Kazakhstan’s President Sanctions Asset Recovery Law to Tackle Oligopolistic Groups and Corruption

A New Era for Transparency and Accountability in Kazakhstan

President Kassym-Jomart Tokayev has signed into law a new asset recovery bill aimed at addressing widespread corruption and oligopolistic practices in Kazakhstan. The legislation is designed to enable the government to recover illegally acquired assets from individuals and entities affiliated with positions of public responsibility.

Corruption: A Serious Concern in Kazakhstan

According to the Council of Europe’s Group of States against Corruption, corruption is a significant concern in Kazakhstan, where a small percentage of the population holds an disproportionate amount of wealth. The new law seeks to address this issue by allowing the government to recover assets worth over 44 billion tenge (approximately USD100 million) that have been acquired illegally.

Key Provisions of the Asset Recovery Law

• Applies to individuals and entities holding positions of public responsibility, as well as those affiliated with state legal entities and quasi-public sector entities
• Suspects will be added to the Commission on Asset Recovery’s register and given between one and three months to submit an asset declaration affirming that their assets were legally acquired
• Clear criteria for inferring “reasonable doubt” about the legality of an asset acquisition, including inconsistencies in income or other sources of capital, and the value of the asset exceeding established thresholds
• Failure to substantiate the legality of assets can result in forced return to Kazakhstan

International Cooperation and Enforcement

The law also provides for international cooperation and enforcement of court decisions, enabling the government to recover assets held overseas. The Authorised Body will establish a new department responsible for collating and analyzing information from legal sources to identify illegally acquired assets.

Implications and Advice

Legal experts predict that the asset recovery law will have far-reaching implications for individuals and entities based in Kazakhstan and abroad. Those affected by the law are advised to seek legal advice to understand their rights and obligations under the new legislation.

For more information, please contact our experienced business solicitors at mail@eldwicklaw.com or call +44 (0) 203972 8469.