Article 13. Monitoring of currency transactions The Law on Currency Regulation and Currency Control

Home / Laws / Article 13. Monitoring of currency transactions The Law on Currency Regulation and Currency Control

1. Monitoring of foreign exchange transactions is carried out by the National Bank of the Republic of Kazakhstan by obtaining information on foreign exchange transactions from residents participating in foreign exchange transactions and (or) authorized banks conducting foreign exchange transactions, as well as accounts with foreign banks and international financial organizations.

For the purposes of monitoring currency transactions, the National Bank of the Republic of Kazakhstan:

1) assigns accounting numbers to currency agreements on the basis and (or) in fulfillment of which capital movement transactions and operations equivalent to them are conducted (hereinafter referred to as currency capital movement agreements), and receives information on currency transactions conducted under them and related requirements to non–residents and obligations to non-residents;

2) receives notifications and (or) information about currency transactions, including information about payments and (or) money transfers for currency transactions;

3) receives information about accounts in foreign banks and international financial organizations opened by residents (with the exception of banks and branches (representative offices) of foreign organizations), and assigns account numbers to such accounts;

4) Receives information on a regular basis from branches (representative offices) of foreign non-financial organizations operating in the Republic of Kazakhstan.

 2. In order to organize and monitor currency transactions, the National Bank of the Republic of Kazakhstan or authorized banks, in cases established by this Law, assign accounting numbers to currency agreements on the basis and (or) pursuant to which currency transactions are carried out, as well as accounts of residents (with the exception of banks and branches (representative offices) of foreign organizations) in foreign banks, international financial organizations. The National Bank of the Republic of Kazakhstan assigns accounting numbers to currency contracts for the movement of capital, accounts of residents (with the exception of banks and branches (representative offices) of foreign organizations) in foreign banks, international financial organizations, as well as currency contracts for export or import, settlements on which are carried out through such accounts. Authorized banks assign accounting numbers to currency export or import agreements, which are settled through accounts with authorized banks.

If a currency agreement provides for capital movement operations or equivalent operations and exports or imports and settlements are carried out through bank accounts with authorized banks, then a resident (with the exception of an authorized bank and a branch (representative office) of a foreign organization) applies to the authorized bank for assignment of an account number to such a currency agreement in accordance with the procedure established by stipulated by the currency legislation of the Republic of Kazakhstan.

If a foreign exchange agreement provides for the provision of a financial loan, including financial leasing between the lessor and the lessee, grants for the implementation of investment projects, and the implementation of exports or imports, and settlements on it are carried out through bank accounts with authorized banks, the resident (with the exception of an authorized bank and a branch (representative office) of a foreign organization) applies for the assignment of accounting records numbers of such currency agreement to the National Bank of the Republic of Kazakhstan and the authorized bank in accordance with the procedure established by the Government of the Republic of Kazakhstan., stipulated by the currency legislation of the Republic of Kazakhstan.

The commission by the National Bank of the Republic of Kazakhstan of actions to assign accounting numbers to currency agreements on capital movements, accounts of residents (with the exception of banks and branches (representative offices) of foreign organizations) in foreign banks, international financial organizations, as well as currency agreements on export or import, settlements on which are carried out through such accounts, is not associated with the adoption of administrative the act.

3. When assigning an account number to a currency agreement, the National Bank of the Republic of Kazakhstan or an authorized bank has the right to request the following information and (or) documents from the resident participant of the currency agreement in addition to the submitted copy of the currency agreement:

1) information about the participants in the currency agreement, including identification data, country of registration, information about the participation of a party to the currency agreement in the capital of the other party to the currency agreement;

2) information about the transaction, including the details and amount of the currency agreement, the currency of the currency agreement and settlements under it, the date of completion of obligations under the currency agreement;

3) information about the accounts through which the transaction will be settled;

4) amendments and (or) additions to the currency agreement made by its participants, and other documents of the participants in the currency agreement that are related to the ongoing transaction.

4. The assignment by the National Bank of the Republic of Kazakhstan of account numbers to currency agreements on capital movements, accounts of residents in foreign banks, international financial organizations, currency agreements on export or import, settlements on which are carried out through accounts in foreign banks, international financial organizations, is carried out without any obligations on the part of the National Bank of the Republic of Kazakhstan. The presence of an account number is not a reason for exemption from liability for violation of the requirements of the legislation of the Republic of Kazakhstan.

5. A resident (with the exception of a bank and a branch (representative office) of a foreign organization) submits information for assigning an account number to a foreign currency agreement on capital movements and assigning an account number to an account with a foreign bank or an international financial organization to the National Bank of the Republic of Kazakhstan electronically through the information system of the National Bank of the Republic of Kazakhstan in compliance with the procedures for certification by means of an electronic digital signature.

The submission of reports on foreign exchange agreements on the movement of capital, reports on the movement of money in an account with a foreign bank, an international financial organization to the National Bank of the Republic of Kazakhstan is carried out electronically through an information system in compliance with the procedures of certification by means of an electronic digital signature.

This Law regulates public relations related to the implementation of currency transactions, defines the goals and objectives of currency regulation and currency control.

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Republic of Kazakhstan

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