Emerging Markets Rates and Currencies Handbook

158 Citi | Emerging Markets Currencies Handbook 2021 Documentation Requirements Product specific For FX spot and forward products FX application (on paper or via CitiDirect system) is required. FX spot can be traded based on Master FX spot agreement or historic BAC. For FX forward/NDF Treasury Master Agreement (local ISDA) has to be signed. Trade flows In case of cash collateral instruments (e.g. letter of credit) in foreign currency (FCY), customer is required to present FX application for FCY purchase. When there are no funds on customer account in required FCY at the time of maturity, bank can initiate FX between customers’ accounts, no need to present additional FX application. All FX operations are subject to reporting to the National Bank of Republic of Kazakhstan. Capital flows/FDI Residents and non-residents are required to indicate the purpose of payments and transfers of currency operations effected through banks and to submit to the bank documents supporting the indicated purposes of money transfers and payments. The National Bank as the main body of currency regulation establishes the order of performance of currency transaction by residents and non-residents. If the amount of the contracts for the movement of capital (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. Receipt of the contract registration number (RN) made by exporter or importer — residents (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 under a contract. The RN is assigned if total amount of contract is over USD50.000 (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 fulfil capital control requirement: application a copy of the agreement and an invoice or other document. In addition a resident client will provide to secure that purchased foreign currency will be used for the purposes declared in application, will provide a SI to conduct reverse FX if purchased foreign currency will not be used for the purposes specified in the application within 10 business days, except when foreign currency is bought for payment of dividends. Purchase by legal entities — residents of foreign currency for purposes not related to the fulfillment of obligations — no more than USD 50,000.00 in one authorized bank in one transaction day: transfer of foreign to own accounts in foreign banks; gratuitous free money transfers in foreign currency; crediting and (or) transferring foreign currency to their own accounts in authorized banks. When a resident legal entity (with the exception of the authorized bank) purchased in accordance with the clause 20 of the Currency Control Rules non-cash foreign currency for the purpose of repaying obligations in foreign currency to a non-resident of the Republic of Kazakhstan on external loans received, the amount of a foreign exchange agreement under which exceeds 100 (one hundred) million US dollars in equivalent, and bonds issued in foreign currency, the par amount of which according to the issue prospectus exceeds 100 (one hundred) million US dollars in equivalent and for which the fulfillment of obligations occurs within 90 (ninety) 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, if it is not used within 90 (ninety) calendar days from the date of purchase for the stated purposes, to sell this currency for the national currency within the next 3 (three) working days; • as well as documents confirming the amount and terms of fulfillment of obligations (loan agreement and payment schedule, other documents). The monitoring for prevention of legalization (laundering) of proceeds from crime and financing of terrorism and study procedure is subject to conversion operations carried out by one Bank client in the form of purchases (purchases) of foreign currency on one business day in an aggregate amount exceeding for legal entities 10 (ten) million US dollars. When a client completes conversion operations and at the same time the client reaches an amount in excess of 10 (ten) million US dollars during the day, subsequent applications for the purchase of foreign currency are accepted no less than 1 business day before the date of the conversion operation. Citibank Kazakhstan JSC Park Palace, Building A 41 Kazybek Bi, Almaty, A25T0A1 Republic of Kazakhstan FX Sales Contact: +772 7332 1522 Kazakhstan