Financial Crime World

Kazakhstan Steps Up Fight Against Economic Crimes

The Financial Monitoring Agency (FMA) of Kazakhstan is set to become the country’s main investigative body for combating economic crimes, according to a recent presidential decree. This move aims to strengthen the fight against economic crimes and protect the rights of individuals affected by these offenses.

Establishment of Investigative Bodies

To ensure proper monitoring and conduct of financial investigations in regulated financial markets, the Agency for Regulation and Development of the Financial Market (ARDFM) was established in Kazakhstan in 2019. The ARDFM aims to:

  • Protect consumers’ rights and interests
  • Maintain financial system stability
  • Comply with state regulation and supervision

In addition, the Asset Recovery Committee (ARC) was set up in 2023 under the Prosecutor General’s Office. The ARC is responsible for prosecuting perpetrators of economic crimes under the “On the Return of Illegally Acquired Assets to the State” law.

The legal basis for financial investigations in Kazakhstan was established in 2009 with the adoption of the law “On Countering the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism.” Since then, subordinated normative acts have regulated the powers, rights, and obligations of government bodies and financial organizations.

Expertise in Financial Investigations

The FMA has gained significant expertise in conducting financial investigations, having been designated as the leading agency responsible for ad hoc international search and discovery of information related to suspicious transactions. As a hub for exchange and analysis of information on financial data and requests for international assistance within the Financial Action Task Force (FATF) network, the agency has accumulated high-level national expertise in carrying out financial investigations.

Challenges and Future Directions

However, experts emphasize that the regulation framework in the field of economic crimes must respond quickly to the exponential growth of various non-fiat means of settlement. The FMA’s development into a main investigative body will be crucial in combating economic crimes and protecting the rights of persons affected by these crimes.

Key Takeaways:

  • Kazakhstan is strengthening its fight against economic crimes with the establishment of new investigative bodies
  • The Financial Monitoring Agency (FMA) is set to become the country’s main investigative body for combating economic crimes
  • The regulation framework must adapt quickly to the growing use of non-fiat means of settlement
  • Expertise in financial investigations will be crucial in combating economic crimes and protecting individual rights