Kazakhstan

New Documents

The Ministry of Finance of the Republic of Kazakhstan hosted a virtual workshop on developments in the domestic and international regulation of digital assets on Feb. 28, 2020.

The Eurasian Group announced that Kazakhstan and United Nations Office on Drugs and Crime agreed to cooperate on combating money laundering, terrorist financing, and illegal drug trafficking.

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Enforcement Actions

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Important Facts

  • The U.S. State Department labels Kazakhstan as a major money laundering country. Governmental corruption, 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. A follow-up action plan includes proposals to bring Kazakhstan more into compliance with international anti-money laundering standards. No money laundering prosecution or conviction statistics are available for 2019, but the number of money laundering investigations and prosecutions has historically been low.
Source: 2020 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