Kazakhstan’s Financial Crime Investigation Techniques Under Scrutiny: FATF Mutual Evaluation Reveals Key Findings

The Financial Action Task Force (FATF) has recently conducted a financial crime investigation techniques assessment of Kazakhstan, highlighting both the country’s strengths and weaknesses in combating money laundering, terrorist financing, and other financial crimes.

Key Findings

• The report highlights Kazakhstan’s significant progress in implementing FATF’s recommendations, with high levels of compliance observed in several areas, including:
  • National cooperation and coordination
  • Confiscation and provisional measures
  • Reporting of suspicious transactions
• However, the evaluation also identified some shortcomings, particularly in relation to:
  • Assessing risk and applying a risk-based approach (partially compliant)
  • Regulation and supervision of financial institutions (partially compliant)

Areas for Improvement

• Kazakhstan has committed to addressing these weaknesses and implementing additional measures to strengthen its AML/ CFT regime, including:
  • More robust customer due diligence measures
  • Enhanced internal controls
  • Greater transparency regarding beneficial ownership of legal persons

Conclusion

While Kazakhstan has made significant strides in combating financial crime, there is still much work to be done to achieve full compliance with FATF’s standards. The country’s efforts to strengthen its AML/ CFT regime will be closely monitored by international authorities and will have important implications for its reputation as a financially stable and secure jurisdiction.