The National Bank of Kyrgyzstan draws citizens' attention to the heightened risks associated with handing money to entities that do not hold the appropriate license to attract deposits. Under the legislation of the Kyrgyz Republic, attracting funds as deposits is a banking operation that may be carried out only with the appropriate license from the National Bank.
Who has the right to accept deposits from the public
Only commercial banks, microfinance companies, housing savings credit companies and credit unions (FCOs) have the right to attract deposits, and only within the powers specified in their licenses. According to the National Bank of Kyrgyzstan, the law provides mechanisms to protect the interests of FCO depositors, who are obliged to ensure the safety of deposits and the timely fulfillment of obligations.
Particular risks when dealing with non-banking entities
The National Bank warns that a legal entity holding only a state registration certificate or a license for another activity does not give it the right to attract deposits from the public. Particular attention is paid to cases where commercial organizations that are not FCOs offer citizens to hand over money on the terms of payment, repayment and maturity, formalizing this through loan, investment or partnership agreements.
Key points of regulation
- Attracting deposits is a banking operation.
- Only banks, MFCs, HSCCs and credit unions have the right to take deposits.
- Non-banking organizations cannot attract deposits, even if they are registered.
