The National Bank of Kyrgyzstan commented to 24.kg news agency on the letter by the State Financial Intelligence Service demanding from commercial banks to submit data on all their clients.
According to it, the Kyrgyz legislation defines the concept of «bank secrecy» and the procedure for submitting information constituting bank secrecy. They are aimed at ensuring the protection of information from unlawful disclosure.
Bank secrecy is protected by the laws of the country, under which financial institutions are not entitled to transmit / disclose information on deposits, accounts, banking operations, financial position of clients and other information, if there are no legal grounds.
The regime of bank secrecy is not absolute, in certain situations determined by law, access to data may be granted to state authorities. The procedure for providing such information is set by the law. Information may be provided in accordance with sectoral legislation, in our case, in accordance with the Law on the National Bank of the Kyrgyz Republic, Banks and Banking Activities.
«Article 9 of the Law on Countering Financing of Terrorist Activities and Money Laundering provides that state bodies, local governments, courts, financial institutions and non-financial categories of persons in accordance with the sectoral legislation of Kyrgyzstan provide the financial intelligence agency with the requested information or documents under the terms set in the written request of the financial intelligence agency.
Article 131 of the Law on the National Bank establishes the requirements for a request for the provision of information constituting bank secrecy. In particular, it should contain the name of a client of the bank, indicating the limits and amount of requested information constituting banking secrecy, the purpose of using information constituting bank secrecy, and the legal basis of the request. In case of non-compliance of the request for the provision of information constituting bank secrecy with the requirements of this article, the bank must refuse to provide information,» the National Bank stressed.
The National Bank believes that banks and any state bodies are obliged to comply with the requirements of the legislation on the National Bank, banks and banking activities on request, disclosure and ensuring the confidentiality of information constituting bank secrecy.
«Considering that the law sets clear requirements for a request for the provision of information constituting bank secrecy, which should also include the name of a bank’s client, indicating the limits and amount of requested information constituting banking secrecy, as well as the legal basis for the request, we believe that the transmission of data on all clients of banks do not fully comply with the Law on the National Bank of the Kyrgyz Republic, Banks and Banking Activities,» the National Bank of the Kyrgyz Republic said.
