Emerging Markets Rates and Currencies Handbook

restrictions and supporting documents for the purposes of intra-corporate transfer (transfer to Head office) provided such non-resident is not a financial organization. Onshore Restrictions: Onshore market participants are allowed to trade KZT with offshore market participants. Offshore Restrictions: Offshore entity may trade KZT with another offshore entity if they both have open Nostro accounts in KZT. Requirements to open a foreign currency account In order to make foreign exchanges, the bank accounts shall be maintained in respective currency. Deal Management Rollover: No, only through FX Swap. Unwinding: No, only through FX Swap. Early Maturity: No, only through FX Swap. Documentation Requirements FX application (on paper or via CitiDirect system) is required for FX spot and forward deals. FX spot can be traded based on Master FX spot agreement or historic Bank Account Terms and Conditions agreement. For FX forward/NDF Treasury Master Agreement (local ISDA) has to be signed. Trade Flows N/A. Capital Flow and FDI Residents and non-residents are required to indicate the purpose of payments and currency transactions conducted in banks, as well as to provide the bank with supporting documents to evidence the indicated purposes of money transfers and payments. The National Bank establishes the order of performance of currency transactions by residents and non-residents. If contract amount for capital movement (capital injection, inter — company loan, transactions with securities, gratuitous transfer of money and currency values) of residents (except for branches and representative offices of foreign companies) exceeds the equivalent of USD 500,000, then the agreement should be registered in the National Bank. Contract’s registration number (RN) must be obtained by resident-exporter or resident-importer (except for branches and representative offices of foreign companies) before payment processing and (or) money transfers and (or) before transition of goods across the border of the Republic of Kazakhstan. The RN is assigned if total amount of contract is over USD500.000 (or its equivalent in other currencies) Additional Comments The currency control regulation for FX deals in excess of USD 50,000.00 will require the following documents to fulfill capital control requirement: application, a copy of the agreement and an invoice or other supporting documents. In addition, a resident client should provide SI to conduct reverse FX if purchased foreign currency is not used for the purposes specified in the application within 10 business days since it purchase, except when foreign currency is bought for payment of dividends. Purchase of foreign currency by legal entities (residents) for the purposes not related to the fulfillment of obligations is allowed for no more than USD 50,000.00 in one authorized bank in one transaction day in the following cases: transfer of foreign currency to own accounts in foreign banks; gratuitous money transfers in foreign currency; crediting and (or) transferring foreign currency to own accounts in authorized banks. When a resident legal entity (with the exception of the authorized bank) purchases non-cash foreign currency, in accordance with the clause 20 of the Currency Control Rules, for the purpose of repaying obligations in foreign currency to a non-resident on external loans received (with the FX agreement amount exceeding 100 million US dollars in equivalent) or bonds issued in foreign currency (with the par amount exceeding 100 million US dollars in equivalent as per issue prospectus and for which the fulfillment of obligations occurs within 90 calendar days from the date of purchase of non-cash foreign currency), a resident legal entity must provide: • an application for opening a separate bank account in the corresponding foreign currency. • an instruction to the authorized bank to credit the purchased non-cash foreign currency to a separate bank account in foreign currency. • an instruction to the authorized bank to sell purchased foreign currency against KZT within next 3 working days, if FCY is not used within 90 calendar days since its purchase. • documents confirming the amount and terms of fulfillment of obligations (loan agreement and payment schedule, other documents). FCY purchases by a legal entity in one Bank within one business day in an aggregate amount exceeding 10 million US dollars are subject to the monitoring for prevention of legalization (laundering) of proceeds from crime and financing of terrorism and study procedure.