This Instruction establishes procedure for conducting financial accounting, obligatory for banks, and the organization of accounting work.

I. General provisions

1. The correct conducting financial accounting, the correct organization of accounting and accurate statement of control provides the correct accomplishment of functions of bank, provides exact and useful information which allows the existing and potential creditors, public institutions, the ministries, departments, to the public and other interested users, and also management and bank staff authentically to estimate activities of bank.

2. The principles of financial accounting and the organization of the accounting device are given in this Instruction, instructed in methods of customer service and methods of creation of document flow, rules of accomplishment of accounting and control of banking activities are included, and also responsibility for legality of the performed banking activities is determined.

It is also set as the purpose to provide:

the correct accomplishment of settlement, cash, currency, credit and other banking activities, and also their timely and exact reflection in financial accounting and the reporting;

collection of reliable information about condition and changes in assets, obligations, profits and costs of bank, and also the capital of bank;

creation of information system which serves for creation of the financial reporting according to financial condition, changes of financial condition of bank and financial results allows to estimate activities of management of bank;

strict observance of the mode of the working day in bank, bystry and accurate customer service;

acceleration of turnover of means in calculations;

the organization of proper execution of the documents coming from bank, use facilitating them, and also reduction in compliance with the established requirements carrying out transactions according to these documents in other banks and accounting of the clients serviced by them;

non-admission of emergence of shortages or excesses of money, material values, the forms of the strict reporting which are in banks and also the organization of their safety in accordance with the established procedure;

create possibility of carrying out constant internal control and audit behind legality and correctness of making of transactions, and also creation and execution of data by results of such checks;

cost reduction of work and funds for implementation of the programmed accounting of banking activities, their accounting and creation of the reporting on the basis of broad application of means of the modern computer equipment.

3. The instructions containing in the Instruction about procedure for accomplishment, registration, accounting and control of transactions are obligatory for all banks.

For the purpose of ensuring exact and complete conducting financial accounting, efficiency of internal control of activities of branches, offices of banking services and other divisions with banks taking into account specifics of the work and in the limits set by this Instruction the policy of internal accounting determining the procedure of the correct accounting of their income and expenses, timely preparation and provision financial and tax statements and also filings and storages of payment documents shall be developed.

4. Employees of bank in strict accordance with requirements of the Law of the Republic of Uzbekistan "About bank secrecy" shall keep in secret the data reflected in financial accounting of bank which are bank secrecy.

5. For the purpose of this Instruction the following basic concepts are used:

operational day of bank - the part of the banking working day designating time allocated for acceptance, execution of cash payment documents and reflection of banking activities on accounts of financial accounting;

the accounting office of bank - the employee group which is engaged in execution of cash payment documents, accomplishment of banking activities, carrying out them through internal control and their entering in accounting registers, preparation of accounting reports;

the working day of bank - the working hours within a day established by the legislation;

internal control of banking activities (further - internal control) - system of ensuring compliance to the legislation, efficiency, execution at the high level and reliability of the financial reporting.

Internal control is not procedure or the rule existing during certain or specific time, but integral part of the permanent banking activity performed by all links of bank from the beginning and before completion of day banking activities.

In turn internal control is subdivided into primary control, the current control and final control;

the ledger - the list of accounts of the second procedure in the chart of accounts;

bookkeeping registers - magazines, sheets, notebooks and the approved forms of registration of transactions by method of double record;

Back office - structural division of bank, group of the accountants exercising the current control of accomplishment of the transactions of bank which passed through primary control of the Front office and provided to execution;

The main objective of the Back office consists of carrying out repeated current control of all banking activities which underwent primary control of the Front office and got approval, their registration in accounting registers by method of the duplicated record and preparation of the corresponding reporting.

The back office does not contact directly to clients. It performs communication with the Front office in case of reflection in financial accounting of transactions with clients and with administration of bank - in case of reflection in financial accounting of intra bank financial and economic activities.

Management of the Back office is performed of the chief of the Back office who in turn submits to the head of bank.

primary control - the control by determination of legality of transactions before their carrying out exercised by the Front office or the ranking officer;

the subsidiary ledger - the personal accounts opened on accounts of the ledger, and also card, the book or magazines which are kept by separate types of means and values;

the current control - the repeated control exercised by the Back office or the controller-accountant whose purpose is determination of compliance of legality of all banking activities approved by the Front office or the executive in charge. Enters the current control as well check of compliance of electronic copies of cash and payment documentation with originals;

the responsible executive accountant - the accountant exercising primary control of correctness of execution of cash and payment documentation and legality of banking activities, their preparation for reflection in financial accounting;

office of banking services - the structural division of bank branch located out of the building of bank branch and performing activities according to the corresponding regulatory legal acts of the Central bank of the Republic of Uzbekistan. The office of banking services can have different names (Minibank, "The center of retail services", "The center of banking services" and others);

the budget accountant - the accountant who exercises the current control and accomplishment of all banking activities which underwent primary control of the responsible executive accountant;

Front office - the structural division of bank, employee group which in case of banking operations, stipulated by the legislation, are directly connected with clients and render them all types of banking services. The chief of the Front office directs this group.

The main objective of the Front office is determination of legality of the transactions which are subject to implementation at the request of clients and intra banking activity, and preparation them to reflection in financial accounting;

final control - the control exercised after completion of operational day no later than the next banking working day, for the purpose of check of the correct reflection in financial accounting of all banking activities executed in bank including carrying out them on the basis of source documents.

Final control is exercised by the Service of final control created by Bank board which submits only to Bank board.

The service of final control will be organized in banks (branches) as separate department. In case of storage at offices of banking services of the settlement documents relating to the transactions performed by bank, the service of final control at offices of banking services will be organized with allocation of separate established post.

II. The organization of the accounting device, working day and document flow in banks

§1. The organization of the accounting device in banks

6. The organization of financial accounting and reporting is performed by the head of bank branch (further hereinafter is referred to as as bank). The accounting device is headed by the chief accountant of bank who is acting on the basis of the standard Regulations on chief accountants of bank system (appendix No. 1 to this Instruction). During absence of the chief accountant of its obligation the deputy chief accountant performs.

7. For conducting accounting work in banks the accounting device is created. Inclusion in the accounting office of bank of the accountants or employees of accounting company involved from outside is strictly forbidden.

8. The organizational structure of the accounting office of bank and the number of the departments created in it depends on amount of the made transactions and level of their automation.

In banks with small amount of works the accounting device can be effective as single division. At the same time accounting on interbank transactions, foreign currency transactions and transactions according to intra bank accounts can be assigned to special departments.

In banks with the large volume of work the accounting device should be created taking into account requirements of this Instruction. Also for the purpose of ensuring passing of all transactions through primary control of responsible executive accountants and budget accountants, proceeding from work amounts, it is necessary to observe ratio between the number of executives in charge and controllers.

9. Specific functions of workers of the accounting device are determined by the chief accountant and affirm the head of bank.

10. Work on maintaining certain accounts or implementation of separate transactions is assigned to the responsible executive accountant and budget accountants. Accounts are distributed between workers based on regulations of bank, proceeding from amount of transactions, types of clients and other features.

11. The chief accountant of bank shall provide control of proper storage and use of seals, stamps and forms to exclude possibility of their loss or use for the purpose of abuses. Accounting of seals and angular stamps of bank is conducted in the special book where surnames and positions of persons at whom they are are specified. The book shall be numbered, strung together and certified by seal and signatures of the head and chief accountant of bank, and also to be conducted by the person designated by the written order of the head of bank and exempted from conducting transactions with values.

Workplaces of bank employees shall be located so that clients and other strangers had no access for printing, to stamps, documents and forms of bank.

12. In case of absence of the worker in connection with leaving in labor leave, disease or for any other reason the personal accounts attached to it, and also its obligations together with seals and stamps are transferred to other worker about what the corresponding entry in the special magazine is made.

13. The organization of general control and daily observation of its implementation on all sites of accounting and cash work are assigned to the chief accountant. Also implementation of works management on registration of transactions in the main and auxiliary books, program creation of the corresponding reports on financial accounting is assigned to the chief accountant of bank. During absence of the chief accountant of bank these obligations by order of the head of bank are assigned to his deputy.

14. Claims to actions of employees of bank and other addresses of clients are accepted and considered according to the legislation. Clients shall be informed on procedure for addresses by posting of announcements.

15. The head of bank, along with general observation of condition of accounting work, shall check timeliness of creation of balance and the reporting, to periodically exercise control of timely and high-quality customer service.

16. The accounting office of banks which is structurally divided into the Front office and the Back office can be organized according to the specified structural divisions. Comments on need of separation of the accounting device into the Front office and Back office are given in appendix No. 3.

Specific functions of workers of the Front office and Back office are determined respectively by heads of the Front office and Back office and affirm the head of bank.

§2. The organization of accounting work at offices of banking services

17. Financial accounting at offices of banking services shall be organized proceeding from the available work amount within requirements of this Instruction.

Offices of banking services shall be provided with staff of the responsible executive accountant for carrying out preliminary control. The current control is exercised by the chief of accounts department of office of banking services (further - the leading accountant).

The payments registered through offices of banking services are performed after carrying out the current control. At the same time carrying out the current control of payments does not require approval by the chief or Chief accountant of the Back office of bank branch.

Offices of banking services for the purpose of ensuring control of the payments made in them transactions and registered can represent to bank (branch) electronic copies of the documents which are the basis for transactions and (or) payments, including cash settlement documents.

18. At offices of banking services the cash and payment documentation which is the basis for the transactions performed during the banking working day shall in accordance with the established procedure is carried out through final control.

The folder of accounting documents of day shall be created and be stored in offices of banking services according to the procedure, established by paragraph 7 of this Instruction, or the created folder of accounting documents of day for storage shall periodically, but at least once a month, to be brought to bank (branch) which organized office of banking services. This procedure shall be surely specified in internal regulations (documents) of bank.

19. In the presence of possibility of strict observance of these provisions banks (branches) can open offices of banking services.

20. Ceased to be valid.

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