Baku, Azerbaijan, Feb. 5
By Nigar Guliyeva - Trend:
The bill on currency regulation and currency control provides for a more complete coverage of foreign exchange transactions with statistical monitoring, while the procedures for collecting information on foreign exchange transactions are simplified, said Deputy Chairman of the National Bank of Kazakhstan Oleg Smolyakov.
He made the remarks addressing a session at the Kazakh parliament on Feb. 5.
"A unified registration of foreign exchange contracts will be introduced. Under the export-import contracts, the existing registration procedure will be kept. The novelty is that this procedure will also cover currency contracts for the export and import of works and services," Smolyakov said.
He also touched upon the changes covering the transboundary currency transactions.
"The bill also defines a list of currency transactions that have signs of money withdrawal from the country. These include: granting a loan by a resident to a non-resident that does not provide for repayment through transfer of money to an account in Kazakhstan; issuance of a loan by non-resident to a resident that does not provide for repayment through transfer of money to an account in Kazakhstan; issuance of an interest-free financial loan by a resident to a non-affiliated non-resident for a period of more than 720 days; operations to pay for exports or imports with a repatriation period of over 720 days," he said.
He noted that such operations will be carried out by banks only upon submission by a resident of a permit to transfer information to currency control bodies. In addition, the bill provides for the right to transfer information on currency transactions containing bank secrecy to the State Revenue Committee.
He said the new bill stipulates changes in currency legislation due to Kazakhstan's accession to the World Trade Organization as well as the establishment of the Khorgos International Center for Cross-Border Cooperation.
The main changes in the draft law also include recognition of branches of foreign organizations as residents, expansion of the scope of transboundary currency transactions, strengthening control over currency operations aimed at withdrawal of capital, and others.