Article 111. The bank's activities during the period of its conversion into an Islamic Bank of the Law on Banks and Banking Activities in the Republic Kazakhstan

Home / Laws / Article 111. The bank's activities during the period of its conversion into an Islamic Bank of the Law on Banks and Banking Activities in the Republic Kazakhstan

1. During the conversion period, the bank is obliged to implement the measures provided for in the action plan for converting the bank into an Islamic bank.

2. After receiving the permission of the authorized body to convert the bank into an Islamic bank, the General meeting of shareholders of the bank appoints the Council on the principles of Islamic finance on the recommendation of the Board of Directors.

3. The Bank within ten working days after receiving the permission of the authorized body to convert the bank into an Islamic bank:

1) publishes an announcement of the conversion in two periodicals distributed throughout the Republic of Kazakhstan, in Kazakh and Russian, and places the specified announcement on the bank's Internet resource;

2) sends a written notification to the bank's clients about the bank's conversion into an Islamic bank, indicating the list of banking and other operations provided for in subparagraph 3) paragraph 2 of Article 110 of this Law, the deadline for submitting written refusals or consents provided for in paragraph 4 of this Article, and the address at which they are accepted.

4. The Bank's clients, within thirty calendar days from the date of receipt of the written notification specified in subparagraph 2) of paragraph 3 of this Article, are required to submit a written refusal or consent to the bank.:

1) to amend the terms of the agreement on banking and other transactions subject to conversion into Islamic banking transactions provided for in the first part of paragraph 4 of Article 22 of this Law;

2) to change the terms of the agreement on banking and other transactions that do not require conversion into Islamic banking transactions, the implementation of which is authorized by the Islamic bank in accordance with the second part of paragraph 4 of Article 22 of this Law, in terms of changing the name of the bank related to the conversion of the bank into an Islamic bank;

3) assignment of rights (claims) or transfer of debt under contracts for banking and other transactions that do not require conversion to Islamic banking transactions on the grounds of expiration of the contracts before the end of the conversion period specified in the permit of the authorized body for the conversion of the bank into an Islamic bank, or not subject to conversion on the grounds of non-compliance with the principles of Islamic banking transactions established by Article 36 of this Law.

Failure to provide a response within the time period provided for in part one of this paragraph:

according to subitems 1) and 2) of the first part of this paragraph, it is considered as the client's refusal.;

according to subparagraph 3) of the first part of this paragraph, it is considered as the client's consent.

If the client provides a written waiver under the agreements specified in subitems 1), 2) and 3) of part one of this paragraph, these agreements are subject to termination until the bank submits to the authorized body the report specified in paragraph 1 of Article 112 of this Law.

The measures provided for in subparagraphs 1) and 2) of Part one of this paragraph shall be carried out by concluding an additional agreement to the agreement containing the conditions for conducting Islamic banking operations or providing for a change in the name of the bank related to the bank's conversion into an Islamic bank, subject to its entry into force after the bank receives a license to conduct Islamic banking and other operations.

If there are unfulfilled requirements to the bank accounts of the bank's clients (including orders from authorized government agencies with the right to suspend spending operations on the bank account, as well as decisions (resolutions) of authorized bodies or officials with the right to seize the client's money) and insufficient or missing money (including the absence of money movement for more than a year) The Bank has the right to refund such claims and close bank accounts.

5. The permission to convert the bank into an Islamic bank is subject to return by the bank to the authorized body when the bank is granted a license to carry out Islamic banking and other operations or when a court decides to terminate the bank's activities, as well as in case of revocation of the permission by the authorized body.

6. During the period of its conversion into an Islamic bank, the Bank is prohibited from extending the validity period of contracts and (or) concluding new contracts for banking and other operations, as well as activities on the securities market provided for in paragraphs 2, 3 and 5 of Article 22 of this Law.

7. The period of conversion of a bank into an Islamic bank may not exceed five years. This period is extended by the authorized body at the request of the bank for a period not exceeding one year.

8. The decision on the use of income received by the bank during the conversion period from transactions that do not comply with the principles established by Article 35 of this Law is made by the Council on the principles of Islamic finance of the bank.

The Law of the Republic of Kazakhstan dated January 16, 2026 No. 258-VIII SAM.

President

Republic of Kazakhstan

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