Article 7. Rights and obligations of the organization providing mandatory deposit guarantee of the Law on Mandatory Deposit Guarantee placed in second-tier banks of the Republic of Kazakhstan

Home / RLA / Article 7. Rights and obligations of the organization providing mandatory deposit guarantee of the Law on Mandatory Deposit Guarantee placed in second-tier banks of the Republic of Kazakhstan

1. An organization that carries out mandatory deposit guarantees may, in order to fulfill its tasks and functions,:

1) require the payment of contributions by participating banks;

1-1) require the proper fulfillment by the participating banks of the terms of the accession agreement;

2) request from a participating bank classified as a bank, branches of non-resident banks of the Republic of Kazakhstan with an unstable financial situation that threatens the interests of its depositors and creditors and (or) threatens the stability of the financial system, and (or) classified as insolvent banks, branches of non-resident banks of the Republic of Kazakhstan, the interim administration for information, information and documents about the activities of such a bank (a branch of the bank) to the management of the bank (the temporary manager of the bank) – a non-resident of the Republic of Kazakhstan), including information about his assets and liabilities, including banking and other legally protected secrets.;

3) excluded by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (effective after ten calendar days after its first official publication);

3-1) receive from the National Bank of the Republic of Kazakhstan the information necessary to ensure the functioning of the mandatory deposit guarantee system in accordance with Article 8-1 of this Law;

4) receive from the authorized body the information necessary to ensure the functioning of the mandatory deposit guarantee system, including information on the financial condition of participating banks, in accordance with Article 9 of this Law;

5) excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019); 6) excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019);

7) to carry out borrowing in the case provided for in Article 23 of this Law;

8) require timely submission from the interim administration, appointed during the period of deprivation of the participating bank's license to conduct all banking operations, to the liquidation commission of the participating bank being forcibly liquidated (forcibly terminating the activities of a branch of a non-resident bank of the Republic of Kazakhstan) of the register of depositors and changes made to it in the form and in accordance with the procedure determined by the management body of the organization carrying out mandatory deposit guarantee;

9) apply to the authorized body for the application of measures of influence and sanctions to the participating bank in case of violation of the requirements of the legislation of the Republic of Kazakhstan on mandatory deposit guarantee;

10) require the participating bank, which has been deprived of its license to conduct all banking operations, to refund the amount of the guarantee refund paid to the depositors of this bank, in case of cancellation of the decision of the authorized body to revoke the license of the participating bank to conduct all banking operations.

2. An organization that carries out mandatory deposit guarantees is obliged to:

1) define the terms of the accession agreement;

2) to monitor the completeness and timeliness of the payment of contributions by participating banks;

3) make payment of a guarantee refund to depositors of a participating bank that has been deprived of a license to conduct all banking operations in accordance with the procedure provided for by this Law;

3-1) to make up the difference between the size of the bank's assets and the size of the obligations on guaranteed deposits transferred to another (other) bank(s);

4) use information about participating banks and their clients that has become known in the course of their functions exclusively for official purposes.;

5) notify the authorized body of violations by participating banks of the legislation of the Republic of Kazakhstan on mandatory deposit guarantee;

5-1) provide the National Bank of the Republic of Kazakhstan with the information necessary to ensure the functioning of the mandatory deposit guarantee system in accordance with Article 8-1 of this Law;

5-2) provide the authorized body with the information necessary to ensure the functioning of the mandatory deposit guarantee system in accordance with Article 9 of this Law;

6) provide depositors with the information provided for in paragraph 1 of Article 21 and paragraph 1 of Article 21-1 of this Law, and carry out information and explanatory work on the functioning of the mandatory deposit guarantee system.

The procedure for informing depositors by an organization providing mandatory deposit guarantees is determined by the governing body of the organization providing mandatory deposit guarantees.;

7) keep separate accounting records of special reserve assets and own assets;

8) not to disclose information received in accordance with subparagraph 2) paragraph 1 of this Article and sub-paragraphs 5) and 5-1) of paragraph 2 of Article 13 of this Law.

3. An organization that carries out mandatory deposit guarantees shall ensure the legal protection of its employees, including former employees, in the event of lawsuits being filed against them in connection with actions (inaction) or decision-making during their duties as members of the provisional administrations and liquidation commissions of participating banks.

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, and defines the legal basis for the functioning of the mandatory deposit guarantee system placed in second-tier banks of the Republic of Kazakhstan (branches of non-resident banks of the Republic of Kazakhstan), with the exception of interest-free demand deposits and investment deposits placed in Islamic banks (branches of non-resident Islamic banks of the Republic of Kazakhstan), the procedure for establishing and operating an organization that provides mandatory deposit insurance, the 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, as well as other issues of mutual relations between the participants of the system.

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Republic of Kazakhstan

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