National Bank outlines major provisions of the recently adopted law on e-money

Following the signing of the draft law on e-money by President Nazarbayev July 21, the National Bank of Kazakhstan outlined the major provisions of the law. They are as follows:1) E-money shall be only issued by banks, whereas non-banking institutions (legal entities) will be able to act as sales agents and handle with e-money-involving operations.2) E-money will be issued only on an advance-payment basis.3) Issuing banks shall accept the e-money or exchange it for paper money at par value on demand of the e-money holder.4) The issuing bank shall demand for the e-money purchaser’s IDcard in case the latter purchases a bit over $1000. A single transaction should not exceed $5178.Banking services related to e-money will be exempt of VAT.Respective amendments have been introduced into all the applicable legislation.