the Law on POD/FT it is forbidden to inform clients and other persons on the measures for POD/FT/FROMU taken concerning such clients and other persons, except for informing clients on the taken measures for freezing of transactions with money and (or) other property about refusal in establishment of business relations, and also about refusal of carrying out transactions with money and (or) other property.

14. Functions of Subjects, stipulated in Item 12 these Requirements, are not combined with functions of service of the internal audit or other body authorized on carrying out internal audit.

Chapter 3. The management program risks (low, high risk levels) of legalization of OD/FT/FROMU considering risks of clients and risks of use of services in criminal objectives including risk and uses of technological achievements

15. For the purpose of the organization of risk management of legalization of OD/FT/FROMU, Subjects develop the management program risks of legalization of OD/FT/FROMU considering risks of clients and risks of use of services in criminal objectives including risk of use of technological achievements.

Subjects on annual basis perform assessment of degree of exposure of services (products) of Subjects to risks of legalization of OD/FT/FROMU taking into account information from the report of risks of legalization of OD/FT/FROMU and, at least, the following specific categories of risks: risk as clients, country (geographical) risk, risk of service (products) and (or) method of her (his) provision.

Results of risks assessment are reported upon the demand of authorized body and body of the regulator in the field of POD/FT/FROMU.

Assessment of degree of exposure of services (products) of Subjects to risks of legalization of OD/FT/FROMU is followed by the description of the possible actions directed to minimization of the revealed risks including refusal of provision of services (products).

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

1) public officials, their spouses and close relatives, and also legal entities whose beneficial owners are specified persons;

2) stateless persons;

3) the citizens of the Republic of Kazakhstan who do not have registration address or stay in the Republic of Kazakhstan;

4) the organizations and faces included in the list of persons involved in terrorist activities (further – the List) and (or) in the list of the organizations and faces tied with financing of terrorism and extremism and also in the list of the organizations and faces tied with financing of distribution of weapons of mass destruction (further – Lists), provided by articles 12 and 12-1 of the Law on POD/FT, and also the organization and persons whose beneficial owners are specified persons or being under control and acting for the benefit of specified persons.

The list and Lists are placed on official Internet resource of authorized body;

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

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

7) the client concerning whom there are reasons for doubt in reliability of the obtained data;

8) the client insists on haste of carrying out transaction or on non-standard or unusually difficult settlement schemes which use differ from customary practice of Subjects;

9) the client concerning whom the Subject stated suspicions earlier;

10) the client (his representative) and the beneficial owner makes the actions directed to evasion from procedures of proper check of the client (his representative) and the beneficial owner provided by the Law on POD/FT.

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

1) state bodies of the Republic of Kazakhstan, and also legal entities over whom control is exercised by state bodies;

2) the organizations which shares are included in the official listing of stock exchange of the Republic of Kazakhstan and (or) stock exchange of foreign state;

3) the international organizations located in the territory of the Republic of Kazakhstan or the member of whom the Republic of Kazakhstan is.

4) persons located (registered) in the foreign states specified in Item 19 of these Requirements and also the branches located in the Republic of Kazakhstan and representations of such persons.

18. Subjects perform assessment of the country (geographical) risk connected with conducting activities in the foreign states specified in this Item, provision of services (products) to clients from such foreign states and implementation of transactions with money and (or) other property with participation of such foreign states.

Foreign states with which transactions increase risk of legalization of OD/FT/FROMU include, but are not limited:

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 on financial monitoring;

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

foreign states (territories) included in 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 the joint-stock investment funds and organization activity performing microfinancial activities, No. 8 established by the resolution of Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market of February 24, 2020 (it is registered in the Register of state registration of regulatory legal acts No. 20095);

foreign states (territories) determined by Subjects as representing high risk of legalization of OD/FT/FROMU 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).

References to lists of such states (territories) according to the UN and the international organizations are placed on official Internet resource of authorized body.

19. Foreign states with which transactions lower risk of legalization of OD/FT/FROMU include, but are not limited:

foreign states (territories) which are carrying out international standards and having the POD/FT effective system according to data of Group of development of financial measures of anti-money laundering (FATF).

20. Services (products) of Subjects increasing risk of legalization of OD/FT/FROMU include, but are not limited when the client (his representative) the beneficial owner:

insists on haste of notarial actions;

insists on non-standard or unusually difficult settlement schemes which use differ from customary practice of Subjects;

makes the actions directed to evasion from procedures of financial monitoring;

on transactions it was recognized as suspicious earlier.

21. The methods of provision of product (service) increasing risk of legalization of OD/FT/FROMU include, but are not limited:

implementation of transaction without physical presence of the client (his representative);

use of services of the third parties for application of measures of proper check of the client concerning the client (his representative) and the beneficial owner.

22. Methods of provision of product (service), lowering risk of legalization of OD/FT/FROMU, include, but are not limited:

implementation of transactions in case of personal presence of the client.

Inclusion by Subjects of additional risk factors in coordination with authorized state body is allowed.

23. Within program implementation of risk management of legalization of OD/FT/FROMU by Subjects measures for classification of clients taking into account the categories and risk factors specified in Items 16-22 of these Requirements, and also other categories of the risks established by Subjects are taken.

Risk level of the client is established by Subjects on analysis results of the information about the client (clients) which is available for Subjects and estimated on risk level determination scale which consists at least of two levels (low, high).

The risks assessment with use of categories and factors of the risks specified in Items 16-22 of these Requirements is carried out concerning clients on the basis of results of monitoring of transactions (business relations).

Review of risk level of the client is performed by Subjects in process of updating of information about the client (customer group) and results of monitoring of transactions (business relations).

24. Subjects determine and estimate the risks of legalization of OD/FT/FROMU arising in case of:

1) to 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 existing products.

The risks assessment of legalization of OD/FT/FROMU 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

25. The program of identification of the client of his representative and beneficial owner consists in holding by Subjects 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, updating of earlier received information about the client (his representative), establishment and fixation of the expected purpose of business relations, and also obtaining and fixation of other information about the client and their representatives provided by the Law, includes, but is not limited:

1) procedure for acceptance of clients, including the procedure and the bases for 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 application of the simplified and strengthened measures of proper check of the client (his representative) and the beneficial owner, procedure for adoption by the Subject of the decision on recognition of physical person by the beneficial owner of the client;";

3) the description of the measures directed to identification by the Subject among the physical persons which are on servicing or accepted on servicing, public officials, their spouses and close relatives and also among legal entities of clients whose beneficial owners are specified persons, and acceptance of such clients on servicing;

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

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 within fulfillment of requirements;

7) features of identification of clients by receipt of data from other organizations, including identification of physical persons and legal entities, in advantage or on behalf of which (his representative) and the beneficial owner transactions are made;

8) the description of the additional sources of information including provided by state bodies for the purpose of identification of the client (his representative) and the beneficial owner;

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

10) requirements to form, content and procedure for maintaining the file of the client, updating of the data (at least 1 time a year) containing in the file with indication of frequency of updating of data;

11) the procedure of ensuring access of workers of the subject to information received when carrying out identification;

12) evaluation procedure of risk level of the client, basis of assessment of such risk.

If the Subject according to the Law on POD/FT based on the agreement charged to the other person, or the foreign financial organization application concerning clients of the subject 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 Subject develops rules of interaction with such persons who include:

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

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

the procedure and terms of transfer of the organization of the data received when carrying out identification by persons to whom carrying out identification is entrusted;

the procedure of implementation by the Subject of control of observance by persons to whom carrying out identification, requirements for identification, including the procedure, terms and completeness of transfer of the organization, the received data, and also the measures taken by the Subject on elimination of the revealed violations is entrusted;

the bases, the procedure and terms of adoption by the Subject of the decision on unilateral refusal performed by the contract 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 of the organization of the received data is entrusted;

the list of officials of the organization, 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 Subject charged carrying out identification, for non-compliance by them with requirements for identification, including the procedure, terms and completeness of transfer of the organization of the received data;

the procedure of interaction of the organization with persons to whom carrying out identification concerning rendering the methodological help to them for the purpose of fulfillment of requirements on identification is entrusted;

procedure of identification of possible risks of legalization of OD/FT/FROMU.

According to Item 10 of article 5 of the Law on POD/FT Subjects have no right to 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, or the foreign financial organization in the state (territory) which does not carry out and (or) implements recommendations of Group of development of financial measures of anti-money laundering (FATF) insufficiently.

26. Subjects when conducting proper check of the client (his representative) and the beneficial owner identify them according to the following obligations:

1) identification of the client (his representative) both the beneficial owner and confirmation of the identity of the client with use of reliable, independent source documents, data or information;

2) determination of the beneficial owner and acceptance of reasonable measures on check of the identity of the beneficial owner which allows the Subject to consider that he knows who is beneficial owner. For legal entities and foreign structures without formation of legal entity it shall include receipt of information by the Subject on management structure and property of the client;

3) understanding and, when necessary, receipt of information on the purposes and expected nature of business relations;

4) carrying out on permanent basis of proper verification of business relations and the complete analysis of the transactions made within such relations to be convinced of compliance of the carried-out transactions to the information of Subjects about the client (his representative) and the beneficial owner, its economic activity and nature of risks, including when it is necessary, about source of means;

5) concerning foreign structures without formation of legal entity of legal educations, the personal data holding equivalent or similar positions.

27. List of the documents necessary for proper check of the client (his representative) and beneficial owner Subjektami:

the document(s) certifying the identity of official person (persons), the representative(s) to sign documents of the legal entity, and also, on making of actions on behalf of the client without power of attorney on making of transactions with money and (or) other property;

the documents confirming powers of the representative of the client on making of transactions with money and (or) other property on behalf of the client including for signing of documents of the client;

the document certifying registration in authorized bodies of the Republic of Kazakhstan for the right of entrance, departure and stay of physical nonresident person in the territory of the Republic of Kazakhstan if other is not provided by the international treaties ratified by the Republic of Kazakhstan.

Subjects when conducting proper check of the client (his representative) and the beneficial owner documentary fix the information about the client (his representative) and the beneficial owner based on represented at the choice of the client (his representative) of originals or notarially attested copies of documents, or copies of documents with putting down of apostille or in the legalized procedure established by the international treaties ratified by the Republic of Kazakhstan.

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

29. Taking into account requirements of Item 1 of article 7 of the Law on POD/FT Subjects 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 performs reliability of the received information about the client 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 unusual transaction (transaction);

4) making by the client of transaction (transaction) having the characteristics corresponding to tipologiya, schemes and methods of legalization (washing) of the criminal income and financings of terrorism.

When making by the client of transaction (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) and 4) 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 these Requirements.

30. The documents and data received according to Item 27 of these Requirements within identification of the client (his representative) and the beneficial owner are documentary fixed and introduced (join) Subjects in the file of the client.

Documents and data on the transactions with money and (or) other property including which are subject to financial monitoring and suspicious transactions, and also results of studying of all difficult, unusually large and other unusual transactions are subject to storage by the Subject throughout the entire period of business relations with the client and at least 5 (five) years from the date of the termination of business relations with the client.

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

Subjects create the file of the client by fixation of information about him depending on the level of its risk appropriated by them according to their PVK. In case of assignment to the client of low level concerning it the simplified measures of proper check are carried out and the list of data provided by subitems 1), 2), 2-1), 2-2) and 4) of Item 3 of article 5 of the Law on POD/FT is fixed.

In case of assignment to the client of high risk level data, stipulated in Item the 5th article 5 of the Law on POD/FT (data on the tax residence, kind of activity and source of financing of the made transactions) belong to additional data.

The strengthened measures of proper check of the client (his representative), the beneficial owner are applied in case of high risk level of legalization of OD/FT/FROMU.

The simplified measures of proper check of clients (their representatives) and beneficial owners are applied in case of low risk level of legalization of OD/FT/FROMU.

31. In the course of identification of the client (his representative) and the beneficial owner Subjektami it is performed on availability of such client in the List and Lists.

Verification of presence of the client (the beneficial owner) in the List and Lists (inclusions in the List and Lists) does not depend on risk level of the client and is performed in process of introduction of changes (updating) in them.

Subjects in the course of identification of the client (his representative) and the beneficial owner it is performed on belonging of such client to the public official, his spouse (spouse) and the close relative.

Updating of information about the client (his representative) and the beneficial owner with high risk level of legalization of OD/FT/FROMU is performed at least 1 (one) time a half-year.

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 (products) of the Subject which the client, to risks of legalization of OD/FT/FROMU uses.

In case of refusal to the client in establishment of business relations and carrying out transaction with money and (or) other property, in case of impossibility of taking measures, provided by subitems 1), 2), 2-1), 2-2), 4) and 6) of Item 3 of article 5 of the Law on POD/FT, and also taking measures to freezing of transactions with money and (or) other property, Subjects send to authorized body the message on such fact in the FM-1 Form.

In case of impossibility of taking measures, provided by the subitem 6) of Item 3 of article 5 of the Law on POD/FT, and also in case of origin in the course of studying of the transactions made by the client, suspicions that business relations are used by the client for the purpose of OD/FT/FROMU Subjects stop business relations with the client. If business relations are stopped on the above-designated bases, Subjects send to authorized body the message in the FM-1 Form.

Chapter 5. The program of monitoring and studying of transactions of clients, including studying of difficult, unusually large transactions of clients

32. 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, and also on identification and the direction in authorized body of messages on the transactions which are subject to financial monitoring, Subjects develop the program of monitoring and studying of transactions of clients.

33. The program of monitoring and studying of transactions of clients include, but it is not limited:

1) the list of signs of unusual and suspicious transactions constituted on the basis of signs of determination of the suspicious transactions approved by authorized body according to Item 2 of article 10 of the Law on POD/FT, and also developed by Subjects independently;

2) the procedure of identification of transaction of the client having the characteristics corresponding to the tipologiya, schemes and methods of legalization of OD/FT/FROMU approved by authorized body according to Item 5 of article 4 of the Law on POD/FT;

3) procedure for acceptance and the description of the measures taken by Subjects concerning the client and his transactions when implementing by the client systematically and (or) in considerable amounts of unusual and (or) suspicious transactions;

4) procedure of the permanent strengthened monitoring of the financial transactions accepted on customer service, being public officials, their spouse (spouse) and close relatives and also whose beneficial owners are specified persons irrespective of form of their implementation and the amount on which they are made or can or could be made, including establishment of source of origin of money and (or) other property of such clients.

34. Within the program of monitoring and studying of transactions of clients by Subjects the events directed to establishment of the purposes and bases of all threshold, unusual, suspicious transactions and transactions having the characteristics corresponding to tipologiya, schemes and methods of legalization of OD/FT/FROMU are held.

Results of monitoring and studying of transactions of clients are used for annual assessment of degree of exposure of services of Subjects to risks of legalization of OD/FT/FROMU, 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 and (or) also at least five years after transaction making are stored at Subjects throughout the entire period of business relations with the client.

35. Frequency of studying of transactions of the client is determined by Subjects taking into account risk level of the client and (or) degree of exposure of services of Subjects which the client, to risks of legalization of OD/FT/FROMU, making (making attempt) by the client of transactions (transaction) with money, and also taking into account tipologiya, schemes and methods of legalization of OD/FT/FROMU approved by authorized body according to Item 5 of article 4 of the Law on POD/FT 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 Subjects operations which performs are studied the client for the period before carrying out operations determined by the Subject, but as a rule no more than one month (performed).

In case of assignment to the client of high risk level, and also when making by the client of suspicious transaction, Subjects study operations which performs the client for certain period of time (saw off).

36. Transactions of the client are recognized suspicious if by results of studying of the transactions specified in Item 20 of these Requirements at Subjects reasons to believe are had that transactions of the client are connected with legalization of OD/FT/FROMU.

Subjects make the decision on recognition (non-recognition) of transaction of the client as suspicious transaction independently based on available at its order of the data and documents characterizing the status and activities of the client (his representative) and the beneficial owner performing transaction and also information on financial and economic activities, financial position and goodwill of the client.

At the same time the difference between time of making of transaction and time of recognition of such transaction suspicious cannot exceed the period determining the frequency of studying of transaction of the client according to PVK of the subject of financial monitoring.

Subjects represent to authorized body of the message on making of suspicious transaction with money and (or) other property, no later than the working day following behind day of adoption of the relevant decision by Subjects (action making) by electronic method by means of the allocated communication channels.

Messages on committed transactions with money and (or) other property which were not acknowledged suspicious before their carrying out are represented by Subjects to authorized body no later than twenty four hours after recognition of transaction suspicious.

Chapter 6. The program of preparation and training of Subjects in the field of POD/FT/FROMU

37. The program of preparation and training of Subjects in the field of POD/FT/FROMU (further – the Training program) is developed according to the Requirements to subjects of financial monitoring on preparation and training in the field of POD/FT/FROMU approved by authorized body in coordination with state bodies, exercising the state control of observance by subjects of financial monitoring of the legislation of the Republic of Kazakhstan on POD/FT within the competence according to Item 8 of article 11 of the Law on POD/FT.

The purpose of the Training program is receipt of knowledge by workers of Subjects and forming of the skills necessary for execution of requirements of the legislation of the Republic of Kazakhstan by them about POD/FT, and also PVK and other internal documents of the Subject in the field of POD/FT/FROMU.

38. No. 31, 15.09.2022 No. 783 is excluded according to the Joint Order of the Chairman of the Agency of the Republic of Kazakhstan on financial monitoring and the Minister of Justice of the Republic of Kazakhstan of 13.09.2022

39. No. 31, 15.09.2022 No. 783 is excluded according to the Joint Order of the Chairman of the Agency of the Republic of Kazakhstan on financial monitoring and the Minister of Justice of the Republic of Kazakhstan of 13.09.2022

 

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