the law of the kyrgyz republic
Bishkek, No. 21 as of January 21, 2015
On the Payment System of the Kyrgyz Republic
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 88 as of August 6, 2018, No. 57 as of April 24, 2021, No. 78 as of April 22, 2024, No. 83 as of May 10, 2024, No. 84 as of April 28, 2025, No. 86 as of April 28, 2025, No. 88 as of April 29, 2025, No. 105 as of July 8, 2026)
Chapter 1. General Provisions
Article 1. Relationships Governed by This Law
1. This Law establishes the procedure and the forms for making payments and settlements and executing money transfers within the territory of the Kyrgyz Republic, determines the characteristics of payment systems, the procedure of relations between participants in payments and settlements, the oversight over payment systems, and determines the powers of the National Bank of the Kyrgyz Republic (hereinafter referred to as the “National Bank”) within the payment system of the Kyrgyz Republic.
2. Relationships arising during payments and settlements for transactions between business entities of the Kyrgyz Republic and foreign countries, as well as money transfers between legal entities and individuals (international/cross-border payments and money transfers), shall be governed by this Law and other regulatory legal acts to the extent that they do not conflict with this Law.
3. This Law shall not apply to activities related to the operation of telecommunications networks and the provision of electrical and postal communications services in the Kyrgyz Republic, which are regulated by the law in the field of electrical and postal communications. In the case of making payments for goods/services not related to telecommunications services, operations shall be carried out directly through the payment systems in accordance with the procedure established by this Law.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 57 as of April 24, 2021)
Article 2. Definitions used in this Law
The following definitions are used in this Law:
1) an Electronic Money Distribution Agent is a legal entity or an individual entrepreneur who is a resident of the Kyrgyz Republic and who redeems (exchanges) electronic money for cash or cashless funds and distributes electronic money in accordance with the banking legislation of the Kyrgyz Republic;
2) an Electronic Money Acceptor (an Acceptor) is a legal entity as well as an individual entrepreneur that, in accordance with an agreement concluded with an electronic money issuer or an electronic money distribution agent, accepts electronic money as payment for goods or services and provides documents confirming the execution of electronic money operations;
3) Cashless Settlement is a form of money circulation, where cash flows occur without the use of cash, by debiting the funds from the payer’s bank account and crediting them to the payee’s bank account in accordance with the submitted payment documents, as well as settlements using electronic money in accordance with the banking legislation of the Kyrgyz Republic. The settlement constitutes the completion of the payment. Cashless settlement may be made using two-dimensional barcode symbols (payment QR codes) and other wireless data transmission technologies by debiting the funds from a bank account or an e-wallet account, and other sources of funds in accordance with the requirements of this Law and the regulatory legal acts of the National Bank;
4) Domestic Payment is payment made in the national currency within the territory of the Kyrgyz Republic, including payments made using bank payment cards of various payment systems and electronic money issued within the territory of the Kyrgyz Republic;
5) Home Banking is a method of remote “in-home” banking servicing and the provision of retail services by banks to customers (individuals and legal entities) through the connection of home or office terminals (a personal computer, a landline phone) to the bank’s computer network;
6) Internet Banking is the remote management of bank accounts by the customer via the Internet. Payments using Internet banking are made using publicly accessible Internet channels;
7) Clearing is the process of collecting, processing, and confirming payments, and calculating the mutual obligations of the system’s participants;
8) International Electronic Money is electronic money, electronic funds, and monetary obligations in an electronic form issued (accounted for) by non-residents of the Kyrgyz Republic in accordance with the legislation of their country of origin outside the Kyrgyz Republic;
9) an Interbank Clearing System is a set of rules, procedures, and methods through which participants in the clearing system submit and exchange data and transfer payments or securities to other participants via a clearing center. The system may be based on the determination of bilateral or multilateral net positions of the participants;
10) Mobile Banking is the remote management of a bank account via messages sent by the customer to the bank from a cell phone;
11) a Payment System Operator is a legal entity licensed/registered by the National Bank, depending on the type and the category of the payment system, that ensures the operation of the payment system and has concluded an agreement with the participants regarding their participation in the payment system, according to which the operator and the participants of the payment system are obliged to carry out their activities within the framework of the payment system in accordance with this Law and the regulatory legal acts of the National Bank;
12) Payment is the fulfillment of a monetary obligation using cash, or the process of transferring cashless funds by the payer;
13) a Payment Document is a document in a prescribed form, executed by a legal entity or an individual, based on which the payment is made;
13-1) a payment QR code is a two-dimensional barcode symbol used to transmit payment data;
14) a Bank Payment Card (a Payment Card) is a payment instrument used to make settlements when purchasing goods and services, withdrawing cash in national and foreign currencies, making money transfers, and for settlements in the form of electronic money via terminals, ATMs, or other devices (peripheral devices);
15) a Payment System is an interconnected system of technologies, procedures, rules, payment instruments, and money transfer systems that facilitates the circulation of money. Depending on the types of processed payments, payment systems are divided into large-value payment systems and retail payment systems;
16) a Payment Organization is a legal entity licensed by the National Bank to carry out activities in the field of providing services for accepting and executing payments and settlements for goods and services that are not the result of its own activities, in favor of third parties through payment systems based on information technology and electronic means and methods of making payments, in accordance with an agreement between the payment organization and the suppliers of goods/services, as well as an agreement between the payment organization and a bank, concluded in accordance with the procedure established by this Law and the regulatory legal acts of the National Bank;
17) a Money Transfer System is a type of the payment system in which a payment system operator accepts the funds from the population on the condition that these funds will be paid out to the recipient;
18) a Payment Card Settlement System is a set of standards, rules, institutions, and software and hardware facilities for organizing cashless settlements using cards;
19) Electronic Money is the monetary value, which is stored electronically on a software and hardware device, including prepaid cards and electronic wallets, and accepted as a means of payment;
20) an Electronic Payment Document is a type of the payment document that is electronically generated, contains the information needed to make payments and is certified by an electronic signature;
21) Processing is a licensed activity that includes interrelated processes for accepting, processing, and delivering financial information to the participants in the payment system;
22) an Electronic Money Issuer is a legal entity authorized to issue electronic money in circulation in accordance with the banking legislation of the Kyrgyz Republic and assuming an unconditional and irrevocable obligation to redeem issued electronic money to holders presenting electronic money for redemption;
22-1) a Payment Card Issuer is a legal entity authorized to issue payment cards in accordance with the banking legislation of the Kyrgyz Republic;
23) an International Electronic Money Issuer is a bank or a legal entity that is not a resident of the Kyrgyz Republic, operates in accordance with the legislation of its country of origin, and issues (accounts for) international electronic money outside the territory of the Kyrgyz Republic;
24) NFC (Near Field Communication) is wireless data transmission technology for contactless payments;
25) a Digital Account is a special account opened by the digital som platform operator for the participants of the payment system;
26) an Electronic Wallet is an account of the digital som opened for the users through the participants in the digital som platform;
27) the Digital Som Platform is specialized software through which the digital som platform operator, digital som platform participants, and digital som platform users interact in accordance with the rules of the platform to carry out operations with digital soms;
28) the Digital Som Platform Operator is the National Bank, which issues and accounts for the digital soms of the digital som platform participants by creating a digital account that reflects the amount of the obligations of the digital som platform operator to the digital som platform participants in the amount of digital soms held on their digital accounts (forming the digital som balance);
29) Rules of the Digital Som Platform are regulatory legal acts of the National Bank that establish the conditions for access to the digital som platform and contain other provisions stipulated by this Law and the regulatory legal acts of the National Bank;
30) a Digital Som Platform User is an individual, a legal entity, or an individual entrepreneur who has opened an electronic wallet through the application of a payment system participant to carry out operations using digital soms;
31) Direct Participants in the Digital Som Platform are banks and the Central Treasury of the Ministry of Finance of the Kyrgyz Republic that hold digital accounts on the digital som platform;
32) Indirect Participants in the Digital Som Platform are payment system operators/payment organizations that provide the infrastructure for accessing the digital som platform under an agreement with the bank;
33) Digital Som Offline Payments are payments and transfers from one electronic wallet user to another electronic wallet when there is no internet connection, or when the communication connection is unstable/interrupted, or when the communication connection is disabled;
34) Smart Contracts on the Digital Som Platform are a digital agreement between participants on the digital som platform.
(As amended by Laws of the Kyrgyz Republic No. 57 as of April 24, 2021, No. 86 as of April 28, 2025, No. 88 as of April 29, 2025)
Chapter 2. Payments and Settlements
Article 3. Arranging Cashless Settlements
1. Cashless settlements within the territory of the Kyrgyz Republic shall be made by banks licensed to carry out the relevant operations on accounts opened pursuant to bank account or bank deposit agreements, unless otherwise stipulated by the regulatory legal acts or determined by the used form of settlements.
2. The bank shall be entitled to conclude an agreement (an agency agreement) with legal entities to provide banking and payment services, as well as with individual entrepreneurs to provide services to the population for making payments and settlements in accordance with the regulatory legal acts of the National Bank. At the same time, the bank shall be responsible for the fulfillment of obligations by agents within the scope of the agreement.
3. The payment organization shall be entitled to:
1) provide services for making payments and settlements in favor of third parties - suppliers of goods/services, within the territory of the Kyrgyz Republic, based on an agency agreement concluded with the suppliers of goods/services that determines the procedure for making mutual settlements by transferring the funds from the bank account of the payment organization to the bank accounts of the suppliers of goods/services. The agency agreement between the payment organization and the suppliers of goods/services may provide for mutual settlements on the conditions that the payment organization provides an advance payment to the supplier of goods/services by depositing cash, transferring funds from a bank account, placing a security deposit, providing an irrevocable bank guarantee, or other means as the security for the fulfillment of the payment organization’s obligations to the suppliers of goods/services;
1-1) issue, distribute, and redeem electronic money in accordance with the requirements of this Law and the regulatory legal acts of the National Bank;
2) other banking operations specified by the banking legislation, solely on the basis of an agency agreement with the bank. At the same time, the bank shall be responsible for the fulfillment of obligations by agents within the scope of the agreement.
3-1. The payment system operator/the payment organization shall be entitled to engage only in the types of activities specified in the license, as well as to provide advisory/information services and carry out other activities that are associated with its main activities or necessary to support them, in accordance with the requirements of the National Bank regarding licensing the activities of payment organizations and payment system operators.
The payment organization may combine its activities only with the activities of the payment system operator. The payment system operator may combine its activities only with the activities of the payment organization.
It is prohibited to transfer a license to another person to carry out activities subject to licensing.
The bank shall be entitled to carry out operations to provide services related to the acceptance and the execution of payments and settlements for goods and services that are not the result of its own activities, in favor of third parties, through payment systems based on information technology and electronic means and methods of making payments, as well as to provide services related to the acceptance, the processing, and the delivery of financial information (processing, clearing) regarding third-party payments and settlements to the participants of the payment system of the relevant processing or clearing center, as expressly specified in the license.
4. The National Bank shall establish a list of types of operations when providing services related to the acceptance and the execution of payments and settlements for goods and services that are not the result of the own activities, in favor of third parties, through payment systems based on information technology and electronic means and methods of making payments.
The activities of payment organizations and payment system operators that are residents of the Kyrgyz Republic without a license shall be prohibited.
The activities of payment system operators that are non-residents of the Kyrgyz Republic without registration shall be prohibited.
5. The application form for a license/registration, the list of attached documents, and the procedure for reviewing them shall be determined by the regulatory legal acts of the National Bank.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 57 as of April 24, 2021, No. 86 as of April 28, 2025)
Article 3-1. Requirements for Organizing Payments on the Digital Som Platform
1. The operator of the digital som platform, in order to organize and ensure the smooth functioning of payments using the digital som, shall establish the rules for the operation of the digital som platform and the technical regulations, and shall monitor compliance with them. The rules of the digital som platform shall contain:
1) the functions of the operator and the participants of the digital som platform;
2) the requirements for the participants and the users of the digital som platform;
3) the procedure for granting access to the digital som platform to the participants and the users of the digital som platform, and for suspending, resuming, and terminating their access to the digital som platform;
4) the procedure for identification, verification and authentication of the digital som user when opening electronic wallets and carrying out operations;
5) the types of operations with digital soms and the procedure of their execution, as well as the used forms of settlements;
6) the procedure for managing the risks and the continuous operation of the digital som platform (hereinafter referred to as “the smooth operation of the digital som platform”);
7) the requirements for ensuring information security for the participants of the digital som platform;
8) the procedure for resolving disputes and controversies;
9) rights, obligations, and responsibilities of the participants and the operator of the digital som platform; the procedure for monitoring compliance with the rules of the digital som platform.
2. The rules of the digital som platform specified in Part 1 of this article may contain other provisions necessary for organizing and ensuring the operation of the digital som platform.
3. The rules of the digital som platform shall be posted on the official website of the National Bank.
(As amended by Law of the Kyrgyz Republic No. 88 as of April 29, 2025)
Article 4. The Procedure for Using Settlement (Current) Accounts When Making Cashless Settlements
1. The banks shall carry out operations for making cashless settlements using credit or debit transfers of the funds to bank accounts using the relevant payment instruments.
2. The bank shall conclude a settlement (current) bank account agreement in writing with a legal entity/an individual or an individual entrepreneur, if such party applies to the bank, and shall open a settlement (current) bank account for that party under the terms and conditions established by the bank for opening such accounts.
3. The bank shall assign a number to the settlement (current) account of the customer (an account holder) that allows the account to be identified as belonging to that customer, in accordance with the requirements of the National Bank.
4. The account holder (the bank customer) shall be entitled to dispose of the funds held on its account, either personally or through persons authorized by it.
5. Cashless settlements shall be made by the bank based on an order from the account holder or a person authorized by it. A bank account agreement may provide for the verification of the right to dispose of the funds held on the account by electronic means of communication and other documents using in them analogues of a handwritten signature, codes, passwords, and other means confirming that the order has been given by an authorized person.
6. The methods, the procedure, and the conditions under which a paying customer submits a money transfer order to the paying bank shall be specified in the agreement between them. If the payer is not a customer of the sending bank, the orders shall be submitted in accordance with the requirements of the National Bank.
7. The bank shall accept for processing the customer’s payment document for making payment and settlement on the day it is presented by the customer and shall transfer the funds from the account according to the customer’s order no later than the day following the day the relevant payment document is received by the bank, or on the date specified by the customer in the payment document, unless otherwise stipulated by the regulatory legal acts or the agreement between the bank and the customer.
8. The bank shall refuse to execute the customer’s order for making cashless payment and settlement in the following cases:
1) if the concluded agreement does not provide for making the settlement in the specified form;
2) the account holder does not have sufficient amount of funds, unless the agreement provides for the bank to extend a credit to the customer;
3) if the execution of the customer’s order to make payment and settlement is a violation of the banking legislation or if the customer’s account has been seized in accordance with the procedure stipulated by the legislation of the Kyrgyz Republic;
4) if the form and the content of the payment documents do not comply with the requirements established by the regulatory legal acts of the National Bank, or if the payment document is not authentic;
5) if the customer has not provided the documents necessary to carry out operations and perform due diligence on the customer;
5-1) if the customer is included on the Sanctions List of individuals and legal entities, groups, and entities regarding which there is information about their involvement in terrorist or extremist activities and the proliferation of weapons of mass destruction, or on the List of individuals, groups, and entities regarding which there is information about their involvement in the legalization (the laundering) of proceeds from crime;
6) stipulated by the regulatory legal acts of the National Bank and the agreement between the account holder and the bank.
After making a decision to refuse to make payment and settlement, the bank shall be obliged to notify the customer thereof no later than the next banking day following the receipt of the customer’s order, unless otherwise stipulated by the regulatory legal acts of the National Bank or by the agreement between the bank and the customer.
9. Non-acceptance debiting (without the account holder’s consent) of the funds shall be made if this right is stipulated in the agreement between the account holder and the bank, or pursuant to the decision of the court, as well as in other cases provided for by the legislation of the Kyrgyz Republic.
10. Cashless settlements without opening an account shall be made when a paying customer deposits cash with the sending bank by transferring it to the recipient’s designated account. Such settlements must not be related to business activities.
11. If the bank receives the funds intended for the customer who does not have an account with that bank, the bank shall disburse the funds in cash, provided that the customer has been identified.
12. The banks shall keep records of operations without opening an account for each payment and each customer in accordance with the requirements of the National Bank.
(As amended by Law of the Kyrgyz Republic No. 57 as of April 24, 2021)
Article 5. Money Transfers
1. Money transfers within the territory of the Kyrgyz Republic shall be made by individuals and legal entities of the Kyrgyz Republic in national or foreign currencies through banks licensed and regulated by the National Bank, as well as through post offices.
2. The bank may execute money transfers either by opening a settlement (current) account or without opening an account, using specialized money transfer systems (local and international systems) or through direct correspondent relationships between banks (international/cross-border money transfers).
3. The money transfer without opening a bank account shall be made by the bank by accepting cash from the sender in the national or foreign currency and subsequently transferring it to the designated recipient in the Kyrgyz Republic or outside it through the money transfer system in accordance with the regulatory legal acts of the National Bank.
4. The bank participating in the money transfer system shall accept the funds from the sender and ensure that the money transfer is sent in accordance with the formats and the rules of the money transfer system.
5. When transferring the funds through the money transfer system, the bank participating in the money transfer system shall inform the sender and/or the recipient of the rules governing the money transfer and provide the required documents for making or receiving the money transfer, verify the identification information of the sender and/or the recipient, and ensure control over the accuracy of the required details.
6. The bank participating in the money transfer system shall inform the sender of the following:
1) the amount of the funds to be paid to the recipient as a result of the money transfer;
2) the amount of the participant’s commission fees necessary to be paid by the sender and/or the recipient;
3) the exchange rate of the currency of the transferred funds;
4) date and time, when the funds of the money transfer will be available for receipt;
5) a place where the funds of the money transfer will be available for receipt;
6) security rules when making money transfers.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 57 as of April 24, 2021)
Article 6. Electronic Money
1. An electronic money issuer shall issue electronic money in the form of electronic money instruments (media) by exchanging cash or cashless funds for electronic money. Upon redemption of the electronic money, the electronic money instruments shall reflect the amount of the issuer’s obligations to redeem the electronic money to the bearer of the electronic money.
1-1. The following shall be entitled to issue the electronic money:
- the National Bank;
- the bank according to the list of permitted banking operations to the license of the bank for the right to carry out banking operations;
- the payment organization if it has an additional license from the National Bank.
2. The electronic money issuer that issues electronic money within the territory of the Kyrgyz Republic shall be responsible for security and reliability of payments made using electronic money.
3. Each electronic money instrument (medium) is assigned a unique identification number. The unique identification number is intended to allow the holder to receive information about the movement and the balance of the electronic money on the instrument (the medium). In addition, the unique identification number of the instrument (the medium) is used to block it in the case of loss or theft of the instrument (the medium).
4. Holders of electronic money are legal entities and individuals who dispose of electronic money and use electron money when making settlements for provided goods/services of the relevant system’s acceptors. The list of operations using electronic money shall be determined by the regulatory legal acts of the National Bank.
5. Electronic money shall be distributed by the electronic money issuer (sale and distribution) by issuing electronic money in exchange for cash or cashless funds, with the option to redeem it. In accordance with the requirements of the National Bank, the electronic money issuer shall be entitled to engage agents to distribute electronic money based on a concluded agency agreement.
5-1. International electronic money issued by non-residents of the Kyrgyz Republic shall be distributed within the territory of the Kyrgyz Republic by the bank. The bank shall be entitled to engage agents for the subsequent distribution of international electronic money based on an agency agreement concluded in accordance with the requirements of the National Bank.
6. When distributing electronic money, the electronic money issuer or its agent shall be obliged, in advance, to inform the customer of the rights and the obligations of the electronic money holder and issuer, the characteristics of the electronic money instruments (media) distributed by them, the tariffs, the security rules, and other terms and conditions.
7. The electronic money issuer shall be obliged to redeem the electronic money to the bearer of the electronic money by exchanging it for cash or by transferring cashless funds to the bearer’s bank account. The electronic money may be redeemed either by the electronic money issuer or by an electronic money distribution agent that has concluded an agreement with the electronic money issuer.
8. Upon redemption of electronic money, the amount of the disbursed funds shall correspond to the amount of electronic money presented for redemption to the electronic money issuer or the electronic money distribution agent. In this case, the electronic money issuer and the electronic money distribution agent shall be entitled, upon redemption of electronic money, to withhold the amount of the fee from the paid amount of the funds, if it is provided for by the system rules and agreements between the participants of the electronic money system.
9. The electronic money issuer shall keep records of electronic money movements in accordance with the regulatory legal acts of the National Bank.
10. Electronic money shall be used in settlements by the holder transferring electronic money to a business entity or an individual (an acceptor) that exchanges its goods/services for electronic money and has specialized equipment (software and hardware facilities) for accepting and accounting for payments made with electronic money. The relationship between the issuer and the acceptor, including the procedure by which the acceptor presents electronic money to the electronic money issuer, shall be implemented in accordance with the system rules and established in the agreements.
11. Software and hardware facilities used in settlement systems that utilize electronic money must comply with the requirements of the regulatory legal acts of the National Bank regarding information security.
12. If the holder of electronic money dies, the right to claim the return of the electronic money shall be included in the inheritance in accordance with the civil legislation of the Kyrgyz Republic.
13. The electronic money issuer shall be obliged, upon receiving a request from a notary public, a letter from the relevant government authority, or a claim from the heirs (successors) or their legal representatives in connection with the death of the electronic money holder:
1) to terminate debit operations with the electronic money of a deceased person;
2) to provide the heirs (the successors) or their legal representatives, upon their presentation of documents confirming their right of inheritance (succession) as provided for by the legislation of the Kyrgyz Republic, as well as notaries, and authorized officials of foreign institutions of the Kyrgyz Republic handling inheritance cases, information regarding the existence of electronic money, its amount, and the details of the electronic money instrument (medium);
3) to ensure that the electronic money of a deceased person is redeemed or transferred to the heirs (the successors) or their legal representatives based on documents confirming the right of inheritance (succession) as provided for by the legislation of the Kyrgyz Republic.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 57 as of April 24, 2021, No. 86 as of April 28, 2025, No. 105 as of July 8, 2026)
Article 6-1. The Procedure for Issuing and Redeeming Electronic Money by Payment Organizations
1. The payment organization shall issue electronic money if it holds an additional license from the National Bank authorizing it to issue electronic money. The license to issue electronic money shall be granted in accordance with the requirements of the regulatory legal acts of the National Bank.
2. The payment organization shall issue electronic money provided that the payment organization has previously deposited the funds into a special account with a commercial bank in the amount not less than the amount of electronic money to be issued by the payment organization.
3. The payment organization shall be responsible for any violation of the terms and conditions for the issuance of electronic money established by this article and shall monitor the consistency between the amount of issued electronic money in the electronic money system and the amount of the funds deposited into the special account. The functions of subsequent monitoring shall also be delegated to the bank where the special account is held by granting online access to the electronic money system based on a concluded agreement regarding the safekeeping of the deposited amount for the issuance of electronic money, which should be established within the framework of the contractual relations and the requirements of the banking legislation.
4. The payment organization must comply with information security requirements and ensure continuous protection of information at all stages of the issuance, the distribution and the redemption of electronic money.
(As amended by Law of the Kyrgyz Republic No. 86 as of April 28, 2025)
Chapter 3. Forms of Cashless Settlements
Article 7. Payment Instruments and Documents
1. The payment instrument facilitates the transmission of payment data (information) to execute payment and settlement and determines the form of cashless settlements.
2. The payment document, executed in the form of a document on paper or as an electronic payment document, shall represent:
1) an order from the payer (the customer or the bank) to debit funds from its account and transfer them to the payee’s account;
2) an order from the payee (the claimant) to debit funds from the payer’s account and transfer them to the account specified by the payee (the claimant), only with the consent of the account holder (the payer) or pursuant to an agreement between the bank and its customer;
3) a cash deposit order (notice) or a cash withdrawal request.
3. The following forms of cashless settlements shall be used when making cashless settlements:
1) a payment order;
2) a payment request;
3) a letter of credit;
4) a direct debit payment order (pre-authorized);
5) a collection order;
6) a crossed check and a settlement check;
7) a bank payment card.
Article 8. The Procedure for Preparing Paper Payment Documents
1. A paper payment document shall be prepared on a form, the format of which is established by the regulatory legal acts, and should contain:
1) information and details in accordance with the requirements of the National Bank for making the settlement;
2) the signatures of the account holder's authorized representatives and its seal impression, in accordance with the specimen signatures and the seal impression.
2. When making payments, the bank shall be entitled to require that payment documents include information other than that specified in Part 1 of this article only if the possibility of including such information is expressly stipulated in the regulatory legal acts of the National Bank and in the agreement between the customer and the bank.
3. When the bank returns paper payment documents specified in Part 1 of this article that have been accepted but not executed for one reason or another, a note indicating the reason for the return, the date of the return, the bank’s stamp, and the signatures of the bank’s authorized employees shall be affixed to the reverse side of the first copy.
(As amended by Law of the Kyrgyz Republic No. 57 as of April 24, 2021)
Article 9. The Procedure for Preparing Electronic Payment Documents
1. Electronic payment is payment made using an electronic payment document prepared in accordance with the formats established by the National Bank.
2. The electronic payment document shall be accepted for processing only if it has been prepared using information security measures (an electronic signature or other equivalent security measures) that verify that the sender has lawfully prepared the electronic payment document and ensure that the electronic payment document remains unaltered during its transmission and processing.
3. The procedure for using the electronic signature when creating the electronic payment document in the payment system of the Kyrgyz Republic shall be governed by the regulatory legal acts and the agreements between the participants in the payment system.
4. Electronic payments shall be made by transmitting electronic payment documents via communication channels based on an agreement or a contract between the sender and the recipient. Telephone channels, telegraph or telex channels, radio channels, and satellite communication channels, as well as institutions’ own wired and cable communication channels, may be used as communication channels.
5. Electronic payments may be made between customers and banks, between banks, and through other specialized institutions that provide electronic payment services in accordance with the regulatory legal acts. The sender and/or the recipient may be an individual or a legal entity that is a participant in the electronic payment system.
6. The payment document is submitted electronically pursuant to a contract (an agreement) regarding the use of electronic payment document formats, electronic systems for the exchange of payment documents, and the use of the system of software and cryptographic protection and electronic signatures, or other equivalent security measures between the customer and its bank, or between banks and payment system operators, unless otherwise stipulated by the regulatory legal acts.
7. The terms and conditions for using and transmitting electronic payment documents shall be set forth in contracts or agreements concluded in writing, which shall contain the following essential elements:
1) the type of settlement documents used in settlements;
2) rights and obligations of the parties, including electronic payment protection obligations (a security system);
3) responsibilities of the parties;
4) the manner and the procedures for sending and receiving electronic payments;
5) the procedures for verifying the authenticity of electronic payment documents;
6) the maximum amounts of transferable funds that may be transferred without requesting confirmation of the authenticity of the submitted documents;
7) the procedures for mitigating the risk of unauthorized access to the information system;
8) the amount of payment for the operation;
9) allocation of responsibility for risks arising from electronic payments;
10) the procedures for resolving disputable issues.
8. Cryptographic security systems and other security measures are used to transmit electronic payment documents; with regard to these measures, the minimum requirements for ensuring the security of electronic payment documents, as established by the regulatory legal acts, are complied with. The participants in electronic payments may establish additional means and methods related to the protection of electronic payments, in addition to the established minimum requirements.
(As amended by Law of the Kyrgyz Republic No. 57 as of April 24, 2021)
Article 10. Legal Status of the Electronic Payment Document
The electronic payment document based on which the payment is made (a primary electronic payment document), processed in accordance with the established requirements regarding the format and the procedures for authenticating its authenticity, certified by an electronic signature or other equivalent security measures, as well as the electronic payment document (a card receipt, an SMS notification, an electronic message) generated upon payment for goods/services, fines, and other cashless payments (confirming the electronic payment document), including those made using bank payment cards, electronic wallets, digital wallets, and other innovative instruments, shall have legal status equivalent to the legal status of paper payment documents and confirmations certified in accordance with the applicable requirements, and shall be accepted as evidence in the consideration of judicial and other disputes.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 57 as of April 24, 2021, No. 88 as of April 29, 2025)
Article 11. A Payment Order
1. The payment order shall be used by individuals and legal entities when making all types of payments in the national currency within the territory of the Kyrgyz Republic. When making cashless settlements using payment orders, the customer shall submit to the servicing bank an order to transfer the specified amount of funds from its account to the recipient’s account, which is opened with the same or another bank.
2. The payment order shall be executed by the bank on the date specified in the document or within the period specified in the bank account agreement.
Article 12. Direct Debit Order
1. Cashless settlements by pre-authorized direct debit shall be used by bank customers to make regular payments (payments for bills from utility companies) and/or fixed-amount payments (insurance premiums, mortgages). The rights and the obligations of the customer and its bank when making settlements by pre-authorized direct debit shall arise from the moment the relevant agreement is concluded between the payer and its bank.
2. The payment by preauthorized direct debit shall be made pursuant to an agreement between the customer and its bank, in accordance with which the customer gives its prior consent to the debiting of the funds from its account based on the orders submitted by the payee to the customer’s bank account for payment for delivered goods, completed works, or provided services, with the relevant documents attached to the aforementioned agreement.
3. The payer shall submit to the payee (a trade and service enterprise that provides regular services to the population) a written authorization/consent for the payee to initiate the order, through its bank, for direct debiting the payer’s settlement account at the payer’s bank.
4. To ensure that payments are made on submitted pre-authorized direct debit orders and other operations, the customer should maintain a sufficient balance of the funds on its account with the bank.
5. The payer’s bank shall be obliged to reverse the direct debit order if there are not enough funds on the payer’s account to ensure payment of the amount due, if the customer cancels the pre-authorization, or for other reasons specified in the agreement with the customer.
Article 13. Settlements Using Bank Payment Cards
1. A payment card is a means of accessing a bank account that allows the cardholder to manage the funds held on the bank account opened with the payment card issuing bank, in accordance with the agreement between the cardholder and the payment card issuer.
2. Cash withdrawals from the bank account using a payment card shall be made by the cardholder through the cash desk of the bank and its peripheral devices, in accordance with the rules of the systems and the agreement between the cardholder and the payment card issuing bank.
3. Payments and settlements using the payment card shall be made by the cardholder within the limits of:
1) the balance of the cardholder’s own funds available on the bank account, or the established limit of the funds agreed upon between the bank and the customer (a debit card or a deferred-payment debit card);
2) the credit extended by the issuer in accordance with a bank account agreement, if there are not enough funds or no funds at all on the bank account (a debit card with an overdraft facility);
3) a credit line (a credit card).
4. Settlements using payment cards for goods and services within the territory of the Kyrgyz Republic shall be made in the national currency and may be processed through the national payment system, as well as through local and international payment systems, in accordance with the regulatory legal acts of the National Bank.
5. The activities related to the issuance of payment cards and/or the ownership and the maintenance (acquiring) of a network of peripheral devices (ATMs, terminals, and others) for accepting payments using bank payment cards, based on agreements with trade and service enterprises, may be carried out by banks provided they hold a license from the National Bank authorizing them to carry out banking operations. Acquiring may be performed by other organizations supervised by the National Bank in accordance with the requirements of the banking legislation of the Kyrgyz Republic.
6. The cards shall be issued to individuals and legal entities after the conclusion of an agreement or another banking document, in accordance with the standard terms of service, with the account holder, pursuant to the internal rules of the payment card issuer. Operations carried out using the payment card shall be recorded on the cardholder’s bank account.
7. The participants in the bank payment card settlement systems shall guarantee mutual settlements of payments made using bank payment cards in accordance with the rules of the systems and the agreements between the participants.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 57 as of April 24, 2021, No. 83 as of May 10, 2024, No. 86 as of April 28, 2025)
Article 13-1. Settlements using two-dimensional barcode symbols (payment QR codes)
1. The participants in the payment systems must process payments using a payment QR code through the operator/the interaction operators in accordance with the requirements of the regulatory legal acts of the National Bank.
2. The use of the payment QR code and payment links in any connections must fully comply with the requirements of the National Standard for Two-Dimensional Barcode Symbols for Financial Payments, KMS 1348:2019.
3. The interaction operators must integrate and interact with each other and with the main interaction operator to ensure a unified payment area for the payer, as well as to make payments using a payment QR code and transfer the funds from the payer to the final recipient in accordance with the requirements of the regulatory legal acts of the National Bank.
(As amended by Law of the Kyrgyz Republic No. 86 as of April 28, 2025)
Article 14. Transmission of Payment Documents via Other Electronic Means
1. The customer’s orders to the bank to carry out operations on its account may be transmitted via Internet banking, home banking, or mobile banking in a real-time mode based on an agreement between the bank and the customer. The agreement shall determine the terms and conditions under which the customer shall carry out the following operations on its bank account:
1) requesting and receiving information about the account balance/receipts;
2) a statement of recent account transactions;
3) payments from one account to another (between accounts with the same bank and between accounts with different banks);
4) withdrawing cash from an account or depositing cash into an account through the bank’s agent network for collecting and dispensing cash (trade and service enterprises, non-bank organizations);
5) changing the personal identification code;
6) money transfers;
7) other types of operations that do not contradict the regulatory legal acts and the operating rules of the systems.
2. The requirements for the agreement between the bank and the customer regarding the provision of services via Internet banking, home banking, mobile banking, and other electronic means should include the following:
1) mandatory registration of the customer in the bank’s system and identification of the customer based on linked details (“customer - customer account - customer phone number” in the mobile banking system of the bank);
2) preventing the disclosure of the customer’s account number in message formats during the interaction between the customer and the bank via the exchange of messages using a mobile phone and other payment instruments;
3) ensuring the security and the confidentiality of the financial message transmission, including multi-level protection through the assignment of a personal customer identification code, the coordination of codes for processing various types of messages, and confirmation codes for each stage and types of operations;
4) other terms and conditions.
3. Internet banking, home banking, mobile banking, and other electronic means shall be used to manage accounts opened with the banks. Mobile banking services shall be provided pursuant to an agency agreement concluded between the bank and the payment system operator and/or the payment organization, which have agreements with service providers.
4. The issues of ensuring security, reliability, and reducing the risks of fraud when making payments via Internet banking, home banking, mobile banking, and other electronic means shall fall within the scope of oversight and control over the payment systems.
(As amended by Law of the Kyrgyz Republic No. 38 as of March 1, 2017)
Chapter 4. Finality of Settlements and Responsibility of the Parties
Article 15. Finality of Payments and Settlements
1. Settlements made using cash become final at the time the cash is received by the payee or by a person authorized by the payee.
2. The cashless settlement becomes irrevocable for the paying customer upon receipt of the confirmation that the payer’s bank has accepted the payment document for execution and becomes final when the funds are debited from the payer’s account.
3. The cashless settlement becomes final for the payee at the moment the receiving bank credits the funds to the payee’s account or disburses the funds from another (internal) bank account to the payee, who does not have an account with that bank.
4. The transfer of the funds through the money transfer systems shall be considered final:
1) for the sender - upon receipt of the confirmation that the money transfer order has been accepted for execution;
2) for the recipient - at the time the recipient receives the cash or the funds are credited to the recipient’s bank account or electronic wallet.
5. The payment made using a bank payment card shall be considered:
1) for the cardholder: irrevocable - at the time the confirmation of the completed operation (transaction) is received by a peripheral device or the bank; final - at the time the funds are debited from the cardholder’s account at the payment card issuing bank;
2) for the payment card issuing bank: irrevocable—at the time the funds are withdrawn from the correspondent (current) account of the payment card issuing bank for the transfer to the acquirer; final—at the time the funds are credited to the acquirer’s account;
3) for the acquirer: final - from the time the funds are credited to the account of the payee;
4) for the payee: final - from the moment the payee’s bank deposits the funds into the payee’s bank account.
6. The final settlements on inter-bank payments in the national currency shall be made through the correspondent (current) accounts of the payment system participants, opened in accordance with the requirements of the National Bank. The final settlement shall be unconditional and irrevocable.
7. If the payment is found to be erroneous or fraudulent after the final settlements have been made, the system rules shall provide for a separate procedure for analyzing erroneous payments and refunding the funds. The terms of dispute resolution for such operations shall be set forth in the agreement between the customer and the bank, as well as in the regulations and the operating procedure of the relevant system.
(As amended by Laws of the Kyrgyz Republic No. 57 as of April 24, 2021, No. 86 as of April 28, 2025)
Article 15-1. Finality of Digital Som Settlements
1. The operation to transfer digital soms from the user’s digital wallet becomes final at the time the digital soms are credited to the digital wallet of the recipient.
2. The obligation for operations using digital soms shall be considered fulfilled from the moment they are written off from the user’s digital wallet and credited to the recipient’s digital wallet/account.
3. The offline payments become final at two stages:
1) local finality (provisional finality): a transaction is considered completed at the level of the device when the funds are written off from one offline digital wallet and credited to another. This occurs when an offline transaction is made between two devices;
2) final finality: finality confirms the full completion of the transaction on the digital som platform after it is registered.
The transaction is recorded in the memory of the digital wallet device or another digital medium and is waiting to be synchronized with the operator of the digital som platform.
(As amended by Law of the Kyrgyz Republic No. 88 as of April 29, 2025)
Article 16. Allocation of Responsibility Between the Participants of Payments and Settlements
1. The customer shall be responsible for compliance with the rules on the use of payment instruments and the procedure for executing payment documents in accordance with the regulatory legal acts.
2. When making payments on intrabank payment systems, cross-border payments, the bank shall be responsible for timely debiting and crediting of the funds to the accounts of sending and receiving customers opened with that bank. The deadlines, the procedure and the responsibility of the bank shall be determined by the regulatory legal acts as well as the agreement between the bank and the customer.
3. When making payments through the interbank payment systems, the bank shall be responsible for the execution of the payment from the moment the customer receives the confirmation that the payment is accepted for execution and the funds are debited from the customer’s account until the moment the payment is transferred to the operator of the interbank payment system.
4. The operator of the interbank payment system shall be responsible from the moment the sender’s bank receives the confirmation that the payment is accepted for execution and until the final settlement is made on the correspondent accounts of the participants in the payment system.
5. The receiving bank shall be responsible for making the payment from the time the funds are credited to the correspondent (current) account of the receiving bank until the time the received funds are credited to the payee’s account.
6. The responsibility for providing mobile banking services shall be imposed on the bank.
7. The procedure for making payments, the responsibility of the participants in making payments and the rules for ensuring security in using home banking, Internet banking and mobile banking shall be determined by the agreements between the bank and the customer.
8. The responsibility of the participants when making payments in other types of the payment systems not determined by this Law shall be established in accordance with the operating rules and the terms and conditions of contracts and agreements between the participants in accordance with the regulatory legal acts.
9. If the payment is incomplete, the participant that has not executed or improperly executed a payment instruction received from the previous participant shall be responsible in accordance with the agreements between the participants. In this case, the sender’s bank shall be obliged to provide, at the customer’s request, information about the participant that has not executed or improperly executed the payment instruction, as well as the reason for non-completion of the payment and, at the customer’s request, to take measures to complete the payment or refund the funds to the sender. The sender shall not be responsible to the recipient if the payment has not been completed at the fault of the recipient.
10. The responsibility of banks and customers to make payments and settlements on time shall be determined by the regulatory legal acts and in the agreements between them.
11. When using electronic payments, the participants of electronic payments in accordance with the terms and conditions of the agreements and the regulatory legal acts shall:
1) ensure compliance with bank secrecy;
2) provide the necessary information to judicial, investigative and fiscal authorities in accordance with the procedure provided for by the legislation of the Kyrgyz Republic;
3) be responsible for the failure to comply or improper compliance with the established security and privacy measures.
(As amended by Law of the Kyrgyz Republic No. 38 as of March 1, 2017)
Chapter 5. The Payment System of the Kyrgyz Republic
Article 17. Types and Categories of Payment Systems
1. The payment system of the Kyrgyz Republic represents a set of payment systems operating within the territory of the Kyrgyz Republic for the execution of money transfers, the operators of which are residents and non-residents of the Kyrgyz Republic, carrying out activities in accordance with this Law and the regulatory legal acts of the National Bank.
2. The interbank payment systems are intended to make settlements between the banks and between the customers of the banks, the accounts of which are opened with different banks.
3. The intrabank payment systems are intended to make settlements between the customers, the accounts of which are opened with the same bank. The settlements of the intrabank payment systems shall be carried out in accordance with the procedure established in the agreements between the customer and the bank.
4. The payment system in which payments and settlements are made on the monetary obligations of the financial market participants (a national money market, a currency market and a capital and securities market) as well as the transfers related to the use of monetary policy instruments is a large-value payment system. The system allows settlements to be made by the system participants for a small number of payments for large amounts.
5. The payment system in which payments are made on the monetary obligations of individuals and legal entities not related to their participation in the operation of the national financial markets is a retail payment system. The retail payment system is intended to make large number of payments for small amounts (retail payments) with the final settlement being based on counting multilateral or bilateral (clearing) positions of the system participants.
6. The correspondent relationship system represents a way of making international (cross-border) payments and providing other services to the users based on contracts (agency agreements) for maintaining correspondent accounts between financial and credit organizations. International (cross-border) money transfers can be carried out by the banks through the specialized money transfer systems used in banking practices.
7. Depending on the volume of payments made in the system and the degree of influence on the financial stability, the payment systems are divided into systemically significant payment systems, significant payment systems and other payment systems. The categories of the systems shall be determined by the National Bank.
8. The payment systems operating within the territory of the Kyrgyz Republic and the systems ensuring the continuous operation of the national payment system shall be subject to supervision (oversight) and control as part of the national payment system. The supervisory (oversight) authority over the national payment system shall be the National Bank.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 57 as of April 24, 2021)
Article 18. The Large-Value Payment System
1. The large-value payment system is intended to make large and urgent payments, ensuring quick and final settlements for transactions in the interbank financial markets (a national money market, a currency market and a capital and securities market), as well as the operations carried out using monetary policy instruments, on the correspondent accounts of the system participants opened with the National Bank.
2. The large-value payment system shall provide immediate and final settlement for each individual payment by debiting and crediting the funds to the correspondent (current) accounts of the system participants opened with the National Bank. The banks shall be responsible for maintaining the required level of liquidity on the correspondent (current) account with the National Bank to ensure timely and reliable final settlements.
3. In order to reduce the time between the sending of the payment and its final settlement, the system shall provide the participants of the system with the mechanisms for effective liquidity management in settlements.
4. To mitigate the risks associated with making urgent and large payments, the system shall provide for the risk management mechanisms such as:
1) making payments only within the credit balance of the funds on the correspondent account of the participant in the payment system, opened with the National Bank;
2) the order of making payments and management of payment queues by the system participants;
3) liquidity management;
4) other risk management mechanisms.
5. The manner, the rules and the procedures for managing the financial risks in the large-value payment system shall be established by the regulatory legal acts of the National Bank.
(As amended by Law of the Kyrgyz Republic No. 57 as April 24, 2021)
Article 19. The Clearing-Based Retail Payment System
1. The interbank clearing system is a type of the retail payment system and is intended to make retail and regular payments of banks and their customers, which do not require immediate final settlement. Payments and settlements in the system shall be made based on the mutual offset of the system participants’ liabilities (calculation of multilateral, bilateral net positions). The system provides the reduction in the required level of liquidity for the participants to make settlements when the number of retail payments increases.
The operator of the interbank clearing system is the National Bank or, by decision of the National Bank, a legal entity (a resident) in the form of a joint-stock company operating on the basis of a license issued by the National Bank and the regulatory legal acts of the National Bank.
2. The rules and the procedures for making payments of the participants through the clearing system shall be established by the regulatory legal acts of the National Bank, as well as bilateral and multilateral agreements and treaties.
3. To reduce the risks in the interbank clearing system related to making retail payments, the system shall provide for the risk management mechanisms including the following:
1) the participants in the clearing system should create liquid reserves sufficient to cover the largest possible liability for their own operations;
2) the clearing system should have clearly defined procedures for limiting the credit risk and the liquidity risk, as well as methods to manage these risks;
3) The National Bank may provide credit resources to the participants of the clearing system to maintain their liquidity levels, but is not a guarantor for their provision. The participants should independently assess possible financial risks and avoid risky operations in the clearing system;
4) The National Bank may set the maximum amount of the retail payment made through the interbank clearing system.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 57 as of April 24, 2021)
Article 20. The Retail Payment System for Settlements Using Bank Payment Cards
1. The national settlement system using the national payment cards is an interbank system and ensures that payments and settlements using the national payment cards are made through a unified payment area, which unites all banks of the Kyrgyz Republic. The final settlement of the participants in the national settlement system using the national payment cards shall be executed on the correspondent accounts of the system participants, opened with the National Bank, and according to the agreements concluded between the system participants. The national payment cards should be accepted for service in the infrastructure of the local and international payment system within the territory of the Kyrgyz Republic or any bank within the territory of the Kyrgyz Republic.
2. The local payment system of settlements using the bank payment cards is intended to make settlements using local cards issued by one (single-issue) or several (multi-issue) issuers of payment cards within the territory of the Kyrgyz Republic.
3. The international payment system of settlements using the bank payment cards is intended for settlements using the international cards issued and maintained in accordance with the rules of the international payment systems and the requirements of their operators (non-residents of the Kyrgyz Republic) within the framework of the regulatory legal acts. The system establishes certain rules for making mutual settlements in the foreign currency on payments using the cards between the participants of the system.
The international payment system of settlements using the bank payment cards must be registered with the National Bank. The activities of the international payment system within the territory of the Kyrgyz Republic without registration with the National Bank are prohibited.
3-1. (Ceased to be effective in accordance with Law of the Kyrgyz Republic No. 83 as of May 10, 2024)
3-2. The financial information on payments made in the national currency using the bank payment cards of various payment systems issued within the territory of the Kyrgyz Republic (domestic payments) shall be collected, processed and stored by the processing centers in accordance with the requirements of the regulatory legal acts of the National Bank. The processing centers must be located on the territory of the Kyrgyz Republic.
The processing centers shall ensure the continuous and smooth functioning of the settlement systems using the bank payment cards of the international payment systems through their connection (integration) with the processing center of the national payment system operator in the cases, provided for in the regulatory legal acts of the National Bank.
4. The functioning of the settlement systems using the payment cards (national, local, international payment systems) within the territory of the Kyrgyz Republic should comply with the requirements of the National Bank. When selecting and connecting to any settlement system using the payment cards, the bank shall be responsible for the compliance with the requirements of the regulatory legal acts.
4-1. Clearing and settlements of domestic payments made using the cards of various payment systems shall be executed in accordance with the requirements of the regulatory legal acts of the National Bank.
5. The settlements using the cards for intrabank systems shall be governed by the internal regulatory documents of the banks, which are developed in accordance with the operating rules of the system and the requirements of the National Bank.
6. In order to mitigate risks and protect consumers’ rights, the system should provide for the risk management mechanisms such as:
1) availability and accessibility of procedures and rules for the use of cards in settlements, standard terms and conditions of the agreements on allocation of responsibilities, rights and obligations of the system participants;
2) rules and procedures to ensure the security for the card settlement system to mitigate the risks of fraud and unauthorized access to the system.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 57 as of April 24, 2021, No. 83 as of May 10, 2024, No. 86 as of April 28, 2025)
Article 21. The Money Transfer System
1. The money transfer system provides for money transfers both within the country and across the national borders. The system should ensure that the participants keep records of each money transfer with identification of money transfer senders and recipients.
2. The money transfers using the money transfer systems (money transfers) shall be executed by the banks in accordance with the rules of the system. The money transfers using the money transfer systems can be executed both within the Kyrgyz Republic (local) and across the national border of the Kyrgyz Republic (international, cross-border).
3. (Ceased to be effective in accordance with Law of the Kyrgyz Republic No. 38 as of March 1, 2017)
4. The recipient shall be entitled to receive the money transfer by crediting it to the bank account, the bank payment card or the identified electronic wallet. The operators of international and local money transfer systems shall ensure that the money transfers are credited to the bank account, the bank payment card or the identified electronic wallet.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 57 as of April 24, 2021, No. 86 as of April 28, 2025)
Article 22. The Electronic Money Settlement System
1. The procedure for making payments using the electronic money, which is not determined by this Law, shall be established in accordance with the terms and conditions of the agreements between the participants of these settlement forms and the operating rules of the systems.
2. The settlement system using the electronic money represents a set of banking and other institutions, rules and procedures, ensuring the circulation of electronic money. The settlement system using the electronic money shall ensure:
1) security of operations with electronic money;
(2) availability of the regulatory legal framework in the form of rules and procedures governing the relations between the system participants;
3) efficiency of using the electronic money by the system participants (affordable and user-friendly);
4) mitigation of risks in the system.
Article 23. Payment System Participants
1. The participants in the payment system are financial and credit organizations, specialized financial and credit institutions, operators of payment systems and payment organizations and their agents that provide payment services to the population on the territory of the Kyrgyz Republic based on concluded agreements.
2. The participant shall be identified in the payment system based on a unique identification code of the participant assigned by the operator and according to the criteria for participation in the payment system, established by the rules of the system operator.
3. The participant shall develop the internal regulatory documents regarding participation in the system and ensuring business continuity.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 57 as of April 24, 2021)
Article 24. Operators
1. The operator of the money transfer system, which executes the money transfers without opening an account, shall be a legal entity that is a resident or a non-resident of the Kyrgyz Republic, having the relevant authorization documents from the authorized authority of the country of origin for carrying out this activity, registered with the National Bank and ensuring the operation of the money transfer system. The activities of the resident/non-resident money transfer system operator within the territory of the Kyrgyz Republic without registration shall be prohibited.
2. The operator of the settlement system using the electronic money shall be a legal entity that is a resident of the Kyrgyz Republic licensed to provide services for accepting, processing and delivering financial information (processing, clearing) on payments and settlements of third parties to the participants of the payment system of this processing, clearing center. The activities of the operator of the international electronic money/the issuer of the international electronic money that is a non-resident of the Kyrgyz Republic shall be carried out with registration with the National Bank in accordance with this Law and the regulatory legal acts of the National Bank. The activities of the international electronic money operator/the international electronic money issuer without registration with the National Bank shall be prohibited.
2-1. The operator of the national payment system is the National Bank or another legal entity that is a resident of the Kyrgyz Republic, licensed to provide services for accepting, processing and delivering financial information (processing, clearing) on payments and settlements of third parties to the participants of the payment system of this processing, clearing center, which corresponds to the criteria of the national system and ensures the functioning of the payment system in accordance with this Law and the regulatory legal acts of the National Bank.
3. The payment system operator shall develop regulatory documents governing the operation of the payment system, standard agreements for participation in the system and for providing the participants with access to the system.
4. The payment system operator must have regulatory documents to ensure information security and physical infrastructure security, as well as to ensure business continuity.
5. The payment system operator shall develop a tariff policy that ensures open and equitable access of the participants to the system. The rules of the payment system, including tariffs and other types of payments for services within the payment system concerning customers (users), must be made public. When amendments are made to the payment system’s rules that require the introduction of new tariffs or the increase in the amount of the existing tariffs, the payment system operator shall notify thereof the National Bank, the participants and the users of the payment system within the periods and in accordance with the procedure, established by the regulatory legal acts of the National Bank.
6. The payment system operators shall publish general financial statements on an annual basis, submit periodic monthly reports, as well as information on the internal control and the audit to the National Bank in accordance with the legislation of the Kyrgyz Republic.
7. The payment system operators shall provide relevant information (details) to the tax authorities in accordance with the procedure stipulated by the tax legislation of the Kyrgyz Republic.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 57 as of April 24, 2021)
Article 25. Users of the System
1. The user of the payment system shall be a legal entity or an individual who uses the payment services of the participant of the payment system or the money transfer system to execute settlements and money transfers in carrying out economic or other activities, in favor of and on whose behalf the money is being transferred.
2. The users shall be entitled to choose the methods and the means to make payments and settlements.
3. The users of the payment systems shall be entitled to:
1) state protection of their interests;
2) guaranteed cash and cashless payment;
3) security of cashless payments;
4) complete and reliable information on payments made;
5) reimbursement of the payment amount if supporting documents are available.
4. In order to protect the rights of the payment system users, the payment system participants shall be obliged to inform the system user about the tariffs for the provided payment services in advance.
(As amended by Law of the Kyrgyz Republic No. 38 as of March 1, 2017)
Chapter 6. Functions and Objectives of the National Bank in the Payment System of the Kyrgyz Republic
Article 26. Functions and Powers of the National Bank in the Payment System of the Kyrgyz Republic
1. In order to ensure efficiency, reliability and security of the functioning of the national payment system of the Kyrgyz Republic, the National Bank shall regulate the activities of the payment systems within the territory of the Kyrgyz Republic:
1) issue a license for the right to issue electronic money and maintain a register of issued licenses;
2) issue licenses to the payment system operators and the payment organizations to carry out activities related to the acceptance, the processing and the delivery of financial information (processing, clearing) on payments and settlements of third parties to the participants in the payment system of this processing, clearing center, as well as to carry out activities to provide services related to the acceptance and the execution of payments and settlements for goods and services that are not the result of their own activities, in favor of third parties, through the payment systems based on information technology and electronic means and methods of making payments, and maintain registers of the issued licenses;
3) register the operators of the money transfer systems, the international payment systems of settlements using bank payment cards and the operators of the international electronic money systems/the issuers of the international electronic money systems for providing the services using the international electronic money within the territory of the Kyrgyz Republic;
4) facilitate the interbank payments.
2. In the exercise of its powers, stipulated by this Law, the National Bank shall perform the following functions:
1) determine the licensing procedure (issuance of authorization documents) and set the requirements for shareholders (participants) of the payment system operators and the payment organizations;
2) set the minimum amount of the authorized capital, as well as economic ratios and indicators, requirements, restrictions;
3) establish the requirements for the acquisition of shares (interests) or the threshold participation in the capital of the payment system operators and the payment organizations;
4) establish the requirements for carrying out operations and transactions of the payment system operator/the payment organization with related parties;
5) establish the requirements for the officials and other employees of the payment system operators and the payment organizations, the fiduciary duties of the officials of the payment system operators and the payment organizations;
6) determine the procedure for recognizing officials, shareholders/participants of the payment system operators and the payment organizations involved in unhealthy and unsafe banking practices;
7) establish the requirements for accounting, financial reporting and external audit of the payment system operators and the payment organizations;
8) establish the requirements and the procedure for submitting programs and plans of the payment system operators and the payment organizations to assess their activities, business model, internal control and risk management systems, and financial recovery plan in case of financial problems;
9) regulate and supervise the activities of the payment system operators, the payment organizations and other payment system participants;
10) exercise other functions, powers and rights in accordance with the Constitutional Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic”, the Law of the Kyrgyz Republic “On Banks and Banking Activities” and other regulatory legal acts of the Kyrgyz Republic.
3. The National Bank shall be obliged to take the following measures in order to perform its functions to regulate the activities of the payment system operators and participants:
1) establish the requirements for the activities of the payment system operators and the payment organizations;
2) establish the restrictions on the maximum/minimum amount of payment through the payment system, depending on the category of the payment system. The method of calculating the restrictions shall be determined by the National Bank;
3) establish the requirements within the framework of antitrust regulation, protection of competition and consumer rights in the payment services market;
4) establish the requirements for information security, reliability and continuity of the payment system operation;
5) establish the requirements for the existence and the effective functioning of the anti-fraud system, which protects the interests of the customers and the users of the services of the payment organizations and the payment system operators against fraudulent actions.
4. The National Bank shall develop the regulatory legal acts to regulate and supervise the payment system of the Kyrgyz Republic, including establishing the requirements for securities settlement systems and their interaction with the payment systems when making final settlements for operations with securities.
5. The requirements established by the National Bank in the regulatory legal acts, on matters assigned to its competence by this Law, shall be binding on all participants, operators of the payment system, legal entities, as well as their customers and executive authorities.
(As amended by Laws of the Kyrgyz Republic No. 78 as of April 22, 2024, No. 84 as of April 28, 2025)
Article 27. Relations of the National Bank with the Financial Sector
1. The National Bank, within the framework of the powers determined by the laws in the field of the banking activities, shall provide assistance in developing the infrastructure for the acceptance of payments and settlements for the banks and the payment system operators.
2. The National Bank shall determine the acceptability of the technologies of the settlement and clearing systems used in the country (except for securities clearing technologies).
3. In order to ensure the efficient, reliable and safe functioning of the national payment system, the National Bank shall be entitled to organize an interbank communication network for data transmission (electronic payment documents, other financial and non-financial messages) and provide services based on the agreements with payment system operators and participants.
4. The National Bank is the certification center for authentication of the electronic signature in interbank electronic payment documents for banks and other financial and credit organizations that have a license (authorization) from the National Bank.
5. The National Bank, in order to organize and ensure the efficient ways of making payments and settlements for transactions between the economic entities of the Kyrgyz Republic and the foreign countries, may provide commercial banks with technical facilities for the centralized (collective) transfer of cross-border payments with the participation of the banks of the Kyrgyz Republic.
6. The National Bank shall be entitled to transfer or sell the payment system of which it was an operator, on the basis of the analysis and the assessment of the risks in that payment system and their impact on the financial stability, provided that the requirements for the operator of the system are determined.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 57 as of April 24, 2021)
Article 28. Relations of the National Bank with the Government Sector
The National Bank shall be entitled to develop government programs for the development of the national payment system of the Kyrgyz Republic and ensure their implementation together with ministries, administrative departments and other government authorities.
(As amended by Law of the Kyrgyz Republic No. 57 as of April 24, 2021)
Article 29. Relations of the National Bank with Central banks and International Financial Institutions
1. In the cases stipulated by the regulatory legal acts of the Kyrgyz Republic and the international treaties and agreements that have come into effect in accordance with the procedure established by law, to which the Kyrgyz Republic is a party, the National Bank shall represent the interests of the republic at international meetings, conferences and organizations concerning the national payment system and integration with the international payment systems.
2. The National Bank, in accordance with the granted powers, may, on behalf of the Kyrgyz Republic, harmonize and coordinate operations with the central banks of other countries, the International Monetary Fund and other international financial and credit organizations on matters related to the national payment system and the international payment systems.
3. The National Bank may participate in the activities of any organization, located both within the territory of the Kyrgyz Republic and abroad, that is engaged in developing cooperation on the issues related to the integration of the national payment systems, including between the central banks of foreign states.
(As amended by Law of the Kyrgyz Republic No. 57 as of April 24, 2021)
Article 30. Interbank Payment and Settlement Services
1. The National Bank is an operator of the settlement system for large payments and shall ensure the execution of final settlements for interbank large payments.
2. In order to ensure the efficient operation of the settlement system for urgent and large payments and comply with the payment deadlines established by the regulatory legal acts, the National Bank shall be entitled to:
1) provide software for the system access;
2) establish the (information, technical) security requirements;
3) set tariffs for the provision of services;
4) establish the requirements for the interaction of the settlement system for urgent and large payments with other interbank systems for the execution of final settlements;
5) establish the requirements for trading systems to ensure final settlements of transactions in the financial markets.
(As amended by Law of the Kyrgyz Republic No. 57 as of April 24, 2021)
Article 31. The Procedure and the Principles of Supervision (Oversight) over the Payment System of the Kyrgyz Republic
1. The National Bank is a supervisory (oversight) authority over the payment system of the Kyrgyz Republic and shall continuously monitor the functioning of the payment systems, the activities of operators and participants of the payment systems in order to maintain reliability and security of the payment system of the Kyrgyz Republic, the stable financial system, support and protect the interests of consumers of the payment services and comply with the legislation. The activities of the National Bank in exercising the supervision (the oversight) over the payment system of the Kyrgyz Republic shall be aimed at maintaining and improving the efficiency of all types of payment systems operating within the territory of the Kyrgyz Republic.
2. The National Bank shall develop and approve a policy for the implementation of supervision (oversight) over the payment system of the Kyrgyz Republic, in which it shall determine:
1) the status, the criteria of significance and assessment of the payment systems;
2) the standards that the payment systems should meet, both organizationally and functionally;
3) the content of the activities of the National Bank in exercising the supervision (the oversight) over the payment system of the Kyrgyz Republic.
3. In order to achieve the purpose of supervision (oversight) over the payment system, the National Bank shall establish the procedure for conducting the monitoring and shall monitor the functioning of the payment system of the Kyrgyz Republic, assess the qualitative and quantitative functioning characteristics of the payment systems for compliance with the established standards and requirements of the National Bank, and shall apply enforcement measures against operators and participants of individual payment systems in order to enhance their activities to improve their own payment system.
4. In order to achieve its supervisory (oversight) purposes, the National Bank shall take measures to maintain sufficient resources, including qualified staff, a relevant organizational structure (subdivision) of the National Bank responsible for the supervision (the oversight) over the payment system of the Kyrgyz Republic, allowing to effectively use these resources, methods and tools of supervision (oversight) over the payment system of the Kyrgyz Republic. The National Bank shall organize the performance of its supervisory (oversight) duties over the payment system of the Kyrgyz Republic in the manner compatible with its other objectives regarding the payment systems.
5. In exercising the supervision (the oversight) over the payment system of the Kyrgyz Republic, the National Bank shall impose the uniform requirements on all payment systems and shall not create competitive advantages for the payment systems operated by the National Bank. The National Bank shall segregate the functions of supervision (oversight) and the management of its own payment systems between different subdivisions of the National Bank.
6. In order to perform its functions related to the supervision (the oversight) over the payment system of the Kyrgyz Republic and to regulate the activities of the payment system operators and participants authorized to carry out such activities, the National Bank shall be entitled to:
1) establish economic ratios, issue directives, instructions, and recommendations in order to perform the functions of regulation and supervision, as well as the procedure for their implementation by establishing relevant rules and standards in accordance with the regulatory legal acts, based on the international standards for the payment systems;
2) participate in on-site inspections of financial and credit organizations conducted by the banking supervision authority when they act as payment system operators, or entrust independent auditors or audit firms with conducting such inspections;
3) request and receive information and reporting for the effective performance of its functions regarding the supervision (the oversight) over the payment system of the Kyrgyz Republic, and demand clarifications on the received information;
4) apply enforcement measures against the payment system operators in accordance with this Law, the Law of the Kyrgyz Republic “On Banks and Banking Activities”, and the regulatory legal acts of the National Bank in order to prevent the occurrence of the systemic risk or the unfair practice.
Information received from the payment system operators and participants regarding specific operations shall not be disclosed without their consent, except in cases provided for by the regulatory legal acts.
7. The National Bank shall initiate the introduction of amendments to a specific payment system to enhance its level of efficiency and security. If the measures aimed at improving the payment systems are not executed within the period established by the National Bank, as well as if the facts of non-compliance with standards and requirements by the payment system operator or participant, or the violation of the regulatory legal acts are detected, the National Bank shall be obliged to apply the measures provided for by the regulatory legal acts.
8. When taking measures against the payment system operators and participants, the National Bank shall be guided by the need to maintain the standards of the payment systems and the stability of the financial system of the Kyrgyz Republic in order to protect the interests of consumers of the payment services.
9. The National Bank shall not be responsible for any losses resulting from the application of sanctions provided for in this Law.
10. The National Bank shall, where necessary, interact with the concerned state executive authorities in the specified area; the supervisory authorities of other countries and the international financial institutions in order to increase the effectiveness of the supervisory activities with regard to the international payment systems whose participants are located on the territory of the Kyrgyz Republic.
11. The National Bank may, on the basis of reciprocity regarding the supervision (the oversight) over the payment system of the Kyrgyz Republic, cooperate with foreign supervisory (oversight) authorities over the payment systems in harmonizing standards, principles and methods of executing cross-border payments. The National Bank may exchange information on any payment system operating in both relevant jurisdictions with foreign banking supervisory authorities, provided that the latter maintain confidentiality of the received information.
12. The procedures of the National Bank for exercising the supervision (the oversight) over the payment system of the Kyrgyz Republic shall be reviewed by external auditors and international financial organizations within the framework of the financial sector assessment programs in accordance with the principle of independent assessment of the supervisory function.
13. The National Bank shall publish information on the effectiveness of the supervision (the oversight) over the payment system in regular analytical reports on the operation of the payment system of the Kyrgyz Republic.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 57 as of April 24, 2021, No. 78 as of April 22, 2024)
Article 31-1. Enforcement Measures Taken by the National Bank
1. The National Bank shall take enforcement measures against the participants of the payment system in the following cases:
1) violations of the legislation of the Kyrgyz Republic in carrying out the activities of the payment system operators/the payment organizations;
2) obstruction in the exercise of the supervisory functions and on-site inspections conducted by the National Bank;
3) carrying out fictitious and doubtful operations that lack real backing, for the purpose of misrepresenting the financial statements;
4) actions or omissions that entail the threat to the interests of payment system participants and users.
2. If the National Bank detects violations set forth in Part 1 of this article that entail the payment system malfunctions, and also affect the services provided by the participant of the payment system to its users, the National Bank shall issue a warning and/or take measures in accordance with the Law of the Kyrgyz Republic “On banks and Banking Activities”.
3. (Ceased to be effective in accordance with Law of the Kyrgyz Republic No. 57 as of April 24, 2021)
4. The funds received in connection with the imposition of a fine shall be sent directly to the republican budget of the Kyrgyz Republic.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 57 as of April 24, 2021, No. 78 as of April 22, 2024)
Chapter 7. Final Provisions
Article 32. Final Provisions
1. The participants of the payment system shall carry out their activities in accordance with the requirements of the legislation of the Kyrgyz Republic in the field of countering the financing of terrorism and legalization (laundering) of proceeds from crime.
2. If the payment system operator is a non-resident of the Kyrgyz Republic, the resident bank of the Kyrgyz Republic, before making a decision on joining an international payment system, must verify that the operator has the relevant authorization documents from the authorized authority of the country of origin to carry out this activity and registration with the National Bank.
3. The recovery of fines and penalties, executed within the framework of the interaction between the payment system participants, as well as the indemnification of losses, constitute a right rather than an obligation, and shall be implemented by the parties in accordance with the concluded agreements and the legislation of the Kyrgyz Republic.
4. The National Bank shall organize the fulfillment of its duties regarding the supervision (the oversight) over the payment system in the manner compatible with its other objectives with regard to the payment systems. The National Bank shall promote the timely public disclosure of general policy principles, including risk management policies in the payment system of the Kyrgyz Republic, which affect the reliability of the systemically significant payment systems.
(As amended by Laws of the Kyrgyz Republic No. 38 as of March 1, 2017, No. 88 as of August 6, 2018, No. 57 as of April 24, 2021)
Article 33. Enactment of This Law
1. This Law shall come into effect one month after the date of its official promulgation, except for the requirement in article 20 regarding the mandatory acceptance of the national payment cards for service in the infrastructure of the local and international payment system on the territory of the Kyrgyz Republic or any commercial bank on the territory of the Kyrgyz Republic, which comes into effect on July 1, 2015.
2. Law of the Kyrgyz Republic “On Electronic Payments” No. 121 as of November 6, 1999 (Bulletin of the Zhogorku Kenesh of the Kyrgyz Republic, 2000, No. 4, Art. 161) shall be recognized as invalid.
3. The Government of the Kyrgyz Republic and the National Bank of the Kyrgyz Republic are to bring their regulatory legal acts in accordance with this Law.
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President of the Kyrgyz Republic |
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A. Atambaev |
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Adopted by the Zhogorku Kenesh of the Kyrgyz Republic |
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December 17, 2014 |