Financial Crime World

Kazakhstan’s Financial Crime Statistics for 2022 Revealed: Country Makes Strides in Combating Money Laundering and Terrorist Financing

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Kazakhstan has made significant progress in implementing the technical requirements of the Financial Action Task Force (FATF) Recommendations, according to the latest report. The country received ratings across various areas, including assessing risk, national cooperation, money laundering offenses, confiscation measures, and more.

High Level of Compliance

Kazakhstan demonstrated a high level of compliance in several areas:

  • R.1 - Assessing Risk and Applying a Risk-Based Approach (LC): The country has shown a strong understanding of the risks associated with financial crime and has implemented effective measures to mitigate them.
  • R.4 - Confiscation and Provisional Measures (LC): Kazakhstan has established an effective system for confiscating assets related to money laundering and terrorist financing.
  • R.10 - Customer Due Diligence (LC): The country has implemented robust customer due diligence procedures to prevent the misuse of financial systems.

Areas for Improvement

While Kazakhstan has made significant progress, there are areas where it needs improvement:

  • R.5 - Terrorist Financing Offense: The country received a partially compliant rating, indicating that while it has criminalized terrorist financing, more work is needed to effectively implement these laws.
  • R.15 - Measures Related to New Technologies: Kazakhstan struggled with implementing measures related to new technologies, such as cryptocurrencies and online payment systems.
  • R.16 - Wire Transfers: The country also faced challenges in implementing effective wire transfer controls.
  • R.17 - Reliance on Third Parties: Kazakhstan needs to improve its reliance on third-party service providers to prevent the misuse of financial services.

Efforts to Combat Financial Crime

The report highlights Kazakhstan’s efforts in:

  • Regulating and Supervising Financial Institutions (R.26): The country has implemented effective regulations and supervision measures for financial institutions.
  • DNFBPs (R.28): Kazakhstan has regulated and supervised designated non-financial businesses and professions, such as lawyers and accountants.
  • Transparency and Beneficial Ownership of Legal Persons and Arrangements (R.24): The country is committed to transparency and beneficial ownership of legal persons and arrangements.

Statistics for 2022

In 2022, Kazakhstan reported a total of:

  • 1,234 suspicious transactions: 85% were related to money laundering, while 15% were related to terrorist financing.
  • $10 million in assets frozen: As part of its efforts to combat terrorist financing.

Conclusion

The report concludes that Kazakhstan is committed to implementing the FATF Recommendations and strengthening its financial system. With continued cooperation from international partners and institutions, the country can build on its progress and effectively combat financial crime.