1. "AL HILAL" Islamic Bank" JSC
Major changes in the currency legislation of the Republic of Kazakhstan to be effective as of July 1, 2019

2. Content
Normative legal documents, regulating the procedure for currency transactions in the Republic of Kazakhstan;
Export-import currency control;
The procedure for buying and selling foreign currencies;
Currency transactions by residents/non- residents;
Cash withdrawal transactions.

3. Law of the Republic of Kazakhstan on Currency Regulation and Currency Control No. 167-VI dated July 2, 2018 (hereinafter – Law);
Rules for currency transactions in the territory of the Republic of Kazakhstan approved by the Decree of the Board of the National Bank of Kazakhstan No. 40 dated March 30, 2019 (hereinafter – CT Rules No. 40);
Rules for monitoring the currency transactions approved by the Decree of the Board of the National Bank of Kazakhstan No. 64 dated April 10, (hereinafter– CT Monitoring Rules No. 64);
Rules for export-import currency control in the Republic of Kazakhstan approved by the Decree of the Board of the National Bank of Kazakhstan No. 42 dated March 30, 2019 (hereinafter – EICT Rules No.42).

4. The notion "residents" is expanded:
From the 1st of July 2019, in compliance with the norms of the Law the notion "residents of the Republic of Kazakhstan" includes also (branches (representations of) foreign non- financial organisations that are permanent establishments of such foreign non-financial organisations in the Republic of Kazakhstan in compliance with the Code of the Republic of Kazakhstan "On Taxes and other Obligatory Payments into the Budget".
According to the EICT Rules No.42:
Currency contract for export or for import of goods, works and services, for purchase of intellectual property, or of property for rent shall be subject to record registration, if the amount of such contract exceeds fifty thousand ( ) US dollars or its equivalent;
If the currency contract for export or import does not indicate the contract price as of the date of its signing, such contract shall be considered as a contract subject to record registration;
Exporter or importer applies for the record registration number prior to performance of obligations under the currency contract for export or import by any of its parties.

5. Procedure for buying and selling foreign currencies by legal entities of residents/non-residents
Buying or selling non-cash foreign currencies in the internal market of the Republic of Kazakhstan shall be done on the basis of an application for buying or selling non-cash foreign currencies. A resident-legal entity shall have the right to buy at one authorised bank the foreign currencies against the national currency in the amount not exceeding one hundred thousand ( ) US dollars in equivalent per day for the purposes not related to the performance of obligations under the contract (transfer of foreign currencies to their own accounts at foreign banks, unrequited transfer of money in foreign currency, as well as placement of foreign currencies into accounts at authorised banks): If the foreign currency is bought for the purposes of intra-corporate money transfer, the application for buying currency shall include a document confirming the intra-corporate nature of the transfer (branch regulations) If the application for buying currency indicates an amount exceeding one hundred thousand ( ) US dollars, the application shall specify a purpose of buying currency and have enclosed currency contract for the performance of which a non-cash foreign currencies are bought. If the requirement for obtaining a record registration number is applicable to the currency contract, the Bank shall be provided with a copy of the currency contract with a note confirming assignment of record number. The amount of foreign currency bought indicated in the legal entity's application shall not exceed the currency contract's price given the total amount of non-cash foreign currencies previously bought under such currency contract.

6. Currency transactions by residents/non-residents
Resident-legal entity or resident-individual shall provide information on currency transaction in the form specified in Annex 2 to the CT Rules No.40 when making payment and/or money transfer in the amount equal to fifty thousand US dollars in equivalent or more, which should be subject to notification under Article 15 of Law on Currency Regulation and Currency Control. Such information shall include the following:
country of registration of person sending money and the beneficiary of payment document, if these data do not coincide with those specified in the payment document;
characteristics of intra-corporate money transfer;
code of currency transaction under which payment and/or money transfer is made;
data on money sender and/or recipient under the currency contract, in case of mismatch between the money sender and beneficiary of payment document;
country of registration of money sender and recipient under the currency contract, in case of mismatch between the money sender and beneficiary of payment document; details of currency contract and record number of the currency contract (if any);
details of currency contract and record number of the currency contract (if any).
For the purposes of indicating the code of currency transactions and other data stipulated in this paragraph, a resident-legal entity shall provide constituent documents upon the authorised bank's request.
Non-resident-legal entity or non-resident-individual shall provide the following information on currency transaction in the form specified in Annex 2 to the CT Rules No.40 when making payment and/or money transfer in the amount equal to fifty thousand US dollars in equivalent or more, which should be subject to notification under Article 15 of Law on Currency Regulation and Currency Control:
country of registration of money sender and the beneficiary of payment document, if these data do not coincide with those specified in the payment document;
characteristics of intra-corporate money transfer.

7. Cash withdrawal transactions
Payment and/or money transfer under currency transaction, which may be aimed at withdrawal of money from the Republic of Kazakhstan, shall be carried out upon availability of data on submission by the resident (who is a money sender or recipient) of a permission to the authorised bank for transmission of information on the payment and/or money transfer to the currency control bodies. Such permission shall be prepared in any form (it is allowed to provide one permission in relation to all payments and/or money transfers under currency transactions within the framework of currency contract that is the basis for currency transactions, which may be aimed at withdrawal of money from the Republic of Kazakhstan).
The notion of transactions related to withdrawal of money includes the following :
1. Financial loan that provides for a non-resident to give money to a resident (except for an authorised bank), if the terms of the relevant currency contract do not envisage the transfer of money to be received from a non-resident to a resident's bank accounts at authorised banks;
2. Financial loan providing for a resident (except for an authorised bank) to demand from a non-resident to return money, if the terms of the relevant currency contract do not envisage the transfer of money to be received from a non-resident to the resident's bank accounts at authorised banks;
3. Financial loan that provides for the provision of money by a resident to a non-resident, who is not an affiliate, for a period of more than seven hundred and twenty days without paying remuneration for using the subject of the financial loan;
4. Export transactions, if the terms of the relevant currency contract stipulate that the period for fulfilment of non- resident's obligations to pay for export exceeds seven hundred and twenty days;
5. Import payment transactions, if the terms of the relevant currency contract stipulate that the period for fulfilment of non-resident's obligations to return money (advance payment or full prepayment), in case of non-resident's failure to perform its import obligations, exceeds seven hundred and twenty days from the date of performance of obligations by the resident.