Compliance-control

JSC Halyk Bank doing its business, along with the requirements of the legislation of the Republic of Kazakhstan is guided by international principles and standards of banking activities, strives for implementation of best global practices, building effective corporate governance and internal control system. As an integral part of corporate culture the compliance control in JSC Halyk Bank ensures compliance by the Bank and its employees with legislation of the of the Republic of Kazakhstan, internal policies and procedures, as well as compliance with highest professional and ethical standards.

Compliance culture is one of the key elements of corporate behavior and an integral part of the corporate culture of JSC Halyk Bank. Compliance culture of Halyk Group establishes a single concept of work arrangement to ensure compliance with the applicable legislative requirements and international compliance standards.

JSC Halyk Bank takes set of measures aimed at organization of the internal control system for anti-money laundering, combating the financing of terrorism

In pursuance of the Law of the Republic of Kazakhstan "On the Securities Market" in terms of provisions on insider information, JSC Halyk Bank developed the Rules for internal control over the disposal and use of insider information in JSC Halyk Bank, approved by resolution of the Board of Directors dated 20 November 2014 (minutes No.323)

FATCA (Foreign Account Tax Compliance Act) is a US law on the taxation of foreign accounts. The purpose of this law is to combat tax evasion in the US of income earned by US taxpayers through financial institutions outside the US.

Halyk Bank JSC (the "Bank") is registered on the website of the US Internal Revenue Service (IRS) as a financial institution reporting in accordance with the Intergovernmental Agreement on Model 1 (Reporting Model 1 FFI).

As a result of registration, the Bank has been assigned a Global Intermediary Identification Number (GIIN): FQYKVF.00000.LE.398

Form confirming the Bank's status as the beneficial owner of the income received and indicating its FATCA status: Форма W-8BEN-E

The Bank has undertaken to fully comply with FATCA requirements within the time frame established by law. This means that in certain cases, the Bank is required to transfer information about accounts subject to FATCA to the US Internal Revenue Service (IRS) through the authorized bodies of the Republic of Kazakhstan.

In accordance with the Agreement between the Government of the Republic of Kazakhstan and the Government of the United States on improving international tax compliance (11 September 2017), criteria for classifying customers as US taxpayers and methods for obtaining the necessary information have been approved.

In order to determine your tax status in accordance with FATCA, the Bank needs to obtain certain documents.

We hereby inform individual customers and sole proprietors interested in entering into agreements with the Bank about the possibility of disclosing information about their US taxpayer status for FATCA purposes.

You are invited to complete the FATCA Questionnaire for individuals and sole proprietors. When completing the Questionnaire, you will be required to provide the following additional documents depending on your answers to the questions in the Questionnaire:

1) If you are a US citizen or tax resident, you must provide the following documents:

‒ Completed and signed FATCA Questionnaire Form for individuals and sole proprietors Form for individuals and individual entrepreneurs;
‒ Copy of US passport;
‒ a copy of your SSN (Social Security Number) or ITIN (Individual Taxpayer Identification Number) document; and
‒ completed W-9 form indicating your SSN/ITIN number (the W-9 form is available on the US Internal Revenue Service website https://www.irs.gov/pub/irs-pdf/fw9.pdf ).

2) If you were born in the US but are not a US citizen, you must provide the following documents:

‒ a completed and signed FATCA Questionnaire Form for individuals and individual entrepreneurs;
‒ a document proving your identity as a non-US citizen
‒ a copy of the DS 4083 certificate of loss of US citizenship issued by the US Department of State's Bureau of Consular Affairs; or
‒ a written explanation of the absence of US citizenship (e.g., stating the reason why US citizenship was not obtained at birth)(using the template).

Please note that the Bank does not provide advice on how to complete the FATCA Questionnaire and other additional documents for the purpose of establishing a specific taxpayer status for FATCA purposes. Consult your tax advisor about the rules for completing the forms.

You can submit the completed Application Form and the above documents (if available) to a Bank employee at your place of service.

Information about US taxpayers, including data on the Customer's account number at the Bank, account balance, and account transactions, may be transferred by the Bank to the US Internal Revenue Service (IRS) or a person acting on behalf of such authority, to the extent and in the manner prescribed by the legislation of the Republic of Kazakhstan.

We hereby inform corporate customers, including financial institutions, interested in entering into agreements with the Bank, about the possibility of disclosing information about their US taxpayer status for FATCA purposes.

You are invited to complete a Self-Certification Questionnaire or a FATCA Questionnaire for financial institutions as part of the standard identification procedure when applying for services at the Bank. When completing the Questionnaire, you may be required to provide additional documents depending on your answers to the questions in the Questionnaire:

1) If your legal entity is registered in the US, you must provide the following documents:

‒ a completed and signed Self-Certification Questionnaire;
‒ a completed W-9 form indicating your EIN (Employer Identification Number) (the W-9 form is available on the US Internal Revenue Service website) .
‒ a copy of the TIN document (if available).

2) If your legal entity is registered in Kazakhstan (or any other country except the US), but is a Passive INFO and has a beneficial owner who is a US citizen or resident with a share of 25% or more, then such beneficial owner must provide the following documents:

‒ a completed and signed FATCA Questionnaire Form for the beneficial owner,
‒ a copy of the US citizen's passport;
‒ a copy of the SSN/ITIN document;
‒ a completed W-9 form (the W-9 form is available on the US Internal Revenue Service website https://www.irs.gov/pub/irs-pdf/fw9.pdf )with the SSN/ITIN number indicated therein.

3) If your legal entity is a financial institution, you must submit the following documents:
‒ a completed and signed FATCA Questionnaire Form for financial institutions, indicating the GIIN number; or
‒ a completed and signed W-8BEN-E form (if the financial institution has the status of a financial institution not subject to registration on the US Internal Revenue Service portal). The W-8BEN-E form template is available on the Internаl Revenue Service portal.

Please note that the Bank does not provide advice on how to complete the FATCA Questionnaire and other additional documents for the purpose of establishing a specific taxpayer status for FATCA purposes. Consult your tax advisor about the rules for completing the forms.

You can submit the completed forms and the above documents (if any) to a Bank employee at your place of service.

Information about US taxpayers, including data on the Customer's account number at the Bank, account balance, and account transactions, may be transferred by the Bank to the US Internal Revenue Service (IRS) or a person acting on behalf of such authority, to the extent and in the manner prescribed by the legislation of the Republic of Kazakhstan.

(A passive non-financial entity (Passive INFO) is an entity that is not a financial institution and whose income is primarily derived from passive sources, such as: dividends; interest; royalties; rental payments; and the sale of assets that generate passive income (for more details, see the Agreement between the Government of the Republic of Kazakhstan and the Government of the United States on Improving International Tax Compliance)).

CRS (Common Reporting Standard) is a standard for the automatic exchange of information on financial accounts developed by the OECD (Organization for Economic Cooperation and Development). CRS aims to prevent global tax evasion using offshore jurisdictions and to ensure the transparency of tax information

In June 2018, the Republic of Kazakhstan signed a multilateral agreement between competent authorities on the automatic exchange of information on financial accounts (hereinafter referred to as the Multilateral Agreement). This Multilateral Agreement provides for the implementation of a uniform standard for the automatic exchange of information (CRS) on the financial accounts of taxpayers of countries included in the list of OECD countries, held by financial institutions around the world.

For CRS purposes, the Bank must determine whether you are a “tax resident” of one of the reporting jurisdictions/countries that have signed the Multilateral Agreement.

In order to confirm your tax residency, a Bank employee may ask you clarifying questions and ask you to fill out the appropriate self-certification form. We recommend that you notify the Bank of any changes that would render the information provided in this form inaccurate by contacting any branch of the Bank, where you will be asked to complete the relevant self-certification form again.

Please note that the Bank does not provide advisory services on determining tax residency in accordance with CRS requirements. For more information on this issue, please contact your tax advisor or refer to the information on tax residency for different countries on the Organization for Economic Cooperation and Development portal: https://www.oecd.org/en/networks/global-forum-tax-transparency/resources/aeoi-implementation-portal/tax-residency.html#d.en.347760