Kazakhstan’s Weak Enforcement of AML/CFT Laws Facilitates Money Laundering

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Despite government efforts to combat money laundering and terrorist financing, Kazakhstan remains vulnerable to these illicit activities. The country’s weak enforcement of anti-money laundering (AML) and combating the financing of terrorism (CFT) laws has created an environment where former oligarchs and businesses can easily launder funds.

Lack of Capacity among Law Enforcement Agencies

Kazakhstan’s legislation is largely in line with international standards, but the lack of capacity among law enforcement agencies to investigate sophisticated financial crimes means that many cases go unprosecuted. Furthermore, parallel financial investigations are not conducted regularly alongside money laundering investigations, and information sharing between agencies is poor.

Conducive Economic Regulatory Environment

The country’s economic regulatory environment is conducive to doing business, but corruption remains a major obstacle. Patronage networks, bureaucracy, and vague legislation restrict foreign investment, while public procurement carries a high risk of corruption. The government has taken steps to improve the business environment, including adopting reforms aimed at lessening bureaucratic barriers and burdens.

Human Trafficking Remains a Concern

Kazakhstan is a key transit country for human trafficking flows, and victims often face inadequate support and protection. While the government has increased funding for state-funded shelters and adopted an anti-trafficking national action plan, identification and provision of support to foreign nationals remains inadequate due to lack of trust in authorities.

Limited Capacity of Civil Society Organizations

The country’s civil society organizations are underdeveloped and severely limited, with activists facing routine harassment and persecution. The government has failed to address demand for sex work and forced labor, despite maintaining prevention efforts through information campaigns and awareness programs.

Press Freedom Concerns

Freedom of the press is a concern in Kazakhstan, with most opposition media outlets banned or restricted by judicial proceedings since the 2022 protests. Journalists are subject to targeted attacks, and mass surveillance and restriction of access characterize internet usage in the country.

Severe Restrictions on Civil Society Organizations

The government has adopted an anti-corruption strategy for 2022-2026, but constitutional provisions guaranteeing press freedom remain unfulfilled. Civil society organizations face severe restrictions, with foreign-funded NGOs prohibited from pursuing political goals and restrictions on free speech, assembly, and association in place.

Funding Disclosure

This article was funded in part by a grant from the United States Department of State. The opinions, findings, and conclusions stated herein are those of the authors and do not necessarily reflect those of the United States Department of State.