Article 15. Exclusion of a participating bank from the mandatory deposit guarantee System Chapter 4. THE PROCEDURE FOR EXCLUDING PARTICIPATING BANKS FROM THE MANDATORY DEPOSIT GUARANTEE SYSTEM AND THE PARTICIPATION OF AN ORGANIZATION PROVIDING MANDATORY DEPOSIT GUARANTEES IN CONDUCTING AN OPERATION TO SIMULTANEOUSLY TRANSFER ASSETS AND OBLIGATIONS OF A BANK TO ANOTHER (OTHER) BANK(S) The Law on Mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan

  1. The grounds for excluding a participating bank from the mandatory deposit guarantee system are:  

1) withdrawal by the authorized body of a banking license for accepting deposits, opening and maintaining bank accounts of individuals, or a banking license for performing all types of operations.;

     2) termination of the activities of the participating bank through reorganization, liquidation or termination of the activities of a branch of a non-resident bank of the Republic of Kazakhstan;

     3) voluntary return by the participating bank to the authorized body of the banking license for accepting deposits, opening and maintaining bank accounts of individuals;

      4) failure by the participating bank to fulfill the obligation provided for in subparagraph 7) of paragraph 2 of Article 13 of this Law.

      2. The participating bank is subject to exclusion from the mandatory deposit guarantee system.:  

1) if the authorized body deprives the participating bank of a banking license to accept deposits, open and maintain bank accounts of individuals, or a banking license to carry out all types of operations, from the effective date of the decision of the authorized body to revoke such license.;

      2) in case of compulsory reorganization of the participating bank - from the date of entry into force of the court decision on compulsory reorganization of the participating bank;  

     3) in case of voluntary reorganization of the participating bank - from the date specified in the permission of the authorized body for the voluntary reorganization of the participating bank;

     3-1) in case of voluntary liquidation of the participating bank - from the date of receipt of the permission of the authorized body for the voluntary liquidation of the participating bank;

     3-2) in case of voluntary termination of the activities of a branch of a non-resident bank of the Republic of Kazakhstan – from the date of receipt of the permission of the authorized body for the voluntary termination of the activities of a branch of a non-resident bank of the Republic of Kazakhstan;

     4) in case of voluntary return by the participating bank to the authorized body of the license for accepting deposits, opening and maintaining bank accounts of individuals - from the date of entry into force of the decision of the authorized body to terminate the license in connection with its voluntary return;

      5) in case of non-fulfillment by the participating bank of the obligation provided for in subparagraph 7) of paragraph 2 of Article 13 of this Law, from the date of the decision by the governing body of the organization providing mandatory deposit guarantees.

    3. The exclusion of a participating bank from the mandatory deposit guarantee system is carried out by excluding information about it from the register of banks participating in the mandatory deposit guarantee system.

      4. In case of exclusion of a participating bank from the mandatory deposit guarantee system on the grounds of revocation by an authorized body of a banking license to accept deposits, open and maintain bank accounts of individuals, voluntary reorganization, as well as on the grounds provided for in subparagraph 5) of paragraph 2 of this article, the bank (a branch of the bank – a non-resident of the Republic of Kazakhstan), excluded from the mandatory deposit guarantee system, is obliged to return depositors' deposits within three months from the date of its exclusion by direct payment or transfer to another participating bank, taking into account the requirements of the legislation of the Republic of Kazakhstan.

      In case of exclusion of a participating bank from the mandatory deposit guarantee system on the grounds specified in subitems 2) and 4) of paragraph 2 of this article, the bank (branch of a non-resident bank of the Republic of Kazakhstan) excluded from the mandatory deposit guarantee system is obliged to return deposits of depositors in accordance with the requirements of the legislation of the Republic of Kazakhstan.

The Law of the Republic of Kazakhstan dated July 7, 2006 No. 169-III.

This Law is aimed at protecting the rights of depositors – individuals, including individual business entities, private notaries, private bailiffs, lawyers and professional mediators, and defines the legal basis for the functioning of the mandatory deposit guarantee system placed in second-tier banks of the Republic of Kazakhstan (bank branches – non–residents of the Republic of Kazakhstan), with the exception of Islamic bank deposits and money in bank accounts raised as part of Islamic banking operations, as well as the procedure for establishing and operating an organization that provides mandatory deposit guarantee, participation of second-tier banks of the Republic of Kazakhstan (branches of non-resident banks of the Republic of Kazakhstan) in the mandatory deposit guarantee system and other issues of mutual relations between participants systems.

President    

Republic of Kazakhstan     

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