Financial Crime World

Uncovering Kazakhstan’s Financial Criminal Underworld: A Deep Dive into the 2021 Global Organized Crime Index Report

Kazakhstan, the largest landlocked country in the world, is known for its role as a transit and trading hub for various commodities. However, a closer examination of the 2021 Global Organized Crime Index reveals a concerning trend: the country’s financial crime landscape. In this article, we’ll delve into the types of financial crimes prevalent in Kazakhstan based on the insights from the Global Initiative Against Transnational Organized Crime’s (GI-TOC) 2021 ENACT Organized Crime Index.

Money Laundering

  • Kazakhstan serves as a significant transit route for Russian, European, and Central Asian dirty money [1]
  • Strategic location, porous borders, and weak regulatory framework contribute to its attractiveness as a money-laundering hub

Corporate Fraud

  • Fraudulent activities, including embezzlement and corruption in the business sector, are widespread in Kazakhstan [2]
  • This type of financial crime poses the greatest threat to Kazakhstan’s economy

Financial Cybercrimes

  • Cybercrime has emerged as a significant concern with the increasing digitalization of financial systems [3]
  • Targets individuals and financial institutions with hacking, identity theft, and phishing scams

Banking Sector Irregularities

  • Kazakhstan’s banking sector has suffered from numerous irregularities, including insider trading, mismanagement, and fraud [4]

Investment Fraud

  • Investment fraud, particularly in the real estate sector, is a prevalent issue in Kazakhstan [5]
  • Fraudsters often pose as legitimate businesses or service providers to take advantage of unsuspecting investors and buyers

Other Criminal Activities

  • Human trafficking, illegal logging, and drug trafficking also pose threats to Kazakhstan’s social and economic fabric

Ranking and Improvements

  • Kazakhstan ranks 49th out of 125 countries in terms of organized crime impact [6]
  • Progress in addressing financial crimes but more needs to be done

Conclusion

To effectively combat the various types of financial crimes plaguing Kazakhstan, a multi-stakeholder approach involving governments, civil society, and the private sector is necessary. The Global Initiative Against Transnational Organized Crime’s comprehensive report provides valuable insights and a roadmap for targeted strategies against organized crime.

[1] Global Initiative Against Transnational Organized Crime (GI-TOC). (2021). ENACT Kazakhstan: Organized crime in Kazakhstan. Geneva, Switzerland: Global Initiative Against Transnational Organized Crime. [2, 3, 4, 5] Global Initiative Against Transnational Organized Crime. (2021). ENACT Kazakhstan: Organized crime in Kazakhstan. Geneva, Switzerland: Global Initiative Against Transnational Organized Crime. [6] Global Initiative Against Transnational Organized Crime. (2021). Global Organized Crime Index 2021: A world divided. Geneva, Switzerland: Global Initiative Against Transnational Organized Crime.