Here is the converted article in Markdown format:

Kazakhstan’s AML/CFT Efforts Criticized for Ineffectiveness

Almaty, Kazakhstan - Despite efforts to combat money laundering and terrorist financing (AML/CFT), Kazakhstan has been criticized for its ineffective measures to prevent subsequent violations of AML/CFT legislation by other obliged entities.

Ineffective Measures Criticized

The country’s financial intelligence unit (FIU) and supervisory authorities have been accused of applying corrective measures that are not diverse, and sanctions that are not proportionate and dissuasive. The FIU has also been criticized for failing to verify the accuracy and relevance of beneficial ownership information provided by legal entities during registration.

High ML/TF Risks Remain

According to a recent report, Kazakhstan’s AML/CFT system has undergone significant changes since 2018, including the development of its own methodology for conducting risk assessments. However, despite these efforts, the country’s ML/TF risks remain high, with tax crimes, illegal business activities, corruption, and embezzlement of public funds posing a high threat.

Failure to Prevent Misuse of Legal Persons

The report also highlights that Kazakhstan has not effectively implemented measures to prevent the misuse of legal persons for money laundering purposes. While several types of sanctions are applied to legal entities, penalties for failure to provide information are generally not applied.

State Database “Legal Persons” (SDLP)

The country’s State Database “Legal Persons” (SDLP) contains basic information on legal entities and beneficial owners, but the information related to beneficial owners is only available to law enforcement and special authorities. The source of this data is the information provided by applicants during registration, which is not verified for accuracy and relevance.

Conclusion

The report concludes that while Kazakhstan has made efforts to identify its ML/TF risks and develop measures to minimize them, more needs to be done to effectively combat money laundering and terrorist financing.