In Kazakhstan, second tier banks, Kazpost JSC and financial institutions of the Republic of Kazakhstan not being the banks and having the license on foreign currency exchange transactions from the National Bank of Kazakhstan have the right to open so-called non-bank foreign currency exchange offices. The procedure for establishing a non-bank currency exchange office is quite simple and is governed by the Regulations on Foreign Exchange Transactions in the Republic of Kazakhstan approved by the Decision of the Board of Directors of the National Bank of the Republic of Kazakhstan as of April 4, 2019 No. 49 (hereinafter - Regulations).
The first step is "Establishment of a legal entity"
Start by establishing a legal entity in the form of a limited liability partnership. As the foreign currency exchange operations are the sole activity of the legal entity, a legal entity is affixed with economic activity code 66.12.2 "Brokerage of transactions with securities and commodities, except for the activities related to the management of National Fund assets, gold and foreign currency of the National Bank, pension fund assets", including a subclass “Foreign currency exchange office activities”.
Before the legal entity applies for a foreign exchange license and an annex thereto, the authorized capital of the organization is fully formed in monetary terms.
The minimum amount of the authorized capital of an organization should be as follows:
- 100 000 000 (one hundred million) KZT for each exchange office, headquartered in Astana city, cities of republican significance, administrative centers of the regions, cities of regional importance;
- 50 000 000 (fifty million) KZT for each currency exchange office within the other than Astana city.
When an authorized organization establishes an additional exchange office, its authorized capital formed in monetary terms, should be increased in accordance with the established requirements.
If you have an exchange office in the city, and the city has been classified as a city of republican, regional significance, or recognized as the administrative center of the region, then within six months it is necessary to bring the amount of authorized capital in accordance with the requirements for such localities.
The second step is "Infrastructure development at a foreign currency exchange office"
The foreign currency exchange offices serve the public by buying or selling foreign currency and should therefore meet certain requirements in order to protect the rights of consumers of financial services.
The security management and infrastructure development at a foreign currency exchange office are carried out in accordance with the requirements of the Regulations on security management and infrastructure development at a foreign currency exchange offices of second-tier banks, branches of non-resident banks of the Republic of Kazakhstan, the national postal operator, legal entities whose exclusive activity is the collection of banknotes, coins and valuables, and legal entities operating exclusively through foreign currency exchange offices based on the license of the National Bank of the Republic of Kazakhstan for exchange operations with foreign currency in cash approved by Resolution No. 14 of the Board of the National Bank of the Republic of Kazakhstan as of February 24, 2020.
Also, in accordance with the Regulations, the operating cash desk of a foreign currency exchange office should be equipped with a video surveillance system that provides recording and storage of information about the process of carrying out the activities of the exchange office for 90 (ninety) calendar days on technical devices that backup the archive of video data and protect the archive from deletion and editing, while a cashier's work area and a customer area are located in the surveillance visibility area, and the corresponding devices are installed in places that ensure the absence of disturbances to the video surveillance and capability for visual identification of domestic and foreign currency.
A legal entity carrying out foreign currency exchange operations shall, in the course of its activities as an exchange office, ensure that the premises, equipment and staffing requirements of the exchange office set forth in the Regulations are met.
An automated exchange office, when performing an exchange operation, provides the capability of determining the authenticity of banknotes in the following ways:
- checking for compliance of the visible image on both sides of the banknote of the national currency of the Republic of Kazakhstan with the official description published on the official website of the National Bank;
- checking for the availability of ferromagnetic components in the series and number printed with special ink;
- checking a banknote under ultraviolet light (checking the luminescence of the paper, etc.).
The third step is "Obtainment of a license and an annex thereto"
To obtain a license and annex thereto, an authorized organization should submit the following documents via the e-Government portal:
1) an electronic application for a license to conduct exchange operations with foreign currency and an annex thereto in the form set forth in the Appendix 1 to the Regulations;
2) an electronic copy of the Charter;
3) an electronic copy of document confirming the payment of a license fee for the right to engage in certain types of activities, except in cases where payment is made via the e-Gov Payment Gateway;
4) an electronic copy of the statement issued by a second-tier bank or a branch of a non-resident bank of the Republic of Kazakhstan on the availability of a bank account in foreign currency;
5) an electronic copy of statement on cash flow on bank accounts of a customer of a second-tier bank or a branch of a non-resident bank of the Republic of Kazakhstan confirming the transfer of money to a bank account of a legal entity as a contribution to an authorized capital in accordance with the requirements of Clause 8 of the Regulations issued not earlier than 30 (thirty) calendar days prior to the date of applying for a license and (or) annex thereto;
6) an electronic copy of a document disclosing the origin of contribution to an authorized capital of an organization (loan agreement, property purchase and sale agreement, income statement, other documents disclosing the origin of contribution to an authorized capital of an organization).
The license and annex thereto are issued within twenty working days from the date of submission of the complete package of documents through the e-Government portal.
Establishment of an additional foreign currency exchange office
To obtain an annex to a valid license for an additional foreign currency exchange office, an authorized organization submits the following documents via the e-Government portal:
1) an electronic application for an annex to a valid license for exchange operations with foreign currency for an additional exchange office in accordance with Appendix 2 to the Regulations;
2) an electronic copy of statement on cash flow on the bank accounts of a customer of a second-tier bank or a branch of a non-resident bank of the Republic of Kazakhstan confirming the transfer of money to a bank account of a legal entity as a contribution to an authorized capital in accordance with the requirements of Clause 8 to the Regulation issued no earlier than 30 (thirty) calendar days prior to the date of applying for a license and (or) annex thereto, or an electronic copy of the financial statements as of the first day of the month of filing an application for an annex to a valid license for exchange operations with foreign currency for an additional exchange office in accordance with Appendix 2 to the Regulations, confirming that the amount of an authorized capital of a legal entity meets the established requirements, taking into account additional exchange office;
3) an electronic copy of a document disclosing the origin of contribution to an authorized capital of an organization (loan agreement, property purchase and sale agreement, income statement, other documents disclosing the origin of contribution to an authorized capital of an organization);
4) an electronic copy of a document confirming the technical features and compliance of the automated exchange office with the requirements established by the Regulations (except for an exchange office).
The license and annex thereto are issued within ten working days from the date of submission of the complete package of documents through the e-Government portal.
Carrying out operations with refined gold bullion
The authorized organizations have the right to carry out transactions for the purchase and sale of refined gold bullion through their foreign currency exchange offices. You can replenish the cash desks of the foreign currency exchange office by purchasing refined gold bullion from individuals and also from the National Bank.
When buying or selling refined gold bullion, an authorized organization checks the integrity of the special packaging and protective elements of refined gold bullion using a technical means to control luminescence in ultraviolet light, as well as using an optical device. The device should provide at least 10 (ten) times magnification.
In the absence of refined gold bullion at the cash desk of the exchange office, information on the cost of its sale is not published on the information board of an authorized organization. In the absence of domestic currency in cash at the cash desk of the exchange office, information on the cost of purchasing refined gold bullion is not published on the information board of an authorized organization.
Note that an authorized organization carries out the purchase and sale of refined gold bullion in an integral special package. The sale of refined gold bullion in special packaging that has been opened, or without special packaging, is not allowed.
At the same time, citizens can repurchase refined gold bullion issued by the National Bank no earlier than 2017 in opened special packaging and (or) without special packaging, as well as refined gold bullion issued by the National Bank before 2017 at the exchange offices of authorized organizations that have contractual relations with the National Bank for their purchase.
The rules governing the establishment of non-bank currency exchange offices are available on the official website of the National Bank at: www.nationalbank.kz => "Regulatory framework" => "Laws and regulations of the National Bank of RK" => "Cash operations".
Information on the location and contact details of the territorial branches of the National Bank are available on the official website of the National Bank at: www.nationalbank.kz → section "About the National Bank" → "For citizens and businesses" → "Public services of the National Bank of the Republic of Kazakhstan" → "Contact details of service providers".
