Financial Crime World

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Kazakhstan’s Money Laundering Efforts Receive Mixed Assessment

Astana, Kazakhstan - A recent evaluation by the Financial Action Task Force (FATF) has revealed that Kazakhstan’s efforts to combat money laundering and terrorist financing are largely compliant with international standards. However, some areas of concern have been identified.

Progress Made in Implementing FATF Recommendations

According to the report, Kazakhstan has made significant progress in implementing the technical requirements of the FATF Recommendations, particularly in regards to:

  • Assessing risk and applying a risk-based approach
  • National cooperation and coordination
  • Confiscation and provisional measures

The country’s laws and regulations on money laundering and terrorist financing offenses are also largely compliant with international standards.

Areas for Improvement

However, there are some areas where Kazakhstan falls short. The report notes that:

  • Financial institution secrecy laws do not meet international standards
  • Customer due diligence requirements need to be strengthened
  • Regulation and supervision of non-profit organizations and high-risk countries require improvement

The FATF also expressed concerns about Kazakhstan’s reliance on third parties, such as correspondent banks, to implement anti-money laundering measures. The country needs to strengthen its internal controls and oversight of foreign branches and subsidiaries to prevent money laundering and terrorist financing.

Commitment to Improvement

Kazakhstan has committed to addressing these areas of concern and improving its overall anti-money laundering regime. The country has also committed to:

  • Increasing transparency and beneficial ownership of legal persons and arrangements
  • Strengthening its financial intelligence unit
  • Cooperating with international partners

Conclusion

The FATF’s evaluation is an important step in assessing Kazakhstan’s efforts to combat money laundering and terrorist financing. The report provides a roadmap for the country to improve its anti-money laundering regime and meet international standards.