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LAW No. 237 OF 29th JUNE 1998 OF THE REPUBLIC OF KAZAKHSTAN
CONCERNING PAYMENTS AND TRANSFERS OF FUNDS
CHAPTER 1. GENERAL PROVISIONS
Article 1. Relations Regulated by This Law
1. This Law shall regulate relations that emerge when payments and transfers of funds are performed in the Republic of Kazakhstan, except for relations associated with the performance of postal transfers of funds.
2. Relations associated with international payments and transfers of funds as performed between banks of the Republic of Kazakhstan, organisations that perform certain types of banking transactions, and foreign banks (financial institutions) shall be regulated by agreements between them and by business usages applicable in the banking practice, considering the requirements established by the legislation of the Republic of Kazakhstan concerning counteraction to legalisation (laundering) of income gained in a criminal way and financing of terrorism When acts associated with international payments and transfers of funds are initiated in the territory of the Republic of Kazakhstan, then such relations shall be regulated by this Law and said agreements and business usages applicable in the banking practice, unless it contradicts the legislation of the Republic of Kazakhstan.
Article 2. The Bases for the Emergence of the Relations Regulated by This Law
The relations regulated by this Law shall emerge when performing the following:
payments and/or transfers of funds in accordance with the conditions of payment under civil transactions,
transfers of funds pursuant to instructions of clients of banks or organisations which perform individual types of banking transactions (henceforth the bank) when such instructions are not associated with the performance of conditions of payment under civil transactions;
obligatory payments and/or transfers of funds which are performed in accordance with the legislation of the Republic of Kazakhstan.
Article 3. The Fundamental Definitions Used in This Law
The following fundamental definitions shall be used in this Law:
1) remittance of money * sequential fulfilling by recipient banks instructions of remitters concerning transfer of money that relate to the making of a payment or other purposes;
2) initiator of the remittance of money (henceforth * the initiator) * a person who presents the first an instruction concerning remittance of money for fulfillment;
3) remitter of money * a person at whose expense a payment and (or) remittance of money is performed;
4) participants in the payment and (or) remittance of money * natural persons and legal entities, affiliates and representations of legal entities having the rights and (or) obligations under a payment and (or) remittance of money;
5) recipient bank * a bank to which the order concerning transfer or payment of money is addressed;
6) direct debiting of the bank account * a method of effecting of a payment in case of which withdrawal of money is made from the remitter of money and transfer of it in favour of the beneficiary on the basis of a preliminary permit of the remitter of money concerning the said withdrawal that is valid within a certain period of time and (or) within a certain money amount;
7) beneficiary * a person specified in an order or claim as a recipient of money where a transfer of money is made, and also in cashless payments that are made without remittance of money;
8) beneficiary's bank * a bank which in accordance with conditions of an agreement with the remitter and (or) instruction of the remitter must receive money that arrives in favour of the beneficiary, and (or) perform other acts as provided for by the instruction or agreement with the remitter;
9) intermediary bank * any bank that is a participant in a transfer of money which is not a bank of the remitter of money or beneficiary's bank;
10) remitter * a person that sends an instruction relating to a payment and (or) remittance of money which may be, in particular, a remitter of money, initiator or beneficiary;
11) collection order * a method to make a payment that is used to withdraw money from a bank account of the remitter of money without consent of it;
12) clearing * a process performed by a clearing organisation that is associated with collection, verification, sorting and offset of counter claims of participants in clearing and further determination of their net positions (balance), and also fulfilment by a bank of said acts under counter claims between its clients;
13) microcircuit payment card * a payment card with an integral microcircuit which is used for cashless payment for goods (work, services), receipt of ready cash, making of exchange of currencies and other transactions determined by the issuer of the payment card and on issuer's conditions, and also which comprises information necessary for the holder of the card;
14) instruction * an order of the remitter to the recipient bank concerning transfer or payment of money that is presented in virtue of an agreement or law. Instructions shall be compiled in the form of an order or in the form of a claim;
15) operating day * a period of time within which the bank performs receipt of instructions concerning remittance of money and orders concerning suspension or concerning revocation of such instructions from clients and transfer to them of messages relating to performance of remittances of money for their benefit;
16) claimant * a person which presents in virtue of an agreement or law a claim concerning collection of money to be fulfilled by the recipient bank without consent of the remitter of money;
17) payment * fulfilment of a monetary liability with the use of ready cash or without the use of it, by transfer of money or giving out of a payment document comprising a monetary liability or an order concerning payment of money or transfer of electronic money;
18) national interbank system of payment cards * a system for servicing interbank transactions under payment cards, management of which is performed by an organisation specially formed by participant banks in the system, which is capable to ensure storage, processing and transfer of necessary information by an electronic way with application of microcircuit card technologies to implement the general national tasks as defined by the legislative acts of the Republic of Kazakhstan;
19) payment card * a mean of access to money through electronic terminals and other devices which bears information allowing the holder of such a card to make payments, receive ready cash, perform exchange of currencies and other transactions determined by the issuer of the payment card and on issuer's conditions;
20) payment order * a method of effecting a payment and (or) remittance of money that provides for presentation by the remitter of an instruction to the recipient bank concerning remittance of a money amount determined in the said instruction in favour of the beneficiary;
21) payment claim order * a method of effecting a payment in case of which the bank of the remitter of money is presented a claim of the remitter to the remitter of money concerning payment of money in an amount specified in such a claim, one the basis and with attachment of documents confirming the said claim;
22) payment document * a document on the basis or with the use of which payments and remittances of money are effected;
23) cheque * a payment document which comprises a written order of the drawer of the cheque to the recipient bank that is based on an agreement between them, concerning payment to the holder of the cheque of a money amount specified in such an order;
24) drawer of the cheque * a person which has drawn a cheque;
25) holder of the cheque * a person for the benefit of whom the cheque is drawn, in particular the drawer of the cheque if he draws the cheque to himself;
26) electronic money * the unconditional and irrevocable monetary obligations of an issuer of electronic money, to be kept in electronic format and to be accepted as an instrument of payment within the electronic money system, by other system participants;
27) electronic money system * a set of program-technical facilities, documentation and institutionalâtechnical measures ensuring the performance of payments and other operations in electronic money;
28) electronic money system participant * a physical person or legal entity wherein in accordance with the concluded agreement arises the right or obligation associated with the issue, transfer, acceptance, use, acquisition, sale or redemption of electronic money within the frameworks of certain electronic money system;
29) electronic money system operator (henceforth â operator) * an electronic money system participant ensuring the functioning of the electronic money system, including the performance of collection, treatment and transfer of information formed in the course of operations with the use of electronic money;
30) electronic money redemption * the issuerâs operation associated with the exchange of the electronic money presented by the owner of electronic money, or the electronic money liable to redemption without its presentation by the owner in cases provided for by the laws of the Republic of Kazakhstan, for an amount of money equal in the nominal value;
31) use of electronic money * the transfer of electronic money within the electronic money system, by the money owner, who is a physical person, to another electronic money system participant for the purposes of making payment under civil-law transactions and (or) other operations associated with the transfer of the right of ownership to electronic money;
32) electronic money issue * an operation specifying the issuerâs issue of electronic money to physical persons and the electronic money issuerâs agents by way of money exchange for an amount of money equal in the nominal value;
33) electronic money issuer (henceforth â issuer) * a second tier bank carrying out the issue and redemption of electronic money within the electronic money system in accordance with the requirements of the regulatory legal acts of the National Bank of the Republic of Kazakhstan;
34) electronic money issuerâs agent (henceforth â agent) * a legal entity carrying out activities associated with the acquisition of electronic money from the issuer and individual owners for its further sale to physical persons on the basis of an agreement concluded with the issuer.
Article 4. The Legislation of the Republic of Kazakhstan Concerning Payments and Transfers of Funds
The legislation of the Republic of Kazakhstan concerning payments and transfers of funds shall be based on the Constitution of the Republic of Kazakhstan and it shall consist of this Law and other regulatory legal acts of the Republic of Kazakhstan.