Attention!
Amendments introduced by the Law of the Kyrgyz Republic N 83 as of July 8, 2019
enter into force one year after the date of official publication of the aforementioned Law
LAW OF THE KYRGYZ REPUBLIC
Bishkek city, No. 87 as of August 6, 2018
On anti-money laundering and anti-terrorist financing
(As amended by the Law of the Kyrgyz Republic No. 83 as of July 8, 2019)
This Law establishes a system of measures aimed at anti-money laundering and anti-terrorist financing, as well as countering the financing of extremism and financing the proliferation of weapons of mass destruction.
Chapter 1. General provisions
Article 1. Basic concepts and terms used in this Law
1. The following basic concepts and terms are used in this Law:
1) shell bank is a non-resident bank registered as a bank and provided with a banking license in the state (territory) where it is not physically present or actually has no management bodies, and which is not affiliated with any regulated financial group under consolidated supervision;
2) beneficial owner is an individual (individuals) who ultimately (through the chain of ownership and control) directly or indirectly (through third parties) owns the property right or controls the client or the individual on whose behalf or in whose interests an operation (transaction) is conducted;
3) verification is a procedure to verify the identity of the client and (or) the beneficial owner;
4) high-risk countries are the states and territories (locations) that do not apply or insufficiently apply the international standards for anti-money laundering, anti-terrorist financing, and countering the financing of proliferation of weapons of mass destruction, as well as the offshore zones;
5) business relationships are the relationships between a client and a financial institution or a client and a non-financial categories of individuals arising on the basis of an agreement (verbal or written) on provision of the services for carrying out an operation (transaction);
6) freezing of an operation (transaction) and (or) funds is a prohibition to carry out an operation (transaction) with funds or to transfer, transform, alienate and move any funds;
7) identification is a procedure for establishing identification data about a client and (or) a beneficial owner;
8) foreign trust is a legal relationship system created by the founder of a foreign trust in accordance with the legislation of a foreign state, where the property owned by the founder of a foreign trust is transferred to the custodian or trustee in the interests (in favor) of any individual or legal entity, or foreign legal entity, which are entitled to receive monetary and other benefits, or for a specific purpose;
9) client is an individual or legal entity (organization), a foreign trust or legal entity accepted for servicing or being serviced by a financial institution or non-financial categories of individuals or who/which establish or have established business relationships with a financial institution or non-financial categories of individuals/entities;
10) legalization (laundering) of proceeds from crime is regularizing procedure of possession, use or disposal of proceeds from crime by taking any actions (operations or transactions) to transform (convert) or transfer property, if the property is known to be proceeds from crime, in order to hide the criminal source of property origin or assistance to the person participating in crime commissioning with the purpose of evasion from legal consequences of his/her actions; or hiding the true nature of the source, location, method of property disposal and movement, as well as the rights to the property or its ownership, if it is known that the property represents proceeds from crime; hiding or continuous retention of property by a person who did not participate in the crime commissioning, if the person knew that the property was obtained as a result of a crime; or purchase, possession or use of property if, at the time of its receipt, the person knew that the property represented the proceeds from crime;
11) summarized material is a document containing information about suspicion of financing of the terrorist activities or legalization (laundering) of the proceeds from crime and related predicate offenses, prepared by the financial intelligence body based on the analysis of reports of operations (transactions) and other information;
12) bearer negotiable instruments are the bearer monetary instruments and circulating without restriction or blank monetary instruments (traveler’s and bank cheques, cash and settlement checks, bills of exchange, securities, obligations and money orders in the documentary form, certifying repayment obligation of the issuer (debtor)), where the person to whom the payment is made or the identity of the recipient of the monetary instruments are not specified;
13) operations (transactions) are any operations (transactions) with funds committed to establish, amend or terminate civil rights and obligations with funds;
14) predicate crime (main crime) is any crime provided for in the criminal legislation of the Kyrgyz Republic or a foreign state, which result in income (funds) being the object (subject) of legalization (laundering) of the proceeds from crime;
15) criminal income is the income (funds) obtained or drawn directly or indirectly as a result of a crime committed in the territory of the Kyrgyz Republic or a foreign state;
16) principle of reciprocity is a universally recognized principle of international relations, when the authorized state bodies of the Kyrgyz Republic maintain international cooperation with the competent authorities of a foreign state on a mutually beneficial, equal basis and on the basis of a written obligation of each party to implement international cooperation;
17) public officials is one of the following individuals:
a) foreign public official is a person who performs or performed the significant state or political functions (public functions) in a foreign state (the heads of state or government, senior officials in the government and other state bodies, courts, armed forces, state enterprises, and also prominent political figures, including prominent figures of the political parties);
b) national public official is a person who holds or held a political and special public office or political municipal office in the Kyrgyz Republic, provided for by the Register of State and Municipal Posts of the Kyrgyz Republic, approved by the President of the Kyrgyz Republic, as well as the senior management of state corporations, prominent political figures, including prominent figures of the political parties;
c) public official of an international organization is a chief executive officer of an international organization who is entrusted or was entrusted with important functions of an international organization (heads, deputy heads and members of the board of an international organization or persons holding equivalent positions in an international organization);
18) risk-based approach is taking enhanced measures provided that there is a high level of risk or taking simplified measures provided that there is a low level of risk in accordance with established risk management procedures (identification, assessment, monitoring, control, risk reduction);
19) sanctions list is a list of individuals and legal entities, groups and organizations with provided information about their participation in the terrorist or extremist activities and in proliferation of weapons of mass destruction;
20) funds are the following assets:
a) cash and any financial assets;
b) economic resources, including oil and other natural resources;
c) any property (tangible or intangible, movable or immovable), regardless of purchase method;
d) legal documents or instruments in any form, including electronic or digital, providing a right or share in the abovementioned property or assets;
e) bank loans and funds and (or) other property received / issued in accordance with the principles of Islamic banking and finance, cash and settlement cheques, postal orders, shares, securities, bonds, bank drafts or letters of credit and any interest, dividends and income derived from or generated by such funds or assets;
21) accounts are the bank accounts, as defined in the banking legislation of the Kyrgyz Republic, or similar business relationships between a financial institution and a client, or between a non-financial category of individuals/entities and a client;
22) financing of proliferation of mass destruction weapons is provision or collection of funds or provision of financial services being aware that the funds are intended or will be used in full or in part to finance the proliferation of nuclear, chemical and biological weapons and (or) their means of delivery;
23) financing of terrorism is provision of funds, financial services or collection of funds by any methods or means, directly or indirectly, with intent or being aware that the funds are targeted or will be used in full or in part to finance a terrorist and (or) terrorist organization, or to finance the organization for preparation or conduct of terrorist activities in the territory of the Kyrgyz Republic or abroad, or to finance the persons traveling to the state which is not a state of their residence or nationality, for planning, prepare, commissioning or participating in commission of the terrorist acts or terrorist training, or completing such training;
24) financing of extremism is provision of funds, financial services or collection of funds by any methods or means, directly or indirectly (through third parties), with intent or being aware that the funds are targeted or will be used in full or in part to finance the organization for training or conducting of extremist activities in the Kyrgyz Republic;
25) targeted financial sanctions is freezing of any operations (transactions) and (or) funds of the individuals and legal entities, groups and organizations if there is information about their participation in terrorist or extremist activities and proliferation of the weapons of mass destruction, and (or) limited provision of access (direct or indirect) to any funds or financial services for such persons, groups and organizations;
26) electronic money transfer is an operation to transfer money (cash, non-cash, electronic money) from the sender to the recipient using payment systems;
27) legal entities - trust funds and other similar legal relationships for management and disposal of property, created in accordance with the legislation of a foreign state.
2. Concepts and terms not defined in this article and used in this Law shall be applied in the sense in which they are used in the sector specific legislation of the Kyrgyz Republic, unless otherwise provided by this Law.
Article 2. Purpose and objectives of this Law
1. The purpose of this Law is to protect the human rights and freedoms, as well as to defend the national security and integrity of the financial system in the Kyrgyz Republic from the criminal attacks.
2. The objectives of this Law are to determine and establish the legal and organizational framework:
1) on taking preventive measures to counter the financing of the terrorist and extremist activities, the financing of proliferation of mass destruction weapons and legalization (laundering) of the proceeds from crime;
2) on identifying, suppressing, disclosing and investigating the financing of the terrorist and extremist activities and legalization (laundering) of the proceeds from crime and related predicate offenses, as well as on eliminating the reasons and conditions facilitating the commission of these acts;
3) on strengthening and developing domestic cooperation in the sphere of countering the financing of the terrorist and extremist activities, financing proliferation of the mass destruction weapons, legalization (laundering) of the proceeds from crime and related predicate offenses;
4) on strengthening and developing the international cooperation in the sphere of countering the financing of the terrorist activities, legalization (laundering) of the proceeds from crime and related predicate offenses.
Article 3. Legislation of the Kyrgyz Republic on anti-money laundering and anti-terrorist financing
1. The legislation of the Kyrgyz Republic on anti-money laundering and anti-terrorist financing is based on the Constitution of the Kyrgyz Republic, consists of this Law and other regulatory legal acts of the Kyrgyz Republic adopted within the framework of this Law.
2. International agreements that entered into force in due course of law, with the Kyrgyz Republic being a party thereof (hereinafter referred to as the international treaties of the Kyrgyz Republic), are an integral part of the legislation of the Kyrgyz Republic on countering the financing of the terrorist activities and legalization (laundering) of the proceeds from crime and are applied in the manner and on conditions not contrary to this Law.
Chapter 2. Entities of anti-money laundering and anti-terrorist financing
Article 4. Entities of anti-money laundering and anti-terrorist financing
1. The entities taking measures on anti-money laundering and anti-terrorist financing are as follows:
1) financial institutions and non-financial category of individuals/entities;
2) inspection bodies;
3) financial intelligence agency;
4) internal affairs bodies, bodies for economic crimes, customs bodies (hereinafter referred to as the law enforcement bodies), national security bodies, and prosecutor’s offices of the Kyrgyz Republic.
2. The Government of the Kyrgyz Republic shall establish a coordination and advisory body on countering the financing of the terrorist activities and legalization (laundering) of the proceeds from crime, as well as on countering the financing of extremist activities and the financing of proliferation of the mass destruction weapons.
Article 5. Financial institutions and non-financial categories of individuals/entities
1. Within the framework of this Law, the financial institutions are the following legal entities:
1) mortgage companies (organizations);
2) commercial banks;
3) credit unions;
4) leasing companies (organizations);
5) pawnshops;
6) microfinance organizations (microcredit agencies, microcredit companies, microfinance companies, specialized financial and credit institutions);
7) accumulative pension funds;
8) exchange bureaus;
9) e-money operators;
10) reinsurance organizations and brokers;
11) payment organizations;
12) postal service enterprises;
13) professional participants in the securities market;
14) loan and savings house construction funds;
15) insurance organizations (insurers);
16) insurance brokers;
17) commodity exchanges;
18) e-money issuers and agents (distributors).
2. Within the framework of this Law, non-financial categories of individuals/entities are the following individuals and (or) legal entities:
1) public and private notaries;
2) independent lawyers (individual entrepreneurs), legal companies and their employees (legal advisers), who render professional services on preparation for the operation (transaction) or conduct the operations (transactions) on behalf of or in the name of their client, under a contract;
3) realtors (agents, brokers, intermediaries, organizers of real estate trading, trust managers of real estate);
4) individuals and legal entities conducting operations (transactions) with precious metals and stones, jewelry from them, as well as scrap of such products;
5) individuals and legal entities rendering services for legal entities establishment or legal entities management.
3. The list of financial institutions and non-financial categories of individuals/entities in the form of an electronic database is compiled and published by the authorized state body determined by the Government of the Kyrgyz Republic.
Article 6. Inspection bodies
1. The list of inspection bodies including regulated financial institutions and non-financial categories of persons/entities shall be established by the Government of the Kyrgyz Republic.
2. The tasks, functions and powers (rights and obligations) of the inspection bodies verifying implementation of the legislation of the Kyrgyz Republic on anti-money laundering and anti-terrorist financing within their competence shall be determined by the Government of the Kyrgyz Republic and the National Bank of the Kyrgyz Republic.
Article 7. Financial intelligence agency
1. The financial intelligence body is the authorized state body of the Kyrgyz Republic on anti-money laundering and anti-terrorist financing established by the Government of the Kyrgyz Republic.
2. The objectives of the financial intelligence body are as follows:
1) collection (receipt) and storage of reports about suspicious operations (transactions) and other information about operations (transactions) provided in accordance with this Law;
2) carrying out an operational analysis of reports about suspicious operations (transactions) and other information about operations (transactions), as well as available information to identify operations (transactions) or acts related to financing of the terrorist and extremist activities, legalization (laundering) of the proceeds from crime, predicate offenses;
3) carrying out a strategic analysis of available information, including information provided by the state bodies to identify the trends and patterns related to financing of the terrorist and extremist activities, legalization (laundering) of the proceeds from crime;
4) preparation of summarized material or information on the results of the operational or strategic analysis and sending this material on their own initiative and or upon request to the relevant state bodies within their competence;
5) application of targeted financial sanctions and measures to suspend operations (transactions) in accordance with this Law and in the manner established by the Government of the Kyrgyz Republic;
6) maintaining international cooperation in accordance with the legislation of the Kyrgyz Republic on anti-money laundering and anti-terrorist financing.
The functions and powers (rights and obligations) of the financial intelligence body, as well as the reporting procedure of the financial intelligence body shall be determined by the Government of the Kyrgyz Republic.
3. Service duties in the financial intelligence body and the procedure for establishing the senior management board of the financial intelligence body shall be approved by the Government of the Kyrgyz Republic.
Membership of the financial intelligence body officials in political parties, movements and public associations pursuing political goals is suspended for the period of service in the financial intelligence body.
4. Interference of the state authorities of the Kyrgyz Republic in the activities of the financial intelligence body on implementation of its tasks and functions shall be prohibited.
Article 8. Law enforcement bodies, national security bodies, and prosecutor’s offices of the Kyrgyz Republic
The law enforcement bodies, national security bodies, prosecutor’s offices of the Kyrgyz Republic take measures on anti-money laundering and anti-terrorist financing in accordance with this Law and the legislation of the Kyrgyz Republic in the field of their activity.
Article 9. Submission and protection of information and documents
1. The state bodies, local authorities, courts, as well as financial institutions and non-financial categories of persons/entities, in accordance with the sector specific legislation of the Kyrgyz Republic, submit to the financial intelligence body the requested information or documents within the time frames specified in the written request of the financial intelligence body.
The procedure for submitting information and documents to the financial intelligence body shall be approved by the Government of the Kyrgyz Republic.
2. The financial institutions and non-financial categories of persons/entities shall submit requested information or documents necessary to perform the functions by the inspection authorities to such authority within ten business days from the date of receipt of the request.
3. The state bodies, state-owned enterprises of the Kyrgyz Republic must provide the financial intelligence body with access to the electronic state registers and databases in the manner and volumes established by the Government of the Kyrgyz Republic.
4. Information and documents, as well as the databases of the financial intelligence body, are confidential and protected in accordance with the established practice.
An internal information security system is established and operates in the financial intelligence body to protect information and documents during processing, storage and transmission thereof.
Access to information, documents and databases of the financial intelligence body is provided only on the basis of a decision of the financial intelligence body in accordance with the practice established by the Government of the Kyrgyz Republic.
5. The law enforcement bodies, national security agencies, prosecutor’s offices of the Kyrgyz Republic exchange information with the financial intelligence body in accordance with the practice established by the Kyrgyz Government Republic during investigation of criminal cases on financing of the terrorist and extremist activities, legalization (laundering) of the proceeds from crime and related predicate offenses.
Information shall not be exchanged if the requested information is not related to the investigation of financing of the terrorist and extremist activities or legalization (laundering) of the proceeds from crime and related predicate offenses.
6. Information or summarized materials of the financial intelligence body, submitted to the law enforcement bodies, national security bodies, and prosecutor’s offices of the Kyrgyz Republic are confidential documents and are used only for the purpose of suppressing or disclosing financing of the terrorist and extremist activities or legalization (laundering) of the proceeds from crime and related predicate offenses.
The procedure for submission and consideration of information or summarized materials of the financial intelligence body, as well as the procedure for submission of data on use thereof shall be established by the Government of the Kyrgyz Republic. 7. The law enforcement bodies, national security bodies, and prosecutor’s offices of the Kyrgyz Republic shall ensure confidentiality (do not transfer or disclose to third parties) of information or summarized materials of the financial intelligence agency.
8. The following procedures are not considered as violation or disclosure of the official, banking, tax, commercial or communication secrets (regarding information on postal money transfers):
1) delivery of information or documents, as well as in electronic format to the financial intelligence bodies, and provision of access to the electronic state registers and databases specified in parts 1-3 of this article;
2) delivery of information of information and documents by the financial institution and non-financial category of persons/entities to the relevant inspection body;
3) delivery of information or summarized material by the financial intelligence body to the law enforcement bodies, national security bodies, prosecutor’s offices of the Kyrgyz Republic and to the competent authorities of a foreign state in accordance with their request.
(As amended by the Law of the Kyrgyz Republic No. 83 as of July 8, 2019)
Chapter 3. Preventive measures
Article 10. Forbidden procedures
1. The following procedures are forbidden in the Kyrgyz Republic:
1) legalization (laundering) of the proceeds from crime, financing of the terrorist and extremist activities, financing of the proliferation of mass destruction weapons;
2) provision of funds directly or indirectly (through third parties), in whole or in part, or provision of the financial services to the persons/entities included in the sanctions list;
3) establishing of a shell bank or maintaining of the shell bank’s activities or establishing or maintaining of the correspondent relationships with the shell banks or the respondent banks, which allow the shell banks to use their accounts, as well as providing the possibility to the shell banks to use bank and similar accounts;
4) establishing or operation of the foreign trusts and legal entities not provided for by the civil legislation of the Kyrgyz Republic;
5) use of the illegal and unidentified (anonymous) prepaid cards to conduct any operation (transaction), unless other requirements are established therefor by the regulatory legal acts of the National Bank of the Kyrgyz Republic;
6) opening and (or) maintaining anonymous accounts or accounts in obviously fictitious names;
7) rendering of the services for transfer of money and valuables without an appropriate license and (or) registration in accordance with the legislation of the Kyrgyz Republic on the payment system.
2. The heads and employees of the financial institutions and non-financial categories of persons/entities are prohibited to inform a client or third parties or warn them about a future transfer or about the fact of transfer to a financial intelligence body of a message about a suspicious operation (transaction) or other information requested by the financial intelligence body. Third parties may be notified of the fact of information transfer to the financial intelligence body only in cases where provision of evidence is required in accordance with the criminal procedure legislation of the Kyrgyz Republic.
3. The employees of the financial intelligence body, including the management board and former employees, as well as the persons who have entered into employment contracts with the financial intelligence body, after termination of service or employment relationship are prohibited to disclose, transfer or use in any way confidential information about the activities of the financial intelligence body, access to which is limited to a certain circle of persons, or other official information that has become known to them due to implementation of official or labor duties, excluding the cases, stipulated by this law, and when provision of evidence is required in accordance with the criminal procedure legislation of the Kyrgyz Republic.
Article 11. Risk assessment of financing of the terrorist activities and legalization (laundering) of the proceeds from crime
1. The Government of the Kyrgyz Republic determines:
1) the procedure of conducting activities to identify and assess the risks of financing of the terrorist activities and legalization (laundering) of the proceeds from crime in the Kyrgyz Republic (hereinafter - the national risk assessment);
2) the time frames for the national risk assessment;
3) the list of persons/entities participating in the national risk assessment;
4) the procedure for the formation, approval and publication of the report on the results of the national risk assessment.
2. Based on the national risk assessment report, the following measures are taken:
1) The Government of the Kyrgyz Republic develops and approves an action plan (strategy) to reduce the identified risks of financing of the terrorist activities and legalization (laundering) of the proceeds from crime;
2) the entities taking measures to counteract financing of the terrorist activities and legalization (laundering) of the proceeds from crime, apply a risk-based approach in accordance with the practice established by the Government of the Kyrgyz Republic.
Article 12. Sanctions list
1. 1. The sanctions list includes:
1) Consolidated sanctions list of the Kyrgyz Republic;
2) Consolidated UN Security Council Sanctions List.
2. The consolidated sanctions list of the Kyrgyz Republic is formed on the basis of one of the following documents:
1) final and binding verdict of a court of the Kyrgyz Republic on conviction of an individual to carry out the terrorist or extremist activities or to finance this activity;
2) final and binding decision of a court of the Kyrgyz Republic on recognition and liquidation or prohibition of the activities of a group, organization and legal entity related to terrorism or extremism or financing of these activities;
3) a decision issued in the Kyrgyz Republic to institute criminal proceedings against an individual suspected or accused of carrying out the terrorist or extremist activities or financing this activity or to indict thereof;
4) a decision made by an authorized official of the investigative authority, investigator or court to declare a (national or international) search for a person suspected, accused or convicted of carrying out the terrorist or extremist activities or financing these activities;
5) a document of the national security body, the internal affairs body, or the financial intelligence body of the Kyrgyz Republic, prepared with available reasonable evidence that the individuals and legal entities, groups and organizations:
a) participate directly or indirectly in financing, planning, assistance, preparation or implementation of the terrorist and extremist activities or in proliferation of the mass destruction weapons;
b) are directly or indirectly controlled by the persons, groups and organizations involved in the terrorist or extremist activities or proliferation of the mass destruction weapons, or act on behalf of the persons, groups and organizations carrying out these activities or on instruction thereof;
6) a verdict (decision) of a court of a foreign state on conviction of the persons, groups and organizations of carrying out the terrorist or extremist activities or financing this activity, found lawful in the Kyrgyz Republic on the basis of the international agreements of the Kyrgyz Republic or on the principles of reciprocity;
7) a list of individuals and legal entities, groups and organizations in relation to which there is information about their participation in the terrorist or extremist activities and in proliferation of the mass destruction weapons, formed by a foreign state, an international organization or its authorized body, found lawful in the Kyrgyz Republic on the basis of the international agreements of the Kyrgyz Republic or on the principles of reciprocity;
8) an international request from a competent authority of a foreign state or an international organization regarding the persons, groups and organizations involved in the terrorist or extremist activities and proliferation of the mass destruction weapons or in financing of these activities.
3. The Consolidated Sanctions List of the Kyrgyz Republic also includes:
1) the legal entities, organizations and groups that are fully or jointly owned, or under direct or indirect (through third parties) control of the persons, groups, and organizations included in the Sanctions List;
2) the individuals and legal entities, organizations and groups acting on behalf of or on instruction of the persons, groups, and organizations included in the Sanctions List.
4. The decision to include an individual and legal entity, group and organization in the Consolidated Sanctions List of the Kyrgyz Republic is made if there are reasonable and sufficient reasons specified in the document being the basis for the formation of the Consolidated Sanctions List of the Kyrgyz Republic.
The individuals and legal entities, groups and organizations may appeal the decision on their inclusion in the Consolidated Sanctions List of the Kyrgyz Republic in an administrative (pre-trial) or judicial proceeding.
5. The individuals and legal entities, groups and organizations shall be excluded from the Consolidated Sanctions List of the Kyrgyz Republic in the following cases:
1) upon cancellation (recall) of the documents referred to in part 2 of this article;
2) based on the results of consideration of the written appeal of an individual or legal entity, group, organization included in the Consolidated Sanctions List of the Kyrgyz Republic, or their legal representatives;
3) by a court decision.
6. The procedure for inclusion of an individual and legal entity, group and organization in the Consolidated Sanctions List of the Kyrgyz Republic and exclusion thereof from it, as well as the procedure for its publication shall be established by the Government of the Kyrgyz Republic.
7. The Consolidated UN Security Council Sanctions List is compiled, updated and published in accordance with the practice established by the UN Security Council.
The procedure for submitting proposals to include the persons, groups and organizations provided that there is information about their participation in the terrorist activities and proliferation of the mass destruction weapons in the Consolidated UN Security Council Sanctions List shall be established by the Government of the Kyrgyz Republic.
Article 13. Targeted financial sanctions
1. 1. The individuals and legal entities operating in the territory of the Kyrgyz Republic, including the financial institutions and non-financial categories of persons/entities:
1) must not directly or indirectly (through third parties), fully or partially provide any funds or render financial services to the individuals and legal entities, groups and organizations included in the Sanctions List;
2) must immediately freeze the operations (transactions) and (or) funds of an individual and legal entity, group and organization included in the Sanctions List without prior notification of these persons/entities.
Meanwhile, the financial institutions and non-financial categories of persons/entities report to the financial intelligence body within three hours from the date of fulfillment of the requirements of paragraphs 1 and 2 of this part, including attempts to carry out operations (transactions) by the individuals and legal entities, groups and organizations included in the Sanctions List.
2. Subjects of freezing are as follows:
1) any funds owned or controlled by the persons, groups, and organizations included in the Sanctions List;
2) funds that are fully or jointly, directly or indirectly (through third parties), owned or controlled by persons, groups, and organizations included in the Sanctions List;
3) funds received or produced by using the funds that are fully or jointly, directly or indirectly (through third parties), owned or controlled by the persons, groups, and organizations included in the Sanctions List;
4) funds of the persons, groups, and organizations acting on behalf or on instructions of the persons, groups, and organizations included in the Sanctions List;
5) funds intended for financing of the terrorist and extremist activities, the terrorists and extremists, the terrorist and extremist organizations or the persons proliferating the weapons of mass destruction;
6) funds defined in relevant resolutions of the UN Security Council.
3. The operations (transactions) and (or) funds of an individual and legal entity, group and organization included in the Sanctions List are frozen for an indefinite period and are unfrozen upon exclusion of an individual and legal entity, group and organization from the Sanctions List.
4. When applying targeted financial sanctions, the rights of innocent third parties acting with honest intentions are protected in accordance with the legislation of the Kyrgyz Republic on anti-money laundering and anti-terrorist financing.
5. The procedure for freezing or unfreezing of an operation (transaction) and (or) funds, as well as the procedure for providing access to frozen funds and managing frozen funds shall be established by the Government of the Kyrgyz Republic.
Article14. Measures to suspend operations (transactions)
1. The financial institutions and non-financial categories of persons/entities are obliged to immediately suspend operations (transactions) conducted by an individual or legal entity, group and organization included in the List of persons, groups, organizations in respect of whom/which there is evidence of involvement thereof in legalization (laundering) of the proceeds from crime, and report this to the financial intelligence body within three hours from the date of the operation (transaction) suspension.
2. The basis for the formation of the List of persons, groups, and organizations in respect of whom/which there is evidence of involvement thereof in legalization (laundering) of the proceeds from crime is the availability of one of the following documents:
1) a decision issued in the Kyrgyz Republic to institute criminal proceedings against an individual suspected or accused of legalization (laundering) of the proceeds from crime or to indict thereof;
2) a decision made by an authorized official of the investigative authority, investigator or court to declare a (national or international) search for a person suspected, accused or convicted of legalization (laundering) of the proceeds from crime;
3) a document of a law enforcement body, a national security body, a prosecutor's office of the Kyrgyz Republic or a financial intelligence body of the Kyrgyz Republic, prepared with available reasonable evidence that the individuals and legal entities, groups and organizations:
a) directly or indirectly participate in planning, preparing, committing, facilitating of the legalization (laundering) of the proceeds from crime;
b) are directly or indirectly controlled by the persons, groups and organizations involved in legalization (laundering) of the proceeds from crime, or act on behalf of the persons, groups and organizations carrying out these activities or on instruction thereof;
4) an international request from a competent authority of a foreign state in respect of the persons, groups and organizations involved in committing and legalization (laundering) of the proceeds from crime.
3. Operations (transactions) are suspended until a decision is made on property arrest in accordance with the criminal procedure legislation of the Kyrgyz Republic.
In case of failure to decide on property arrest, the suspended operation (transaction) shall be conducted subject to the normal due process.
4. The individuals and legal entities, groups and organizations are excluded from the List of persons, groups, and organization, in respect of whom/which there is information about their involvement in legalization (laundering) of the proceeds from crime, in the following cases:
1) upon cancellation (recall) of the documents referred to in part 2 of this article;
2) based on the results of consideration of the written appeal of an individual or legal entity, group and organizations included in the List of persons, groups, organizations in respect of whom/which there is information about their involvement in legalization (laundering) of the proceeds from crime, or their legal representatives;
3) by a court decision.
5. The procedure for compiling the List of persons, groups, and organizations in respect of whom/which there is information about their involvement in legalization (laundering) of the proceeds from crime, and the procedure for exclusion thereof from it, as well as the procedure for its publication, shall be established by the Government of the Kyrgyz Republic.
Article 15. Measures to ensure transparency of the legal entities’ beneficial owners
1. The legal entities created and registered in the Kyrgyz Republic shall:
1) generate reliable and updated information about an individual who ultimately (through the ownership and control chain) directly or indirectly (through third parties) owns the property rights of this legal entity or controls this legal entity (hereinafter - the beneficial owner of the legal entity) based on the available information;
2) store the information about the legal entity’s beneficial owner for at least five years from the date of its formation in the place of registration (location) of this legal entity.
2. Holders of the register of shareholders shall:
1) form and update the legal entity’s register of shareholders (hereinafter - the register);
2) keep the register for at least five years from the date of formation thereof;
3) provide information from the register on the basis of a request from a financial intelligence body, including in electronic format, through secure communication channels.
3. The legal entities established and registered in the Kyrgyz Republic are obliged to provide the generated information about the legal entity’s beneficial owner, in accordance with part 1 of this article, based on a request from the financial intelligence body, including in electronic format, through secure communication channels.
4. An electronic database of the beneficial owners of the legal entities established and registered in the Kyrgyz Republic is created.
The procedure for the formation, updating, storage of the indicated electronic database and the procedure for access to it are established by the Government of the Kyrgyz Republic.
5. The law enforcement bodies, national security bodies, prosecution bodies of the Kyrgyz Republic and inspection bodies of the Kyrgyz Republic, in accordance with the legislation of the Kyrgyz Republic, must take the necessary measures to prevent possession and (or) control by the criminals or related persons of a significant share in a legal entity or the beneficial owner of a legal entity established in the Kyrgyz Republic.
Article 16. Measures to protect non-profit organizations
1. The Government of the Kyrgyz Republic establishes the authorized state bodies that conduct assessment of the risk of financing of the terrorist activities (hereinafter referred to as the risks) in the sector of non-profit organizations collecting and (or) distributing funds or other property in the charitable, religious, cultural, educational, social and public purposes, with involvement of the representatives of these non-profit organizations.
The types of non-profit organizations that are at high risk of using them in financing of the terrorist activities (hereinafter referred to as high-risk non-profit organizations) are identified based on the results of the risk assessment.
The procedure for conducting risk assessment, the procedure for discussing its results with involvement of the representatives of non-profit organizations, as well as the procedure for publishing information on the results of this assessment are established by the Government of the Kyrgyz Republic.
2. High-risk non-profit organizations must:
1) constantly use the Sanctions List in their work;
2) generate and store for at least five years information about the goals and objectives of their declared activities, about their founders, about the persons owning, controlling or managing a non-profit organization, about the people who have received funds from this non-profit organization;
3) prepare financial reports on their income and expenses, on the transactions (transactions) with funds, and also store them for at least five years;
4) take control measures to ensure that all funds are accounted and spent in accordance with the declared activities of a non-profit organization.
Information on the abovementioned taken measures is submitted to the financial intelligence body on the basis of written request thereof.
3. If a non-profit organization has suspicions of its involvement in financing of the terrorist activities, this non-profit organization sends a corresponding message to the financial intelligence, internal affairs and national security bodies.
4. The Government of the Kyrgyz Republic defines the authorized state bodies that:
1) conduct outreach activities among the high-risk non-profit organizations on the issues of reducing the risks of financing of the terrorist activities;
2) control the activities conducted by the high-risk non-profit organizations regarding compliance with the standards provided for in part 2 of this article;
3) apply the effective, proportionate and deterrent sanctions for violations of the norms provided for in part 2 of this article
4) collect information to identify, suppress and investigate the facts of involvement of the non-profit organizations in financing of the terrorist activities;
5) submit the answers to the international inquiries regarding non-profit organizations involved in carrying out or financing of the terrorist activities.
Article 17. Measures to identify the illegal movement of cash or bearer negotiable instruments
1. Movement of cash or bearer negotiable instruments across the customs border of the Eurasian Economic Union in the Kyrgyz Republic, carried out in various ways, as well as control over their movement are regulated in accordance with the legislation of the Kyrgyz Republic in the field of customs procedures, international agreements and acts adopted within the framework of the Eurasian Economic Union.
2. Information obtained according to the results of declaring cash or bearer negotiable instruments transferred across the customs border of the Eurasian Economic Union in the Kyrgyz Republic is integrated and on the basis thereof an electronic database is created and stored for at least five years from the date of declaring.
The procedure for the formation of an electronic database and the procedure for access to it are established by the Government of the Kyrgyz Republic.
3. Measures to detect the illegal movement of cash or bearer negotiable instruments across the customs border of the Eurasian Economic Union in the Kyrgyz Republic are taken by the authorized state bodies determined by the Government of the Kyrgyz Republic without creating any obstacles to the transfer of legal cash or bearer negotiable instruments subject to guarantees aimed at ensuring the proper use of information.
Article 18. Measures (sanctions) taken in respect of the high-risk countries
1. The financial institutions and non-financial categories of persons/entities must apply enhanced client due diligence measures and other measures (sanctions) well-proportioned with risks when establishing business relationships and (or) conducting operations (transactions) with any individuals or legal entities from high-risk countries.
2. The inspection bodies and other authorized state bodies of the Kyrgyz Republic take measures (sanctions) in relation to the high-risk countries.
3. The types of enhanced client due diligence measures and other measures (sanctions) and the procedure for application thereof, as well as the procedure for the formation and publication of a list of high-risk countries shall be established by the Government of the Kyrgyz Republic.
Chapter 4. System of internal control over financial institutions and non-financial categories of persons/entities
Article 19. Internal control program
1. The financial institutions and non-financial categories of persons/entities must apply an internal control program, including corporate (group) internal control programs, which enable them to effectively comply with the legislation of the Kyrgyz Republic in the field of anti-money laundering and anti-terrorist financing.
2. The internal control program must comply with the general requirements for the internal control programs established by the Government of the Kyrgyz Republic.
3. The financial institutions and non-financial categories of persons/entities ensure application of the internal control programs by their branches and representative offices operating in the territory of a foreign state.
Article 20. Risk-based approach
1. The financial institutions and non-financial categories of persons/entities must:
1) evaluate, determine, document and constantly update their risks taking into account the results of the national risk assessment and typical criteria for high and low risks;
2) provide information on identified risks to the relevant inspection body and the financial intelligence body in accordance with the established procedure;
3) develop and apply a strengthened or simplified policy, as well as control measures, procedures for risks managing and reducing;
4) take strengthened or simplified measures to properly check the client, taking into account the results of the risk assessment;
5) classify their clients according to risk criteria.
2. General requirements for the assessment, classification, management and mitigation of the risks, as well as typical criteria for high and low risks shall be determined in accordance with the practice established by the Government of the Kyrgyz Republic.
Article 21. Client due diligence
1. The financial institutions and non-financial categories of persons/entities must apply the following measures of due diligence to all of their clients:
1) identify and verify a client;
2) receive information about the purpose and intended nature of the client’s business relationships;
3) identify the beneficial owner and take reasonable measures to verify the beneficial owner;
4) document the information received as a result of identification and verification of the client and the beneficial owner;
5) store and update the information and documents on the activities of the client and its financial status, as well as information and documents obtained as a result of a client due diligence;
6) conduct regular due diligence of the client throughout the entire period of business relationships with the client and carry out an analysis of conformity of the operations (transactions) conducted by the client with available information on the content of its activities, financial situation and source of funds, as well as on the nature of the risks of financing of the terrorist activities and legalization (laundering) of the proceeds from crime.
The abovementioned client due diligence measures are applied in cases and in the manner established by the Government of the Kyrgyz Republic, as well as taking into account the results of a risk assessment.
2. If a trustee acts on behalf of the client, the financial institutions and non-financial categories of persons/entities are obliged to identify and verify thereof, check the relevant powers of such person/entity, as well as document the information received.
3. The financial institutions and non-financial categories of persons/entities shall apply the following additional measures of the client due diligence in respect of the public officials:
1) use the risk management system to determine whether the client or beneficial owner or recipient of insurance compensation is a public official or not;
2) obtain written permission from the head of the financial institution or the head of the non-financial category of persons/entities (if any) to establish or maintain (for existing clients) business relationships with a public official;
3) establish the source of funds or other property of a public official;
4) conduct continuous and in-depth monitoring of business relationships, including operations (transactions) conducted by a public official, in in accordance with the practice established for the high-risk clients.
Moreover, the financial institutions and non-financial categories of persons/entities apply the abovementioned additional client due diligence measures to the family members and close persons (close relatives, business partners and official representatives) of a public official, as well as to other high-risk clients.
4. The clients must submit the requested information and (or) the documents to the financial institution and non-financial category of persons/entities for conducting the client due diligence.
5. If a client fails to provide information and (or) documents necessary for the client due diligence, the financial institutions and non-financial categories of persons/entities make one of the following decisions:
1) do not establish business relationships with a client (refuse to accept an account for service or open it);
2) suspend or terminate the established business relationship with a client (denial of service) and terminate the contract with a client;
3) do not conduct an operation (transaction).
When making a decision in this case the financial institutions and non-financial categories of persons/entities must send a corresponding message to the financial intelligence body within one business day from the date of such decision.
6. When establishing international correspondent banking and similar relationships with the foreign banks and financial institutions (respondent institution), the financial institutions (correspondent institution) must take additional measures established by the Government of the Kyrgyz Republic.
7. The procedure for conducting a client due diligence when making international electronic money transfers and electronic money transfers within the Kyrgyz Republic shall be established by the Government of the Kyrgyz Republic.
Article 22. Storage of information and documents
1. The financial institutions and non-financial categories of persons/entities must keep the following information and documents:
1) information, business correspondence and copies of documents, including questionnaires of a client and beneficial owner, obtained as a result of the client due diligence - at least five years after termination of business relationships with the client, closing of the account or conducting a one-time operation (transaction) with the client;
2) information and documents about all conducted operations (transactions) - at least five years after completion of the operation (transaction);
3) conclusions or certificates on the analysis of conducted operations (transactions) - at least five years after completion of the operation (transaction);
4) information and documents stipulated by the legislation of the Kyrgyz Republic on anti-money laundering and anti-terrorist financing - at least five years after termination of business relationships with a client, closing an account or conducting a one-time operation (transaction) with a client.
2. A financial institution remitting or receiving an electronic money transfer or being involved in transit electronic money transfer is made must store all information about the remitter and the receiver accompanying the electronic money transfer for at least five years from the moment of completion of the operation or termination of business relationships with the client or closing an account.
3. The information and documents specified in parts 1 and 2 of this article must be stored in the volume sufficient to restore the characteristics of an operation (transaction) or trace the funds by restoring the entire chain of operation (transaction) and, if necessary, use it as evidence in the investigation and court proceedings in accordance with the criminal procedure legislation of the Kyrgyz Republic.
4. The financial institutions and non-financial categories of persons/entities shall submit the information and documents specified in parts 1 and 2 of this article:
1) to the financial intelligence body and the corresponding inspection body in accordance with this Law;
2) to the law enforcement bodies, national security bodies, prosecutor’s offices of the Kyrgyz Republic in accordance with the criminal procedure legislation of the Kyrgyz Republic.
Chapter 5. Operations (transactions) subject to control and communication
Article 23. Reporting a suspicious operation (transaction)
1. The financial institutions and non-financial categories of persons/entities form and send a message about a suspicious operation (transaction) to the financial intelligence body in the following cases:
1) if there is a suspicion or sufficient reason to suspect that the funds are the proceeds from crime, as well as the result of predicate offenses, or are related to legalization (laundering) of the proceeds from crime;
2) if there is a suspicion or sufficient reason to suspect that the funds are related to financing:
a) terrorists and extremists;
b) terrorist and extremist organizations (groups);
c) terrorist and extremist activities.
2. A report on a suspicious operation (transaction), including an attempt to conduct a suspicious operation (transaction), shall be sent regardless of the amount of the completed or conducted operation (transaction).
3. Guidelines for identifying suspicious operations (transactions) are published in the manner prescribed by the Government of the Kyrgyz Republic.
4. A notice of a suspicious operation (transaction) shall be submitted to the financial intelligence body within five hours from the moment an operation (transaction) is recognized as suspicious in accordance with the established practice.
Article 24. Report on operations (transactions) with the individuals or the legal entities from high-risk countries
1. The financial institutions and non-financial categories of persons/entities must submit to the financial intelligence body a report on the operations (transactions) with the individuals or the legal entities from the high-risk countries (individuals or legal entities registered or operating in the high-risk countries), regardless of the amount of an operation (transaction).
2. The list of operations (transactions) with the individuals or the legal entities from the high-risk countries to be reported to the financial intelligence body shall be determined in accordance with the practice established by the Government of the Kyrgyz Republic.
3. A report on an operation (transaction) with the individuals or the legal entities from the high-risk countries shall be submitted to the financial intelligence body within two business days from the date of conducting thereof.
Article 25. Report on the operations (transactions) with the individuals who have completed their sentences for legalization (laundering) of the proceeds from crime, terrorist or extremist activities
1. The operations (transactions) committed by an individual who has completed a sentence for legalization (laundering) of the proceeds from crime, terrorist or extremist activities, as well as for financing such activities, are subject to mandatory monitoring to identify and prevent legalization (laundering) of the proceeds from crime, terrorist or extremist activity, as well as financing of this activity.
2. The financial institutions and non-financial categories of persons/entities must submit to the financial intelligence body a report on the operations (transactions) conducted by an individual who has completed a sentence for legalization (laundering) of the proceeds from crime, terrorist or extremist activities, as well as for financing such activities, during two business days from the date of conducting thereof.
3. The procedure to form and publish the List of individuals who have completed their sentences for legalization (laundering) of the proceeds from crime, terrorist or extremist activities, as well as for financing such activities, shall be established by the Government of the Kyrgyz Republic.
Article 26. Report on the operations (transactions) with cash and non-cash funds
1. The financial institutions and non-financial categories of persons/entities must submit a report on the operations (transactions) with cash in an amount equal to or exceeding the threshold amount.
2. The list of operations (transactions) with cash and their threshold amount shall be established by the Government of the Kyrgyz Republic based on the results of a national risk assessment.
3. A report of an operation (transaction) with cash shall be submitted to the financial intelligence body within three business days from the date of conducting thereof.
4. Information on the operations (transactions) with non-cash funds shall be submitted at the request of the financial intelligence body within ten business days from the date of receipt thereof.
Article 27. Procedure for submitting reports on the operations (transactions)
Reports on the operations (transactions) provided for in Articles 23-26 of this Law shall be submitted to the financial intelligence body in accordance with the practice established by the Government of the Kyrgyz Republic.
Chapter 6. International cooperation
Article 28. General provisions of international cooperation
1. International cooperation in the field of countering the financing of the terrorist and extremist activities, financing of the proliferation of mass destruction weapons, legalization (laundering) of the proceeds from crime and related predicate offenses, as well as exchanging of the information or documents and applying of the targeted financial sanctions is implemented by the authorized state bodies of the Kyrgyz Republic in accordance with the legislation of the Kyrgyz Republic on international relationships, international agreements of the Kyrgyz Republic and resolutions of the UN Security Council.
2. In the absence of an international agreement between the Kyrgyz Republic and a foreign state, international cooperation shall be based on the principle of reciprocity.
3. International cooperation is carried out on the basis of an international request of an authorized state body of the Kyrgyz Republic or a competent body of a foreign state.
4. The list of the authorized state bodies of the Kyrgyz Republic, the procedure for international cooperation, including the procedure for preparing, sending, executing and registering international requests, shall be established by the Government of the Kyrgyz Republic.
Article 29. Main forms of international cooperation
1. International cooperation with the competent authorities of the foreign countries and the international organizations is carried out in the following forms:
1) exchange (receipt or sending) of any information or documents available to the authorized state bodies of the Kyrgyz Republic, or which they can receive in the territory of the Kyrgyz Republic, with the exception of information or documents not subject to transfer in accordance with the legislation of the Kyrgyz Republic on international relationships;
2) sending information to the competent authorities of foreign states (on their own initiative or upon request) if there are sufficient grounds (suspicions) that provide evidence on financing of the terrorist activities and legalization (laundering) of the proceeds from crime and related predicate offenses;
3) exchange of experience and information in the field of regulation and control (supervision) of the activities implemented by the financial institutions and non-financial categories of persons/entities, as well as verification of the activities of financial institutions and non-financial categories of persons/entities on the basis of an international request;
4) application of the targeted financial sanctions in accordance with this Law, resolutions of the UN Security Council and international requests;
5) assisting in identification and investigation of financing of the terrorist activities, legalization (laundering) of the proceeds from crime and related predicate offenses, as well as identification of the individuals or legal entities involved in these criminal acts;
6) mutual legal assistance at the stages of collecting information, preliminary investigation, trial and execution of court decisions, including extradition of persons in the criminal cases related to financing of the terrorist activities, legalization (laundering) of the proceeds from crime and predicate offenses;
7) participation in the activities of the international organizations on countering the financing of the terrorist activities and legalization (laundering) of the proceeds from crime;
8) participation in the established forms of international cooperation, not contradicting the legislation of the Kyrgyz Republic.
2. The authorized state bodies of the Kyrgyz Republic, within their competence, monitor the quality of the responses of the competent authorities of foreign countries to international inquiries.
Article 30. International cooperation on repayment of criminal assets
1. Funds withdrawn from the Kyrgyz Republic illegally (criminally) and (or) confiscated on the basis of a court decision of the Kyrgyz Republic shall be returned to the Kyrgyz Republic in whole or in part in accordance with the criminal procedure legislation and international agreements of the Kyrgyz Republic.
2. International cooperation on repayment of funds withdrawn illegally (criminally) from the Kyrgyz Republic is carried out in accordance with the practice established by the Government of the Kyrgyz Republic.
Chapter 7. Final provisions
Article 31. Features of compliance with the provisions of this Law by non-financial categories of persons/entities
1. Non-financial categories of persons fulfill the requirements of certain articles of this Law in the following cases:
1) realtors (agents, brokers, intermediaries, organizers of real estate trading, trust management of real estate) comply with the norms provided for in Articles 18, 21, 22, 24 of this Law, if an operation (transaction) on real estate buying or selling is conducted for their client (a seller or a buyer of real estate);
2) individuals and legal entities carrying out operations (transactions) with precious metals and stones, jewelry made of them, as well as scrap of such products, comply with the norms provided for in Articles 18, 21, 22, 23, 24 of this Law, if any operation (transaction) with cash is conducted with their client, including several related operations (transactions), for an amount equal to or exceeding the threshold amount established by the Government of the Kyrgyz Republic;
3) public and private notaries, independent lawyers (individual entrepreneurs), legal companies and their employees (legal advisers) comply with the norms provided for in Articles 18, 21, 22, 23, 24 of this Law, if they assist in preparing for the operation (transaction) or conduct operations (transactions) on behalf or in the name of their client in the following areas:
a) purchase or sale of the real estate;
b) management of cash, securities or property of the client;
c) management of bank, savings accounts or securities;
d) accumulation of the funds to create, ensure the functioning or management of a legal entity;
e) establishment or maintenance of the functioning of a legal entity or management of a legal entity and purchase and sale of the commercial enterprises;
4) individuals and legal entities providing services on establishment of the legal entities or management of the legal entities, comply with the norms provided for in Articles 18, 21, 22, 23, 24 of this Law, if they assist in preparing for an operation (transaction) or conduct operations (transactions) on behalf of or in the name of their client in the following areas:
a) acting as an agent for establishment and registration of a legal entity;
b) implementation of the duties of the legal entity’s director or secretary, a partner in a partnership or acting in a similar managerial position in a legal entity or creation of the conditions for another individual to fulfill his/her duties as such;
c) provision of a registered office or legal and actual address for a legal entity, partnership, foreign entity and trust;
d) implementation of the duties of a trustee in a foreign trust or fulfillment of an equivalent function in a foreign legal entity or creation of the conditions for another individual to fulfill his/her duties as such;
e) implementation of the duties of a nominee shareholder or creation of the conditions for another individual to fulfill his/her duties as such.
2. The non-financial categories of persons/entities shall comply with the norms provided for in Articles 9, 10, 11, 13, 14, 15, 19, 20, 25 and 26 of this Law.
Article 32. Liability and liability release
1. The financial institutions and non-financial categories of persons/entities guilty of violation or improper compliance with the legislation of the Kyrgyz Republic on anti-money laundering and anti-terrorist financing are liable under the relevant legislation of the Kyrgyz Republic.
2. The individuals and legal entities are responsible for legalization (laundering) of the proceeds from crime, financing of the terrorist and extremist activities, and financing of the proliferation of mass destruction weapons in accordance with the criminal legislation of the Kyrgyz Republic.
3. The management and employees of the financial intelligence body, the law enforcement bodies, the national security body, the prosecutor’s office, the inspection bodies and the government bodies, including the former ones, as well as the persons who entered into employment contracts with the financial intelligence body, are responsible for the illegal disclosure and use of information or documents constituting official, commercial, banking, tax secrecy and secrecy of communication (in terms of information on postal money transfers), as well as for abuse of official position in accordance with the criminal legislation of the Kyrgyz Republic.
4. The inspection bodies are responsible for the improper (negligent) performance of their functions to monitor compliance with the legislation of the Kyrgyz Republic on anti-money laundering and anti-terrorist financing in accordance with the criminal legislation of the Kyrgyz Republic.
5. The financial institutions, non-financial categories of persons/entities, their managers and officials (employees) are not liable for damage caused to the individuals and legal entities due to proper implementation of the obligations stipulated by the legislation of the Kyrgyz Republic on anti-money laundering and anti-terrorist financing.
6. Freezing of funds and (or) operations (transactions), suspension of operations (transactions), refusal to establish business relationships or opening a bank account (deposit) or refusal to conduct operations (transactions), as well as suspension or termination of business relationships, termination of the contract with a client and closing a bank account do not entail civil or other liability if these actions are performed in accordance with the legislation of the Kyrgyz Republic on anti-money laundering and anti-terrorist financing.
Article 33. Entry into force of this Law and mechanism for its implementation
1. This Law shall enter into force after fifteen days from the date of official publication.
It was published in the Erkin Too newspaper N 69 on August 17, 2018
2. The following laws and articles shall be recognized as invalid:
1) The Law of the Kyrgyz Republic “On anti-money laundering and anti-terrorist financing” No. 135 dated July 31, 2006 (Erkin Too newspaper No. 58 dated August 8, 2006);
2) The Law of the Kyrgyz Republic “On amendments and additions to the Law of the Kyrgyz Republic “On anti-money laundering and anti-terrorist financing” No. 179 dated June 2, 2009 (Vedomosti of the Jogorku Kenesh of the Kyrgyz Republic, 2009, No. 6, Article 553);
3) Article 4 of the Law of the Kyrgyz Republic “On amendments and additions to some legislative acts of the Kyrgyz Republic” No. 123 dated July 25, 2012 (Vedomosti of the Jogorku Kenesh of the Kyrgyz Republic, 2012, No. 7, Article 2734);
4) The Law of the Kyrgyz Republic “On amendments to the Law of the Kyrgyz Republic “ On anti-money laundering and anti-terrorist financing” No. 162 dated December 25, 2014 (Vedomosti of the Jogorku Kenesh of the Kyrgyz Republic, 2014, No. 11, Art. 926);
5) Article 6 of the Law of the Kyrgyz Republic “On amendments and additions to some legislative acts of the Kyrgyz Republic” No. 74 dated April 8, 2015 (Vedomosti of the Jogorku Kenesh of the Kyrgyz Republic, 2015, No. 4, Article 329);
6) Article 3 of the Law of the Kyrgyz Republic “On amendments and certain laws of the Kyrgyz Republic” No. 200 dated July 28, 2015 (Vedomosti of the Jogorku Kenesh of the Kyrgyz Republic, 2015, No. 7, Article 1003);
7) Article 3 of the Law of the Kyrgyz Republic “On amendments to certain legislative acts in regulation of the lottery activities” No. 79 dated May 10, 2017 (Vedomosti of the Jogorku Kenesh of the Kyrgyz Republic, 2017, No. 5, Article 397).
3. The Government of the Kyrgyz Republic and the National Bank of the Kyrgyz Republic within a month:
1) shall bring its regulatory legal acts in accordance with this Law;
2) shall approve the regulatory legal acts necessary for implementation of this Law.
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President of the Kyrgyz Republic |
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S. Jeenbekov |
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Approved by the Jogorku Kenesh of the Kyrgyz Republic |
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June 28, 2018 |