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AGREEMENT between the Central Bank of the Russian Federation (Bank of Russia) and the National Bank of Tajikistan on Co-operation in Supervising the Activities of Credit Institutions

The Central Bank of the Russian Federation (Bank of Russia) and the National Bank of Tajikistan, hereinafter referred to as the Parties, expressing their mutual interest in establishing and promoting bilateral ties in banking supervision and seeking to achieve mutual understanding on issues relating to banking regulation and co-operation in supervising the activities of credit institutions, have agreed as follows:

1. For the purposes of this Agreement:

1.1. The banking supervision authorities shall be the Central Bank of the Russian Federation (Bank of Russia) and the National Bank of Tajikistan.

1.2. Credit institutions (banks) shall be institutions conducting banking operations, whose activities are subject to licensing and banking supervision under the legislation of the Russian Federation and the Republic of Tajikistan.

1.3. Supervisory information shall be information received by each Party in the course of fulfilling its supervisory functions, including off-site supervision and on-site inspections, and also as a result of the exchange of information within the framework of this Agreement unless this information constitutes state or banking secrecy under the national legislation of the Parties.

1.4. In accordance with the terminology of the Basle Committee on Banking Supervision,

1.4.1. A subsidiary of a credit institution (bank) shall be a legally independent organisation located in the Russian Federation or the Republic of Tajikistan, which is wholly owned by a credit institution registered in the country of the other Party or in which such a credit institution has majority interest.

1.4.2. A joint credit institution (bank) shall be a legally independent credit institution (bank), located in the Russian Federation or the Republic of Tajikistan, with no more than 50% of its authorised capital formed by a credit institution (credit institutions) registered in the country of the other Party. Such a credit institution (credit institutions) has a stake allowing it to control the activities of the joint credit institution (bank).

1.4.3. A branch of a credit institution (bank) shall be an institution conducting banking operations on behalf of a bank and operating within the powers granted to it by a bank. It shall not be an independent legal entity and shall constitute an inalienable part of a credit institution registered in the Russian Federation or the Republic of Tajikistan.

1.4.4. A representative office shall be an organisation that represents the interests of a credit institution and does not conduct banking operations.

1.4.5. The home country shall be the country of registration of a credit institution, which has a subsidiary, a joint credit institution (bank), a branch or a representative office in another country, the host country.

2. To maintain reliability and efficiency of the national banking systems of the Russian Federation and the Republic of Tajikistan, the Parties shall co-operate in supervising credit institutions on the basis of the provisions of this Agreement, complying with the national legislation and international commitments of the Russian Federation and the Republic of Tajikistan.

3. The Parties shall regularly exchange information on the state and development of their banking systems.

4. The Parties shall provide information on a regular and reciprocal basis on the applicable national banking legislation, banking supervision standards and requirements and any essential changes therein.

5. The Parties shall hold, if necessary, meetings of representatives of the banking supervision authorities to discuss questions of mutual concern and issues relating to the upgrading of supervision of credit institutions.

6. Actions pertaining to the subject of this Agreement shall be conducted at the initiative of one of the Parties on the basis of its request for assistance in exercising supervision.

7. A request for assistance shall be made in writing. Up-to-date communications may be used for transmitting a request.

8. The provision of assistance within the framework of this Agreement may be rejected partly or wholly, if the requested Party believes that the fulfilment of the request would infract the national legislation of the requested Party. In this case, the requesting Party shall be notified in writing and given the reasons for the refusal.

9. Each Party shall take the necessary measures to ensure that the other Party promptly receives the fullest possible response to its request or shall notify the latter about the circumstances impeding or delaying the fulfilment of the request.

10. Each Party shall bear expenses arising in the course of implementing this Agreement on its own provided that no other procedure has been agreed upon.

11. The Parties shall interact in supervising credit institutions in the following areas:

11.1. In the course of licensing banking activities:

11.1.1. Should a credit institution registered in the country of one Party request from the other Party a licence (permit) to set up a subsidiary, a joint credit institution (bank), a branch or a representative office, the other Party shall consider such requests within the time-limits and in compliance with the provisions set by its national banking legislation.

11.1.2. The Party that has received a request mentioned in paragraph 11.1.1 shall inform the other Party in detail about its contents and shall receive a corresponding permission from the other Party, as is required by the rules of the Basle Committee on Banking Supervision.

11.1.3. The Parties shall notify each other in writing of the decision they have made on the issue of licences (permits) to credit institutions to open subsidiaries and joint credit institutions (banks), branches and representative offices mentioned in paragraph 11.1.1.

11.2. In exercising off-site supervision — collecting information, conducting inspections and analysing financial and statistical reports presented by subsidiaries and joint credit institutions (banks) and branches and representative offices set up by credit institutions located in the country of the other Party:

11.2.1. The host country banking supervision authorities shall supervise the activities of subsidiaries and joint credit institutions (banks) and branches and representative offices in compliance with the national banking legislation.

11.2.2. The host country banking supervision authorities shall not prevent the institutions mentioned in paragraph 11.2.1. from presenting information and accounting reports to the head office or parent bank, necessary for compiling consolidated reports by forms established in the home country.

11.2.3. The home country banking supervision authorities shall provide the necessary supervisory information on parent banks and the host country banking supervision authorities shall provide the necessary information on subsidiaries and joint banks and branches and representative offices on a reciprocal basis and in compliance with their national legislation.

11.3. Should the need arise for conducting inspections by the Parties:

11.3.1. The home country banking supervision authorities shall notify the host country banking supervision authorities of their intention to inspect a subsidiary (joint) bank, a branch or a representative office. The host country banking supervision authorities express the readiness to provide at the request of the other Party the necessary information with regard to inspections.

11.3.2. The host country banking supervision authorities shall assist the home country banking supervision authorities of a credit institution in conducting inspections, if such inspections do not contravene host country legislation.

11.3.3. Representatives of the host country supervision authority shall have the right to participate in inspections conducted by representatives of the home country banking supervision authorities.

11.4. In supervising credit institutions that have subsidiaries and joint credit institutions (banks) and also branches and representative offices located in the country of the other Party, the Parties shall agree:

11.4.1. To provide on a reciprocal basis supervisory information on any essential changes regarding the aforementioned credit institutions, notably: the restriction of the range of banking operations, the suspension, alteration or revocation of licence, the appointment of a provisional administration to a credit institution and the re-organisation or liquidation of a credit institution.

11.4.2. Should one Party make a request, the other Party shall provide assistance in tackling the question of transferring funds by a correspondent bank or returning other assets to a respondent bank being liquidated.

11.4.3. The Parties shall seek to guarantee in the course of liquidating a credit institution the principles of equality when meeting the claims of creditors that are residents of the countries of the Parties.

12. The Parties shall guarantee the strict observance of the confidentiality of information received from the other Party at the request of the Party that has passed information. The Parties shall take agreed measures to protect the confidentiality of information when passing it to each other, including the passing of information by telecommunications. The owner of confidential information shall be the Party that has passed such information and it is this Party that shall determine the extent to which a third Party may be accessed to its information.

13. Information received on the basis of this Agreement may not be used for purposes other that those for which it was requested and provided without the consent of the Party that passed such information.

14. Any differences that may arise with regard to the implementation of the provisions of this Agreement shall be settled through consultations and negotiations.

15. This Agreement has been concluded through the exchange of letters and it shall come into force as of the date of its signing by the last Party and shall remain effective until December 31, 2002.

The term of this Agreement shall be automatically extended for each subsequent calendar year if none of the Parties has given notice of its termination before November 1 of the current year.

Chairman of the Central Bank of the Russian Federation

V.V. Gerashchenko

  Chairman of the National Bank of Tajikistan

M.M. Alimardonov

January 28, 2002

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Last updated on: 29/10/2018