The Cabinet of Ministers of the Republic has approved a decree appointing Capital Bank of Central Asia OJSC as a settlement bank for most cross-border transactions in Russian rubles.

The initiative, presented as a pilot project, will operate for six months.

According to the order, Kapital Bank will be authorized in the following areas:

• processing ruble transfers of individuals between Kyrgyzstan and Russia, including mobile transfers and transactions without opening an account;
• carrying out cross-border settlements between legal entities (except for companies subject to separate tax regimes);
• execution of exchange transactions with Russian rubles, if the volume per month exceeds three million rubles per customer.

The Bank is required to strictly comply with national legislation, including compliance and anti-money laundering requirements. The National Bank is instructed to ensure regulatory support of the project and control over its implementation.

Recall that on April 1 of this year, an agreement was finalized, according to which 100% of the shares of the bank were transferred to the Ministry of Finance of Kyrgyzstan.