Asset Recovery Methods Set to Dismantle “Old Kazakhstan” and Install “New” One
Astana, Kazakhstan - The recently adopted law on asset recovery has sent shockwaves through Kazakhstan’s business community, as authorities prepare to crack down on illegally obtained assets.
President Kassym-Jomart Tokayev’s Initiative
President Tokayev’s initiative aims to recover public assets, eliminate illegal withdrawal of funds, and restore social justice. The new law is designed to target anyone suspected of obtaining control over assets through administrative pressure or other illicit means.
Scope of the Law
Under the new law, any asset purchased with money illegally withdrawn from Kazakhstan is fair game for recovery. Authorities will investigate:
- Public servants
- Managers from quasi-public sectors
- Entrepreneurs whose revenues appear suspicious
- Anyone suspected of obtaining control over assets through administrative pressure or other illicit means
Investigation Process
Prosecutors will use all available sources of information to identify illegally obtained revenues, including:
- Accountant reports
- Media analysis
The law applies to any jurisdiction within Kazakhstan, including the Astana International Financial Center, and authorities are prepared to search for illegal assets abroad.
Asset Recovery Committee
To facilitate the recovery process, the General Prosecutor’s Office has established an Asset Recovery Committee comprising 114 specialists. The committee will:
- Monitor suspicious activity
- Examine asset ownership
- Recover illegally obtained assets
Multi-Stage Process
The law provides for a multi-stage process, starting with searches for assets and identification of their connection to those who control them. Owners of assets suspected of being illegally obtained will be notified and given the opportunity to provide documentation proving the legality of the asset’s origin.
If an asset is recovered voluntarily, no legal action will be taken against its owners. However, if a subject of investigation fails to cooperate, they can expect severe consequences, including:
- Seizure of assets
- Transaction bans
- Other measures outlined in the law on asset recovery
Encouraging Cooperation
President Tokayev has emphasized that fair and patriotic businesses will be respected and protected by the government. To encourage cooperation, he has invited big businesses to invest in 15 megaprojects, suggesting that such investments will be viewed as a serious attempt to prove the legality of assets origin.
Dismantling “Old Kazakhstan” and Installing “New”
The law on asset recovery is seen as a key tool for dismantling “Old Kazakhstan” and installing “New Kazakhstan,” with big businesses expected to form the backbone of the new regime. The government’s efforts to recover illegally obtained assets aim to make the business elite more loyal to the current administration, ensuring public support and subsidies for legitimate reasons.
Conclusion
As President Tokayev noted, “Let me be clear: investments into such productions will be considered as a serious attempt to prove the legality of assets origin.” It remains to be seen how this initiative will play out in practice, but one thing is certain - Kazakhstan’s business community has been put on notice.