Asset Recovery Strategies Gaining Momentum in Kazakhstan

Kazakhstan has introduced new asset recovery strategies aimed at combating large-scale corruption and oligopoly groups by returning illegally acquired assets to their rightful owners.

Combating Corruption and Oligopoly Groups

The law targets individuals who have held public office or have significant connections with those in power. To be eligible for the program, entities must have accumulated assets worth over 13 million MCI (approximately $100 million USD).

Monitoring and Analysis

The authorized body responsible for asset recovery will monitor and analyze information from government agencies and other sources to identify those involved in illegal asset withdrawal schemes. The analysis will determine the scope of individuals involved, their affiliated parties, and the total value of assets at stake.

Review and Decision-Making Process

If reasonable doubts arise about the legality of acquired assets, the authorized body will submit proposals to the Commission on Asset Recovery to include entities in a special register. The Commission, comprising parliament members, public figures, government officials, and other experts, will review the cases and decide whether to include individuals in the register.

Measures for Recovering Assets

The commission will also recommend measures to recover assets while ensuring social, political, and economic stability. Once included in the register, entities must submit a declaration of assets within a month (or three months if necessary) confirming their legality. If they cannot provide evidence of legal acquisition, the assets will be deemed of unknown origin.

Return of Illegally Acquired Assets

The law provides mechanisms for returning illegally acquired assets through voluntary or compulsory means. The authorized body can apply to court for preliminary measures to prevent asset withdrawal or alienation. To protect bona fide purchasers, the law allows for compensation and guarantees their rights.

International Legal Cooperation

To address cross-border issues, Kazakhstan has established mechanisms for international legal cooperation, including enforcing court decisions, exchanging information, and engaging in other legal agreements.

Annual Report and Implementation Timeline

The authorized body is required to publish an annual report on efforts to counter illegal asset acquisition and withdrawal, as well as measures taken to eliminate the underlying causes. The law will come into effect 10 days after publication, with provisions relating to citizen rights taking effect 60 days later.

Key Points:

• Entities must have accumulated assets worth over 13 million MCI to be eligible for the program
• Authorized body will monitor and analyze information from government agencies and other sources
• Commission on Asset Recovery reviews cases and recommends measures for recovering assets
• Entities must submit a declaration of assets within a month (or three months if necessary) confirming their legality
• Law provides mechanisms for returning illegally acquired assets through voluntary or compulsory means
• Kazakhstan has established mechanisms for international legal cooperation to address cross-border issues