On currency regulation and currency control



in foreign economic relations



 

(Statements of the Mejlis of Turkmenistan, 2011, no. 4, p. 74)
 
(With amendments made by the Turkmenistan law dated 29.08.2013 № 429-IV and from 27.03.2015 No. 211-V) this Act establishes the legal bases and principles of currency regulation and currency control in foreign relations, aimed at holding a single State monetary policy in Turkmenistan to ensure stability of the national currency, the stability of the exchange market of Turkmenistan defines the competence of currency regulation authorities, rights and obligations of residents and non-residents of its organs and agents, foreign exchange controls.
 
Section i. General provisions article 1. The basic concepts used in this law



 

In this Act, the following basic concepts are used: 1) currency: a) _denežnye characters in the form of banknotes, Treasury bills and coins, including those made of precious metals, taken in the State (States) as legal tender in circulation (including seized or withdrawn from circulation, but to be exchanged for banknotes in circulation);
b) _sredstva in bank accounts (deposits) in monetary units, taken in the State (States), as well as in international monetary or settlement units;
2) currency − currency of Turkmenistan, èmitiruemaâ Central Bank of Turkmenistan for its use in the calculations and payments;
3) foreign currencies foreign currency − the State as well as international money or payment unit;
4) _valûtnyj course − price of the currency of one State (States) expressed in the currency of another State (States), including: a) the official exchange rate set by the Central Bank of Turkmenistan;
b) market exchange rates established participants in the foreign exchange market on the basis of supply and demand;
5) _rezervnaâ currency − the main type (basic types) freely convertible currency (in international transactions exchanged without restrictions) Turkmenistan foreign trade activities;
6) _valûtnye values: a) _nacional′naâ currency, securities and payment documents, the denomination of which is expressed in the national currency, in the case of operations with them between residents and non-residents, as well as between non-residents;
b) _inostrannaâ currency;
in) _cennye paper (stocks, bonds and otherwise), as well as payment documents (cheques, drafts, letters of credit and otherwise) in foreign currency;
7) − account _valûtnyj account (deposit) in the authorized credit institution to open an individual (including physical person-businessman without formation of the legal person) or legal person (branch establishment), designed for storage and accounting of currency valuables and currency transactions;
8) currency transactions: a) _transactions, related to the transfer of ownership and other rights in currency values, as well as the use of foreign currency as a means of payment;
b) importation to the customs territory of Turkmenistan and export from the customs territory of Turkmenistan currency values;
) _perevod currency values from the account (deposit), open outside the territory of Turkmenistan, on account (deposit) of the same person, open on the territory of Turkmenistan, and from the account (deposit), open on the territory of Turkmenistan, on account (deposit) the same person outdoor outside the territory of Turkmenistan;
9) _rezidenty: a) _fizičeskie persons-citizens of Turkmenistan (including individual entrepreneurs without formation of legal entity), permanently residing on the territory of Turkmenistan or temporarily residing outside Turkmenistan, with the exception of citizens of Turkmenistan with the document on the right of abode in a foreign country, in accordance with the legislation of that State;
b) _fizičeskie persons-foreign citizens and persons without citizenship (including individual entrepreneurs without formation of legal entity) with a document on the right of residence on the territory of Turkmenistan, issued in accordance with the legislation of Turkmenistan;
) _ûridičeskie persons established in accordance with the legislation of Turkmenistan, (their branches, representative offices) located on the territory of Turkmenistan and abroad;
g) _diplomatičeskie representation, consular institutions of Turkmenistan and other official representative offices of Turkmenistan outside Turkmenistan, as well as the permanent missions of Turkmenistan at inter-State, intergovernmental and international organizations;
10) _nerezidenty: a) _fizičeskie non-residents pursuant to subparagraphs a and b of paragraph 9 of this part;
b) _ûridičeskie person created in accordance with legislation of foreign States outside Turkmenistan;
) _organizacii that are not legal persons established in accordance with the legislation of foreign States outside Turkmenistan;
g) _ branches, representative offices and other subdivisions of non-residents referred to in subparagraphs "b" and "b" of this paragraph, are situated in the territory of Turkmenistan;

d) _diplomatičeskie representation, consular institutions of foreign States accredited in Turkmenistan, and the permanent missions of these States when Interstate, intergovernmental and international organizations;
e) foreign States, their administrative-territorial units;
f) _mežgosudarstvennye, intergovernmental organizations, international organizations, their branches and permanent representation in Turkmenistan;
w) _inye of a person not referred to in paragraph 9 of this part;
11) authorized non-bank credit institutions-non-bank credit institutions authorized in accordance with the legislation of Turkmenistan to conduct certain types of banking operations with currency values on the basis of the license of the Central Bank of Turkmenistan;
12) _upolnomočennye credit institutions: (a)) and _banki non-resident credit institutions established in accordance with the legislation of Turkmenistan and eligible on the basis of the license of the Central Bank of Turkmenistan implement any or certain types of banking operations with currency values;
b) _zaregistrirovannye and acting on the territory of Turkmenistan in accordance with the license of the Central Bank of Turkmenistan the branches of banks and other financial institutions-non-residents, created in accordance with legislation of foreign States have the right to exercise any or certain types of banking operations with currency values;
 13) _inostrannye credit institutions: (a)) _banki, as well as other financial institutions established outside Turkmenistan and having the right to carry out banking operations according to the laws of the States in which they are registered;
b) _ branches, representative offices of authorized credit institutions of Turkmenistan, registered and operating outside of Turkmenistan in accordance with legislation of foreign States have the right to exercise any or certain types of banking operations;
14) _ authorized banks − eligible banks on the basis of the license of the Central Bank of Turkmenistan carry out banking operations and transactions with currency values;
15) _valûtnaâ exchange − the legal entity or its separate unit established in accordance with the legislation of Turkmenistan, whose main activity is the Organization of exchange trades foreign currency transactions in the manner and under the conditions established by the legislation of Turkmenistan;
 16 _obmennye operation) − exchange of one currency for another, i.e., the purchase and sale of foreign currency for domestic currency (convert) and other foreign currencies (conversion), in which the proportions of Exchange are installed via the quote or exchange rate;
17) para _obmennyj − a specially equipped place for carrying out of Exchange operations with cash foreign currency;
18) authorized broker institution involved in trade transactions of purchase and sale of foreign currency on its behalf on behalf and for the account of the client in accordance with the licence granted to him;
19) _upolnomočennyj dealer − credit institution participating in commercial transactions of purchase and sale of foreign currency on its behalf and at its own expense in accordance with a licence granted to him;
20) _valûtnaâ position − ratio requirements (sum of purchased and (or) currency proceeds) and liabilities (sum of sold and (or) currency used) dealers in foreign currencies including off-balance sheet transactions, which in the case of requirements and obligations for a particular currency is considered closed, and when they mismatch-open: a) _otkrytaâ short open foreign exchange position − excess liabilities and liabilities sold and/or consumed currency over assets and requirements (appearance of a shortage on the currency);
b) _otkrytaâ long currency position − excess assets and requirements for purchased and/or exchanged currency over liabilities and obligations (currency inflows exceeded outflows, exceeding her purchase and (or) currency proceeds on her sale and (or) expenditure);
21) _predel currency position − standard is extremely short or long open foreign exchange position authorized dealers at the end of the banking day;
22) _torgovye credits − deferred payment export prepayment (advance payment) to import or export (excess) of the curve over the import when mutual deliveries under the contract of barter, carried out directly between vendors (sellers) and beneficiaries (buyers) of goods (works, services);
23) direct investment: a) the possession, acquisition investor no less than ten percent of the shares (shares, contributions) in the share capital of the newly created or newly created legal entity;
b) investing in fixed assets created branch of a legal entity;
24) _meždunarodnye reserves of Turkmenistan: a) _affinirovannoe gold bullion, foreign currency banknotes and coins, as well as foreign currency balances in bank accounts (deposits) outside Turkmenistan;
b) _pravo to acquire from International Monetary Fund part of its reserves, special drawing rights of the International Monetary Fund;
) _vypuŝennye or guaranteed by foreign Governments or central banks of foreign countries or international financial institutions liabilities payable in foreign currencies;
g) other assets, as defined by the Board of the Central Bank of Turkmenistan in agreement with the Cabinet of Ministers of Turkmenistan;

25) _predel freely obraŝaemoj currency − magnitude in reserve currency (or its equivalent in national or foreign currency) is the Central Bank of Turkmenistan, within which a one-time currency operations for residents and non-residents, established by this law, shall be carried out without the use of restrictive measures;
26) banking day − period, set aside in the Bank for the reception and customer service, the execution of banking operations;
27) currency regulation − activity of currency regulation authorities to establish an order for the treatment of currency values, including the rules of ownership, use and disposal;
28) − exchange control authorities and agents of currency controls aimed at ensuring compliance with the requirements of the legislation of resident and non-residents of Turkmenistan in the area of currency regulation and currency control (hereinafter referred to as the monetary legislation of Turkmenistan);
29) foreign exchange contract − contract, agreement, contract, articles of incorporation, including amendments and additions thereto, as well as other documents, based on and (or) pursuant to which open accounts (deposits) foreign exchange transactions;
30) _èksport − exportation of goods (works, services), results of intellectual activity, including exclusive rights to them from the customs territory abroad without obligation to reimport if realization of goods (works, services) by a resident to a non-resident. Fact is fixed at the time of export of the goods crossing the customs border of Turkmenistan, services and rights to results of intellectual activity;
31) _import − import of goods (works, services), results of intellectual activity, including exclusive rights to them, into the customs territory from abroad without the obligation of re-exportation during the realization of goods (works, services) nonresident resident. The fact that the import is fixed at the time the goods crossing the customs border of Turkmenistan, services and rights to results of intellectual activity.


 



Article 2. Currency law of Turkmenistan



 



1. Monetary legislation of Turkmenistan is based on the Constitution and consists of this law and other normative legal acts of Turkmenistan on currency regulation and currency control.

2. If an international treaty to which Turkmenistan stipulates other rules than those contained in this Act, the rules of the international treaty shall apply.
 


Article 3. The scope of the present law

 
1. This law shall apply to residents and non-residents, carrying out foreign exchange operations on the territory of Turkmenistan, as well as residents, carrying out currency transactions outside Turkmenistan.
2. the provisions of this Act apply with the peculiarities of conducting foreign exchange operations established by the tax laws of Turkmenistan, Turkmenistan law "on hydrocarbon resources" and other normative legal acts of Turkmenistan.
3. this law shall be applied to relations arisen after its entry into force, except in cases expressly provided for in this Act.


 



Article 4. Principles of State policy in the area of currency regulation and currency control

 
Principles of State policy in the area of currency regulation and currency control are: 1) the use of market mechanisms in the implementation of State policy in the area of currency regulation;
2) protection of the rights and economic interests of residents and non-residents in carrying out foreign exchange operations;
3) unity of the system of currency regulation and currency control;
4) the inadmissibility of unjustified interference of foreign exchange controls in currency operations for residents and non-residents.
 
SECTION II. CURRENCY REGULATION Chapter 1. Currency regulation authorities. Basic methods and techniques of currency regulation



 



Article 5. Currency control bodies 1. Currency regulation authorities in Turkmenistan are the Cabinet of Ministers of Turkmenistan and Central Bank of Turkmenistan.
2. The Cabinet of Ministers of Turkmenistan: 1) defines the State policy in the field of monetary regulation;
2) publishes the normative legal acts of Turkmenistan in the area of currency regulation;
3) exercise other functions in the area of currency regulation.
3. The Central Bank of Turkmenistan: a) is responsible for licensing of banking credit institutions authorised to conduct banking operations and transactions with currency values;
b) defines the procedure for the treatment of currency values on the territory of Turkmenistan, including the implementation of currency operations for residents and non-residents;
in) within the limits of its competence, normative legal acts of Turkmenistan in the area of currency regulation, mandatory for residents and non-residents;
g) sets the official exchange rates of foreign currencies against the national currency;
d) establishes the form of accounting and reporting on currency transactions, procedure and deadlines for their submission, mandatory for residents and non-residents;
(e)) establishes the procedure for the submission of both residents and non-residents information about their foreign exchange transactions in order to draw up a balance of Turkmenistan;
f) exercise other functions in the area of currency regulation.

4. Residents and non-residents the right to carry out foreign exchange transactions, open accounts (deposits) and conduct transactions on accounts (deposits) without limitation, if currency control bodies in accordance with monetary laws of Turkmenistan establishes the procedure for the implementation of foreign exchange transactions and how to use accounts (deposits).
5. The Cabinet of Ministers of Turkmenistan and Central Bank of Turkmenistan shall exercise all kinds of foreign exchange operations regulated by this law, without restrictions.
 


Article 6. Basic methods and techniques of currency regulation



 

1. The principal methods of monetary regulation are: 1) the licensing of banking transactions with currency values;
2) registration of currency transactions accounts (deposits);
3) notification of foreign exchange transactions, accounts (deposits).
In some cases, registration of foreign exchange transactions and (or) conduct monetary operations with notification can be replaced with the passport of the bargain.
2. the use of different methods of currency regulation with respect to one type of currency transaction is not allowed.


3. retail trade and services for cash currency on the territory of Turkmenistan are carried out by residents and non-residents in national currency only, except in cases provided for by the currency legislation of Turkmenistan, Turkmenistan law "on hydrocarbon resources", acts of the President of Turkmenistan.



4. Residents and non-residents are not required to obtain the permission of currency regulation authorities for the implementation of retail and services for cash foreign currency in the customs regime of duty-free shop, as well as on the sea, inland waterways, air, rail and road transport, transit international transport.

5. it is not allowed to establish currency regulation authorities of the requirement for resident and non-resident permits individual character to hold currency transactions unless otherwise provided by the legislation of Turkmenistan.
6. Basic ways of currency regulation are: 1) the repatriation of residents in national and foreign currency;


2) compulsory sale residents part of foreign exchange earnings;



3) deductions in monetary reserve of Turkmenistan.

 


Article 7. Licensing of banking to conduct banking operations and transactions with currency values



 

Licensing of banking credit institutions authorised to conduct banking operations and transactions with currency values, are carried out by the Central Bank of Turkmenistan in the manner prescribed by the legislation of Turkmenistan.


 



Article 8. Registration of foreign exchange transactions, accounts in foreign credit institutions



 

1. capital transactions between residents and non-residents with the amount of foreign exchange contract, exceeding the limit of freely obraŝaemoj currency, as well as the opening of accounts in foreign resident credit institutions, subject to registration in the order established by the monetary legislation of Turkmenistan.
Under registration registrations monetary treaty and subsequent reporting of the foreign exchange transactions and changes to monetary treaty.
2. Registration shall be: 1) capital transactions between residents and non-residents related to the provision of trade credit, implementation of direct investments, loans, loans and bank loans, and the placement of funds in trust to the accounts (deposits);
2) opening of legal entities-residents (their branches, representative offices) accounts in foreign credit institutions.
3. For the purposes of the registration of currency transaction flows between resident and nonresident resident is in an authorized credit institution serving his account: 1) application for the registration of currency transaction that contains information about the amount of the monetary agreement;
2) a copy of the passport or other identity document-for physical persons;
3) a copy of the registration certificate and the relevant patents-for the physical person-businessman without formation of the legal person;
4) a copy of an extract from the unified State Register of legal entities-for legal entities;
5) a copy of the decision of the Cabinet of Ministers of Turkmenistan to conduct foreign exchange operations, capital-for legal entities of State ownership (branch, Representative Office);
6) a copy of the Protocol, decisions of the owner (owners) of a legal entity to conduct foreign exchange operations, capital-for legal entities non-State form of ownership (branch, Representative Office);
7) copy of the monetary agreement;
8) copies of documents certifying the origin, performance and termination of obligations under the monetary agreement.
4. For the purposes of the registration of an account opened at a foreign credit institution in accordance with paragraph 2 of part two of this article, a legal person is resident in the authorized credit institution serving his account: 1) a request for registration, stating the name of the country opening an account and complete the name of a foreign credit institution with which to open the account;
2) a copy of an extract from the unified State Register of legal entities;
3) copy of certificate on State registration of legal entity;

4) a copy of the decision of the Cabinet of Ministers of Turkmenistan about opening an account in a foreign credit institution − for legal entities of State ownership (its affiliate, Representative Office);
5) copy of a constituent instrument, the Protocol of general meeting of founders, including the Protocol, decisions of the owner (owners) of this legal person on opening an account in a foreign credit institution-for legal entities non-State form of ownership (its affiliate, Representative Office);
6) a copy of the Statute (regulations) resident legal entity (branches, representative offices).
5. The authorized institution has the right to request original documents to a specified in the third and fourth parts of this article, as well as other documents for their comparison with copies, confirming the possibility of performing a resident conditions monetary treaty. Copies of these documents shall be certified with a signature and seal (if any) the resident.
6. Application for registration of a currency transaction and account is considered an authorized credit institution within ten banking days from the date of its receipt.
After expiration of the authorized institution is obliged to register (issue a registration document) or submit a motivated refusal to register.
7. the refusal in registration is allowed only in the following cases: 1) presentation of a non-exhaustive list of documents required for registration;
2) inconsistencies the documents submitted, the requirements of the legislation of Turkmenistan;
3) identification of the documents submitted unreliable information;
4) the availability of non-resident to be the conclusion of a monetary treaty, outstanding debt within the prescribed period before the residents on currency transactions with the sum of the monetary capital account contract, exceeding the limit of freely obraŝaemoj currency;
5) If on the day of treatment for resident registration, an account in a foreign credit institution was opened;
6) enactment in accordance with the laws of Turkmenistan prohibit (restrictions) to hold currency transactions of capital movements between residents and non-residents or ban (restrictions) on the opening of accounts in foreign resident credit institutions.
The denial of registration for different reasons, including denial of explanations lack economic feasibility of opening an account in a foreign credit institution and carry out foreign exchange transactions shall not be permitted.
8. Refusal of registration may be challenged in the courts.
9. When you close an account in a foreign credit institution the resident legal person represents an authorized credit institution serving its monetary account, written statement on its closure with the full names of the foreign credit institution in which the closed account, and written confirmation of a foreign credit institution on the closure of the account.
 


Article 9. Notification of foreign exchange transactions, accounts of foreign credit institutions



 

1. capital transactions between residents and non-residents with the amount of foreign exchange contract, exceeding the limit of freely obraŝaemoj currency, as well as opening (closing) resident accounts in foreign credit institutions, are made with notice as prescribed monetary legislation of Turkmenistan.
Under notification registrations monetary treaty and subsequent reporting of the foreign exchange transactions and changes to monetary treaty.
2. Notification shall be: 1) capital transactions between residents and non-residents related to participation in the authorized capital not exceeding ten percent, as well as the acquisition of ownership of real estate abroad or exclusive rights to intellectual property objects;
2) opening (closing) businessmen without formation(education) of the legal person-resident accounts in foreign credit institutions.
3. Residents after the conclusion of the monetary treaty and for monetary transactions notify the authorised credit institution serving their Exchange account, no later than ten business days from the day of the monetary transaction.
 


Article 10. Transaction Passport 1. In order to ensure that accounting and reporting currency transactions transaction passport is issued, which shall present information about foreign trade transaction.
2. form of transaction passport, its terms and conditions of registration, as well as the types of currency transactions, which requires registration of transaction passport, are set by the Central Bank of Turkmenistan.
 


Article 11. Repatriation of residents in national and foreign currency



 

1. National and foreign currency due to residents for foreign trade transactions with non-residents, shall be credited to the accounts of the repatriation of residents in authorized credit institutions, unless otherwise provided by the legislation of Turkmenistan.
2. Residents are obliged within the time limits specified in the conditions of foreign trade transactions with non-residents, to ensure that: 1) to receive from a non-resident national or foreign currency, payable to the resident in accordance with condition of the export transaction;
2) return national and foreign currency, transferred in favor of non-resident to implement settlement of import transaction, in case of failure and (or) partial fulfillment of obligations by a non-resident.

3. Residents may not be credited to their accounts in the authorized credit institutions national and foreign currency: 1) in the cases of foreign-currency earnings credited to their accounts with foreign credit institutions in the manner prescribed by this law;
2) in the case of counterclaims for the obligations of the standings between residents and non-residents;
3) in other cases stipulated by the legislation of Turkmenistan.
4. The amounts of domestic and foreign currency not obtained on account of residents in authorized credit institutions when carrying out calculations on export and import transactions, the obligation to deposit funds in favor of the resident, in accordance with this law shall be considered fully or partially executed in the following cases: 1) termination of the undertaking by the non-resident competition counterclaim;
2) cessation of the obligations of the non-resident in connection with the replacement of the initial obligation existing between them, another obligation between the same persons, providing another subject or way to execution;
3) assignment to another person to a non-resident;
4) receiving of insurance indemnity upon occurrence of an insured event under insurance of the risk of non-performance of obligations by a non-resident.
5. in order to ensure compliance with the requirements of the resident repatriation settlement payments between residents and non-residents in export and import transactions, the amount of the currency of the contract each of which exceeds the limit of freely obraŝaemoj currency, are carried out with the execution of a pit.
When this transaction Passport not issued in export and import transactions, monetary amount of the contract does not exceed the limit of freely obraŝaemoj currency on the date of the conclusion of the exporter and importer of foreign exchange contract.
6. export and import transactions concluded by the residents are required to specify a specific time of performance of obligations to non-residents.
7. the provisions of this article shall not apply to credit institutions and authorised currency exchanges effecting transactions in national and foreign currency in accordance with the legislation of Turkmenistan.
 


Article 12. Payments in foreign exchange reserve of Turkmenistan 1. In order to ensure an adequate level of international reserves in the Central Bank of Turkmenistan is formed by the monetary reserve of Turkmenistan.
2. Resident legal entities of State ownership (their branches, representative offices) contribute from their amount of foreign currency in the foreign exchange reserve of Turkmenistan. The list of legal entities (their branches, representative offices) of State ownership and sizes of deductions in the monetary reserve of Turkmenistan are established by acts of the President of Turkmenistan.
3. the sum of foreign currency proceeds from which to expel the foreign exchange reserve of Turkmenistan includes income on the accounts in the authorized foreign banks and foreign currency owed by residents signed the deals, as well as other kinds of receipts in foreign currency, established by regulatory acts of the President of Turkmenistan.
4. Expulsion in the monetary reserve of Turkmenistan is the unconditional commitment of the resident, which marks them yourself or service authorized lending institution under agreement no later than five working days following the day the documentary identification of funds received in foreign currency.


 



Article 13. Compulsory sale of foreign currency proceeds part 1 residents. Resident legal entities of State ownership are selling by the Central Bank of Turkmenistan for purposes of fulfilment of currency intervention part of foreign exchange earnings, remaining at their disposal engine after deductions in the monetary reserve of Turkmenistan.
2. the compulsory sale of foreign currency shall be established by regulatory acts of the President of Turkmenistan.
3. The amount of the compulsory sale of foreign-currency earnings includes income of foreign currency accounts in the authorized foreign bank and owed by residents signed transactions, with the exception of: 1) amounts in foreign currency received by the Cabinet of Ministers of Turkmenistan, by the authorized organs of executive power, the Central Bank of Turkmenistan from operations and transactions carried out by them within their competence;
2) amounts in foreign currency received by the authorized banks from their banking transactions and other transactions, in accordance with the legislation of Turkmenistan;
3) foreign exchange earnings of residents within the amount necessary for the performance of obligations under contracts of residents loans, loan agreements and loan agreements with non-residents, which are agents of foreign Governments.
4. the total amount of foreign exchange earnings of residents before the mandatory sale of parts is subject to reduction on costs and other charges related to the execution of the relevant transactions, payments on which are carried out in a foreign currency. These include: 1) payment of transportation, freight forwarding and cargo insurance;
2) payment of export customs duties and customs fees;
3) the payment of the Commission fee credit institutions;
4) amounts owed to foreign tourism enterprises for providing tourist services;
5) other costs and fees for operations, a list of which is determined by the acts of the President of Turkmenistan.

5. Compulsory sale of part of the foreign exchange earnings is unconditional obligation of the resident, which turns them to or serving his authorized lending institution under agreement no later than five working days following the day the documentary identification received funds in foreign currency.
6. mandatory sale of part of the foreign exchange earnings of residents is carried out according to the official exchange rates of the Central Bank of Turkmenistan, set on the day of the sale.
 


Article 14. The right to non-residents on the export of currency values 1. Non-residents in accordance with the legislation of Turkmenistan may, without limitation: 1) vvezënnye previously exported to the territory of Turkmenistan currency values;
2) receive and remit dividends, royalties and other income earned on accounts (deposits), deposits, loans, bank loans, securities and other monetary capital transactions with residents;
3) transfer the excess of income over expenditure, earned on currency transactions with residents.
2. non-resident transfers are carried out in accordance with the monetary agreement. In the absence of monetary treaty or relevant provisions of it transfers in national currency or any foreign currency at market exchange rates, in accordance with the rules of Exchange operations, applied at the date of such transfer.
3. In accordance with the monetary contract funds are transferred to a non-resident bank accounts (deposits) opened in his name.
4. Transfer funds to bank accounts (deposits) third parties, both individuals and legal persons not party to the monetary treaty shall not be permitted. This does not apply to monetary agreements involving the opening of transfer (transferable) credit.
 


Chapter 2. Currency transactions



 



Article 15. Currency transactions between residents



 

1. Calculations and payments for transactions between residents in the territory of Turkmenistan are made in national currency.
2. Currency transactions between residents in the territory of Turkmenistan is not allowed, except for: 1) related to transactions between resident credit institutions authorised, including the purchase and sale of foreign currency on the currency markets, their both on behalf and for the account of clients, and on its own behalf and at its own expense;
2) with currency valuables between residents and resident credit institutions, related to banking operations and transactions that may perform the authorized credit institutions in accordance with the license it has issued and (or) the legislation of Turkmenistan;
3) relating to the acquisition, sale and (or) redemption of securities, as well as the payment of rewards on securities issued by residents in foreign currency, and securities issued by non-residents, subject to the accounting rights to such securities in depositaries established in accordance with the legislation of Turkmenistan and the implementation of payments in national currency;
4) related to the transfer (endorsement) bills of Exchange denominated in foreign currency, as performance of monetary obligations subject to payments in national currency;
5) associated with the calculations in duty-free shops, as well as in the sale of goods and provision of services to passengers in transit vehicles in international traffic;
6) between komissionerami (agents, attorneys) and clients (principals, principals) when providing komissionerami (agents, attorneys) services related to the conclusion and performance of contracts with non-residents on the transfer of goods (works, services);
7) carried out on contracts for the international freight forwarding, carriage and Charter (Charter) in providing freight forwarder, carrier and freighter services related to shipping in Turkmenistan or from Turkmenistan, transit cargo through the territory of Turkmenistan, as well as insurance contracts specified goods;
8) associated with the gratuitous transfer of money or donation currency values for treatment, education and other charitable purposes;
9) for storage, donation, bequest or inheritance by right of currency values individuals;
10) relating to the acquisition and alienation for collecting single currency and coins by individuals;
11) to reimburse travel, entertainment and other expenses of the staff based outside Turkmenistan;
12) to recover costs for supporting activities of the branch, representation of a resident legal person residing outside Turkmenistan;
13) on the payment of wages and other remuneration for individuals-residents, working in a branch or representation of a resident legal person located outside Turkmenistan;
14) reimbursement to ensure operation of the diplomatic missions, consular and other official missions of Turkmenistan Turkmenistan outside Turkmenistan, as well as the permanent missions of Turkmenistan at inter-State, intergovernmental or international organizations;

15) concerning the payment of wages and other remuneration for individuals-residents, working in the public service in the diplomatic, consular and other official missions of Turkmenistan Turkmenistan outside Turkmenistan, as well as the permanent missions of Turkmenistan at inter-State, intergovernmental or international organizations;
16) related to the implementation of transactions between residents and persons, who are contractors and subcontractors in accordance with the Turkmenistan law "on hydrocarbon resources";
17) relating to the payment of taxes and other obligatory payments to the State budget of Turkmenistan in the cases provided for by the tax legislation of Turkmenistan;
18) related to the implementation of tourism activities, as well as in the economic zone of free enterprise, national tourism zone in accordance with the legislation of Turkmenistan.
(As amended by the Act of March 1, 2014-Statements of the Mejlis of Turkmenistan, no. 2014)
 


Article 16. Currency transactions between residents and non-residents



 

1. Currency transactions between residents and non-residents, except for transactions involving the transfer of property and the execution of works (provision of services) on the territory of Turkmenistan are implemented by agreement of the parties on the basis of a monetary contract in national or foreign currency in accordance with the legislation of Turkmenistan.
2. When concluding the contract currency between residents and non-residents of Turkmenistan may be currency legislation requires the use of a reserve currency as the currency of payment.
3. Currency transactions between residents and non-residents related to the transfer of property and the execution of works (provision of services) on the territory of Turkmenistan are implemented only in national currency, except in cases provided for by the currency legislation of Turkmenistan, Turkmenistan law "on hydrocarbon resources", acts of the President of Turkmenistan.
If the currency transactions connected with the transfer of property and the execution of works (provision of services) for non-residents, residents carried out in cashless form, they agreed by the parties may be made in foreign currency. 4. Currency transactions between residents and non-residents, the amount of the contract does not exceed the limit of free currency obraŝaemoj, carried out without any restrictions, except as specified in paragraphs one-third of this article.
5. capital transactions between residents and non-residents with the amount of foreign exchange contract, exceeding the limit of free obraŝaemoj currency, subject to registration, in accordance with article 8 of this law.
To currency transactions subject to registration are: 1) the provision of resident non-resident trade credits;
2) direct investments of non-residents in Turkmenistan and residents abroad;
3) loans, loans and bank loans to residents to non-residents and non-residents to residents;
4) attraction and placement in trust to the accounts (deposits) of the funds of non-residents in Turkmenistan and residents outside Turkmenistan.
6. Residents are required to notify the authorised credit institutions on foreign exchange transactions with non-residents of the capital, the amount of foreign exchange contract which exceeds the limit of freely obraŝaemoj currency, in accordance with article 9 of this law.
Foreign exchange operations subject to notification to include transactions involving the acquisition of: 1) securities, shares of investment funds, derivatives, making deposits in order to ensure participation in the share capital, provided that the proportion of the resident does not exceed 10 per cent;
2) ownership of real estate in foreign countries;
3) exclusive rights to intellectual property objects.
7. Foreign exchange flows between legal entities-residents of State ownership and non-residents, carried out in accordance with the fifth and sixth parts of this article are made by the decision of Cabinet of Ministers of Turkmenistan.
8. Foreign exchange flows between legal entities-residents and non-residents of nongovernmental form of property made in accordance with the fifth and sixth parts of this article are made by the decision of the owners of legal persons-residents.


9. granting residents non-residents trade loans without collateral, the twelfth part of this article, shall be carried out for a period, determined in accordance with the currency contract, including:

1) on the conditions for granting residents to non-residents of payment deferral when exporting goods from the date of the actual crossing of the customs border of Turkmenistan exported goods, while exporting works (services)-from the date of actual execution of works (services) before the date of actual receipt of deferred payment or until the day an actual execution of obligations by a non-resident;

2) as provisional (advance) payment by residents to non-residents on the import of goods (works, services) from the time of enumeration, a resident of non-resident funds until the day of the actual crossing of the customs border of Turkmenistan imported goods, while importing works (services) until the day of the actual execution of works (services) or up to a day of fulfillment of obligations by a non-resident.
The day of the actual crossing exported (imported) goods the customs border of Turkmenistan is the date indicated in the customs declaration, and in the afternoon of the actual execution of works (services)-the date specified in the Act of acceptance and (or) acceptance of the executed works (services).
Deadlines for the granting of credit to non-residents by residents without the appropriate security may be limited to the monetary legislation of Turkmenistan or acts of the President of Turkmenistan.
10. exceeding the actual period of repayment or other performance obligations of a non-resident before resident implies the suspension of organs and agents of currency control all foreign trade operations for residents with this non-resident until full repayment of them resulting in arrears.
11. Foreign exchange contract between residents and non-residents in export and import transactions may include basic terms of delivery (shipment) of the goods, which shall be determined in accordance with the international rules for the interpretation of trade terms.
12. For currency export and import operations that do not involve providing residents non-residents to trade credits in accordance with part of the ninth of this article, in order to ensure the fulfilment of the obligations of a non-resident before a resident in vzaimorasčëtah by agreement of the parties are as follows: 1) a foreign credit institution guarantees issued in favour of a resident;
2), covered by an irrevocable letter of credit for the account of the payer under the l/c, provided that the nominated Bank is an authorized foreign bank or credit institution;
3) promissory note issued by a non-resident, resident foreign avalised credit institution;
4) insurance policy or certificate made out in favour of a resident and covering all kinds of risks for an amount equal to not less than one hundred and ten per cent of the value of the property due to the resident, including non-receipt of a resident or tipping him cash or no return or non-delivery of the goods to him. Requirements for insurance companies (insurers) insurance policy which can be found as a means of ensuring performance of obligations by a non-resident before a resident are set by the Ministry of Finance of Turkmenistan;
5) liquid collateral owned by owned by the pledgor-non-resident or REM surety-non-resident within Turkmenistan passed resident mortgagee as security for performance of the obligation;
6) other instruments for performance of an obligation before the resident nonresident stipulated by the legislation of Turkmenistan.
Criteria to be met by a foreign credit institution shall be established by the Central Bank of Turkmenistan.
13. payment Conditions when carrying out currency transactions for export and import defined monetary agreement drawn up between residents and non-residents, in accordance with the monetary legislation of Turkmenistan, the customs of trade and international law.
14. Residents have the right to issue currency transactions with non-residents of bills, checks and other payment documents denominated both in national and in foreign currency, as prescribed by the Central Bank of Turkmenistan.
15. Labour agreements civil legislation, concluded between residents and nonresidents, wages and other remuneration may be paid both in national and in foreign currency, including: 1) employers-employees-residents non-residents;
2) non-resident employers resident workers.
16. cash calculations on transactions with securities between residents and non-residents unless otherwise stipulated monetary legislation of Turkmenistan, shall be carried out: 1) with securities issued in Turkmenistan, in national currency;
2) with securities issued outside Turkmenistan, in national or foreign currency.
17. the parts of the first sixteenth of the present article shall not apply to transactions carried out by the movement of capital between the authorized lending institutions-residents and non-residents.
The Central Bank of Turkmenistan shall be entitled to determine the features of the application of the requirements set forth in this clause to banking operations authorized credit institutions.
18. Foreign currency transactions for other transactions between residents and non-residents are made without restrictions.
 


Article 17. Currency transactions between non-resident in the territory of Turkmenistan



 

1. Currency transactions between non-resident in the territory of Turkmenistan in national currency are made through accounts (deposits) opened with credit institutions authorized in the order established by this law.
2. Non-residents may exercise between a currency transactions with securities issued by residents in the territory of Turkmenistan in accordance with the legislation of Turkmenistan.

3. Currency transactions between two non-residents in foreign currency are carried out without any restrictions, including transfers in foreign currency: 1) from the accounts (deposits) of non-residents in foreign credit institutions (deposits) on the accounts of non-residents in authorized credit institutions;
2) from accounts (deposits) in authorized credit institutions (deposits) on the accounts of non-residents in foreign credit institutions;
3) from accounts (deposits) in authorized credit institutions (deposits) on the accounts of non-residents in authorized credit institutions.
4. monetary regulation Bodies can be restrictions on carrying out currency transactions between two non-residents only on the territory of Turkmenistan in their cases of unfair competition, as well as agreements on prices or allocation of markets for goods (works, services) that limit the rights of other economic entities in Turkmenistan, and contrary to the anti-monopoly legislation of Turkmenistan.
 


Article 18. Import and export from Turkmenistan Turkmenistan currency values



 

1. the procedure for the import into and export from Turkmenistan Turkmenistan currency values is determined by the currency legislation of Turkmenistan.
2. customs clearance of the import into and export from Turkmenistan Turkmenistan currency values is carried out in the manner prescribed by the customs legislation of Turkmenistan.
3. import to Turkmenistan cash national and (or) of foreign currency and export from Turkmenistan cash national and (or) foreign currency previously transferred from abroad or vvezënnoj and declared when entering the country by individuals-residents and non-resident individuals are not limited to, when complying with the requirements under part 5 of this article.  
4. One-time import into and export from Turkmenistan Turkmenistan individuals-residents and non-resident individuals cash in national or foreign currency, the amount of which at the official exchange rate in the aggregate does not exceed the limit of free obraŝaemoj currency shall not be declared to a customs body. At the request of the natural person these transactions can be declared to a customs body.
5. A one-time entry into Turkmenistan and limited this part export from Turkmenistan by natural persons residents and non-resident individuals cash in national or foreign currency, the amount of which in the aggregate exceed freely obraŝaemoj currency, shall be declared to the Customs point when entering or leaving by filing a customs declaration for the whole amount of imported or transported cash in national or foreign currency.
Not allowed a one-time export from Turkmenistan by natural persons residents and non-resident individuals not previously transferred from abroad or not, vvezënnoj as well as vvezënnoj, but not declared upon entry into the country of cash national and (or) of foreign currency, the amount of which in the aggregate exceed freely obraŝaemoj currency, unless otherwise provided by the legislation of Turkmenistan.
Identification for customs control of the physical person-resident or non-resident individual undeclared, but subject to Declaration, cash national and (or) foreign currency attracted in relation to those persons liable under the legislation of Turkmenistan.
6. it is prohibited to conduct legal entities-residents and non-resident legal entities, except for authorized credit institutions on import operations in Turkmenistan and Turkmenistan export from the national and foreign currency in cash.
Authorized lending institutions are being imported to Turkmenistan and Turkmenistan export cash national and (or) foreign currency in accordance with the procedure set by the Central Bank of Turkmenistan.
7. import and export from Turkmenistan Turkmenistan securities in the form of payment documents (cheques, drafts, letters of credit, etc) and stock assets (stocks, bonds, etc.), the nominal value of which is expressed in national or foreign currency, must be declared and implemented without restrictions, unless otherwise provided by the legislation of Turkmenistan.
(As amended by the Act of March 1, 2014-Statements of the Mejlis of Turkmenistan, no. 2014)
 
Chapter 3. Exchange rates and foreign exchange market Article 19. Exchange rate 1. Exchange rate applied when carrying out exchange operations with foreign currencies and other financial instruments, the nominal value of which is specified in a foreign currency, for the currency of Turkmenistan and foreign currency. Exchange rate shall be determined in accordance with the monetary legislation of Turkmenistan.
2. In order to regulate the foreign exchange market of Turkmenistan applies the official and market exchange rates, unless otherwise established by the monetary legislation of Turkmenistan.
3. the official exchange rate is determined on the basis of the average quantities of market exchange rates. At the official exchange rate of all kinds of foreign exchange operations, including operations related to payment of tax, customs and other obligatory payments established by the legislation of Turkmenistan.
Accounting, preparation of financial, statistical and other reporting currency transactions are carried out using the official exchange rate.

4. market exchange rate is determined on the basis of supply and demand in the foreign exchange market of Turkmenistan taking into account the requirements set out in part of the sixth article 20 and part of the fourth article 21 of this law.
At market exchange rates are carried out exchange operations.
5. Any transaction in foreign currency accounting documents are reflected at face value and to maintain accounting records are converted into national currency at the applicable at the time of its making the official exchange rate. Whenever the official exchange rate balances are calculated and recorded on the foreign currency accounts (deposits) in national currency are subject to reassessment without altering the face value of the foreign currency balances.
6. The Central Bank of Turkmenistan does not cover risk associated with Exchange rate and does not provide any subsidies for currency transactions or related actions.
 
Article 20. Exchange operations for residents and non-residents 1. Residents and non-residents buy and sell foreign currency in Turkmenistan exclusively through authorized credit institutions and bureaux de change.
2. authorized credit institutions in accordance with the license it has issued and (or) the right granted by the legislation of Turkmenistan, in the interests of residents and non-residents exercise: 1) sale of non-cash foreign currency for the currency of Turkmenistan and foreign currency for legal entities (their branches, representative offices), as well as businessmen without formation(education) of the legal person;
2) sale, Exchange (replacement) in cash and cashless forms of foreign currency for the currency of Turkmenistan and foreign currency for individuals are not for the purpose of carrying out their business activities.
3. In the sale, Exchange and (or) replacement through the exchange of foreign currency in an amount not exceeding the limit are freely obraŝaemoj currency, establishing requirements for identification purposes is not allowed, except for the cases stipulated by the legislation of Turkmenistan.
At the request of the natural person the identity of his personality, can be made to the document certifying Commission of Exchange operation.
4. Purchase, sale, Exchange and (or) replacement through the exchange of foreign currency in an amount exceeding the limit are freely obraŝaemoj currency is carried out only after the identity of the natural person.
5. Rules of Exchange operations are determined by the Central Bank of Turkmenistan and acts of the President of Turkmenistan.
6. Exchange operations are carried out by authorized lending institutions on a fee basis by introducing a difference between operations on purchase and sale of foreign currency (spread) or by charging a Commission fee from the amount of the transaction in accordance with established rules.
Limit the possible course deviation the purchase or sale of foreign currency on the official exchange rate, including taking into account the fee must not amount to more than one per cent, unless otherwise established by the monetary legislation of Turkmenistan.
7. authorized credit institutions are obliged to provide a preferential right of purchase and sale of foreign currency for resident legal entities (their branches, missions), as well as businessmen without formation(education) of the legal person-resident, engaged in projects, irrespective of funding source, in the manufacturing of products and goods, agricultural products, foodstuffs and consumer goods, including export, construction of objects of industrial and public buildings.
(As amended by the Act of March 1, 2014-Statements of the Mejlis of Turkmenistan, no. 2014)
 


Article 21. Interbank foreign exchange market



 

1. authorized lending institutions can freely buy and sell currency in the interbank currency market in Turkmenistan and outside Turkmenistan in accordance with monetary legislation of Turkmenistan.
2. inside Turkmenistan interbank currency market consists of the Exchange and OTC foreign exchange market.
3. authorized credit institutions in accordance with the issued them a license or a right granted by the legislation of Turkmenistan, buy and sell foreign currencies directly on foreign exchange (stock market), and through correspondent banks (OTC market).
4. When selling and/or buying foreign currency on the interbank market of Turkmenistan limit possible deviations of market exchange rates established by the participants of the interbank currency exchange of Turkmenistan shall not exceed zero point five percent of official exchange rates, unless otherwise established by the monetary legislation of Turkmenistan.
5. Currency exchanges provide a trading platform to its members, provide conditions for holding trades and regulate stock trading in the manner prescribed by the legislation of Turkmenistan.
Currency exchanges will organize and conduct trades, they cannot engage in stock transactions on its behalf and at its own expense, as well as to trade and mediation activities not directly associated with the Organization of trading.
6. in the cases provided for by the currency legislation of Turkmenistan, authorised dealers setting limits foreign currency positions.

(As amended by the Act of March 1, 2014-Statements of the Mejlis of Turkmenistan, no. 2014)


 



Article 22. Currency intervention



 

1. Currency intervention is one of the main instruments of monetary policy pursued by the Central Bank of Turkmenistan.
Currency intervention is carried out in order to maintain a stable exchange rate, as well as the impact on the exchange rate of the national currency, its total supply and demand.
2. Currency intervention by buying and selling by the Central Bank of Turkmenistan of foreign currency on the interbank market of Turkmenistan.
3. Sale of foreign currency shall be made at the expense of funds formed from obligatory sale of foreign currency, as well as other residents bought foreign currency from individuals and legal entities.
 


Chapter 4. Banking service



 



Article 23. Foreign currency accounts (deposits) and non-resident in the authorized credit institutions



 

1. Residents and non-residents in the territory of Turkmenistan shall be entitled to open foreign currency accounts (deposits) in authorized credit institutions in accordance with the procedure set by the Central Bank of Turkmenistan.
2. maintain foreign currency accounts (deposits) for residents and non-residents of authorized credit institutions is carried out on the basis of a contract unless otherwise stipulated by the legislation of Turkmenistan.
3. Each legal person-resident (non-resident), its branches, missions, as well as every businessman without formation of the legal person-resident (non-resident) can be opened current account for the maintenance of the core activities in only one authorized credit institution.
4. authorized lending institutions offer resident physical persons (non-residents) accounts (deposits) without restrictions. Physical persons-residents (nonresidents)-owners of currency accounts (deposits) can perform operations on them either personally or through an authorized person in accordance with the legislation of Turkmenistan.
 
Article 24. Payments and transfers of currency operations for residents and non-residents in the territory of Turkmenistan 1. Payments and transfers of money on currency operations for residents and non-residents in the territory of Turkmenistan, excluding foreign exchange operations carried out in accordance with article 25 of this law, shall be carried out through foreign currency accounts (deposits) opened in the authorized credit institutions, unless otherwise provided by the monetary legislation of Turkmenistan.
2. Payments and transfers of money on currency operations for residents and non-residents in the territory of Turkmenistan shall be made in accordance with the procedure set out by the Central Bank of Turkmenistan.
3. Payments and transfers of money on currency operations for residents and non-residents in the territory of Turkmenistan through currency accounts (deposits) in authorized credit institutions in accordance with the type and purpose of the payment, subject to documentary identification, except: 1) operations with currency valuables between authorized lending institutions and their customers to banking operations and transactions that may perform the authorized credit institutions in accordance with the issued them a license;
2) payments made from one currency account of the legal person on his other account, as well as payments related to the activities of its affiliate, representative office in Turkmenistan;
3) payments made from one currency account of businessman without formation of the legal person on his other account;
4) payments related to the activities of diplomatic missions, consular posts, and international organizations in Turkmenistan;
5) payments and transfers between individuals;
6) operations associated with the reimbursement of travel and hospitality expenses employees-individuals;
7) payroll operations and other types of employee benefits-individuals;
8) grant payments and transfers of money or donation currency values for treatment, education and other charitable purposes;
9) operations related to payment of taxes and other obligatory payments to the State budget of Turkmenistan in the cases provided for by the tax legislation of Turkmenistan;
10) other payments and translations provided by monetary legislation of Turkmenistan.
4. Competing claims by resident and non-resident currency operations carried out on the territory of Turkmenistan shall be treated without the participation of serving Commissioners of credit institutions. Claim an authorised credit institution associated with the execution of banking operations, sent residents and non-residents in serving their authorized credit institution.
5. Residents and non-residents can carry out calculations through their foreign exchange accounts (deposits) in any foreign currency in case of necessity at the market rate of Exchange operations, agreed with an authorized credit institution.
6. execution of payment bezakceptnyh requirements in national currency on behalf of the owner of the account via the authorised the credit institution in which the Exchange service account is a resident or non-resident, is carried out by the authorized institution by selling foreign exchange funds in his account, also for national currency without acceptance.

7. the provisions of this article shall not apply to transactions between the operations authorized lending institutions, as well as authorized lending institutions and foreign lending institutions.
(As amended by the Act of March 1, 2014-Statements of the Mejlis of Turkmenistan, no. 2014)
 
Article 25. Payments and transfers on currency operations for residents and non-residents in the territory of Turkmenistan, without the use of foreign currency accounts (deposits) 1. To payments and transfers of currency operations for residents and non-residents in the territory of Turkmenistan, carried out without the use of foreign currency accounts (deposits) opened in the authorized credit institutions, unless otherwise provided by the monetary legislation of Turkmenistan include: 1) payments and money transfers of natural persons not exceeding the limit of free currency obraŝaemoj implemented without opening a foreign exchange account with authorized credit institutions;
2) payments and money transfers of natural persons associated with the sale, Exchange and (or) replacement of cash foreign currency through bureaux de change of authorized credit institutions;
3) payments by cheque is issued (transferred), Bill;
4) donation currency values for treatment, education and other charitable purposes;
5) storage, donation, bequest or inheritance law retrieval of currency values individuals;
6) acquisition and alienation of single currency notes and coins for the purpose of collecting individuals;
7) operations associated with the calculations in duty-free shops, as well as with calculations when selling goods and services to passengers in transit vehicles in international traffic;
8) payment of salaries and other employee benefits in accordance with the legislation of Turkmenistan;
9) reimbursement to employees of business trips and representative expenses;
10) payments and money transfers through accounts (deposits) residents in foreign credit institutions opened in the order established by this law;
11) money transfers from the accounts (deposits) of non-residents in foreign credit institutions in their fulfillment of obligations, in cases provided for by the currency legislation of Turkmenistan;
12) operations related to payment of taxes and other obligatory payments to the State budget of Turkmenistan in the cases provided for by the tax legislation of Turkmenistan.
2. payments and remittances on currency operations on the territory of Turkmenistan in respect of which registration is required, notification and (or) Passport registration transactions are carried out only through accounts (deposits) opened with credit institutions authorized in the order established by this law.
 


Article 26. Accounts (deposits) in national currency-residents in authorized credit institutions



 

1. Non-residents may open accounts in the territory of Turkmenistan (deposits) in the national currency in authorized credit institutions.  
Opening and maintenance of accounts (deposits) of non-residents in national currency on the territory of Turkmenistan in authorized credit institutions are carried out in a manner to be determined by the Central Bank of Turkmenistan.
2. If the procedure for opening and maintenance of accounts (deposits) of non-residents in national currency in authorized credit institutions are not set by the Central Bank of Turkmenistan, the order established for opening and maintenance of accounts (deposits) of residents in national currency in authorized credit institutions.
 
Article 27. Payments and money transfers of non-residents in national currency on the territory of Turkmenistan 1. Non-residents may produce calculations and money transfers in national currency on the territory of Turkmenistan without restrictions, unless otherwise established by the monetary legislation of Turkmenistan.
2. Payments and money transfers through accounts (deposits) of non-residents in national currency in authorized credit institutions on the territory of Turkmenistan shall be made in accordance with the procedure set out by the Central Bank of Turkmenistan.
3. in carrying out currency transactions of capital movements in national currency on the territory of Turkmenistan in respect of which registration is required, notification and (or) transaction passport design, calculations and remittances are made by non-residents only through accounts (deposits) opened in the authorized credit institutions, as well as through accounts (deposits) opened with foreign credit institutions, in the presence of a foreign credit institution of the correspondent account in the national currency in authorized credit institution.
4. Non-residents may enumerate the national currency on the territory of Turkmenistan from their accounts (deposits) in foreign credit institutions on their accounts (deposits) in authorized credit institutions as well as from their accounts (deposits) in authorized credit institutions on their accounts (deposits) in foreign credit institutions without restrictions.
 


Article 28. Accounts (deposits) residents in foreign credit institutions



 

1. Residents can perform calculations in carrying out currency transactions through accounts (deposits) opened with foreign credit institutions, at the expense of funds in national and foreign currencies, credited to these accounts (deposits) in accordance with this law.

2. Opening accounts (deposits) in foreign credit institutions for diplomatic missions, consular and other official missions of Turkmenistan Turkmenistan outside Turkmenistan, as well as the permanent missions of Turkmenistan intergovernmental, interstate or international organizations is carried out in agreement with the Cabinet of Ministers of Turkmenistan.
3. accounts (deposits) residents in foreign credit institutions are implementing the currency transactions connected with: 1) the content of foreign branches, representative offices, resident for the duration of their activities;
2) operating costs through the resident representative office branch for the provision of services to international freight forwarding, carriage and Charter (Charter), associated with the carriage of passengers and cargo transit of passengers and cargo, as well as the insurance contracts referred to passengers and cargo for the period of implementation of these services;
3) paying local expenses for the construction of different destination objects resident on the territory of a foreign State, for the duration of their construction;
4) financing spending by residents of sporting, cultural and other events, including exhibitions outside Turkmenistan, during these events;
5) reimbursement of travel and hospitality expenses to stay resident outside Turkmenistan, for the period of his secondment;
6) transfer payment funds resident authorized capital of a legal entity-nonresident, which assumes the participation of resident, if such requirement is established by the legislation of a foreign State, the period of registration of a legal entity-non-resident;
7) crediting funds intended for security against loans, loans and bank loans, raised from non-residents, for the period of the debt;
8) other operations stipulated by the legislation of Turkmenistan.
Foreign exchange operations specified in this part, residents have the right to carry out at the expense of funds credited to these accounts (deposits), in accordance with the third and fourth parts of article 29 of this law.
4. opening (closing) accounts in foreign credit institutions resident legal entities of State ownership (their branches, missions), not specified in part 2 of this article shall be by decision of the Cabinet of Ministers of Turkmenistan.
Opening (closing) accounts in foreign credit institutions legal entities-residents of non-State form of ownership (their branches, missions), implemented by the decision of the owners of legal persons-residents.
5. opening accounts of legal entities-residents (their branches, representative offices) of foreign credit institutions is subject to registration in accordance with the requirements of article 8 of this law.
The use of legal entities-residents (their branches, representative offices) accounts opened in foreign credit institutions without registration is not allowed.
Account opened in violation of the requirements for its registration is closed after the repatriation of balances on the account holders it independently or under the authority of foreign exchange controls, which may include the imposition of fines under subparagraph "e" paragraph 2 the second part of article 36 of this law.
6. Businessmen without formation(education) of the legal person-resident allowed to open accounts in foreign credit institutions unless otherwise stipulated monetary legislation of Turkmenistan.
7. After returning to Turkmenistan, businessmen without formation(education) of the legal person shall be obliged to notify the resident serving their authorized credit institutions on opening (closing) accounts in foreign credit institutions in accordance with article 9 of this law.
Notice accounts are considered to be represented, if businessmen without formation(education) of the legal person-resident payments and money transfers from their accounts in the authorized credit institutions on their own account in foreign credit institutions or from their accounts in foreign credit institutions on their accounts in the authorized credit institutions.
8. For physical persons-residents (except for businessmen without formation(education) of the legal person-resident) are permitted to open accounts (deposits) in foreign credit institutions without restrictions.
9. Resident legal entities and entrepreneurs without formation of legal entities-residents are obliged to report in writing to the tax authorities at the place of tax accounting about opening (closing) accounts in foreign credit institutions in cases and in accordance with the deadlines established by the tax laws of Turkmenistan.
10. the provisions of this article do not apply to authorized credit institutions and currency exchanges, opening accounts in foreign credit institutions in accordance with the legislation of Turkmenistan.
 


Article 29. Payments and transfers of residents outside of Turkmenistan



 


1. Residents outside Turkmenistan shall be entitled without restriction to make payments and money transfers for currency transactions through accounts (deposits) opened with foreign credit institutions, unless otherwise provided by the monetary legislation of Turkmenistan.
2. financing costs related to the activities of diplomatic missions, consular and other official missions of Turkmenistan Turkmenistan outside Turkmenistan, as well as the permanent missions of Turkmenistan intergovernmental, interstate or international organizations is carried out in accordance with the procedure established by the Cabinet of Ministers of Turkmenistan.
3. Residents may make transfers from their accounts (deposits) in authorized credit institutions on their accounts (deposits) opened with foreign credit institutions for the implementation of foreign exchange transactions, referred to in paragraph 3 of article 28 of this law.
Payments and transfers of funds of legal entities-residents from their accounts in the authorized credit institutions on their accounts opened in foreign credit institutions, may be implemented after the registration required when opening an account in a foreign credit institution in accordance with the present law.
4. to MDL accounts of legal entities-residents and entrepreneurs without formation of legal entities-residents in foreign credit institutions permitted enrollment income (including proceeds from retail and wholesale sale of goods (works, services) for transactions with non-residents, if the amount of the foreign exchange contract for these transactions does not exceed the limit of free currency obraŝaemoj and the present law does not require registration, passport, notification of the transaction.
5. Resident legal entities and entrepreneurs without formation of legal entities-residents shall have the right, without limitation, to carry out foreign exchange operations using enrolled in accordance with this Act on their accounts opened in foreign credit institutions, if these operations are not associated with a transfer of property and the provision of services on the territory of Turkmenistan, except as otherwise provided in this law.
On accounts of legal entities-residents and businessmen without formation(education) of the legal person-resident in foreign credit institutions, capital currency transactions between residents and non-residents with the amount of foreign exchange contract, exceeding the limit of freely obraŝaemoj currency, on which the present law defined the requirement of registration, passport, notification of the transaction is not allowed.
6. the funds credited in accordance with the third and fourth parts of this article to accounts (deposits) residents in foreign credit institutions must be used to carry out foreign exchange transactions referred to in paragraph 3 of article 28 of this Act, and (or) after the reimbursement transactions with non-residents repatriated in Turkmenistan.
7. On balances of money resources on accounts of legal entities-residents and businessmen without formation(education) of the legal person-resident, opened with foreign credit institutions, the excess of income over expenditure should be repatriated in Turkmenistan no later than ten business days after the completion of periods of currency operations, referred to in paragraph 3 of article 28 of this law.
 
SECTION III. CURRENCY CONTROL Chapter 5. Organs and agents of foreign exchange controls.  The rights and responsibilities of the bodies and agents of foreign exchange control

 


Article 30. Bodies and currency control agents



 

1. Foreign exchange controls in Turkmenistan is carried out by the Cabinet of Ministers of Turkmenistan, organs and agents of foreign exchange controls.
2. foreign exchange control Authorities in Turkmenistan are Central Bank of Turkmenistan, as well as authorized by the Cabinet of Ministers of Turkmenistan central executive authorities within their competence established by the legislation of Turkmenistan.
3. currency control Agents in Turkmenistan are: 1) authorized credit institutions;
2) stock, foreign exchange and commodity exchanges, including their participants;
3) holders of State registries and public registrars;
4) Customs authorities of Turkmenistan;
5) tax service bodies of Turkmenistan;
6) other bodies authorized to carry out exchange controls in accordance with the legislation of Turkmenistan.
4. The Central Bank of Turkmenistan monitors currency transactions carried out by credit institutions, as well as currency exchanges.


 



Article 31. Acts of currency control



 

1. currency control Bodies shall have the right to issue acts on issues of monetary control in the cases provided for by the currency legislation of Turkmenistan.
2. acts of currency control shall not contain provisions concerning the management of foreign exchange transactions.
 


Article 32. Rights bodies and currency control agents



 

1. bodies and currency control agents within its competence and in accordance with the legislation of Turkmenistan have the right to: 1) to verify compliance with resident and non-resident monetary legislation of Turkmenistan;
2) to verify the completeness and accuracy of the accounting and reporting of currency operations for residents and non-residents;

3) request and receive documents and information related to the conduct of foreign exchange operations, opening and maintenance of accounts (deposits).
2. currency control Bodies within its competence and in accordance with the legislation of Turkmenistan have the right to: 1) to issue regulations on Elimination of revealed violations of foreign exchange legislation of Turkmenistan;
2) apply the legislation of Turkmenistan, financial sanctions and penalties for violation of foreign exchange legislation of Turkmenistan;
3) give currency control agents required for discharge instructions for the proper implementation of the currency control;
4) set the order of submission of statements on currency operations and compliance audits of foreign exchange legislation of Turkmenistan.
3. currency control Agents within its competence in implementing currency controls have the right to request and receive from resident and non-resident, the following documents or copies thereof related to the conduct of foreign exchange operations, opening and maintenance of accounts (deposits): 1) passport or another identification document;
2) the certificate of registration of the physical person as businessman without formation of the legal person;
3) the certificate of State registration of a legal entity, an extract from the unified State Register of legal persons, articles of Association, memorandum of Association, minutes of general meeting of founders and other documents of a legal entity;
4) document for registration at the body of the tax service;
5) documents certifying the right to non-residents on foreign exchange transactions, opening accounts (deposits), prepared and issued by the authorities of the State of residence (domicile) of the non-resident, non-resident, if such an instrument provided for in the legislation of the foreign State;
6) licence and registration documents or copies of the notices in cases established by this law;
7) foreign exchange contracts;
8) certificates and statements of accounts (deposits) in order to prove the Commission of currency operations issued by credit institutions;
9) transaction passport, including documents certifying the fulfilment of the obligations on deals;
10) cargo customs declarations and customs declarations confirming importation into or export from Turkmenistan Turkmenistan currency values;
11) documents certifying the property and non-property rights;
12) other documents related to the conduct of foreign exchange operations, opening and maintenance of accounts (deposits).
4. the document submitted to the public body of a foreign State should be legalized in the established order, unless otherwise stipulated by international treaties to which Turkmenistan is a party.
Document in a foreign language where necessary, appears together with an official translation into the national language of Turkmenistan.
5. currency control Agents are not responsible for the accuracy of documents submitted to them by residents and non-residents.
Currency control agents where necessary, has the right to request original documents for comparison of them with copies.
In some cases, residents and non-residents in agreement with currency control agents can be represented by extracts from documents, certified in the manner prescribed by the legislation of Turkmenistan.
6. currency control Agents shall have the right to refuse for residents and non-residents in the conduct of foreign exchange operations carried out with their participation in the following cases: 1) presentation of a non-exhaustive list of documents required for conducting foreign exchange operations;
2) inconsistencies the documents submitted, the requirements of currency legislation of Turkmenistan;
3) identify inaccurate information in its submissions.
 


Article 33. The responsibilities of the bodies and agents of foreign exchange control



 

1. bodies and currency control agents within its field of competence, are obliged to monitor currency operations in Turkmenistan residents and non-residents.
2. bodies and currency control agents are required to consider within the deadlines established by the legislation of Turkmenistan, applications for registration and resident registration of transaction passports, required in accordance with this law.
3. currency control Agents are obliged to: 1) monitor resident and non-resident monetary legislation of Turkmenistan;
2) to monitor the completeness and accuracy of the accounting and reporting of currency transactions;
3) to report on the facts which they have become aware of violations of the legislation of Turkmenistan, eligible residents and non-residents, foreign exchange control authorities;
4) present in the established manner foreign exchange control authorities information on currency transactions;
5) to monitor the implementation of the requirements for the repatriation of residents of national and foreign currency.
4. bodies and currency control agents are obliged not to divulge information constituting commercial, banking secrets and confidential information, which has become known to them in the exercise of their powers in accordance with the legislation of Turkmenistan.
 


Chapter 6. The rights and obligations of residents and non-residents Article 34. The rights of residents and non-residents



 

Residents and non-residents, carrying out foreign exchange operations in Turkmenistan have the right to: 1) be familiar with acts of checks carried out bodies and agents of currency control;

2) submit written objections to the facts set forth in the Act of verification, conducted by authorities and (or) currency control agents;
3) appeal against the actions (inaction) of bodies and agents of foreign exchange controls in the order established by the legislation of Turkmenistan;
4) exercise other rights stipulated by the legislation of Turkmenistan.
 
Article 35. Responsibilities of residents and non-residents residents and non-residents, carrying out foreign exchange operations in Turkmenistan must: 1) represent the bodies and agents of currency control documents and information provided for in this Act;
 
2) conducted in accordance with the established procedure for accounting and reporting held their currency transactions;
3) to preserve documents and information for at least five years from the date of the corresponding currency transaction;
4) comply with the applicable exchange control authorities on Elimination of revealed violations in the course of carrying out the checks.
 


SECTION IV. FINAL PROVISIONS

 


Article 36. Liability for violation of this Act



 

1. Violation of this law entails responsibility established by the legislation of Turkmenistan.
2. Violation of the residents of the provisions of this act entails the imposition of foreign exchange control authorities of financial sanctions and fines on residents in the form of: 1) a lump-sum financial sanctions in the amount of one hundred per cent of the sum of:



and currency transaction took place) in foreign currency between residents, where the financial sanction is applied to resident recipient of foreign currency except for foreign exchange transactions in foreign currency between residents, carried out in accordance with article 15 of this law;

b) held currency foreign currency transactions between residents and non-residents in the territory of Turkmenistan, excluding foreign currency foreign currency transactions between residents and non-residents in the territory of Turkmenistan, provided for in article 16 of this law;
2) assessed for each calendar day fines at the rate of zero point one-tenth per cent of the sum of: (a)) of national and foreign currency, payable to the resident and is not provided in accordance with condition of the foreign trade transactions with non-residents, for the export of goods (works, services);
b) of national and foreign currency transferred previously resident in imports, not returned in accordance with the condition of foreign trade transactions with non-residents, in connection with failure to perform obligations of non-resident;
cash balances) to open foreign bank accounts (deposits) residents, who upon completion of periods of currency transactions are not repatriated to Turkmenistan within ten banking days;
g) non-resident debt not repaid in time before a resident on currency operations capital the sum of foreign exchange contract, exceeding the limit of freely obraŝaemoj currency, including non-resident debt commercial credit, in connection with foreign trade activity, received from a resident without collateral, under the twelfth article 16 of this law, the term by which exceeded the deadline set by the monetary legislation of Turkmenistan;  
d) non-resident debt before a resident on currency transactions with the sum of the monetary capital account contract, exceeding the limit of freely obraŝaemoj currency, subject to registration, but actually made without appropriate registration;
e) funds transferred to the accounts of legal entities (their branches, representative offices) of foreign credit institutions subject to discovery after registration, but actually open without proper registration;
f) indebtedness of a non-resident before a resident on currency transactions with the sum of the monetary capital account contract, exceeding the limit of freely obraŝaemoj currency to be held with the notice for which the date of commencement of the currency transaction had expired ten banking days and the notice actually was not sent;
w) funds transferred to the accounts of businessmen without formation(education) of the legal person-resident in foreign credit institutions, opened with the notice for which the date of commencement of the currency transaction had expired ten banking days and virtually no notification sent;
and delays in the payment of contributions produced) resident of currency proceeds in accordance with article 12 of this law, which expired five banking days from the date of receipt of the proceeds on his current account;
the late resident part sold) foreign exchange earnings, subject to mandatory sale, pursuant to article 13 of this law, which expired five banking days from the date of receipt of the proceeds on his current account.
3. the duty of resident to pay penalty begins from the date the violation occurred and continues until the complete elimination of the resident identified violations or fines assessed the size of one hundred per cent of the identified violations.
4. Application of financial sanctions and fines to residents listed in part 2 of this article shall not be permitted if: 1) the circumstances that caused them, connected with illegal actions (inaction) of bodies and currency control agents;
2) indicated circumstances resulted from force majeure;

3) limitation period is interrupted by bringing action in the Court or suspended according to actual circumstances in accordance with the legislation of Turkmenistan;
4) there are other grounds established by the legislation of Turkmenistan.
Use and (or) non-application of financial sanctions and penalties under this Act shall not relieve resident of duties elimination of revealed violations.
5. financial penalties and fines used bodies of foreign exchange controls, currency control agents recovered in an uncontested procedure in accordance with the legislation of Turkmenistan.
Financial sanctions and penalties may be imposed for violations of foreign exchange legislation of Turkmenistan, committed in a period of not more than five years prior to the year in which they were identified.
6. The amount of assessed financial penalties and fines payable to the State budget of Turkmenistan in national currency at the official exchange rate.


7. This article shall enter into force from January 1, 2012 year.



 

Article 37. Settlement of disputes disputes arising on currency regulation and currency control in foreign relations are resolved in the courts.
 


Article 38. The entry into force of this Act



 

1. This law shall enter into force on the day of its official publication, with the exception of article 36 of this law entered into force on January 1, 2012 year.
2. Normative-legal acts of Turkmenistan are subject to adjustment in accordance with this Act in the three-month period from the date of its entry into force.
3. Void the law of Turkmenistan "on currency regulation" from October 8, 1993 GODA (Statements of the Mejlis of Turkmenistan, 1993, no. 9-10, art. 88), all subsequent laws or their relevant parts, which made changes and additions.
 
 
             Turkmen President Gurbanguly Berdimuhamedov mountains. Ashgabat October 1, 2011 year no. 230-IV.