Article 17-1. A bank holding company and a major participant in the Law on Banks and Banking Activities in the Republic of Kazakhstan

Home / RLA / Article 17-1. A bank holding company and a major participant in the Law on Banks and Banking Activities in the Republic of Kazakhstan

 1. No person, independently or jointly with another (other) person(s), may (may) directly or indirectly own, use and (or) dispose of ten or more percent of the outstanding (minus preferred and repurchased by the bank) shares of the bank, as well as have control or the ability to influence decisions made by the bank in the amount of ten percent or more of the outstanding (minus preferred and repurchased by the bank) shares of the bank without obtaining the prior written consent of the authorized body. This requirement does not apply to the state or the national managing holding company, an organization specializing in improving the quality of loan portfolios of second-tier banks, subsidiaries of the National Bank of the Republic of Kazakhstan, a single accumulative pension fund if it owns ten or more percent of the bank's outstanding (minus preferred and repurchased by the bank) shares at the expense of pension assets managing the investment fund. portfolio in case of ownership, to use and (or) dispose of ten or more percent of the bank's outstanding (minus preferred and repurchased by the bank) shares at the expense of pension assets, as well as in cases provided for by this Law.

Non-resident legal entities of the Republic of Kazakhstan may obtain the consent of an authorized body to acquire the status of a bank holding company or a major participant in a bank if they or their parent organization have the minimum required rating from one of the rating agencies. The minimum rating and the list of rating agencies are established by a regulatory legal act of the authorized body.

The rating specified in part two of this paragraph is not required for a non–resident legal entity of the Republic of Kazakhstan that indirectly owns ten or more percent of the bank's outstanding shares or indirectly votes ten or more percent of the bank's voting shares through ownership (voting) of shares (stakes) of another non–resident legal entity of the Republic of Kazakhstan, which is a major a member of the bank or a bank holding company that directly owns the bank's shares and has the minimum required rating.

Large members of the bank, individuals, pay for the bank's shares in an amount not exceeding the value of the property owned by them. In this case, the value of the property (minus the value of previously acquired shares of the bank) must not be less than the total value of previously acquired and acquired shares of the bank.

1-1. A non–resident bank holding company of the Republic of Kazakhstan, which directly owns twenty–five or more percent of the outstanding (minus preferred and repurchased by the bank) shares of the bank or which has the opportunity to vote directly with twenty-five or more percent of the voting shares of the bank, may be only a non-resident financial institution of the Republic of Kazakhstan provided that the following conditions are met:

1) a non–resident financial institution of the Republic of Kazakhstan has a valid license (valid permit) to carry out financial activities under the legislation of the state of which it is a resident, in cases where such a license (such permit) is required under the legislation of such state;

2) the presence of consent (permission) to own shares of a bank operating in the territory of the Republic of Kazakhstan, issued by the financial supervisory authority of the state of which the non–resident financial institution of the Republic of Kazakhstan is a resident, in cases where such consent (permission) is required by the legislation of such state;

3) a non–resident financial institution of the Republic of Kazakhstan or its parent organization has the minimum required rating of one of the rating agencies, the list of which is established by a regulatory legal act of the authorized body.;

4) a non–resident financial institution of the Republic of Kazakhstan is subject to consolidated supervision in the State of which it is a resident.

2. The rules for issuing and revoking consent to acquire the status of a major participant in a bank or bank holding company, as well as the requirements for documents submitted to obtain such consent, are determined by the authorized body.

2-1. The requirements for obtaining the status of a bank holding company or a major participant in a bank do not apply to a non-resident of the Republic of Kazakhstan who indirectly owns (has the ability to vote, determine decisions and (or) influence decisions made by virtue of an agreement or otherwise) shares of the bank through ownership (having the ability to vote, determine decisions and (or) influence influence on decisions made by virtue of an agreement or otherwise) by shares of another non-resident financial institution of the Republic of Kazakhstan, which is subject to consolidated supervision in the country of its location and has the status of a major participant (bank holding company) of the specified bank.

The requirements for obtaining the status of a bank holding company or a major participant in a bank do not apply to cases when a bank purchases shares of another bank when they reorganize in the form of a merger in accordance with the procedure established by the legislation of the Republic of Kazakhstan, if one of the banks being reorganized is a bank that has been restructured in accordance with this Law.

2-2. In order to obtain consent to acquire the status of a bank holding company or a major participant in the bank, a fee is paid, the amount and payment procedure of which are determined by the tax legislation of the Republic of Kazakhstan.

3. In order to obtain consent to acquire the status of a bank holding company or a major participant in a bank, a person wishing to become a bank holding company or a major participant in a bank must submit to the authorized body an application for acquiring the status of a bank holding company or a major participant in a bank in the form established by a regulatory legal act of the authorized body, accompanied by documents and information specified in paragraphs 4, 4-1, 5, 6, 7 and 7-1 of this article.

3-1. The sources of funds used to purchase shares of the bank may be money held in the applicant's bank account, received by the applicant:

1) for an individual:

as income from entrepreneurial, labor and (or) other activities not prohibited by the legislation of the Republic of Kazakhstan or the legislation of a foreign state;

in the form of a gift, inheritance, winnings and (or) from the sale of gratuitously received property, property received as inheritance, in the amount not exceeding twenty–five percent of the value of the acquired shares of the bank;

2) for a legal entity:

as income, proceeds from entrepreneurial and (or) other activities not prohibited by the legislation of the Republic of Kazakhstan or the legislation of a foreign state;

as a contribution to the authorized capital of the applicant.

For a legal entity that is a financial institution, the assets of the financial institution may be the sources of funds used to purchase shares of the bank, provided that the acquisition of shares of the bank does not lead to a violation by the financial institution of equity capital adequacy ratios, liquidity ratios or other standards (limits) established by the legislation of the state in which the financial institution is a resident.

4. In order to obtain consent to acquire the status of a major participant in the bank, an individual submits the following documents and information:

1) copies of documents confirming the terms and procedure for the acquisition of shares of the bank;

2) information about the sources (origin) of funds used to purchase shares of the bank, as well as copies of documents confirming this information.

In the case of acquisition of bank shares by an individual at the expense of funds received as a gift, income from the sale of gratuitously received property, the applicant also provides information about the donor and the sources of origin of these funds, property from the donor.;

3) information on legal entities in which the applicant is a major participant, in accordance with the form established by the regulatory legal act of the authorized body. If the applicant is a shareholder (participant) of a non–resident legal entity of the Republic of Kazakhstan, copies of documents confirming the applicant's major participation in a non–resident legal entity of the Republic of Kazakhstan are additionally provided.;

4) the bank's recapitalization plan in case of possible deterioration of the bank's financial situation;

5) information on income and property, information on existing debts for all obligations of the applicant in the form established by the regulatory legal act of the authorized body, and an individual resident of the Republic of Kazakhstan also has a copy of the assets and liabilities declaration notarized or certified by the state revenue authority, submitted in accordance with the procedure established by the tax legislation of the Republic of Kazakhstan., – within thirty calendar days preceding the date of submission to the authorized body of an application for acquiring the status of a major participant in the bank, and a notarized or certified copy of the income and property declaration submitted by the state revenue authority in accordance with the procedure and deadlines established by the tax legislation of the Republic of Kazakhstan.

Information in the declaration of assets and liabilities is indicated on the first day of the month of the submission of the declaration of assets and liabilities.

The above information is accompanied by the documents necessary to analyze the applicant's financial situation, as well as documents confirming the value of the property determined by the appraiser during the last six months preceding the application date.;

6) information about the applicant in the form established by the regulatory legal acts of the authorized body, including information about education, work, impeccable business reputation. Individuals who are non–residents of the Republic of Kazakhstan, in order to confirm their impeccable business reputation, submit documents confirming that they do not have an outstanding or outstanding criminal record issued by the competent state authority of their country of citizenship and their country of permanent residence, and stateless persons – their country of permanent residence (the date of issue of these documents may not be more than six months preceding the date submitting an application);

7) a copy of the document confirming payment of the consent fee, except in cases of payment through the electronic government payment gateway.

4-1. If an individual or legal entity has become identified as a major participant in a bank or bank holding company without obtaining the prior written consent of the authorized body on the basis of a donation agreement, a trust management agreement, or as a result of inheritance acceptance, when submitting an application for the acquisition of the appropriate status in accordance with the requirement established by paragraph 16 of this article, additional:

1) copies of documents confirming the terms and procedure of donation, trust management, inheritance in respect of the bank's shares;

2) documents and information provided for in the sub-paragraphs 3), 4), 5), 6) and 7) paragraph 4 of this article;

3) the documents provided for in subparagraph 7) of paragraph 5 of this Article – if the applicant is a legal entity;

4) the document provided for in subparagraph 3) paragraph 6 of this Article, – if the applicant is a non–resident legal entity of the Republic of Kazakhstan;

5) information on the value of shares that are the subject of a donation agreement, trust management agreement, inheritance, determined by the appraiser in accordance with the legislation of the Republic of Kazakhstan, with copies of supporting documents attached.

An applicant who has acquired ownership of bank shares as a result of donation or inheritance, in order to obtain consent to acquire the status of a major participant in a bank or bank holding company, must be the owner of property, the market value of which, minus the value of previously received (acquired) bank shares, must be at least the amount of financial investments that may be required from the applicant to restore the financial situation in accordance with the bank's recapitalization plan.

5. To obtain consent to acquire the status of a bank holding company or a major participant in a bank, a legal entity resident in the Republic of Kazakhstan submits the following documents and information:

1) a copy of the decision of the relevant applicant's body on the acquisition of shares of the bank (if there is no decision on the Internet resource of the financial reporting depository or if it is impossible for the authorized body to receive it through the e-government web portal);

2) information about persons who directly or indirectly own ten or more percent of the applicant's shares (stakes in the authorized capital) and persons exercising control over the applicant, provided for by a regulatory legal act of the authorized body, as well as copies of documents confirming this information;

3) the list of affiliated companies of the applicant (if the list is not available on the Internet resource of the financial reporting depository or if it is impossible for the authorized body to receive it through the e-government web portal);

4) the documents and information specified in subitems 1), 3), 4) and 7) of paragraph 4 of this Article;

5) brief information about the applicant's senior staff in the form prescribed by the regulatory legal acts of the authorized body, including information about education, work, and impeccable business reputation.

For the applicant's senior employees who are non-residents of the Republic of Kazakhstan, the applicant submits information confirming their impeccable business reputation in the form provided for by the regulatory legal act of the authorized body.;

6) copies of the applicant's annual financial statements (consolidated financial statements if the applicant has subsidiaries) for the last two financial years, confirmed by audit reports, as well as a copy of the applicant's financial statements for the last completed quarter before submitting the application.

If there is no audit report confirming the financial statements for the last completed financial year from January 1 to June 1 of the current year, the applicant submits copies of the financial statements (consolidated financial statements if the applicant has subsidiaries) for the last completed financial year and the last completed quarter before submitting the application, as well as copies of the annual financial statements. financial statements (consolidated financial statements if the applicant has subsidiaries), confirmed by audit reports, for two years, prior to the last completed fiscal year.

The financial statements specified in this subparagraph will not be submitted if these financial statements are posted on the Internet resource of the financial reporting depository or if it is possible for the authorized body to receive them through the e-government web portal;

7) copies of documents confirming the authority of the person to submit the application and the documents attached to it.

6. To obtain consent to acquire the status of a major participant in a bank or a bank holding company, a non–resident legal entity of the Republic of Kazakhstan submits the following documents and information:

1) the documents and information specified in paragraph 5 of this Article;

2) notarized copies of the constituent documents;

3) a copy of the consent (permission) to own shares of a bank operating in the territory of the Republic of Kazakhstan issued by the financial supervisory authority of the state of which the applicant is a resident, or a copy of the confirmation from the financial supervisory authority of the state of which the applicant is a resident that such consent (permission) is not required.;

4) a copy of the license (permit) for the applicant to carry out financial activities under the legislation of the State of which the applicant is a resident, or a copy of the confirmation issued by the financial supervisory authority of the State of which the applicant is a resident stating that a license (permit) is not required if the applicant is a non–resident financial institution of the Republic of Kazakhstan.

6-1. The requirements of subparagraph 3) of paragraph 4 of this article regarding the submission of copies of documents confirming the applicant's large participation in a non–resident legal entity of the Republic of Kazakhstan, and subparagraph 2) of paragraph 5 of this article regarding the submission of copies of documents confirming information about persons who directly or indirectly own ten percent or more of shares (shares in the authorized capital) of the applicant, and persons exercising control over the applicant, do not apply to the applicant, who is a legal entity – a non-resident of the Republic of Kazakhstan, if one of the following conditions is met:

1) the applicant has a credit rating of at least "A-" from one of the rating agencies, the list of which is established by a regulatory legal act of the authorized body;

2) the availability of information about non–resident legal entities of the Republic of Kazakhstan in which the applicant is a major participant, about the applicant's major participants, as well as about persons exercising control over the applicant, on the Internet resource of the financial supervisory authority of the state of which the applicant is a resident.

For the purposes of subparagraph 5) of paragraph 5 of this Article, the head of the management body, his deputy and members of the management body, the head of the executive body, his deputy and members of the executive body, and the chief accountant are recognized as senior employees of a non–resident legal entity of the Republic of Kazakhstan (a non–resident financial organization of the Republic of Kazakhstan).

The financial statements specified in subparagraph 6) of paragraph 5 of this Article shall not be submitted in cases where the applicant is a non–resident financial institution of the Republic of Kazakhstan and these financial statements are posted and available in Kazakh, Russian or English on the Internet resource of a non–resident financial institution of the Republic of Kazakhstan or a foreign stock exchange.

7. In order to obtain consent to acquire the status of a bank holding company, a non–resident bank of the Republic of Kazakhstan, if it has a credit rating of at least "A-" from one of the rating agencies, the list of which is established by a regulatory legal act of the authorized body, submits the documents and information specified in subitems 4) and 7) of paragraph 4, subitems 1), 2), 6) and 7) of paragraph 5 and sub-paragraphs 3) and 4) of paragraph 6 of this article.

7-1. Individuals wishing to acquire the status of a major participant in the bank with a ownership interest of twenty-five percent or more of the outstanding (minus preferred and repurchased by the bank) shares, as well as legal entities wishing to acquire the status of a bank holding company, in addition to the documents and information specified in this article, submit a business plan, the requirements of which are established the authorized body, for the next five years.

8. Persons who are jointly a major participant in the bank are recognized as persons who collectively own ten or more percent of the outstanding (minus preferred and repurchased by the bank) or who have the opportunity to directly or indirectly vote ten or more percent of the bank's shares and:

1) jointly influencing the bank's decisions by virtue of an agreement between them or otherwise;

2) being individually or mutually major participants in each other;

3) one of them is an official or representative of another person.;

4) one of them provided the other person with the opportunity to purchase shares of the bank in accordance with the agreement concluded between them;

5) who are close relatives or spouses;

6) one of them provided another person with the opportunity to purchase shares of the bank at the expense of money donated to them or property received free of charge.

9. The grounds for refusal to grant consent by the authorized body to persons wishing to become a major participant in a bank or a bank holding company are:

non-compliance with the requirements established by subitems 3), 4), 5) and 6) of paragraph 3 of Article 20 of this Law (in respect of an individual or senior employees of the applicant - a legal entity);

the applicant's precarious financial situation;

failure to eliminate the comments of the authorized body on the submitted documents;

violation of the requirements of the legislation of the Republic of Kazakhstan in the field of competition protection as a result of the applicant's acquisition of the status of a major participant in a bank or a bank holding company;

cases when, in a transaction to acquire the status of a major participant in a bank or a bank holding company, the acquiring party is a legal entity (its major participant (major shareholder) registered in offshore zones, the list of which is established by the authorized body, with the exception of the case provided for in paragraph 5 of Article 17 of this Law;

failure by the applicant to comply with other requirements established by the legislative acts of the Republic of Kazakhstan to major participants of the bank and bank holding companies;

an analysis of the financial consequences of the applicant's acquisition of the status of a major participant in a bank or a bank holding company suggests a deterioration in the financial condition of the bank;

the applicant, a non-resident financial institution of the Republic of Kazakhstan, does not have a license (permit) to carry out financial activities under the laws of the state of which he is a resident, in cases where such a license (permit) is required under the laws of such a state.;

The applicant, a non-resident legal entity of the Republic of Kazakhstan, or its parent organization does not have the minimum required rating from one of the international rating agencies, the list of which is determined by the authorized body, except for the cases provided for in paragraph 1 of this article.;

inefficiency of the presented bank recapitalization plan in case of possible deterioration of the bank's financial condition;

absence of an impeccable business reputation for the applicant, an individual, or a senior employee of the applicant, a legal entity;

cases when a person was previously or is a major participant-an individual or the first head of a major participant – a legal entity and (or) a senior employee of a financial institution, including a non–resident financial institution of the Republic of Kazakhstan for a period of no more than one year before the adoption by the authorized body or financial supervisory authority of the state of which he is a resident financial organization – a non–resident of the Republic of Kazakhstan, a decision to classify the bank as an insolvent bank or to forcibly buy back its shares, revoke the license of a financial institution, including a non-resident financial institution of the Republic of Kazakhstan, which led to their liquidation and (or) termination of activities in the financial market, or the entry into force of a court decision on the forced liquidation of a financial institution, including financial institutions – a non–resident of the Republic of Kazakhstan or declaring it bankrupt in accordance with the procedure established by the legislation of the Republic of Kazakhstan or the legislation of the state in which the non-resident financial institution of the Republic of Kazakhstan is a resident. This requirement is applied within five years after the decision of the authorized body or the financial supervisory authority of the state in which the non–resident financial institution of the Republic of Kazakhstan is resident to classify the bank as an insolvent bank or to forcibly buy out its shares, revoke the license of a financial institution, including a financial institution. – a non–resident of the Republic of Kazakhstan, which led to their liquidation and (or) termination of their activities in the financial market or the entry into force of a court decision on the compulsory liquidation of a financial institution, including a non–resident financial institution of the Republic of Kazakhstan, or declaring it bankrupt in accordance with the legislation of the Republic of Kazakhstan or the legislation of the state of which the non-resident financial institution is a resident Republic of Kazakhstan, in order. For the purposes of this paragraph, a financial institution also means a branch of a non–resident bank of the Republic of Kazakhstan, a branch of a non–resident insurance (reinsurance) organization of the Republic of Kazakhstan, and a branch of a non–resident insurance broker of the Republic of Kazakhstan.;

non–compliance of a non-resident financial institution of the Republic of Kazakhstan wishing to acquire the status of a bank holding company with the conditions provided for in paragraph 1-1 of this Article;

cases when the applicant is a non–resident financial institution of the Republic of Kazakhstan is not subject to supervision on a consolidated basis in the country of its location;

the impossibility of conducting consolidated supervision of the banking conglomerate due to the fact that the legislation of the countries where the participants of the banking conglomerate are located – non-residents of the Republic of Kazakhstan - makes it impossible for them and the banking conglomerate to comply with the requirements stipulated by the laws of the Republic of Kazakhstan;

the existence of grounds for refusing to grant permission to open a bank.

If a person wishing to acquire the status of a bank holding company establishes or acquires a subsidiary financial organization or acquires a significant interest in the capital of a financial organization, when the authorized body reviews the submitted documents, the grounds for refusal provided for in paragraph 6 of Article 11-1 of this Law are taken into account. If there are grounds for refusing to grant permission to establish (acquire) a subsidiary, significant participation in

in the authorized capital of organizations, the authorized body refuses to grant consent to acquire the status of a bank holding company or a major participant in the bank.

9-1. The requirements of this article on the availability of the minimum required rating of one of the rating agencies and the agreement between the authorized body and the relevant supervisory authority of a foreign state on the exchange of information do not apply to cases where the applicant, a non–resident financial institution of the Republic of Kazakhstan, acquires one hundred percent of the shares of a resident bank of the Republic of Kazakhstan from a national management holding company.

10. A sign of the applicant's precarious financial situation is the presence of one of the following conditions:

The applicant legal entity was established less than two years before the date of application submission;

The applicant's liabilities exceed his assets minus the amount of assets placed in shares and shares in the authorized capital of other legal entities and the bank's shares expected to be acquired.;

losses based on the results of each of the two completed financial years;

the amount of the applicant's obligations poses a significant risk to the financial condition of the bank;

the presence of overdue and (or) attributed to the bank's balance of the applicant's debt to the bank;

an analysis of the financial consequences of the applicant's acquisition of the status of a major bank participant suggests a deterioration in the applicant's financial condition;

the value of the applicant's property (minus the applicant's obligations) is insufficient to purchase the bank's shares;

other grounds, the existence of an unstable financial situation of the applicant and (or) the possibility of causing damage to the bank and (or) its depositors.

11. If a person acquires the characteristics of a major participant in a bank or a bank holding company without the written consent of the authorized body, the authorized body has the right to apply to this person the supervisory response measures provided for by this Law, including compulsory measures provided for in Article 47-1 of this Law, regarding the requirements for the sale of bank shares within a period not exceeding six months.

12. The consent of the authorized body to persons wishing to become a bank holding company is issued on the terms and in accordance with the procedure defined for a major participant in the bank.

12-1. Shareholders who collectively own ten percent or more of the bank's outstanding (minus preferred and repurchased by the bank) or voting shares and act on the basis of an agreement concluded between them providing for their decision-making on the following issues are not major participants in the bank.:

1) convening an extraordinary general meeting of shareholders or filing a lawsuit to convene it if the Board of directors refuses to convene the general meeting of shareholders;

2) inclusion of additional issues in the agenda of the general meeting of Shareholders;

3) convening a meeting of the Board of Directors;

4) the audit organization conducts an audit of the bank at its own expense.

13. Persons who are jointly a bank holding company are recognized as persons who in total own twenty-five or more percent of the outstanding (minus preferred and repurchased by the bank) or who have the opportunity to directly or indirectly vote twenty-five or more percent of the bank's shares and:

1) jointly influencing the bank's decisions by virtue of an agreement between them or otherwise;

2) being individually or mutually major participants in each other;

3) one of them is a representative of another person;

4) one of them provided the other person with the opportunity to purchase shares of the bank in accordance with the agreement concluded between them.

14. A decision on an application submitted for obtaining the status of a bank holding company or a major participant in a bank in accordance with the requirements of this article must be made by the authorized body within fifty working days after submitting the application.

An application for the status of a major participant in a bank or a bank holding company, submitted as part of obtaining a permit to open a bank, is considered by the authorized body within the time limits set for reviewing an application for a permit to open a bank.

An application for the status of a major participant in a bank or a bank holding company, submitted as part of obtaining permission for the voluntary reorganization of a microfinance organization in the form of conversion to a bank, is considered by the authorized body within the time limits established for the consideration of an application for a permit for the voluntary reorganization of a microfinance organization in the form of conversion to a bank.

The authorized body is obliged to notify the applicant in writing of the results of its decision, and in case of refusal to grant consent to acquire the relevant status, the grounds for refusal are indicated in the written notification.

When granting consent to a person to acquire the status of a bank holding company, the authorized body simultaneously issues a permit for significant participation in the bank's capital or the creation (acquisition) of a subsidiary bank.

15. The authorized body has the right to revoke consent to acquire the status of a major participant in a bank or a bank holding company in case of detection:

1) false information on the basis of which the consent was given;

2) violations of the requirements of the legislation of the Republic of Kazakhstan in the field of competition protection as a result of the applicant's acquisition of the status of a major participant or a bank holding company.

Upon revocation of consent to acquire the status of a major participant in a bank or bank holding company, the authorized body decides to revoke the previously issued consent within two months from the date of discovery of the fact that is the basis for revocation of consent.

In case of withdrawal of consent, the person to whom such a measure is applied is obliged, within six months from the date of withdrawal of such consent, to reduce the number of bank shares owned by him to a level that does not require permission from the authorized body to acquire the status of a major participant, and submit supporting documents to the authorized body.

A person who has had his consent revoked in accordance with this article may not transfer the bank's shares to a third party for trust management.

If the persons in respect of whom the authorized body has decided to revoke the relevant consent fail to comply with the requirements of this paragraph, the authorized body has the right to apply to the court for these persons to comply with the requirements of the authorized body.

16. If a person meets the criteria of a bank holding company, a major participant in the bank, without obtaining the prior written consent of the authorized body, he/she is not entitled to take any actions aimed at influencing the bank's management or policy, and/or vote on such shares until he/she receives the written consent of the authorized body in accordance with the legislation of the Russian Federation. in accordance with the provisions of this article.

In this case, the person who meets the criteria of a bank holding company, a major participant in the bank, is obliged to notify the authorized body within ten calendar days from the moment when he became aware that he meets the criteria of a bank holding company, a major participant in the bank.

An application for the acquisition of the relevant status is submitted to the authorized body within thirty calendar days from the moment when it became known to it that it corresponds to the characteristics of a bank holding company, a major participant in the bank, unless this person is going to alienate shares within the specified period. Information on the decision to alienate shares is provided to the authorized body immediately from the date of such decision.

If the authorized body refuses to grant consent to a person who meets the criteria of a bank holding company, a major participant in the bank, the said person must, within six months of receiving the written notification, reduce the number of shares of the bank owned by him to a level below that established by this article.

17. The authorized body has the right to require information from individuals and legal entities if there is information indicating that this person corresponds to the characteristics of a bank holding company or a major participant in the bank, or is a direct or indirect owner of the bank's shares, or has the opportunity, on the basis of an agreement or otherwise, to vote shares of the bank in an amount equal to or exceeding the limits established by this article, without the consent of the authorized body in accordance with the requirements of this Law. Information can be requested from any person in possession of it, as well as from organizations under the control of these persons.

18. A major participant in the bank or a bank holding company must, within thirty calendar days from the date of the decision, notify the authorized body of a change in the percentage of the number of bank shares owned by it to the number of outstanding (minus preferred and repurchased by the bank) shares and (or) to the number of voting shares of the bank that it owns directly or indirectly or has the opportunity to vote directly or indirectly with the submission of supporting documents, except in the following cases:, when such a change occurs as a result of the repurchase of own shares by a bank or a bank holding company from other shareholders.

In case of a change in the number of bank shares (in percentage or absolute value) owned by a major participant of the bank, a bank holding company, to the number of outstanding (minus preferred and repurchased by the bank) shares and (or) to the number of voting shares of the bank in the direction of an increase, the major participant of the bank, the bank holding company must submit to the authorized body information on the sources (on the origin) of the funds used to purchase the bank's shares, accompanied by copies of documents confirming this information. The sources of funds that can be used by the bank's major participants, individuals, for additional acquisition of the bank's shares are specified in paragraph 3-1 of this article.

In the event of a change in the percentage of the bank's shares to less than ten or twenty-five percent owned by a major participant in the bank, a bank holding company, to the number of outstanding (minus preferred and repurchased by the bank) shares and (or) to the number of voting shares of the bank at the request of a major participant in the bank, a bank holding company, or in the case of self-discovery by an authorized representative by the authority of the facts that are the basis for revoking the consent issued, the previously issued written consent of the authorized body is considered canceled from the date, following the day of receipt by the authorized body of the said application or the discovery by the authorized body of the facts that are the basis for revoking the consent granted.

A major participant of the bank, who is an individual, in the event of an increase in the number of shares owned by him to twenty-five percent or more of the outstanding (minus preferred and repurchased by the bank) shares of the bank, in addition to the documents and deadlines specified in this paragraph, submits a business plan, the requirements of which are established by the authorized body, for the next five years. years old.

19. The bank and the bank holding company are obliged to submit to the authorized body on a quarterly basis, no later than the tenth day of the month following the reporting quarter, a list of all their major participants or bank holdings (for banks) indicating the number of outstanding shares owned by them (minus preferred and repurchased) or participation shares in the authorized capital of the bank or bank holding company, as well as their percentage ratio.

20. Banks are required to notify the authorized body of a change in the composition of shareholders holding ten or more percent of the voting and (or) outstanding (minus preferred and repurchased by the bank) shares of the bank within fifteen calendar days from the date they establish this fact.

21. Excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective after ten calendar days from the date of its first official publication).

IZPI's note!

Article 17-1 is provided to be supplemented by paragraph 22 in accordance with the Law of the Republic of Kazakhstan dated 07/15/2025 No. 207-VIII (effective sixty calendar days after the date of its first official publication).

The Law of the Republic of Kazakhstan dated August 31, 1995 No. 2444.

President

Republic of Kazakhstan

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