Financial Crime World

Kazakhstan and US Agree on Financial Information Exchange

Enhanced Transparency and Cooperation in Tax Matters

In a significant move towards promoting transparency and cooperation in tax matters, Kazakhstan and the United States have agreed to exchange financial information with respect to reportable accounts. This agreement aims to strengthen the relationship between the two countries and facilitate effective enforcement of tax laws.

What Does the Agreement Cover?

  • The agreement requires each country to obtain and annually exchange specific information related to reportable accounts held by residents of the other country.
  • The exchanged information includes:
    • Account holder details
    • Account numbers
    • Balances
    • Income generated from assets held in the accounts

Scope of the Agreement

The agreement applies to all reportable accounts maintained by financial institutions in both countries, including:

  • Deposits
  • Securities
  • Insurance contracts

Timeline for Implementation

The exchange of information is expected to commence in 2014, with Kazakhstan providing information on account balances and income generated from assets held in reportable accounts. In subsequent years, the country will also provide details on gross proceeds from the sale or redemption of property.

Commitment to Confidentiality

Both countries have committed to maintaining the confidentiality of the exchanged information and using it only for tax purposes.

Quotes from Key Officials

  • “This agreement demonstrates our commitment to transparency and cooperation in tax matters,” said [Name], Minister of Finance, Kazakhstan. “We believe that sharing financial information will help us better enforce our tax laws and promote a more level playing field.”
  • “We are pleased to have reached this agreement with Kazakhstan,” added [Name], Commissioner of the Internal Revenue Service, US. “Exchanging financial information is an important step in preventing tax evasion and ensuring that individuals and businesses comply with their tax obligations.”

Next Steps

The Competent Authorities of both countries will work together to implement the agreement, which is expected to take effect by [Date].