On Banks and Banking Activity in the Republic of Kazakhstan (стр. 9 )

  Article 49. Grounds and Procedure for Revocation of a Bank Establishment Permit
 
  1. In the following cases the authorized body shall have a right to revoke a bank establishment permit:
  а) taking a decision by the bank on voluntary termination of activities through reorganisation or liquidation;
  b) taking a decision by the court on termination of a bank’s activities;
  c) discovery of violations, indicated in paragraph 2 of this article, in a legal entity’s activities, registered as a bank.
  2. Revocation of a bank establishment permit shall be carried out by the authorized body on the basis of the following grounds:
  а) discovery of false information, which served as a basis for issue of a permit, within one year from the date of state registration of a legal entity as a bank;
  а-1) violation of terms, indicated in Article 25 of this Law;
  b) failure to receive a license for the performance of bank operations within one year from the date of state registration of a legal entity as a bank;
  c) failure to pay for the charter capital within one year from the date of state registration of a legal entity as a bank;
  d) violation of the conditions of activities, established by the banking legislation for legal entities, registered as banks.
  3. (Paragraph is excluded by the Law of the Republic of Kazakhstan dated 10th of July 2003 N 483 (effective since 1st of January 2004).
  4. A decision of the authorized body to revoke a permit shall be a basis for re-registration or termination of activities of a legal entity.
  Reference. Article 49 is stated in the wording of the RK Law dated 11th of July 1997 N 154; dated 16th of May 2003 N 416; with amendments, inserted by the Law of the Republic of Kazakhstan dated 10th of July 2003 N 483 (effective since 1st of January 2004).

  Article 50. Banking Secrecy
 
  1. The banking secrecy shall include information concerning existence, owners and numbers of bank accounts of depositors, clients and correspondents of a bank, concerning balances and movements of funds in those accounts and accounts of the bank itself, concerning the bank's transactions (except for the general terms for the performance of bank operations), as well as information concerning existence, owners, nature and value of the clients’ assets, kept in the safe boxes, cases and premises of the bank.
 Information concerning loans and deposits of a bank, which is under the liquidation procedure, shall not be recognised as a banking secret.
  2. Banks shall guarantee secrecy in respect to the transactions and deposits of its depositors, clients and correspondents, as well as the secrecy of assets, kept in the safe boxes, cases and premises of banks.
  3. Official persons, employees of banks and any other persons, who by virtue of exercising of their service duties have received access to information, which constitutes a banking secret, shall bear criminal liability for disclosure, except for the cases, stipulated in paragraphs 4-8 of this Article.
  4. A banking secret may be disclosed only to the owner of the account (property), to any third party on the basis of a written consent of the account (property) owner, issued during his personal presence in the bank, to the credit bureau on the loans, granted under the legislative acts of the Republic of Kazakhstan, as well as to the persons, indicated in paragraphs 5-8 of this Article for the reasons and within the frames, established by this Article.
  The following shall not refer to a banking secret:
  1) a banks’ obligatory notification of the tax authorities on opening of bank accounts for an individual, carrying out entrepreneurial activity without establishment of a legal entity or to a legal entity;
  2) presentation of information to a securities issuer and a securities holder on the granted loans, which rights of claim are transferred as a provision of the securities, including within the frames of securitization transactions;
  3) presentation of information on the balances of funds in the bank accounts of individuals and interest rate accrued by the bank, the temporary administration, established due to revocation of a license for the performance of all types of bank operations, and accrued to an organization, carrying out obligatory guaranteeing of deposits and to the agent banks for the performance of measures, associated with return of funds to the depositors, to the auditing organization on the basis of a written consent of the account holder;
  4) presentation of information, necessary for the performance of a transaction, established by Article 73-1 of this Law, to the banks, which receive property and obligations of another bank;
  5) presentation of information to the second-layer banks, which right of claim is acquired or accepted into the management of a legal entity, established by the state for purchase of classified assets of the second-layer banks by the mentioned legal entity.
  5. The reference documents concerning availability and numbers of bank accounts shall be issued to a bank, in relation to which a holder of the account(s) is a borrower, a guarantor, a surety, a trustee or a pledger, on the basis of the written request, signed by the chairman of the Management Board of the bank or by his/her deputy person, provided the documents, which confirm receipt of the loan, are submitted.
  6. The reference documents on availability and numbers of bank accounts of a legal entity and (or) its structural subdivision, as well as current accounts of an individual, carrying out entrepreneurial activity without establishment of a legal entity, certificates, issued by a private notary and lawyers on the balances and movements of funds in those accounts, shall be issued to:
  а) the enquiry and preliminary investigation authorities: in relation to the criminal cases, processed by such authorities under the procurator’s sanctions;
  b) the courts: in relation to the cases, processed by such authorities on the basis of a court decision;
  c) the procurator: on the basis of a resolution on audit, within the frames of his/her authority with regard to the examined materials;
  d) the customs authorities: with regard to export and (or) import transactions of clients under the prosecutor’s sanction;
  e) the tax authority with regard to the following:
  an inspected legal entity and (or) its structural subdivision on the issues, associated with taxation;
  an inspected individual entrepreneur on the issues, associated with taxation – on current accounts, used at the performance of entrepreneurial activities;
  an inspected private notary on the issues, associated with taxation on current accounts, used at the performance of notary activities;
 an inspected lawyer on the issues, associated with taxation on current accounts, used at the performance of legal activities;
 an individual entrepreneur, which is subject to the special procedure of tax obligation performance at termination of activities in accordance with the tax legislation of the Republic of Kazakhstan;
  a legal entity and (or) its structural subdivision, an individual entrepreneur, a private notary, a lawyer, which actual absence at the place of location is confirmed under the procedure, established by the tax legislation of the Republic of Kazakhstan, and who failed to submit tax reports before expiry of six months after the submission date, established by the tax legislation of the Republic of Kazakhstan, except for the prolonged period of such submission in the cases, fixed by the tax legislation of the Republic of Kazakhstan;
   an inactive legal entity, an individual entrepreneur, a private notary, a lawyer;
  e-1) the bodies of enforcement procedure: with regard to the enforcement cases they handle, on the basis of the inquiry of a court enforcement officer, certified with the stamp of the body of enforcement procedure and sanctioned by the procurator.
  6-1. The reference documents concerning availability and numbers of bank accounts of an individual, on the balances and movements of funds on such accounts shall be issued by the tax authority in relation to the following:
  a person, registered in accordance with the procedure, established by the legislation, as a candidate to the President of the Republic of Kazakhstan, Deputies of the Parliament of the Republic of Kazakhstan and Maslikhat, as well as to the members of local self-regulatory bodies, and his/her spouse;
  a person, which is a candidate to the state official position, associated with the performance of state or similar functions, his/her spouse;
  a person, discharged conditionally and early.
  Information, mentioned in this paragraph, shall be represented on the basis of an inquiry of the tax authority in a form, established by the authorized body upon coordination with the authorized state body for regulation and supervision of financial market and financial organizations.
  7. The refefence documents on availability and numbers of bank accounts of an individual, on balances and movements of funds in such accounts, as well as available information on the nature and value of assets, kept in the safe boxes, cabinets and premises of a bank, shall be issued to:
  а) the representatives of an individual: on the basis of the notarized power of attorney;
  b) the enquiry and preliminary investigation agencies: in respect to the criminal cases, processed by such agencies, in the cases when a seizure or a claim may be imposed on the funds and any other property of an individual, which are kept in the account or safe custody of the bank, subject to seizure on the basis of the written inquiry, signed by chief executive officer or investigator, certified with the stamp of the inquiry or preliminary investigation agency and sanctioned by the procurator;
  c) the courts: in respect to the cases, processed by courts on the basis of a court order, a resolution, a decision, a sentence in the cases, when seizure or claim may be imposed on the funds and any other property of an individual, which are kept in the account or safe custody of the bank, or subject to seizure of property;
  d) the procurator: on the basis of a resolution on audit, within the frames of his/her authority with regard to the examined materials.
  7-1. The reference documents on movements of funds in the bank accounts, indicated in paragraphs 6 and 7 of this Article, shall be presented in the form of extracts from a ledger account of a client, certifying movements of funds in such bank accounts. Information, which should be indicated in such extracts of the client on movements of funds at his/her accounts, shall be defined by the normative legal act of the National Bank of Republic of Kazakhstan.
  8. The reference documents on availability and numbers of accounts of an individual and also on the available balances of funds in such accounts, as well as information concerning existence, nature and value of assets, kept in the safe boxes, cabinets and premises of the bank, in case of an owner’s death shall be issued to the following persons:
  а) persons, indicated by owner of the account (property) in the testator's will;
  b) courts and notaries: with regard to the inheritance cases they handle on the basis of an order, a resolution of the court or a written inquiry of the notary, certified with the stamp. A copy of the certificate on death of the owner of account shall be attached to the written application of the notary;
  c) foreign consular institutions: in relation to the inheritance cases, processed by such institutions.
  9. Paragraph 9 is excluded by the RK Law dated 29th of June 1998 N 236.
  10. Information, which contains the banking secrecy, shall be disclosed on the basis of the international treaties of the Republic of Kazakhstan, establishing the procedure of information exchange.
 Reference. Article 50 with amendments, inserted by the RK Laws dated 27.09.1996 N 37; dated 11.07.1997 N 154; dated 29.06.1998 N 236; dated 29.03.2000 N 42; dated 10.07.2003 N 483 (effective since 01.01.2004); dated 06.07.2004 N 572; dated 13.12.2004 N 11 (effective since 01.01.2005); dated 08.07.2005 N 69; dated 23.12.2005 N 107 (enactment procedure, see art. 2 of the Law N 107); dated 22.06.2006 N 147; dated 19.02.2007 N 230 (enactment procedure, see art. 2); dated 23.10.2008 N 72-IV (enactment procedure, see art. 2); dated 10.12.2008 N 101-IV (effective since 01.01.2009); dated 13.02.2009 N 135-IV (enactment procedure, see art. 3).

Article 51. Imposition of Seizure and Forfeiture to Funds and Property, Kept in a Bank

1. Seizure of funds and other property of a legal entity or an individual, kept in a bank, may be imposed on the basis of the resolutions of the inquiry or preliminary investigation authorities and the resolutions of the enforcement procedure bodies, sanctioned by a procurator, as well as the resolutions, the decisions, the sentences, the orders of courts. When seizure is imposed to secure the lawsuit claims, the amounts of funds subject to seizure shall not exceed the amount of a lawsuit claim and the amount of a state duty and costs, associated with execution of the decisions, the sentences and the resolutions of the court. When seizure is imposed by the enforcement agencies for performance of an enforcement document, the amount of funds and cost of property subject to seizure shall not exceed the amount, required for repayment of the amount by a judgement creditor, as well as the amounts of penalties, imposed on a debtor in the course of implementation of the enforcement document and expenses thereto.
 All expenditure transactions in the bank accounts (except for correspondent accounts) of a legal entity, its structural subdivisions, an individual entrepreneur, a private notary and a lawyer in the cases, established by the legislative acts of the Republic of Kazakhstan, may be suspended upon the decisions of the tax authorities and (or) the customs bodies, signed by the first head, certified with the stamp of the tax agencies and (or) the customs bodies, and forfeiture may be imposed only on the grounds, specified in the legislative acts of the Republic of Kazakhstan.
  2. Forfeiture of funds and other property of a legal entity and an individual, kept in the bank, except for pension assets of the accumulative pension funds, may only be carried out on the basis of an effective court decision (sentence).
Reference. Article 51 is amended by the RK Laws dated 11th of July 1997 N 154; dated 29th of March 2000 N 42; dated 9th of August 2002 N 346; dated 22nd of June 2006 N 147; dated 10.12.2008 N 101-IV (effective since 01.01.2009).

  Article 52. Obligatory Guaranteeing of Deposits

  1. For the purposes of protection of the interests of investors (depositors) of second-tier banks of the Republic of Kazakhstan there shall be established a system of obligatory guaranteeing of deposits.
  Obligatory guaranteeing of deposits shall be carried out by a specially established non-commercial organization.
  The legal grounds for functioning of the system of obligatory guaranteeing of deposits, rights and obligations of its participants shall be defined by the legislation of the Republic of Kazakhstan.
  2. Participation of all second-tier banks, which have a license for acceptance of deposits and opening and maintenance of bank accounts of individuals, except for Islamic banks, shall be participants of the system of obligatory guaranteeing of deposits.
 Reference. Article 52 is stated in the wording of the RK Law dated 23.12.2005 N 107 (enactment procedure, see art. 2 of the Law N 107); with amendments, inserted by the RK Law dated 12.02.2009 N 133-IV (enactment procedure, see art. 2).

Chapter 4-1. Particular Features of Establishment and Activity of Islamic Banks

  Reference. The Law is added with Chapter 4-1 in accordance with the RK Law dated 12.02.2009 N 133-IV (enactment procedure, see art. 2).

   Article 52-1. Requirements of an Islamic Bank’s Activities

  An Islamic Bank shall not have a right to charge the remuneration in the form of interest, guarantee return on an investment deposit or income on such a deposit, finance (credit) the activities, associated with manufacture and (or) sale of tobacco, alcohol products, weapon and ammunition, gambling business, as well as any other types of business activities, which financing (crediting) are prohibited by the Council for Islamic Financing Principles.
  In addition, the Council for Islamic Financing Principles shall have a right to define any other requirements to the activities of an Islamic bank, obligatory for compliance by this Islamic bank.

  Article 52-2. Activities of the Council for Islamic Financing Principles

  1. To define compliance of the activities, operations and transactions of an Islamic bank with the requirements, indicated in Article 52-1 of this Law, the Islamic bank shall in an obligatory manner establish the Council for Islamic Financing Principles.
  2. The Council for Islamic Financing Principles is an independent body, appointed by the general meeting of an Islamic bank upon the recommendation of the Board of Directors.
  3. The rules of the general provisions on the performance of operations by an Islamic bank, the rules of the internal crediting policy of an Islamic bank are subject to approval of the Board of Directors of the Islamic bank only in case of the positive opinion of the Council for Islamic Financing Principles.
  4. If other is not stipulated by this Law or the internal rules of an Islamic bank, a decision of the credit committee of the Islamic bank, adopted in accordance with the rules of the internal crediting policy of the Islamic bank, and transactions, concluded in accordance with the rules of the general provisions on the performance of operations by the Islamic bank shall not require separate approval by the Council for Islamic Financing Principles. At the same time the Council for Islamic Financing Principles shall have a right to inspect any transaction for its compliance with the requirements, indicated in Article 52-1 of this Law at its discretion.