Combating the Financing of Terrorism: Kazakhstan Steps Up Efforts with European Union Support
Strengthening Fight Against Money Laundering and Terrorism Financing
Kazakhstan has received support from the Council of Europe’s Action on “Promoting Transparency and Action against Economic Crime” in Central Asia to strengthen its fight against money laundering and terrorism financing. The action aimed to improve the country’s capacities in risk-based supervision of designated non-financial businesses and professions (DNFBPs) in the anti-money laundering and countering terrorism financing (AML/CFT) field.
Addressing Shortcomings Identified by 2023 Mutual Evaluation Report
The action was a response to shortcomings identified by the 2023 Mutual Evaluation Report of the Republic of Kazakhstan. The Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG) had flagged concerns over Kazakhstan’s ability to effectively supervise DNFBPs.
Workshops Held in Astana
Three workshops were held in Astana from March 26-29, bringing together supervisory authorities and DNFBPs from Kazakhstan. The sessions aimed to address the identified shortcomings and improve the country’s capacities in risk-based supervision of DNFBPs.
Participants
- Supervisory Authorities:
- Financial Monitoring Agency
- Agency for Protection and Development of Competition
- Astana International Financial Centre
- Ministry of Trade and Integration
- Ministry of Tourism and Sport
- Ministry of Finance
- Ministry of Justice
- DNFBPs: 130 representatives from various professions, including accountants, lessors, jewellers, realtors, legal consultants, lawyers, notaries, commodity exchanges, gambling sector, and auditors
Advancing Understanding of FATF Standards
The workshops were designed to advance understanding of the FATF standards and obligations for effective and risk-based supervision of DNFBPs. Supervisory authorities gained insight into improving their capacities, while DNFBPs enhanced their awareness on international good practices in meeting their obligations.
Results
As a result of the activities, both supervisory entities and DNFBPs in Kazakhstan have improved their comprehension of money laundering and terrorism financing risks, as well as the effective application of mitigation measures. This is expected to lead to enhanced anti-money laundering and countering terrorism financing efforts, resulting in less economic crime.
European Union’s Support
The Council of Europe’s Action on “Promoting Transparency and Action against Economic Crime” in Central Asia, a joint initiative co-funded by the European Union and the Council of Europe, has been instrumental in supporting Kazakhstan’s efforts. The program aims to strengthen capacities to fight and prevent economic crime in five Central Asian countries - Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan - until 2024.