|
|
|
Approved by Resolution No. 96/2 of the National Bank of the Kyrgyz Republic Board as of December 29, 2010 |
REGULATION
on Minimum Requirements to the Organization of the Internal Control in the Commercial Banks for Purposes of Anti-Money Legalization (Laundering) and Counter Financing of Terrorism or Extremism
(As amended by Resolutions of the NBKR Board No. 55/9 as of September 29, 2011, No. 43/1 as of November 16, 2012, No. 11/2 as of April 10, 2013, No. 7/2 as of February 10, 2016, No. 2017-P-12/25-5 as of June 15, 2017)
1. General Provisions
1. This Regulation has been developed in order to determine the minimum requirements to the organization of the internal control in the commercial banks, including the ones that carry out activity in accordance with the Principles of Islamic Banking and Finance, the banks having an Islamic window, the micro-finance companies mobilizing deposits, “Financial Company of the Credit Unions” OJSC, the State Development Bank of the Kyrgyz Republic (hereinafter – the banks) for purposes of anti-money legalization (laundering) and counter financing of terrorism or extremism as well as conduct of operations having the signs of suspicious operations (hereinafter – AML/CFTE).
(As amended by Resolution No. 2017-P-12/25-5 of the National Bank of the Kyrgyz Republic Board as of June 15, 2017)
2. The National Bank of the Kyrgyz Republic (hereinafter – the National Bank) inspects the activity of the banks in the issues of the internal control organization for purposes of AML/CFTE and sends the information on its results to an authorized government authority in the area of AML/CFTE (hereinafter – an authorized government authority).
(As amended by Resolution No. 2017-P-12/25-5 of the National Bank of the Kyrgyz Republic Board as of June 15, 2017)
3. (Became invalid as per Resolution No. 2017-P-12/25-5 of the National Bank of the Kyrgyz Republic Board as of June 15, 2017)
2. Terms and Definitions
4. For purposes of this Regulation, the following terms are used:
A beneficial owner (a beneficiary) is a person:
- having the ownership right to the funds or the property and on behalf and/or at the expense of who, a client carries out an operation (a transaction) with the funds or the property, and/or
- able to influence directly or indirectly on conduct of operations (transactions) with the funds or the property by the client in accordance with the concluded agreement between such person and the client, and/or
- a person in favor of who, the operation (the transaction) with the funds or the property is ultimately carried out.
A suspicious operation (transaction) is an operation (a transaction), falling under the sings of suspicious operations (transactions) according to the Law “On Anti-Money Legalization (Laundering) and Counter Financing of Terrorism or Extremism (hereinafter – the Law “On AML/CFTE”), i.e. the operations (the transactions) carried out with the funds or other property that do not have a clear economic or evident lawful aim and are not typical for the activity of this legal entity (entities) or an individual(s) according to the list of the suspicious operations signs approved by the authorized government authority.
The suspicious operation (transaction) is determined by an AML/CFTE officer within the frameworks of the Law “On AML/CFTE” for the operations carried out with the funds or other property of the client and the beneficial owner (the beneficiary).
Internal control is a set of measures including development and implementation of policies, procedures and organization of the activity so that the bank can detect the operations (the transactions) subject to compulsory control and the suspicious operations (transactions) and prevent other operations (transactions) with the funds or the property directly related to legalization (laundering) of income from crime and financing of terrorism or extremism.
The term “Extremism” meets the norms of the conceptual framework of the Kyrgyz Law “On Countering Extremist Activities”.
Identification is determination of the data by the bank based on original or properly certified copies of documents provided by individuals or legal entities in accordance with the Law “On AML/CFTE”.
Verification for purposes of this Regulation is activities to find exactly or to check properly the results of identification performed by the bank for purposes of the internal control as well as conduct of regular proper check of the clients, including, but not limited to this, control over their operations from the viewpoint of correspondence to the business profile of the client and correctness of the bank records by, for example, comparing with source and other documents.
Detection of the operations subject to compulsory control is the stage to organize the internal control in the bank for purposes of AML/CFTE that includes determination of the operations subject to compulsory control based on criteria and signs set in the regulatory legal acts of the Kyrgyz Republic.
An AML/CFTE officer is an employee of the bank (at the level of the head of the compliance-control service) appointed for purposes of the internal control organization on AML/CFTE and having access to all information regarding identification, verification, detection, recording and submission of the data to the authorized government authority.
A threshold amount is the amount of the operation (the transaction) set by the Law “On AML/CFTE” for KGS 1,000,000 (or an equivalent amount in the foreign currency calculated at the official rate of the National Bank at the day of the operation (the transaction)), if the operation (the transaction) is equal or exceeds this amount, it is subject to compulsory internal control in accordance with the Law “On AML/CFTE” and this Regulation.
Foreign politically exposed persons are citizens of the foreign states who have been provided or are provided with significant government and political functions in a foreign state (heads of states or governments, high-level politicians, high-ranking officials in governments, courts, armed forces, law enforcement and fiscal bodies, leaders and figures of political parties and religious associations), including the former ones.
“An Islamic bank”, “A bank having an Islamic window”, “Principles of Islamic Banking and Finance, “Sharia standards”, “Sharia Council” – these terms meet the norms of the conceptual framework of the Kyrgyz Law “On the National Bank of the Kyrgyz Republic, Banks and Banking Activity”.
All other terms used in this area shall not contradict with `the main terms set forth in this chapter.
(As amended by Resolutions of the National Bank of the Kyrgyz Republic Board No. 11/2 as of April 10, 2013, No. 7/2 as of February 10, 2016, No. 2017-P-12/25-5 as of June 15, 2017)
3. Activity of the Bank in the area of AML/CFTE
5. The activity of the bank in the area of AML/CFTE, taking into account its daughter and affiliated companies includes the following components:
1) organizing the internal control in AML/CFTE;
2) assessing the effectiveness of the internal control in AML/CFTE by the internal audit service of the bank;
3) appointing an AML/CFTE officer and a person that will replace the AML/CFTE officer in the event of his dismissal (staff backup);
4) training the employees of the bank involved into implementation of the AML/CFTE policy.
6. The Board of Directors together with the Management Board of the bank is responsible for ensuring the adequate and effective activity of the bank in the area of anti-money legalization (laundering) and counter financing of terrorism or extremism as well as prevention of the bank’s involvement into conduct of the operations having the signs of the suspicious operations.
7. The Management Board of the bank is responsible for ensuring the effective internal control and implementing the measures to comply with the requirements of the Law “On AML/CFTE”, including the requirements to opening of the bank accounts (in particular identification and verification of the clients and determination of the beneficial owner (the beneficiary)), conduct of the operations on accounts and termination of the agreements with clients (accountholders) and depositors.
The Management Board of the bank shall take exhaustive measures to prevent the bank’s involvement into conduct of the operations having the signs of the suspicious operations.
(As amended by Resolutions of the National Bank of the Kyrgyz Republic Board No. 55/9 as of September 29, 2011, No. 11/2 as of April 10, 2013)
4. Organization of the Internal Control and the Internal Control Policy in AML/CFTE
8. The internal control for purposes of AML/CFTE implies conduct of at least the following activities in the bank:
- identifying and verifying the clients and the operations of the clients that are more subject to the risk of being used for purposes of legalization (laundering) of income from crime and financing of terrorism or extremism, conduct of the operations having the signs of the suspicious operations;
- determining the beneficial owner (the beneficiary);
- identifying and verifying the bank’s operations in all banking products and services that are more subject to the risk of being used for purposes of legalization (laundering) of income from crime and financing of terrorism or extremism, conduct of the operations having the signs of the suspicious operations;
- introducing policies, procedures and organizing the AML/CFTE activity;
- introducing the information systems in the bank that ensure efficient submission of reliable and exhaustive information on the activity of the bank;
- reporting of the AML/CFTE officer to the Management Board of the bank and the Board of Directors on existing shortcomings and problems in organization of the AML/CFTE activity, taken measures to eliminate them as well as measures taken to prevent the bank’s involvement into conduct of the operations on legalization (laundering) of income from crime and financing of terrorism or extremism as well as the operations having the signs of the suspicious operations;
- ensuring provision of the information and the data by the bank to the authorized government authority in accordance with the requirements set by the legislation of the Kyrgyz Republic;
- instituting the control and the monitoring over constant ensuring the bank’s compliance with the legislation of the Kyrgyz Republic in the AML/CFTE issues;
- instituting the control over the employees of the bank, the activity of who is subject to the high risk (cashiers, credit inspectors, officers of the operation subdivisions of the bank, etc.), reflecting functions and duties on implementation of the AML/CFTE policy in the job descriptions of the employees from the relevant subdivisions of the bank.
(As amended by Resolution No. 11/2 of the National Bank of the Kyrgyz Republic Board as of April 10, 2013)
9. For purposes of AML/CFTE, the banks shall develop the policy of the internal control organization that shall be approved by the Board of Directors in the bank. This policy is a part of the general policy of the internal control organization in the bank.
9-1. The banks shall develop the internal control rules in AML/CFTE taking into account the requirements of the authorized government authority that do not contradict with the banking legislation and the regulatory legal acts of the National Bank.
(As amended by Resolution No. 55/9 of the National Bank of the Kyrgyz Republic Board as of September 29, 2011)
10. The policy of the internal control organization for purposes of AML/CFTE shall define that the bank sets at least:
1) the procedure for organization of the internal control establishing authorities and responsibility of the officers for taking decisions, the procedure for interaction and reporting between the persons and the subdivisions involved into the AML/CFTE process;
2) the procedure for suspension of the operation (the transaction) of individuals and legal entities, if there is reliable information on their involvement into terrorism and extremism or proliferation of weapons of mass destruction;
3) the procedure for identification, verification and study of the client by the bank as well as for determination of the beneficial owner (the beneficiary) according to the Law “On AML/CFTE”, the regulatory legal acts of the National Bank and other regulatory legal acts of the Kyrgyz Republic;
4) the procedure for detection of the operations in the activity of the client subject to compulsory control and check of the information on the client and/or the operation of the client to confirm relevance or to contradict the suspicions that the client has legalized (laundered) income from crime and financed terrorism or extremism in accordance with the Law “On AML/CFTE”;
5) the procedure for detection of the operations in the activity of the client having the signs of the suspicious operations to confirm relevance or to contradict the suspicions that the client carries out these operations;
6) the procedure and the grounds to refuse to open an account to potential clients and correspondent banks and to terminate the service of the clients’ accounts and correspondent relations with the banks;
7) the procedure for documental recording of the information received when exercising the internal control as well as the procedure for its storage and maintaining confidentiality;
8) the procedure for submission to the authorized government authority of the information on the suspicious operations (transactions) as well as the operations (the transactions) with the funds or other movable and immovable property falling under the list of the criteria in accordance with which the operations (the transactions) are subject to the compulsory control in accordance with the requirements set by the legislation of the Kyrgyz Republic in the area of AML/CFTE.
(As amended by Resolutions of the National Bank of the Kyrgyz Republic Board No. 11/2 as of April 10, 2013, No. 7/2 as of February 10, 2016)
11. The internal control policy for purposes of AML/CFTE shall contain the requirements for binding request of the documents from the clients of the bank based on which the operation that is subject to the check against matching the signs of the suspicious operation (transaction) is carried out.
12. The internal documents of the bank shall envisage the procedure for appointment of the AML/CFTE officer and his training.
13. The bank shall ensure compliance of its daughter and affiliated companies located both in the Kyrgyz Republic and abroad with the proper measures for organization of the internal control for purposes of AML/CFTE.
5. Assessing the Effectiveness of the Internal Control in AML/CFTE by the Internal Audit Service of the Bank
14. The internal audit service of the bank assesses the effectiveness of the internal control for purposes of AML/CFTE at least once a year or more often depending on the risk level of the operations and the dynamics of the indicators in the activity of the bank.
15. The internal audit service when assessing the effectiveness of the internal control for purposes of AML/CFTE shall carry out, at least, the following:
- assessing the effectiveness of the internal control organization, including policies, procedures and organization of the AML/CFTE activity of the bank;
- assessing the methodology of the risk level determination adopted by the bank;
- selective testing the activity of the AML/CFTE officer, including the applied software, in particular against correspondence to policies and procedures of the bank;
- assessing the measures applied by the management of the bank, the Management Board and the Board of Directors to eliminate the violations detected in the course of the previous audits by the internal audit service of the bank, the external audit, the National Bank or the authorized government authority;
- reviewing-assessing the internal control, including the software, against the effectiveness in detection of the operations on legalization (laundering) of income from crime and financing of terrorism or extremism as well as the operations having the signs of the suspicious operations;
- checking the adequacy of the AML/CFTE officer’s reports submitted to the Board of Directors upon agreement with the Management Board of the bank and their correspondence to the minimum requirements of the National Bank;
- checking the adequacy of the AML/CFTE officer’s programs for training of the bank’s employees involved into implementation of the AML/CFTE policy.
(As amended by Resolution No. 11/2 of the National Bank of the Kyrgyz Republic Board as of April 10, 2013)
16. A report of the internal auditor on the results of the effectiveness of the internal control for purposes of AML/CFTE is submitted to the Board of Directors to take the measures for elimination of the detected violations and their further prevention.
6. An Officer Appointed for Organization of the Internal Control in AML/CFTE
17. In order to develop and to implement the internal control policy, relevant procedures and other internal organization activities in AML/CFTE, the Board of Directors shall approve the officer that will report to the Board of Directors (hereinafter – the AML/CFTE officer) and take measures to ensure the effective organization of his working conditions.
18. For purposes of AML/CFTE, the AML/CFTE officer shall perform the following functions:
- develop and submit for approval of the Board of Directors upon agreement with the Management Board of the bank the relevant internal control policy and bring this policy to notice of all employees that are involved into its implementation;
- ensure implementation of the internal control policy and monitor fulfillment of the internal regulatory documents on AML/CFTE of the bank in accordance with this policy;
- ensure submission of the information and the data to the authorized government authority in accordance with the requirements set by the legislation of the Kyrgyz Republic;
- submit the information to the Management Board of the bank to take a decision on suspension of the operation (the transaction) of individuals and legal entities, if there is reliable information on their involvement into terrorism and extremism or proliferation of weapons of mass destruction;
- submit the information and assist the authorized representatives of the National Bank when they carry out the inspections of the bank’s activity in the issues attributed to his competence by this Regulation and the internal documents of the bank;
- organize the training and consult the employees of the bank that are involved into implementation of the AML/CFTE policy;
- as far as necessary, but at least once a quarter submit for consideration of the Board of Directors upon agreement with the Management Board of the bank a written report on the results of implementation of the internal control policy in AML/CFTE in the manner determined by the internal documents of the bank.
(As amended by Resolution No. 7/2 of the National Bank of the Kyrgyz Republic Board as of February 10, 2016)
19. In discharge of his functions, the AML/CFTE officer is entitled to:
- receive the required documents from the heads and the employees of the bank’s subdivisions, including orders and other executive documents issued by the management of the bank and its subdivisions, accounting and financial and settlement documents;
- initiate receipt of the additional information on the client, the beneficial owner (the beneficiary) and/or the operation (the transaction) to confirm relevance or to contradict the suspicions that the client has legalized (laundered) income from crime and financed terrorism or extremism;
- copy the received documents and also copy the softcopy documents;
- approach the Board of Directors of the bank, if required;
- interact with the Sharia Council (*) and approach it.
(*) It concerns the banks that carry out the activity under the Principles of Islamic Banking and Finance.
(As amended by Resolution No. 11/2 of the National Bank of the Kyrgyz Republic Board as of April 10, 2013)
20. In discharge of his functions, the AML/CFTE officer is obliged to:
- ensure safety and return of the documents received from the relevant subdivisions of the bank;
- maintain confidentiality of the information received in discharge of his functions;
- submit the information to the Management Board of the bank to take a decision on suspension of the operation (the transaction) of individuals and legal entities, if there is reliable information on their involvement into terrorism and extremism or proliferation of weapons of mass destruction, for three business days from the date when the instruction of the client to perform it shall be done, no later than the day of the operation (the transaction) suspension in the binding manner submit the information on it to the authorized government authority and organize the further work in the manner set by the legislation of the Kyrgyz Republic.
(As amended by Resolution No. 7/2 of the National Bank of the Kyrgyz Republic Board as of February 10, 2016)
21. The AML/CFTE officer shall be independent in implementation of the bank’s AML/CFTE policy and can combine the activity related to his competence in accordance with this Regulation, with fulfillment of other functions, save for the functions of:
- the employee of the internal audit service;
- the employee involved into the activity;
- the employee involved into the activity, in fulfillment of which his independence is not ensured.
22. The following minimum qualification requirements are made to the AML/CFTE officer:
- higher education in economics or law;
- knowledge of the legislation in the AML/CFTE issues;
- experience of work in the subdivisions related to the main activity of the financial and credit institutions, for at least total three years;
- clear understanding of banking products, operations, services, operations of the clients and potential risks typical for the AML/CFTE activity of the bank;
- absence of the criminal conviction;
- knowledge in the area of Islamic Banking and Finance (*).
(*) It concerns the banks carrying out the activity under the Principles of Islamic Banking and Finance.
(As amended by Resolution No. 2017-P-12/25-5 of the National Bank of the Kyrgyz Republic Board as of June 15, 2017)
23. Training (retraining) of the AML/CFTE officer shall be on a regular basis, at least once a year.
24. The responsibility of the AML/CFTE officer, the Management Board of the bank and the Board of Directors starts under the grounds envisaged by the legislation of the Kyrgyz Republic.
25. The written report of the AML/CFTE officer agreed with the Management Board and submitted to the Board of Directors of the bank shall contain, at least, the following information for a reporting period and as far as necessary for other periods:
1) the results of the control over execution of the requirements to clients identification, verification and study as well as determination of the beneficial owner (the beneficiary);
2) the results of the analysis of the clients’ operations carried out in order to detect the operations having the signs of suspicious operations (transactions) that include the information regarding:
- the significant dynamics of the cash flow on the clients’ accounts (active accounts of the clients, accounts of the bank’s employees);
- the operations for the largest amounts;
- purchase or sale of the foreign currency to the clients for the amount exceeding the threshold amount;
- the operations of the clients, the amounts of which significantly exceed the turnovers specified in the questionnaire;
- the operations with cash (cash withdrawal, assets exchange, cash deposit to replenish a bank account through specialized peripheral devices of the bank);
- the operations of loan disbursement and deposit acceptance (time deposits);
- the operations with guarantees, letters of credit and other contingent liabilities;
- remittances without account opening through the money transfer systems as well as through the SWIFT system (or other systems acting as the main ones in the banks);
- the operations of the clients and the bank on purchase and sale of securities;
- cash flow of the bank’s clients located in other countries;
3) regarding submission of the information to the authorized government authority in accordance with the requirements set by the legislation of the Kyrgyz Republic;
4) regarding suspension of the operations (the transactions) describing the grounds for their suspension, submission of the information on them to the authorized government authority and further work in accordance with the legislation;
5) regarding compliance with the measures for organization of the internal control for purposes of AML/CFTE by daughter and affiliated companies of the bank located in the Kyrgyz Republic and abroad;
6) regarding the monitoring of compliance with the legislation and the internal regulatory documents in AML/CFTE of the bank in line with the bank’s policy, their violation and taken measures;
7) the information on the results of the work to eliminate the violations detected in the previous reports of the AML/CFTE officer submitted to the Board of Directors;
8) the results of the employees’ work involved into implementation of the AML/CFTE policy, taken measures to organize their training and advising;
9) the analytical information regarding:
- possible interconnection of the clients;
- correspondent banks;
- the operations of the property trust management under the agreements with the clients;
- introduction of new banking products and technologies and risks related to their introduction.
(As amended by Resolutions of the National Bank of the Kyrgyz Republic Board No. 55/9 as of September 29, 2011, No. 11/2 as of April 10, 2013)
26. According to the review results of the written report prepared by the AML/CFTE officer, the Board of Directors establishes the control over the activity of the AML/CFTE officer and the Management Board of the bank for elimination of the violations noted in the report and taking the measures to prevent the violation of the AML/CFTE policy in future.
7. Determining the Risk Level of the Client’s Involvement into Legalization (Laundering) of Income from Crime, Financing of Terrorism (Extremism) and Operations having the Signs of Suspicious Operations
27. The process of the bank’s client identification and study includes determination of the risk level of the client’s involvement into legalization (laundering) of income from crime and financing of terrorism or extremism taking into consideration the requirements set by the legislation of the Kyrgyz Republic. To determine the risk level, it is necessary, at least, to take into account the type of the client’s activity and location (origin) of the client and/or his business as well as the operations carried out by him, rendered services and the purpose of the client’s payments.
28. The bank shall pay special attention and exercise proper control over the clients that relate to the category of the clients subject to the higher risk. The types of the client’s activity subject to the higher risk of involvement into legalization (laundering) of income from crime and financing of terrorism or extremism and conduct of the operations having the signs of the suspicious operations can include the following:
- the activity of the legal entities (their separate subdivisions) that are not credit institutions involved into remittances, payments in cash, by checks, cash collection;
- the activity of the legal entities (including credit institutions), registered in the offshore zones, their separate subdivisions, daughter and affiliated companies;
- the activity of the nonresident clients, including the foreign politically exposed persons;
- gambling business (a business activity that is not sale of products (goods, works, services) related to generation of income by the gambling establishment (a casino, a betting house, a bookmaker’s facility, a slot hall and other gambling houses (places)) from involvement into gambling in the form of a prize and payment for its conduct);
- the activity related to sale, including sale on commission, pieces of art and antique;
- trade (especially export) of precious metals, precious stones as well as jewelry containing precious metals and precious stones;
- the activity of the legal entities carrying out the operations, mainly, in cash (large trade complexes, restaurants, gas filling stations, etc.);
- the activity of individuals and legal entities carrying out the operations of brokers and dealers (purchase and sale of securities, foreign currency, etc.).
(As amended by Resolution No. 11/2 of the National Bank of the Kyrgyz Republic Board as of April 10, 2013)
29. The states (the territories) subject to the high risk of involvement into legalization (laundering) of income from crime and financing of terrorism (extremism) can include:
- the states (the territories) that do not apply or insufficiently apply the FATF recommendations, the list of which is determined by the authorized government authority together with the Central Bank and other supervisory authorities;
- the states (the territories), where it is not envisaged to disclose or to submit the information when carrying out financial operations, the list of which is approved by the authorized government authority upon agreement with the Central Bank based on the lists approved by the international organizations involved into AML/CFTE.
30. Based on all information and documents enabling to identify, to verify and to study the client, the bank assesses the risk level of the client’s possible involvement into legalization (laundering) of income from crime and financing of terrorism or extremism. The conclusion on this assessment shall be filed into the client’s file.
(As amended by Resolution No. 7/2 of the National Bank of the Kyrgyz Republic Board as of February 10, 2016)
31. The bank shall pay special attention and exercise proper control over the bank’s operations subject to the high risk of involvement into legalization (laundering) of income from crime and financing of terrorism or extremism and conduct of the operations having the signs of the suspicious operations.
(As amended by Resolution No. 11/2 of the National Bank of the Kyrgyz Republic Board as of April 10, 2013)
32. When servicing the foreign politically exposed persons, the bank shall carry out the following activities:
- prior to establishment of relations with the foreign politically exposed persons, receive written consent from the Board of Directors;
- take available measures to determine the sources of the funds origin belonging to the foreign politically exposed persons;
- on a constant basis update the existing information on the foreign politically exposed persons;
- pay particular attention to the operations (the transactions) with the funds or the property carried out by the foreign politically exposed persons, their spouses and close relatives in accordance with the Law “On AML/CFTE”.
33. The bank shall update the information received as a result of the client identification, verification and study as well as determination of the beneficial owner (the beneficiary), periodically, at least once a year in the events when the bank assesses the risk of the client’s involvement into legalization (laundering) of income from crime and financing of terrorism or extremism as high and in other events at least once in three years.
(As amended by Resolution No. 11/2 of the National Bank of the Kyrgyz Republic Board as of April 10, 2013)
34. The bank shall ensure compliance with all procedures developed in order to exercise the proper control over the risk of legalization (laundering) of income from crime and financing of terrorism or extremism related to use of new technologies (new banking products), implying conduct of the operations (the transactions) without direct contact with the client.
(As amended by Resolution No. 11/2 of the National Bank of the Kyrgyz Republic Board as of April 10, 2013)
35. When establishing the correspondent relations, the bank shall determine, also by sending the request to the correspondent bank, whether it takes the AML/CFTE measures including identification, verification and study of the clients by the correspondent bank.
8. Detecting the Operations (the Transactions) subject to the Compulsory Control
36. The bank shall determine the procedure to inspect the clients’ activity against presence of the criteria and the signs evidencing possible involvement into legalization (laundering) of income from crime set by the regulatory legal acts of the Kyrgyz Republic. For these purposes, the bank shall monitor its business relations with the clients on a constant basis that envisages the following activities:
- monitoring the conducted operations on the client’s account in order to make sure that the activity of the client corresponds to the information that the bank has about the client, his business and the risk level of this client;
- if required clarifying the origin of the funds received on the client’s account;
- analyzing all complex or unusually large operations that have no evident or apparent economic or lawful aim;
- recording and documenting all received information of the bank and if required submitting this information to the authorized government authority.
37. The operation (the transaction) with the funds or other property is subject to compulsory control, if the amount of it is equal or exceeds the threshold amount.
38. The list of the operations (the transactions) with the funds or the property subject to compulsory control determined by the authorized government authority according to the Law “On AML/CFTE” is given in Appendix 1 to this Regulation. The operations that are not included into the list determined by the authorized government authority but having the signs of the suspicious operations are also subject to compulsory control.
(As amended by Resolution No. 55/9 of the National Bank of the Kyrgyz Republic Board as of September 29, 2011)
39. Prior to start of new types of services or operations, the bank shall detect and assess all possible risks regarding this service or operation in order to prevent legalization (laundering) of income from crime and financing of terrorism or extremism.
40. The bank is obliged to take the required measures in order to check presence of the information with regard to the client, the beneficial owner (the beneficiary) on their involvement into terrorism. This information is contained in the List of individuals and legal entities involved into terrorism and extremism or proliferation of weapons of mass destruction set by the authorized government authority.
(As amended by Resolutions of the National Bank of the Kyrgyz Republic Board No. 11/2 as of April 10, 2013, No. 7/2 as of February 10, 2016)
41. The employees of the bank’s structural subdivisions involved into identification of the clients and detection of the operations having the signs of the suspicious operations in accordance with the procedure determined by the policy and the procedures of the bank shall report to the AML/CFTE officer on all events of the detected operations having the signs of the suspicious operations.
42. If the suspicions are grounded, the AML/CFTE officer submits for consideration of the Management Board the information on the client, including the beneficial owner (the beneficiary) and the operation (the transaction) with the recommendations of further actions. The Management Board of the bank takes responsibility for timely further actions, including suspension of the operation (the transaction) and/or termination of the business relations with the client in accordance with the Law “On AML/CFTE”.
(As amended by Resolution No. 11/2 of the National Bank of the Kyrgyz Republic Board as of April 10, 2013)
9. Recording, Keeping and Submitting the Information Detected in the course of Inspection to the Authorized Government Authority
(The title of the section as amended by Resolution No. 11/2 of the National Bank of the Kyrgyz Republic Board as of April 10, 2013)
43. The information on the operations (the transactions) of the client received in the course of inspection is subject to compulsory recording in the scopes sufficient to confirm or to contradict the suspicions that the client has financed terrorism (extremism) and/or legalized (laundered) income from crime.
44. When confirming the suspicions in determining the operation of the client as the operation subject to compulsory control, the Management Board of the bank takes a final decision to recognize the operation of the client as suspicious and to submit the information on it to the authorized government authority in accordance with the procedure of the information submission approved by the authorized government authority.
45. The decision of the bank’s Management Board not to recognize the operation of the client as suspicious and not to send the information on it to the authorized government authority shall be grounded and entered into the minutes. The AML/CFTE officer shall keep a register of these Management Board decisions including a brief description of the operations and the information on the client.
46. The bank is not entitled to inform the clients about submission of the information to the authorized government authority in accordance with the Law “On AML/CFTE”.
47. The information and the documents containing the data on the client, the beneficial owner (the beneficiary), including business correspondence as well as on the operations (the transactions) of the client received in the course of inspection according to this Regulation shall be kept for at least five years after termination of the relations between the bank and the client.
(As amended by Resolution No. 11/2 of the National Bank of the Kyrgyz Republic Board as of April 10, 2013)
|
|
|
Appendix 1 to the Regulation on Minimum Requirements to the Organization of the Internal Control in the Commercial Banks for Purposes of Anti-Money Legalization (Laundering) and Counter Financing of Terrorism or Extremism |
LIST
of Operations (Transactions) with the Funds or the Property subject to the Compulsory Control Determined by the Authorized Government Authority according to the Law “On AML/CFTE”
(As amended by Resolutions of the National Bank of the Kyrgyz Republic Board No. 55/9 as of September 29,2011, No. 7/2 as of February 10, 2016)
1) all internal or external operations (transactions), except for operations (transactions), the list of which is determined by the authorized government authority upon agreement with the National Bank of the Kyrgyz Republic;
2) purchasing or selling the foreign currency in cash;
3) purchasing securities by an individual for cash payment;
4) exchanging banknotes of one denomination for banknotes of another denomination;
5) cash flow of charitable, non-governmental organizations and institutions, funds;
6) placing securities, precious metals, precious stones or other valuables in the pawnshop;
7) paying the insurance premium by an individual or receiving from him the insurance premium on life insurance and other types of endowment insurance and pension coverage;
8) a transaction with immovable property, if the amount for which it is carried out is equal or exceeds KGS 4,500,000;
9) a transaction with movable property;
10) receiving or providing the property under a finance lease agreement;
11) paying the funds in the form of a prize received from playing the lottery, in the betting house (pari-mutuel) or from other risk-based games;
12) transferring the funds not by financial and credit institutions on the client’s instruction;
13) transferring the funds through the systems enabling to carry out such operations without account opening and their receiving;
14) contributing the cash by an individual to the authorized capital of the organization;
15) operations (transactions) if at least one of the parties is an individual or a legal entity having respectively registration, residence or location in the state (the territory) where it is not envisaged to disclose or to provide the information when carrying out financial operations or one of the parties is a person that is an accountholder with the bank registered in the specified state (the specified territory);
16) operations (transactions) with the funds or the property if at least one of the parties involved into these operations (transactions) is an individual or a legal entity with regard to who there is information on its involvement into terrorism or extremism received in the manner set by the laws or the international treaties of the Kyrgyz Republic;
17) suspicious operations (transactions).
