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Kazakh Banks Face Penalties for Foreign Exchange Law Violations

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Fines Imposed on Banks for Reporting Violations

ALMATY, KAZAKHSTAN - The National Bank of Kazakhstan has taken action against several banks for violating foreign exchange laws. According to a statement from the bank’s regional branch in Almaty, “Kazpost”, JSC was fined 110,760 tenge (approximately $270 USD) for submitting unreliable or incomplete reporting.

  • This is in violation of Article 218, Section 4 of the National Bank’s regulations.
  • The fine is a result of an investigation into the bank’s reporting practices, which revealed inconsistencies and inaccuracies in their submissions.

Additionally, “Islamic bank” Zaman-Bank, JSC and “First Heartland Jýsan Bank”, JSC were each fined 55,380 tenge (approximately $130 USD) for similar violations.

Warnings Issued to Banks for Compliance Issues

The National Bank has also issued warnings to these banks, citing their failure to comply with foreign exchange legislation. The warnings are based on Article 210, Section 1 of the National Bank’s regulations.

  • The penalties come after a review of the banks’ reporting practices, which revealed inconsistencies and inaccuracies in their submissions.
  • The National Bank takes violations of foreign exchange laws seriously and will continue to monitor the activities of licensed financial institutions to ensure compliance with its regulations.

Background on Kazakhstan’s Foreign Exchange Market

Kazakhstan’s foreign exchange market is tightly regulated, with strict controls on the flow of currency and reporting requirements for banks and financial institutions. The National Bank has implemented these measures to maintain financial stability and prevent illicit activities such as money laundering and terrorist financing.

  • The country’s banking system has faced challenges in recent years, including a credit crisis and high levels of non-performing loans.
  • Kazakhstan is seeking to strengthen its financial sector and improve its economic competitiveness.

Conclusion

The fines and warnings issued by the National Bank serve as a warning to other banks operating in Kazakhstan to comply with foreign exchange laws and regulations. The penalties demonstrate the bank’s commitment to maintaining financial stability and preventing illicit activities in the country’s financial sector.