Kazakhstan Banks Must Comply with Regulations to Avoid Financial Risks
In an effort to ensure compliance with banking regulations, Eurasian Bank has implemented a comprehensive function to manage compliance risk. This move is aimed at minimizing financial risks and promoting transparency and accountability in Kazakhstan’s financial sector.
Compliance Service Overview
The Compliance Service at Eurasian Bank monitors adherence to various laws and regulations, including:
- Civil legislation
- Tax legislation
- Banking legislation
- Requirements related to state regulation, control, and supervision of the financial market
The service is guided by the Law on Banks and Banking Activities in Kazakhstan and other regulatory acts governing provision of services by the bank and operations in the financial market.
Anti-Money Laundering and Terrorist Financing Laws
In addition to complying with domestic regulations, Eurasian Bank also operates within the framework of anti-money laundering and terrorist financing laws, including:
- US Foreign Account Tax Compliance Act (FATCA)
- Multilateral Agreement based on Article 6 of the Convention on Mutual Administrative Assistance in Tax Matters
Internal Documents Monitoring
The bank’s internal documents regulating provision of services and operations are also monitored by the Compliance Service to ensure compliance with regulations.
Investigations and Reporting
In cases where alleged violations of regulatory acts are reported, the Compliance Service is responsible for investigating the matter. Consumers can report any instances of non-compliance by filling out a form on the bank’s website. In cases where financial service consumer rights are violated, the Compliance Service takes prompt measures to address the issue.
Benefits of Compliance Function
By implementing this compliance function, Eurasian Bank aims to:
- Minimize financial risks
- Ensure the stability of the banking system in Kazakhstan
- Promote transparency and accountability in the country’s financial sector
In conclusion, Eurasian Bank’s implementation of a comprehensive compliance function is a major step towards ensuring compliance with regulations and promoting a stable and transparent financial sector in Kazakhstan.