Kazakhstan’s Financial Regulator Gets Strengthened Structure

ASTANA, Kazakhstan - The country’s top financial regulator has undergone a significant overhaul, with new rules governing its composition, meetings, and functions.

New Board of Directors

According to Law No. 399-VI dated February 1, 2021, the regulator will now have a six-member Board of Directors. The Board will comprise:

• Three officials from the authorized body
• One representative each from:
  • The President of Kazakhstan
  • The National Bank of Kazakhstan

Meeting Procedures

The new law outlines the procedures for holding meetings of the Board, including:

• Regular scheduled meetings
• Unscheduled ones called by:
  • The Chairman or at least two members of the Board Decisions will be made by a majority vote, with the Chairman having a casting vote in case of a tie.

Functions

The regulator has been granted sweeping powers to oversee the country’s financial sector, including:

• Issuing licenses for banking and insurance activities
• Supervising compliance with prudential standards
• Monitoring transactions
• Conducting inspections

Additional Measures

The new law also introduces a range of other measures aimed at strengthening financial stability and protecting consumers, including:

• Establishment of a register of valid consents to the appointment of senior employees in the financial sector
• Power to issue permits for voluntary reorganization of microfinance organizations into banks

Impact

The changes are designed to enhance the regulator’s ability to monitor and supervise the country’s financial sector, and to promote a stable and secure financial environment. They come into effect on January 1, 2022.

These reforms demonstrate Kazakhstan’s commitment to strengthening its financial regulatory framework and ensuring the stability of its financial system.