Financial Crime World

Kazakhstan’s Fintech Sector Set for Compliance Revamp in 2020

Kazakhstan’s financial landscape is poised for a significant regulatory overhaul, with the National Bank of the Republic of Kazakhstan issuing revised risk management system and internal control requirements for financial institutions to implement by July 1.

Strengthening Financial Landscape

The country’s fight against money laundering and corruption will continue unabated in 2020. Financial institutions have been actively participating in identifying suspect transactions and are expected to intensify their efforts to combat the shadow economy.

Anti-Corruption Measures

Anti-corruption measures will take center stage as the government steps up its efforts to tackle corruption in both the public and private sectors. This is likely to lead to an increased demand for compliance specialists, highlighting the importance of developing a strong compliance culture within financial institutions.

Key Focus Areas

Several key focus areas are expected to dominate the fintech sector’s regulatory landscape this year:

  • Developing a Strong Compliance Culture: Many institutions will implement measures to educate employees on compliance policies and procedures, from top management to average staff.
  • Optimizing Processes: Efforts will continue to optimize processes, ensuring that compliance does not become a source of bureaucracy. Instead, it should help organizations improve their performance.
  • Expanding Compliance Reach: Compliance is set to expand its reach into other sectors beyond the banking industry. Government agencies, quasi-state companies, and private firms are recognizing the importance of compliance as a control tool for improving performance.

Strategic Approaches

Implementing individual developments without a broader strategy may not yield optimal results. Therefore, strategic approaches to compliance development will be crucial in 2020. By adopting a holistic approach, financial institutions can ensure that their compliance efforts are effective and efficient.