Article 27. Grounds for refusal to issue a license to conduct banking or other operations of the Law on Banks and Banking Activities in the Republic of Kazakhstan

Home / RLA / Article 27. Grounds for refusal to issue a license to conduct banking or other operations of the Law on Banks and Banking Activities in the Republic of Kazakhstan

1. A refusal to issue a license for conducting a banking or other operation is made in the following cases::

1) non-compliance with any of the requirements set out in paragraphs 2 and 3 of Article 26, paragraph 5 of Article 52-17 of this Law;

2) non-compliance by the banking conglomerate, which includes the bank, with the established prudential standards and other mandatory standards and limits in the period six months prior to the submission of the application;

2-1) failure to comply with the requirement for the formation of assets of a branch of a non-resident bank of the Republic of Kazakhstan, accepted as a reserve, in accordance with the second part of paragraph 6 of Article 42 of this Law;

2-2) the non–resident bank of the Republic of Kazakhstan does not have a valid license (valid permit) to conduct banking and other operations issued (issued) by the financial supervisory authority of the state of which the non–resident bank of the Republic of Kazakhstan is a resident, similar in essence to banking and other operations that a branch of a non–resident bank of the Republic of Kazakhstan plans to carry out on the territory of the Republic of Kazakhstan;

2-3) cancellation of a previously issued permit to open a bank or a branch of a non–resident bank of the Republic of Kazakhstan;

2-4) non-compliance of the applicant's development strategy and (or) other submitted documents with the requirements of the authorized body for the risk management and internal control system and (or) failure to provide information confirming that:

After the first three financial (operational) years, the applicant's business will be profitable.;

the applicant and/or the banking conglomerate that the applicant will be a part of will comply with prudential standards;

the applicant has an organizational structure that corresponds to his business plans;

3) inconsistencies in the size, composition and structure of the bank's authorized capital with the requirements of Article 16 of this Law;

4) non-compliance of the submitted documents with the requirements of the legislation of the Republic of Kazakhstan;

4-1) unreliability of information and information in the documents submitted for obtaining a license;

5) non-compliance of a senior employee of a legal entity wishing to obtain a license to conduct certain types of banking operations with the requirements of Article 20 of this Law, disagreement of a senior employee from among candidates proposed for appointment (election) (for a newly created bank, a branch of a non-resident bank of the Republic of Kazakhstan);

6) non-compliance with the requirement specified in paragraph 1-1 of Article 20 of this Law regarding the presence of at least two senior managers of a branch of a non-resident bank of the Republic of Kazakhstan.

2. In the event of a refusal to issue a license, with the exception of the case specified in paragraph 3 of this article, the applicant shall eliminate the inconsistencies and reapply for a license with the submission of corrected documents on the basis of which the refusal to issue a license was sent.

3. In the event of a refusal to issue a license on the grounds provided for in subparagraph 5) of paragraph 1 of this Article, the applicant shall eliminate the inconsistencies and reapply for a license with the submission of documents from persons proposed for senior positions of the bank in accordance with the requirements of Article 20 of this Law to replace the persons whose approval was refused.

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

President

Republic of Kazakhstan

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