Kyrgyzstan's central bank tightens control over payment market with new rules

The National Bank of the Kyrgyz Republic (NBKR) has significantly tightened its oversight of the payment market by approving new instructions for supervising payment system operators and organizations. This move aims to enhance control and ensure the stability of financial transactions within the country.

The updated regulations consolidate existing procedures for remote supervision and on-site inspections into a single framework. A key innovation is the introduction of a dedicated curator for each supervised entity. This curator will continuously monitor the organization's activities, analyze its financial reports, hold regular meetings with management, and assess potential risks.

The NBKR is adopting a risk-oriented approach, meaning that the findings from remote monitoring will directly influence decisions regarding the necessity, scope, and focus of on-site inspections. These inspections can be comprehensive or targeted, with the latter potentially conducted without prior notice if signs of fraud, legal violations, or system failures emerge.

These new rules empower the NBKR to request documents and information not only from payment operators but also from their agents, service providers, and other participants in the payment infrastructure. Inspectors will gain access to premises, data, and IT systems, allowing for a more thorough examination of operations. The instruction will take effect 15 days after its official publication.