Financial Crime World

Kazakhstan’s New Law Against Money Laundering and Terrorist Financing Takes Effect

March 9, 2010

A Significant Stride for Kazakhstan in Combatting Money Laundering and Terrorist Financing

  • The long-awaited Law of the Republic of Kazakhstan on Counteracting Legalization (Laundering) of Illicit Funds and Terrorist Financing went into effect on March 9, 2010.
  • Adopted on August 28, 2009, the legislation aims to establish a legal framework for combating money laundering and terrorist financing in Kazakhstan.

Financial Institutions’ Role in Reporting Suspicious Transactions

-Various financial institutions, including banks, stock exchanges, insurance companies, and pension funds, are now required to report any suspicious transactions to the Financial Monitoring Committee (FMC) of Kazakhstan. -These entities, which fall under financial monitoring, are mandated to disclose such information to the FMC. -Upon discovery of signs of money laundering or terrorist financing, the FMC passes the information to the relevant law enforcement agencies for further investigation.

Cooperation and International Expectations

-The implementation of the new legislation marks a significant stride for Kazakhstan in strengthening its national Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime. -This development represent the culmination of the close cooperation between the Kazakhstan government, its competent authorities, and experts from the European Anti-Fraud Office (OLAF) and other donor organizations.

Benefits of the New Legislation

-Adoption of the legislation is a critical response to the international community’s expectations and demands for Kazakhstan and other countries to implement and enforce effective AML/CFT measures. -The legislation ensures that Kazakhstan remains a trusted and reliable financial partner, enhancing its reputation in the global financial system.

Kazakhstan’s Role in Financial Stability and Security

-With this new legal framework, Kazakhstan joins the ranks of countries taking decisive steps to counteract money laundering and terrorist financing. -The country is a cornerstone of financial stability and security in the region.