Issuing consent to acquire the status of a major participant in a Bank and (or) an insurance (reinsurance) organization, and (or) an investment portfolio Manager, and (or) a banking and (or) insurance holding company

You can obtain a service via the Portal:

1. Click “Order Online” button, then a new window will open of e-Licensing Portal;

2. Sign in or log in on e-Licensing Portal;

3. Click “Order Service Online” button on e-Licensing Portal page;

4. Fill in the fields of request;

5. Sign a request with digital signature;

6. You can track status of request in “My applications” section of Personal Account, status on obtainment of license in “My licensing documents” section and status on obtainment of notification in “My notifications” section.

You can obtain a service via the Portal:

1. Click “Order Online” button, then a new window will open of e-Licensing Portal;

2. Sign in or log in on e-Licensing Portal;

3. Click “Order Service Online” button on e-Licensing Portal page;

4. Fill in the fields of request;

5. Sign a request with digital signature;

6. You can track status of request in “My applications” section of Personal Account, status on obtainment of license in “My licensing documents” section and status on obtainment of notification in “My notifications” section.

Upon the issued consent to acquire a status of a major participant in a bank, insurance (reinsurance) organization, or major participant in an investment portfolio manager, banking holding company, or insurance holding company:

1) the failure to comply with the requirements established by subparagraphs 4), 5), 6) and 7) of paragraph 2 of Article 9-4 of the Law on State Regulation (in relation to an individual or CEOs of the service recipient a legal entity);

2) the unstable financial situation of the service recipient.

 The unstable financial situation of the service recipient is understood as the presence of one of the following signs:

• service recipient is a legal entity created less than 2 (two) years prior to the date of filing the application, except for the cases where a major participant of the service recipient is a person who has the status of a major participant of the financial institution for which the application for acquiring the status of a major participant is submitted by the service recipient;
• the service recipient's liabilities exceed its assets minus the amount of assets placed in shares and participation interests in the authorized capital of other legal entities and shares of the financial institution intended for acquisition;
• the losses based on the results of each of the 2 (two) completed financial years;
• the size of the service recipient's liabilities represents a significant risk to the financial condition of the financial institution;
• the presence of overdue and (or) off-balance sheet indebtness of the service recipient to the financial institution of the bank, insurance (reinsurance) organization, or investment portfolio manager;
• the analysis of financial consequences of the service recipient acquiring the status of a major participant in a financial institution, banking holding, or insurance holding suggests a deterioration in the financial condition of the service recipient;
• the value of the service recipient's property (minus the service recipient's liabilities) is insufficient to acquire the shares of the financial institution;
• other grounds identified using reasoned judgment, indicating the presence of an unstable financial position of the service recipient and (or) the possibility of causing damage to the bank and (or) its depositors, insurance (reinsurance) organization and (or) its clients, investment portfolio manager and (or) depositors of voluntary accumulative pension fund;

3) the non-compliance of the submitted documents with the requirements of Article 9-5 of the Law on State Regulation or failure to eliminate the comments of the authorized body on the submitted documents;

4) the violation of the requirements of the legislation of the Republic of Kazakhstan in the field of protection of competition as a result of the acquisition by the service recipient of the status of a major participant in a financial institution, banking holding, or insurance holding;

5) cases where the person acquiring the status of a major participant in a financial institution, banking holding, insurance holding is a legal entity registered in offshore zones, the list of which is established by the authorized body in accordance with subparagraph 5) of paragraph 16 of Article 9-5 of the Law on State Regulation, with the exception of cases provided for in paragraph 4 of Article 9 of the Law of the Republic of Kazakhstan "On banks and banking activities in the Republic of Kazakhstan";

6) the failure of the service recipient to comply with the requirement provided for in part three of paragraph 3 of Article 6 of the Law on Banks, as well as other requirements established by legislative acts of the Republic of Kazakhstan for major participants in a financial institution, banking holdings, and insurance holdings;

7) the analysis of the financial consequences of the service recipient acquiring the status of a major participant in a financial institution, banking holding, or insurance holding suggests a deterioration in the financial condition of the financial institution;

8) the absence of a license (permit) for the service recipient - a financial institution - non-resident of the Republic of Kazakhstan to carry out financial activities in accordance with the legislation of the state of which it is a resident, in cases where such a license (permit) is required by legislation of such state;

9) the absence of the service recipient - a legal entity - a non-resident of the Republic of Kazakhstan or its parent organization of the minimum required rating from one of the rating agencies, the list of which is established by the authorized body in accordance with the first part of paragraph 4 of Article 9-5 of the Law on State Regulation, with the exception of the cases provided for in the second part of paragraph 4 of Article 9-5 of the Law on State Regulation;

10) the ineffectiveness of the presented plan for recapitalization of the financial institution in the event of a possible deterioration in the financial condition of the financial institution;

11) the absence of an impeccable business reputation on the part of the service recipient – an individual, or the executive employee of the service recipient – a legal entity;

12) the cases where the service recipient previously was or is a major participant - an individual or CEO of a major participant - a legal entity and (or) a senior employee of a financial institution, including a financial institution - a non-resident of the Republic of Kazakhstan, for a period of no more than one year prior to the adoption by the service provider or financial supervisory authority of the state of which the financial institution - a non-resident of the Republic of Kazakhstan is a decision to apply a resolution regime to the bank, to revoke the license of the financial institution, including a financial institution - a non-resident of the Republic of Kazakhstan, which entailed their liquidation and (or) termination of activities in the financial market, or the entry into force of a court decision on the forced liquidation of a financial institution, including a financial institution - a non-resident of the Republic of Kazakhstan or declaring it bankrupt in accordance with the legislation of the Republic of Kazakhstan or the legislation of the state of which the financial institution - a non-resident of the Republic of Kazakhstan is a resident. The specified requirement shall apply for ten years after the service provider or the financial supervisory authority of the state of which the financial institution – non-resident of the Republic of Kazakhstan is a resident has made a decision to apply a resolution regime to the bank, revoke the license of the financial institution, including a financial institution – non-resident of the Republic of Kazakhstan, which has led to their liquidation and (or) termination of activities in the financial market, or the entry into force of a court decision on the forced liquidation of the financial institution, including a financial institution – non-resident of the Republic of Kazakhstan, or declaring it bankrupt in the manner established by the legislation of the Republic of Kazakhstan or the legislation of the state of which the financial institution – non-resident of the Republic of Kazakhstan is a resident.

For the purposes of this subparagraph, a financial institution also means a branch of a bank that is a non-resident of the Republic of Kazakhstan, a branch of an insurance (reinsurance) organization that is a non-resident of the Republic of Kazakhstan, a branch of an insurance broker that is a non-resident of the Republic of Kazakhstan;

13) the non-compliance of a financial organization – a non-resident of the Republic of Kazakhstan, wishing to acquire the status of a banking holding company, insurance holding company, with the requirements provided for in paragraph 6 of Article 9-5 of the Law on State Regulation;

14) the cases where the service recipient – a financial institution – is not a resident of the Republic of Kazakhstan and is not subject to supervision on a consolidated basis in the country of its location;

15) the impossibility of conducting consolidated supervision of a banking conglomerate due to the fact that the legislation of the countries where the participants of the banking conglomerate who are non-residents of the Republic of Kazakhstan are located makes it impossible for them and the banking conglomerate to comply with the requirements provided for by the laws of the Republic of Kazakhstan;

16) the existence of grounds for rejecting to issue a permit to open a bank or insurance (reinsurance) organization.

In the event that a bank or an insurance (reinsurance) organization wishes to acquire the status of a major participant in another bank, insurance (reinsurance) organization, a banking holding company, an insurance holding company for the purpose of establishing or acquiring a subsidiary bank, a subsidiary insurance (reinsurance) organization, or acquiring a significant participation in the authorized capital of a bank, an insurance (reinsurance) organization, the authorized body, when reviewing the submitted documents, shall take into account the grounds for rejection stipulated by paragraph 3 of Article 9-6 of the Law on State Regulation. If there are grounds for rejecting to issue a permit for the establishment or acquisition of a subsidiary organization, or a significant participation in the capital of an organization, the authorized body shall reject to issue consent to the acquisition of the status of a major participant in a bank, insurance (reinsurance) organization, banking holding company, or an insurance holding company;

17) the beneficial owner of the service recipient a legal entity defined in accordance with the Law of the Republic of Kazakhstan “On Combating the Legalization (Laundering) of Proceeds from Crime, Financing of Terrorism and Financing of the Proliferation of Weapons of Mass Destruction”, has an unremoved or outstanding conviction for crimes in the area of legalization (laundering) of proceeds from crime, financing of terrorism and financing the proliferation of weapons of mass destruction;

18) the set of the inaccuracy of the documents submitted by the service recipient to receive the public service, and (or) data (information) contained therein;

19) in relation to the service recipient, there is a court decision (sentence) that has entered into legal force prohibiting the activity or certain activity types that require the receipt of a certain public service;

20) in relation to the service recipient there is a court decision that has entered into legal force, on the basis of which the service recipient is deprived of a special right associated with receiving a public service;

21) the absence of consent of the service recipient provided in accordance with Article 8 of the Law of the Republic of Kazakhstan “On personal data and their protection”, to access sensitive personal data that are required for the public service provision.

• appeal;
• initiative of an administrative body or official.

 General requirements for the appeal

The appeal submitted in hard copy or electronic form shall indicate:

• Full name, IIN, postal address of a natural person, BIN of a legal entity;
• name of administrative body, official to whom the appeal is submitted;
• the essence of an appeal;
• date of filing an appeal;
• signature of the applicant or his representative;
• other information provided for by legislation of the Republic of Kazakhstan.

If the administrative procedure is on a paid basis, the applicant must submit a document confirming the payment.

Source: Administrative Procedural Code of Republic of Kazakhstan,
The Law of the RK "On Public services"