Article 126. Conditions and procedure for the compulsory termination of the activities of a branch of a non–resident bank of the Republic of Kazakhstan of the Law on Banks and Banking Activities in the Republic of Kazakhstan Kazakhstan

     1. The compulsory termination of the activities of a branch of a non–resident bank of the Republic of Kazakhstan is carried out:

     1) by decision of the authorized body in connection with the deprivation of a branch of a non–resident bank of the Republic of Kazakhstan of a banking license to carry out all types of operations on the grounds provided for by this Law, including in connection with the decision of the financial supervisory authority of the state of which the non–resident bank of the Republic of Kazakhstan is a resident, to revoke the license of a non–resident bank of the Republic of Kazakhstan (permits) to carry out banking activities and (or) compulsory liquidation (termination of activities) of a non–resident bank of the Republic of Kazakhstan;

     2) by a court decision in connection with an application (claim) of an authorized state body for termination of the activities of a branch of a non–resident bank of the Republic of Kazakhstan on other grounds provided for by the laws of the Republic of Kazakhstan.

     The court's decision on the compulsory termination of the activities of a branch of a non–resident bank of the Republic of Kazakhstan is sent to the authorized body for conducting the procedure for termination of the activities of a branch of a non–resident bank of the Republic of Kazakhstan in accordance with the procedure established by this article.  

     From the date of entry into force of the court decision on the compulsory termination of the activities of a branch of a non–resident bank of the Republic of Kazakhstan on the grounds specified in part one of this subparagraph, a branch of a non–resident bank of the Republic of Kazakhstan shall be deprived of a banking license to carry out all types of operations.

     2. From the date of withdrawal of a branch of a non–resident bank of the Republic of Kazakhstan of a banking license to carry out all types of operations:

     1) all transactions on bank accounts of clients and the branch of a non–resident bank of the Republic of Kazakhstan are terminated, except in cases related to:

     expenses related to the forced termination of the activities of a branch of a non–resident bank of the Republic of Kazakhstan provided for by regulatory legal acts of the authorized body;

     by crediting money received in favor of a branch of a non–resident bank of the Republic of Kazakhstan;

     refund of money received and received in favor of persons whose bank accounts are closed, as well as money received and received according to erroneous instructions;

     execution of instructions on money transfers received by a branch of a non–resident bank of the Republic of Kazakhstan after its banking license is revoked, provided that the person who gives such instructions and the person in whose favor the transfer is carried out do not have debts to a branch of a non–resident bank of the Republic of Kazakhstan or the repayment by these persons of existing debts to a branch of a non–resident bank of the Republic of Kazakhstan Kazakhstan;

     2) senior employees and, if necessary, other employees of a branch of a non–resident bank of the Republic of Kazakhstan are subject to suspension from their work duties and dismissal in accordance with the labor legislation of the Republic of Kazakhstan.;

     3) the founders (participants), bodies of a non–resident bank of the Republic of Kazakhstan, and senior employees of a non–resident bank of the Republic of Kazakhstan specified in part three of paragraph 4 of Article 45 of this Law are not entitled to dispose of the property of a non–resident bank of the Republic of Kazakhstan located in the territory of the Republic of Kazakhstan.;

     4) it is not allowed to recover money from the bank accounts of a branch of a non–resident bank of the Republic of Kazakhstan on the claims of creditors, state revenue authorities, including those subject to satisfaction in an undisputed manner, as well as foreclosure on the property of a non–resident bank of the Republic of Kazakhstan located in the territory of the Republic of Kazakhstan;

     5) the execution of earlier court decisions regarding a branch of a non–resident bank of the Republic of Kazakhstan is suspended;

     6) obligations to repay the principal debt, remuneration and penalties (fines, penalties) are fulfilled by debtors of a branch of a non–resident bank of the Republic of Kazakhstan in accordance with concluded bank loan agreements and other transactions.

     3. The obligations of a branch of a non–resident bank of the Republic of Kazakhstan denominated in foreign currency are recorded in tenge at the official exchange rate established by the National Bank of the Republic of Kazakhstan as of the date of the decision of the authorized body to revoke the banking license of a branch of a non–resident bank of the Republic of Kazakhstan to carry out all operations.

     4. The procedure for the compulsory termination of the activities of a branch of a non–resident bank of the Republic of Kazakhstan is carried out in accordance with paragraphs 3, 5, 6 and 7 of Article 120 and Article 123 of this Law.

     Satisfaction of creditors' claims of a branch of a non–resident bank of the Republic of Kazakhstan and all expenses related to the forced termination of the activities of a branch of a non–resident bank of the Republic of Kazakhstan are made only from the funds of a non–resident bank of the Republic of Kazakhstan, including assets of a branch of a non–resident bank of the Republic of Kazakhstan accepted as a reserve.

     It is prohibited for the authorized body to finance expenses related to the forced termination of the activities of a branch of a non–resident bank of the Republic of Kazakhstan, with the exception of expenses related to the remuneration of employees of the authorized body included in the liquidation commission of a branch of a non–resident bank of the Republic of Kazakhstan.

     5. To satisfy the creditors' claims of a branch of a non–resident bank of the Republic of Kazakhstan, the liquidation commission of a branch of a non–resident bank of the Republic of Kazakhstan that is forcibly ceasing operations has the right to use the assets of a branch of a non–resident bank of the Republic of Kazakhstan, including those accepted as reserves, and money in bank accounts opened for the operation of a branch of a non–resident bank of the Republic of Kazakhstan.

     If the assets of a branch of a non–resident bank of the Republic of Kazakhstan are insufficient, including those accepted as reserves, the non–resident bank of the Republic of Kazakhstan satisfies the creditors' claims of the branch of a non–resident bank of the Republic of Kazakhstan in accordance with a written commitment previously submitted to the authorized body in accordance with subparagraph 3) paragraph 10 of Article 19 of this Law.

     The authorized body approves the report on the termination of the activities of a branch of a non–resident bank of the Republic of Kazakhstan and decides on the completion of the procedure for the compulsory termination of the activities of a branch of a non–resident bank of the Republic of Kazakhstan.

     Upon completion of the procedure for the compulsory termination of the activities of a branch of a non–resident bank of the Republic of Kazakhstan, the liquidation commission is obliged to hand over the documents for storage to the archive in accordance with the established procedure and notify the authorized body accordingly.  

     After de–registration of a branch of a non–resident bank of the Republic of Kazakhstan, the liquidation commission of the branch of a non-resident bank of the Republic of Kazakhstan that is forcibly ceasing operations shall, within five working days, submit to the authorized body a copy of the certificate of de-registration of the branch.

     6. Exchange of information between the authorized body and the financial supervisory authority of the relevant foreign state, of which the non–resident bank of the Republic of Kazakhstan is a resident, on the progress and results of the bank's liquidation procedure – a non–resident of the Republic of Kazakhstan is carried out on the basis and in accordance with the procedure provided for by the agreement on the exchange of information in the field of banking supervision, including in the form of a memorandum of understanding, letters and (or) correspondence on the exchange of supervisory information between the authorized body and the financial supervisory authority of the state of which the non-resident bank of the Republic of Kazakhstan is a resident.  

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

President    

Republic of Kazakhstan     

© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan  

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