Requirements to the AUB customers

November 30, 2007

In view of the international terrorism threat which has increased of late years, the world bank community undertakes more and more serious actions in order to resist using of banks for legalization of illicitly-acquired funds and financing of terrorist activities.

Serving customers worldwide, AUB is also actively involved in this process. From time to time our correspondent-banks direct us inquiries on some payments that arouse suspicions. These inquiries contain solicitation for giving detailed information on performed operations, their economic purport, on payers and addressees. We address an urgent request to You: please, render us assistance in this work and observe the following requirement:

1. Client Questionnaire
   Each customer is required to completely fill out a hard copy of the Client Questionnaire and provide it to the Bank. Please, pay attention to the following:
1. The Client Questionnaire requires indicating no more than two types of business activities (one of which is the major type of activities and the other one has to be similar or affiliated to the major type of activities).
2. For Clients – residents of the Kyrgyz Republic - the Client Questionnaire makes it possible to indicate up to 5 unrelated types of business activities.
   
   AUB reserves the right to suspend all transactions of the Clients who have not submitted the filled out Client Questionnaire. The accounts will remain blocked until full completion of the Questionnaire.
   
   
2. Identification card of a final beneficiary
   Each Client is also required to fill out the "Identification card of a final beneficiary" where s/he should specify a final beneficiary.
   
   

   The Bank reserves the right to block the accounts of the Clients which have not filled out the "Identification card of a final beneficiary".

3. Funds’ origin (sources) chart
   While opening an account natural persons are required to fill out the “Funds’ origin (sources) chart” further to the Client Questionnaire. The same requirement applies to performing transactions without opening an account.
   
   AUB reserves the right not to execute any transactions on the client account or any transactions without opening an account if the Client has not filled out the “Funds’ origin (sources) chart”.
   
   
4. A validity period of payment orders
   All the payment orders provided to the Bank remain valid within 10 calendar days from the date specified in such payment orders. At the expiration of the above mentioned time period, Clients should provide the Bank with new payment orders.
   
   
5. Compliance of payments to the type of activities
   All transactions should comply with the respective company’s major type of activities. Otherwise, such transactions will be rejected. If Clients settle up their payments to purchase commodities, services and/or equipment for the company’s logistic needs, which are not directly related to the company’s major type of activities, they should clearly state it in the payment details.
   
   
6. Payment details
   While making a payment order AUB Clients should indicate a number and a date of the contract, commercial invoice, and a concrete payment purpose in the “Payment Purpose” column to support any payment transaction despite its amount. Descriptive generalizations and unclear statements such as “construction equipment”, “auto parts”, “spares”, industrial equipment”, “securities”, “goods” and similar, are not acceptable.
   
   
7. Payments for services and securities
   If AUB Clients execute payments to pay for any consulting or other services or purchase any securities they should provide clear description of such services or consultations received, types of securities purchased and detailed information of their issuer, etc.
   
   Any payments from USD 30. 000.00 upwards (or equivalent amount in other currency) to settle the “advisory services”, “marketing researches”, regular and/or one-time “analytical reports” or “business forecasts” should be in advance justified without fail by relevant contracts and other concomitant documentations.
   
   The similar requirements apply to “payments for securities”. AUB clients are requested to clearly indicate what type of securities (a number and a price for one unit) they mention in the payment details.
   
   
8. Transactions with loans
   If a payment’s purpose is a loan or a financial assistance, AUB Clients have to indicate their purpose. If the purpose is reimbursement of the loan they should specify a number and a date of a relevant loan agreement. Any such payments from USD 30. 000.00 upwards (or equivalent amount in other currency) should be in advance justified without fail by relevant contracts and other concomitant documentations. In addition, the Clients should provide the Bank with the letter describing:
1. Type of relationships with its business partners (Affiliated company, companies related to the same holding company and etc.),
2. Loan guarantee and other information which is necessary to understand the economic purport of the transaction.

If the foregoing information is covered in the Loan agreement, it is sufficient to provide the Bank with an electronic copy of the agreement. Such agreements should fully correspond to the generally accepted rules of developing agreements and AUB requirements.


9. Remittance of large or “round” amounts of money
   If AUB Clients execute any payments from USD 500.000 upwards (or equivalent amounts in other currencies) or any “round” sums (multiple of 10.000 (e.g. 10.000, 20.000, 30.000 and so on), they have to provide in advance the relevant contracts specifying the merchandise and/or services. If the contract assumes split payments, AUB Clients should provide a separate invoice or other document (e.g. Supplementary Agreement) to justify each payment.
   
   AUB reserves the right to suspend any payment consisting of several remittances (each constituting less than USD 500.000.00 or equivalent amounts in other currencies) executed within 1-3 days in favor of the same beneficiary until provision of the relevant contract, invoice or any other supporting documentation duly worked out and clearly stating economic purport of splitting the payment into several remittances. Any delay in provision of the mentioned documentation will result in suspension of the payment. Similar requirements apply to series of payments with like purposes.
   
   AUB reserves the right to request additional supporting documentation if a purpose of any payment and economic purport of any transaction are dubious.
   
   
10. Transactions that involve natural persons
    The Bank makes high demands of understanding the economic purport of any payments in favor of natural persons since the Kyrgyz Republic legislation prohibits natural persons from using their accounts for conducting any commercial activity. AUB will execute transactions that involve natural persons in the event that the transactions are:
1. transfers of salaries, author's emoluments or royalties, pension allowances, alimonies, and social benefits,
2. transfer of funds from other     deposit account of the same natural person,
3. payments related to inheritance,
4. payments for sale of personal property belonging to the account holder,
5. as well as other once-only incomings  and payments which are not related to commercial or similar activities of natural persons.

The Bank’s web site contains “Samples of payment purposes for natural persons who are not related to any commercial activities”, which may be used while performing such payments.

If any transactions are performed for commercial activities, (payments for goods, etc.) a natural person should provide the Bank with a license for respective type of activities.


11. Provision of incorrect documentation
    AUB reserves the right to reject any payments justified by the documentation (agreements, invoices and etc.) containing “gross” blunders and/ or “logical” inconsistencies.
    
    
12. The deadlines for provision of payment information
    All information requested by the Bank in order to clarify any Client transaction (incoming or outgoing money transfers) should be provided within 5 business days after receiving the request.
    
    All documents that are requested by the Bank should be provided within 5 business days after receiving the request.
    
    AUB reserves the right to suspend any transactions on the Client account if it does not receive a comprehensive response to its request in a due time.
    
    
13. Transactions in favor or on behalf of third parties
    OJSC “AsiaUniversalBank” reminds of the ban imposed on any external payments in favor of or on behalf of any third parties in conformity with the Bank’s Compliance procedures. In case of detecting of such transactions AUB reserves a right to reject or forthwith withdraw the respective payment orders. All the Bank’s expenses incurred in respect to above will be charged off the Client account without acceptance.
    
    
14. Use of anonymous bank accounts for banking transactions
    We would remind you that any transactions that use anonymous bank accounts, as well as transactions without identification of contractors and/or clients are prohibited according to the Kyrgyz Republic legislation requirements and the Bank’s Compliance procedures.   In case of detecting of such transactions AUB reserves a right to reject or forthwith withdraw the respective payment orders.
    
    
15. The English language
    For the reason that English is a language of international communication, all the payment details should be completed in English. If the payment details are completed in other languages, it may cause various problems related to understanding of the economic purport of such transactions, which may result in request to provide some additional supporting information and, in turn, in a delay of transactions.

Note:
AUB regularly revises the present requirements. The Bank will keep its Clients informed of every updates and supplements.

We appreciate Your understanding and cooperation.
 If You have any questions, please, contact with Your account manager for detailed information.