MEMO FOR BUSINESS ENTITIES ON CURRENCY CONTROL
Currency Repatriation Requirement
A business entity that has entered into a contract with a non-resident for the export or import of goods, works, or services must comply with the currency repatriation requirement.
This means crediting the following funds to an account with a bank in Kazakhstan:
- export proceeds (under export transactions);
- a refund of currency if the import transaction is not fulfilled by the non-resident.
Contracts Subject to the Repatriation Requirement
The currency repatriation requirement applies to:
- a currency contract whose amount, including any supplementary agreements, exceeds the equivalent of USD 50,000;
- a currency contract in which the amount is not specified as of the date of signing the agreement.
Actions to Be Taken
- obtain a registration (accounting) number for the export or import contract before either party begins performing its obligations.
What Is a Registration (Accounting) Number?
A registration (accounting) number is an identification number assigned to a currency contract for the purpose of monitoring the movement of funds and the fulfillment of obligations under the contract.
Payments and transfers under an export or import currency contract may be processed by a bank only if such a contract has been assigned a registration (accounting) number.
Where Should One Apply to Obtain a Registration (Accounting) Number?
To obtain a registration (accounting) number, an application should be submitted to the servicing authorized bank or to a territorial branch of the National Bank.
However, a registration (accounting) number is assigned by a territorial branch of the National Bank only in exceptional cases subparagraph 1) of paragraph 3 of Article 9 of the Law of the Republic of Kazakhstan «On Currency Regulation and Currency Control».
In Which Documents Must the Registration (Accounting) Number Be Indicated?
The registration (accounting) number of a currency contract must be indicated when preparing: customs declarations for goods, electronic invoices and when making payments and transfers under such currency contracts.
What Liability Is предусмотрено for Failure to Comply with the Currency Repatriation Requirement and for Late Obtaining of a Registration (Accounting) Number?
Failure to comply with the currency repatriation requirement entails administrative liability under Article 251 of the Code of the Republic of Kazakhstan on Administrative Offenses, in the form of a fine amounting to 20% of the non-repatriated amount.
Violation of the deadline for applying for a registration (accounting) number for a currency contract entails administrative liability under Parts 1 and 2 of Article 244 of the Code of the Republic of Kazakhstan on Administrative Offenses, in the form of: