Kazakhstan Adopts Comprehensive Anti-Money Laundering Framework
The Government of Kazakhstan has approved a comprehensive package of measures aimed at mitigating risks related to money laundering, terrorist financing, and the proliferation of weapons of mass destruction. The resolution enters into force on Nov. 20 and mandates semiannual reporting by government bodies and subordinate organizations to the Financial Monitoring Agency (FMA).
Key measures include countering the use of front persons (“mop-ups”), developing typologies and red-flag indicators for financial institutions, and launching an awareness campaign titled “Don’t Become a Mop!” with broad involvement from state agencies and banks.
Foreign economic operations will undergo strengthened scrutiny, particularly transactions involving fictitious contracts, full prepayments without subsequent imports, and those lacking clear economic rationale. Banks will receive guidance for assessing such risks.
The FMA will implement methodologies to monitor cash withdrawals potentially linked to illicit proceeds, while banks will be required to identify and report suspicious transactions. Indicators of fictitious lending will also be defined, covering repayment schedules, financing sources and loan amounts.
Regulatory measures targeting digital assets include blocking unlicensed crypto platforms, maintaining a registry of high-risk wallets, collecting data related to criminal cases, and conducting public education on associated risks.
In the real estate and luxury goods markets, banks, notaries, and real estate professionals will be instructed to verify ownership rights and sources of funds, with particular focus on high-value property, precious metals, and other luxury goods. Risk profiling of legal entities, including those involving trusts and foreign structures, will be introduced.
Additional measures will enhance transparency in gambling and other high-risk sectors through system integration and technical monitoring. A dedicated strategy for preventing the financing of weapons of mass destruction will also be developed, alongside specialized training programs.
Under the new reporting mechanism, state bodies must provide updates to the FMA twice per year, while the agency will submit consolidated results to the government by the 20th day following each reporting period.
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