On the ratification of the Agreement on the Eurasian Group on Countering Money Laundering and Terrorist Financing

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The Law of the Republic of Kazakhstan dated February 21, 2012 No. 569-IV

To ratify Agreement on the Eurasian Group on Countering Money Laundering and Terrorist Financing, signed in Moscow on July 4, 2011.

President of the Republic of Kazakhstan N. NAZARBAYEV

Agreement on the Eurasian Group on Countering Money Laundering and Terrorist Financing

(Entered into force on April 28, 2012 - Bulletin of International Treaties of the Republic of Kazakhstan 2012, No. 4, Article 57)

The Government of the Republic of Belarus, the Government of the People's Republic of China, the Government of the Kyrgyz Republic, the Government of the Russian Federation, the Government of the Republic of Tajikistan, the Government of Turkmenistan and the Government of the Republic of Uzbekistan, hereinafter referred to as the Parties or the Member States, taking into account the provisions of the Declaration on the Establishment of the Eurasian Group on Countering Money Laundering and Terrorist Financing dated October 6, 2004. and Issues within the competence of the Eurasian Group on Countering Money Laundering and Terrorist Financing dated October 6, 2004, based on the historically established relations of strategic partnership and cooperation between them, taking into account the danger posed by actions to legalize (launder) criminal proceeds and terrorist financing, reaffirming their commitment to maintaining economic security in the region and their interest in protecting national financial systems from being used by criminal elements, Recognizing the importance of broad international cooperation in countering the legalization (laundering) of criminal proceeds and the financing of terrorism, expressing interest in creating, based on the Recommendations of the Financial Action Task Force on Money Laundering (hereinafter referred to as the FATF) and taking into account the specifics of the region, an effective system for countering the legalization (laundering) of criminal proceeds and the financing of terrorism, agreed on the following:

Article 1 Establishment of an international organization

The Parties hereby establish a regional intergovernmental organization, the Eurasian Group for Countering Money Laundering and Terrorist Financing (hereinafter referred to as the EAG).

Article 2 Goals and objectives

The main purpose of the EAG is to ensure effective interaction and cooperation at the regional level and the integration of the EAG member States (hereinafter referred to as the Member States) into the international system for countering the legalization (laundering) of criminal proceeds and the financing of terrorism in accordance with the FATF Recommendations and standards for countering the legalization (laundering) of criminal proceeds and the financing of terrorism of other international organizations participating in which are the EAG member States. The main objectives of the EAG are: assistance in the implementation by member States of 40 FATF Recommendations in the field of countering the legalization (laundering) of criminal proceeds and 9 FATF Special Recommendations on Combating the Financing of terrorism (40+9 FATF recommendations); development and implementation of joint activities aimed at countering the legalization (laundering) of criminal proceeds and the financing of terrorism; implementation of the program of mutual assessment of the member States based on 40+9 FATF Recommendations, including the study of the effectiveness of legislative and other measures taken in the field of countering the legalization (laundering) of criminal proceeds and the financing of terrorism; coordination of international cooperation and technical assistance programs with specialized international organizations, structures and interested States; analysis of typologies in the field of money laundering and terrorist financing and exchange of experience in countering such crimes, taking into account the specifics of the region.

Article 3 Bodies

In order to fulfill the goals and objectives of this Agreement, the EAG operates: The EAG Plenary Meeting (hereinafter referred to as the Plenary Meeting); the EAG Secretariat (hereinafter referred to as the Secretariat).

Article 4 The EAG Plenary Session

The highest body of the EAG is the Plenary Session, which is held, as a rule, twice a year, but at least once a year. The Plenary Session is attended by the delegations of the Member States. The Plenary session considers fundamental issues related to the common interests of the EAG member States, determines the strategy, directions and makes advisory decisions aimed at achieving the goals and objectives of the EAG. The Plenary meeting, in accordance with the rules of procedure, makes decisions on the functioning of the EAG provided for in this Agreement. By decision of the Plenary Meeting, Working Groups may be established in certain areas of the EAG's activities, which, in accordance with the established area of competence, submit reports to the Plenary Meeting. The procedure for the formation and powers of the EAG Working Groups is determined by the Plenary Session. The decisions of the Plenary Session are adopted by the EAG member States by consensus.

Article 5 Chairmanship

The Chairman of the EAG (hereinafter referred to as the Chairman) is approved for a two-year period by a decision of the Plenary Meeting. Candidates for the post of Chairman are nominated by the delegations of the Member States, and it is allowed to nominate either one or several candidates. The Chairman directs the work of the Plenary Sessions and represents the EAG in its external relations. At the beginning of each term of the presidency, the Chairman proposes an Action Plan for approval by the Plenary. This Plan reflects the tasks and work plans of the EAG for the period of its presidency. The decision of the Plenary Session approves the Deputy Chairman of the EAG (hereinafter referred to as the Deputy Chairman) to replace the Chairman during his absence and perform other duties assigned to him by the Chairman. The Vice-Chairman is approved for each period of the presidency on a rotating basis in the order of the Russian alphabet of the names of the Member States. Representatives of the same EAG Member State may not simultaneously be the Chairman and Vice-Chairman of the EAG.

Article 6 EAG Secretariat

The Secretariat performs administrative and technical functions on an ongoing basis in order to implement the decisions of the Plenary Session and the instructions of the Chairman. The Secretariat is headed by an Executive Secretary appointed by the decision of the Plenary Session. The formation procedure, tasks, functions, rights and duties of the Secretariat and its staff are regulated by the Regulations on the Secretariat of the Eurasian Group on Countering Money Laundering and Terrorist Financing, approved by the Plenary Session. The secretariat is formed from among the citizens of the EAG member States. In the performance of their official duties, the Executive Secretary and the staff of the Secretariat should not seek or receive instructions from any Party. The actions of the Secretariat staff should not contradict the legislation of the EAG Member States. The Parties undertake to respect the international character of the duties of the Executive Secretary and the staff of the Secretariat and not to attempt to influence them in the performance of their official duties. The location of the Secretariat is the city of Moscow, Russian Federation. The conditions of the Secretariat's stay in the territory of the Russian Federation are regulated on the basis of the relevant international agreement.

Article 7 Membership

A State becomes a member of the EAG from the date of receipt by the depositary of its notification on the completion of internal procedures for accession to this Agreement. Membership in the EAG is open to other states of the Eurasian region that: take active steps to develop and apply legislation to combat the legalization (laundering) of criminal proceeds and the financing of terrorism, in accordance with the 40+9 FATF recommendations; commit themselves to participate in EAG mutual assessment programs.; assume obligations under this agreement. A State wishing to become a member of the EAG must apply through the Secretariat to the Plenary Meeting, which decides on the admission of this State to the EAG membership. States that have received the status of a member receive the right to vote in decision-making at the Plenary Meetings, and also commit themselves to pay annual membership fees to the EAG budget. Participation in the work of the EAG bodies of a Party violating the provisions of this Agreement and/or agreements in force within the EAG may be suspended by a decision of the Plenary Session. In this case, such a Party is deprived of the right to vote when considering the suspension of its membership. If this Party continues to violate its obligations, the Plenary Session may decide to expel it from the EAG from the date determined by the Plenary Session itself.

Article 8 Observers

A State or organization that has expressed a desire to obtain observer status at the EAG (hereinafter referred to as observer status) must submit an appropriate application to the Plenary through the Secretariat. The secretariat sends this request to the Member States in order to study the application of the State or organization that has expressed a desire to obtain observer status. If necessary, Member States have the right to additionally request documents from them that are not confidential. The decision on granting (suspension, cancellation) observer status at the EAG, after reviewing the application in accordance with the established procedure, is taken by the Plenary Session. When considering an application for observer status, representatives of the State or organization that submitted the relevant application may be invited to the Plenary Session. The decision on granting observer status is made on the basis of consensus. The adopted decision is sent by the Secretariat to the relevant State or organization within one week. Observer status does not give the right to vote in decision-making at the Plenary Session and the right to sign EAG documents. A state or organization that has received observer status has the right: to participate in meetings of Working Groups and the Plenary; to distribute through the Secretariat written statements in the working languages of the EAG on issues of interest to them within the competence of the EAG; to receive, as necessary, open documents and decisions taken by the EAG. At the request of the Secretariat, the State or organization that has received observer status submits the necessary documents, which are not confidential, related to their participation as observers in the work of the EAG. The State or organization that has received observer status is required to provide annual written reports on its activities in the field of countering the legalization (laundering) of criminal proceeds and the financing of terrorism and its work in the EAG, including with the EAG Member States. The State or organization that has received observer status shall notify the Secretariat of its intention to participate in the meetings of the Working Groups and the Plenary no later than 10 working days before the meeting. A State or organization that has received observer status shall refrain from actions and statements directed against the interests of the EAG in the implementation of its goals and objectives set out in Article 2 of this Agreement, or its member States in the implementation of their obligations set out in Article 7 of this Agreement. In the event that a State or organization that has received observer status commits actions and statements against the interests of the EAG in the implementation of its goals and objectives in accordance with this Agreement, the member States have the right to submit to the next Plenary meeting the issue of suspension or cancellation of observer status. If a State or an organization that has received observer status has not participated in the activities of the EAG for two years, the member States have the right to submit to the next Plenary meeting the issue of suspension or cancellation of observer status. A State or organization that has received observer status has the right to send to the Secretariat an application for renunciation of observer status, on which an appropriate decision is taken at the next Plenary meeting. Diplomatic missions of observer States, as well as representative offices of international organizations, have the right to maintain constant contacts with the Secretariat on issues related to their participation as observers in the work of the EAG. With appropriate information from the Secretariat of the State and the organization, observers can assist member States in training and improving their skills, exchanging experience and specialists, providing logistical support, and providing financial assistance to achieve the objectives set for the EAG.

Article 9 Financing

The EAG has its own budget, which is formed and executed in accordance with the Regulation on the Procedure for Forming and Executing the Budget of the Eurasian Group on Countering Money Laundering and Financing of Terrorism, which is an annex to this Agreement and forms an integral part of it. The procedure for determining the contributions made annually by the member States to the EAG budget on the principles of equity participation is determined by the said Provision.

Article 10 Working language

The EAG's working languages are Russian, English and Chinese.

Article 11 Procedure for resolving disputes

In case of disputes related to the interpretation and application of this Agreement, the Parties resolve them through consultations and negotiations.

Article 12 Period of validity and entry into force

This Agreement is concluded for an indefinite period. This Agreement shall enter into force 30 days after the date of transmission to the depositary, which is the Secretariat, of the third notification on the completion by the Parties of the internal procedures necessary for its entry into force. For a Party that has signed this Agreement but has not completed domestic procedures prior to the entry into force of this Agreement, it shall enter into force on the date of receipt by the depositary of a notification that this Party has completed the domestic procedures necessary for the entry into force of this Agreement.

Article 13 Amendments and additions

Amendments and additions may be made to this Agreement, which are formalized by a separate protocol, which enters into force in accordance with the procedure established by Article 12 of this Agreement.

Article 14 Exit procedure

Any Party has the right to withdraw from the EAG by first settling its obligations to the EAG and its members and sending to the Secretariat an official notification of withdrawal from this Agreement no later than twelve months before the date of withdrawal. Done in Moscow on June 16, 2011, in a single copy in the Russian, English and Chinese languages, all texts having the same legal force. The original copy of the Agreement is kept in the depository, which will send a certified copy to each Party.

For the Government of the Republic of Belarus For the Government of the People's Republic of China For the Government of the Kyrgyz Republic For the Government of the Russian Federation For the Government of the Republic of Tajikistan For the Government of Turkmenistan For the Government of the Republic of Uzbekistan

Signed on behalf of the Government of the Republic of Kazakhstan on July 4, 2011 in Moscow

For the Government of the Republic of Kazakhstan

REGULATION ON THE PROCEDURE FOR THE FORMATION AND EXECUTION OF THE BUDGET OF THE EURASIAN GROUP ON COMBATING MONEY LAUNDERING AND TERRORIST FINANCING I. General provisions

1. For the purposes of this Regulation, the following basic concepts are used: a) the EAG is the Eurasian Group for Countering Money Laundering and Terrorist Financing (hereinafter referred to as the EAG); b) the budget (regular) is a form of formation and use of funds intended to financially support the tasks and functions of the EAG; c) fiscal year is the period from January 1 to December 31 of a calendar year inclusive; d) equity contributions - amounts established for the EAG member States to finance expenses related to the EAG's activities in a given financial year; e) internal audit - control over the formation of expenses, identification of deviations from planned targets and standards, analysis of the causes of deviations, search for reserves of financial and economic activities and provision of necessary information to the Executive Secretary EAG (hereinafter referred to as the Executive Secretary); f) external audit - an audit of the financial and economic activities of the EAG carried out by a person(s) or an institution appointed by the Plenary Meeting; g) commitment - entering into contractual relations or other types of transactions entailing financial responsibility of the EAG, for which appropriate permission has been obtained; h) receipts - funds received to the EAG budget in the form of defined (accrued) equity contributions and other income, that is, targeted voluntary contributions and gifts in cash (including grants); i) financial control - verification and control, both internal and external, over the procedure for drawing up, reviewing and executing the budget, as well as over the implementation, allocation and use of budgetary funds; k) general fund - an account opened to account for receipts and expenditures from the regular budget of the EAG; k) reserve fund - an account opened to account for cash flows in order to finance unforeseen and extraordinary expenses related to the activities of the EAG.

II. The EAG budget

2. The EAG budget is formed from shared contributions from member States, as well as other income, that is, targeted voluntary contributions and monetary gifts (grants). 3. The EAG budget is drawn up for a period of one calendar year, which is also a fiscal year and is approved by the Plenary Session. 4. The EAG budget covers all estimated receipts and planned expenditures for the financial year to which they relate, and is formed in Russian rubles. Annual contributions are calculated and paid in Russian rubles. Annual contributions from the EAG member States may be paid in US dollars at the MICEX exchange rate on the day of payment.

III. Contributions

5. Member States shall contribute to the EAG budget in accordance with the annex, which is an integral part of these Regulations. 6. The amount of the share contributions may be changed by a decision of the Plenary Meeting on the proposal of one or more Member States and with the consent of other Member States. 7. In case of withdrawal of a member State from the EAG or entry of a new state into the EAG as a member, the Plenary Session approves the changed amounts of share contributions. 8. The amounts payable on account of the equity (accrued) contributions are transferred to the bank, determined by the Executive Secretary in agreement with the Plenary Meeting. 9. Assessed contributions are payable in full within thirty days of receipt of the notification from the Executive Secretary of the contributions due or within the first month of the calendar year. 10. If a Member State is unable to pay the due contributions in full within these deadlines, it may transfer them in stages, which it notifies the Executive Secretary in advance. 11. In case of non-approval of the EAG budget before the beginning of the financial year, Member States shall transfer monthly contributions in the amount of 1/12 of the regular budget of the previous budget year until the approval of the EAG budget.

 IV. Budget formation and use

12. The Executive Secretary forms a draft budget for the next financial year based on proposals from the EAG member States, transmits the draft budget to all member States no later than eight months before the start of the next financial year, and submits it to the Plenary for approval. 13. After the approval or revision of the EAG budget by the Plenary, the Executive Secretary informs the Member States of the contributions due. 14. The Executive Secretary periodically provides Member States with information on the receipt of shared contributions. 15. Based on these Regulations, the Executive Secretary develops draft regulations and rules governing certain issues of financing the activities of the EAG, and, if necessary, draft amendments to them. Draft financial regulations and rules, as well as draft amendments to the current financial regulations and rules, are submitted by the Executive Secretary for approval by the Plenary. 16. The annual report on the implementation of the EAG budget is prepared by the Executive Secretary and, with the approval of the Member States, is sent to the Plenary for approval. 17. Within 12 months after the end of the financial year, the Executive Secretary fully covers obligations for goods and services delivered during the same financial year, as well as other remaining financial obligations. 18. If the budget is not approved by the Plenary before the beginning of the financial year, the Executive Secretary is authorized to make commitments and payments on a monthly basis within 1/12 of the amount of the previous regular budget until the budget for the current financial year is approved.

V. Establishment of funds

19. A General Fund is established to account for budget receipts and expenditures. The source of its funds is equity contributions paid by Member States for the current financial year and other income. 20. A Reserve Fund may be established to cover unforeseen and extraordinary expenses related to the activities of the EAG. The decision on the establishment of the Reserve Fund, as well as the amount of funds in it and the procedure for its use, is made by the Plenary Meeting upon the recommendation of the Executive Secretary. 21. Voluntary contributions to the EAG budget and monetary gifts to the EAG budget may be accepted by the Executive Secretary with the approval of the plenary meeting, provided that the purpose of these funds does not contradict the goals and objectives of the EAG. 22 The Executive Secretary may establish trust funds and special accounts within the framework of the Reserve Fund with the consent of the Plenary Meeting. 23. The above funds and accounts are managed in accordance with the financial regulations and rules referred to in paragraph 15 of these Regulations.

VI. Control and audit

24. The Executive Secretary, who is the Chief Administrative Officer of the EAG, is responsible for all financial aspects of the EAG's activities and reports to the Plenary for the proper and effective management of the EAG's financial resources in accordance with these Regulations. 25. The EAG provides the necessary financial control mechanism - internal and external audits. The external audit is carried out by representatives of the EAG member States.

VII. Other provisions

26. Unpaid amounts of accrued annual equity contributions by a Member State are debts owed by that State to the EAG, which are subject to mandatory repayment. 27. Starting from October 1 of the current financial year, Member States that have not paid in full the equity contributions related to the current financial year will have to pay interest in the amount of 0.1% per month on the amount owed until the date of its full repayment, unless otherwise decided by the Plenary Meeting. 28. In respect of a Member State whose debt exceeds the amount of contributions due from it for the previous fiscal year, a decision may be taken to suspend its membership in the EAG in accordance with the procedure provided for in Article 7 of the Agreement on the Eurasian Group on Countering Money Laundering and Terrorist Financing. 29. The financial obligations of a Member State to the EAG are subject to full fulfillment, regardless of the termination or suspension of that State's membership in the EAG. 30 The procedure for resolving specific issues related to the implementation of this section is determined by the financial regulations and rules referred to in paragraph 15 of this Provisions. 31. In the event of termination of the EAG's activities, the procedure for resolving related financial and property issues, including the sale of EAG property, shall be determined by the Plenary Meeting, taking into account the requirements of these Regulations. 32. The funds received from the sale of movable and immovable property, after fulfilling existing obligations, are distributed among the Member States in proportion to the amount of contributions determined for the current budget year. 33. In the event of a shortage of funds to fulfill obligations in connection with the termination of the EAG's activities, it is covered by funds transferred by the member States in shares, in proportion to the amount of equity contributions determined for the current budget year. 34. In the event of withdrawal or exclusion of a Member State from the EAG, if this State is in arrears in the payment of mandatory contributions, the amount of funds returned is reduced by the amount of this debt. The debt is repaid at the expense of the state.

Appendix to the Regulation on the Procedure for the Formation and Use of the EAG Budget

THE FORMULA FOR CALCULATING THE ANNUAL CONTRIBUTIONS OF MEMBER STATES THE EURASIAN GROUP ON COUNTERING MONEY LAUNDERING AND FINANCING TERRORISM IN THE BUDGET OF THE EAG

Formula:

The sum of the state's taxes = the total budget of the state *the total budget of the AAG*0.275+ ALL_all_members

+ Government's share of the population * The general budget of the AAG*0.725  GDP per capita of all members

Concepts used:

The amount of the State's contribution is the amount of the contribution transferred by the member States to the EAG budget.

The GDP of a Member State is the average gross domestic product of a Member state over the past 5 years, calculated in accordance with UN statistics.

The sum of the GDP of the member States is the total amount of the gross domestic product of all EAG member States.

The general budget is funds intended for financial support of the tasks and functions of the EAG.

The GDP of a Member State per capita is the average gross domestic product per capita over the past 5 years, calculated in accordance with UN statistics.

The sum of GDP per capita of the member States is the total gross domestic product per capita of all EAG member States.

RCPI's note! The following is the text of the Agreement in English and Chinese.

President

Republic of Kazakhstan

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