Consular Service: Banking Regulation in Kyrgyz Republic

Bishkek, Kyrgyz Republic - The National Bank of the Kyrgyz Republic has issued new regulations governing consular services and bank accounts. These regulations aim to improve banking transparency, simplify documentation processes, and protect customers’ interests.

Authentication of Documents

In cases where documents are submitted from a country that is a member state of The Hague Convention, abolishing the requirement of legalization of foreign official documents, dated October 5, 1961, their authenticity must be confirmed by an apostille. This new regulation aims to simplify the process of verifying documents and ensure greater transparency in banking transactions.

Language Requirements

When submitting original documents drawn up in a foreign language, a notarized translation into the state or official language of the Kyrgyz Republic is required. This measure ensures that all documentation is easily understood and complied with by both banks and customers.

Prohibition on Demanding Additional Documents

Banks are prohibited from demanding any additional documents beyond those stipulated by the legislation of the Kyrgyz Republic when opening an account. This regulation aims to protect customers from unnecessary bureaucratic hurdles and ensure a smoother banking experience.

Crediting Funds to Accounts

Customers can credit funds received in their name from third parties, providing necessary information about their accounts, subject to the requirements of the legislation of the Kyrgyz Republic. When a customer opens an account in the name of a third party, the bank is obliged to obtain information and documents that allow identifying and examining the specified third party.

Issuance of Funds

Funds from an account can be issued at the first request of the customer in parts or in full, with the exception of deposits made on other terms provided for by the contract. The safety of funds is guaranteed by the bank.

Bank Refusal to Open Account

A bank has the right to refuse to open an account only in cases where its activities have certain specifics or restrictions that prevent it from opening accounts for certain customers or carrying out certain settlement operations.

Prohibition on Agency Agreements

Banks are prohibited from entering into agency agreements, as well as other agreements and transactions with individuals, legal entities, and individual entrepreneurs acting as intermediaries for the performance of work or provision of services related to opening/closing customer accounts, debit/credit funds, and other banking transactions.

Exceptions to Prohibition

This prohibition does not apply to banks when concluding with legal entities acting as intermediaries, agency agreements on securities trading, participation in bank payment card systems, money transfer systems, postal savings systems, and provision of retail banking services.

Banking Secrecy

Information constituting banking secrecy is provided in accordance with the legislation of the Kyrgyz Republic. Accounts may be seized in cases stipulated by the laws of the Kyrgyz Republic. Confiscation of funds from accounts can only be carried out on the basis of a court verdict that has entered into legal force.

Procedure for Opening Bank Accounts under a Bank Deposit Contract

When opening an account under a bank deposit contract, the bank undertakes to accept funds, pay remuneration, return deposits, and deliver other services provided for by the contract. Funds can be deposited in the name of the depositor or in the name of a certain third party.

The new regulations aim to improve banking transparency, simplify documentation processes, and protect customers’ interests. The National Bank of the Kyrgyz Republic has emphasized the importance of ensuring that banks comply with these regulations to maintain public trust and confidence in the banking system.