Kazakhstan

New Documents

The Organization for Security and Cooperation in Europe announced that it supported a two-day training seminar on suspicious transaction reporting in Nur-Sultan, Kazakhstan for some 180 participants.

The Eurasian Group on Combatting Money Laundering participated in a virtual hearing with the Republic of Kazakhstan on strengthening Kazakhstan’s efforts to combat money laundering and seizing proceeds of crime.

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Important Facts

  • The U.S. State Department labels Kazakhstan as a major money laundering country. Governmental corruption, drug trafficking, the presence of organized criminal groups, and a large shadow economy make the country vulnerable to money laundering. The jurisdiction is also a transit country for opiates and cannabis on the way to Europe, and is particularly susceptible to trade-based money laundering. The primary sources of laundered proceeds are graft by public officials and fraudulent financial activity, including transactions using shell companies to launder funds returned in the form of foreign investments. In addition, the smuggling of contraband goods and fraudulent invoicing of imports and exports by businesses remain common practices. The use of virtual currencies, online credit card fraud, and online casinos make it difficult to investigate and prosecute money laundering in Kazakhstan because their use often originates beyond the nation’s borders. In 2019, Kazakhstan completed its national risk assessment to evaluate the exposure of its financial sector to money laundering and terrorist financing. In 2020, the country adopted terrorist financing-related amendments to its anti-money laundering and counterterrorist financing law in order to bring the country in compliance with international standards. Kazakhstan prosecuted 20 cases following a record number of suspicious transaction reports; however, there were no convictions for money laundering.
Source: 2021 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 16 High :
Largely Compliant : 18 Substantial :
Partially Compliant : 12 Moderate :
Non-Compliant : 1 Low :
Not-Applicable : 2

BASEL i

Rank : 73/141
Score : 5.08/10

TRANSPARENCY INTERNATIONAL i

Rank : 113/180
Score : 34/100

Tax Justice Network i

Rank : 108/133
Score : 64/100