Financial Crime World

Kazakhstan Takes Aim at Corruption with New Asset Recovery Law

A Major Crackdown on Corruption in Kazakhstan

In a significant move to combat corruption, President Kassym-Jomart Tokayev has signed a law enabling the recovery of illegally acquired assets in Kazakhstan. The new legislation targets individuals holding positions of public responsibility, state legal entities, quasi-public sector entities, and their affiliates who possess assets valued over 44 billion tenge (approximately USD100 million).

Key Provisions of the New Law

  • Targets individuals holding positions of public responsibility, state legal entities, quasi-public sector entities, and their affiliates with assets valued over 44 billion tenge (USD100 million)
  • Introduces amendments to the Code of Administrative Offences, Tax Code, and Law on the Prosecutor’s Office
  • Enables the return of illegally acquired assets to the state through voluntary or compulsory measures

Addressing Corruption Concerns

According to a recent report by the Council of Europe’s Group of States against Corruption, corruption in Kazakhstan is a serious concern. The report highlighted the need for:

  • Increased transparency in public administration and decision-making processes
  • Improved recruitment and promotion practices for civil servants and officials

The new asset recovery law aims to address these concerns by enabling the return of illegally acquired assets to the state.

Procedure for Returning Illegally Acquired Assets

  • Individuals or entities added to the register have a one-to-three-month window to submit an asset declaration affirming that their assets were legally acquired
  • Failure to do so may result in the assets being classified as having an “unexplained origin”
  • Clear criteria are set out for inferring “reasonable doubt” about the legality of asset acquisition, including:
    • Inconsistencies between asset value and legitimate income or other sources of capital

International Cooperation and Enforcement

The law facilitates international cooperation in enforcing court decisions and exchanging information related to asset recovery.

Implications of the New Law

Individuals and entities based in Kazakhstan and abroad may be affected by this new legislation. Those seeking legal advice on the implications of the new law are advised to contact experienced business solicitors who can provide guidance on navigating the complexities of the legislation.