Tokayev signs ML amendments into law

The bill calls for amendments to AML/CFT procedures such as customer due diligence, internal controls and suspicious transaction reporting.

Kassym-Jomart Tokayev, the President of the Republic of Kazakhstan, signed into law the bill "On amendments to certain regulations of the Republic of Kazakhstan concerning combating money laundering and terrorist financing", zokon.kz reports citing sources within the Akorda.

The RK Finance Ministry along with other concerned government agencies took part in the drafting of the law.

"The purpose of the new law is to bring Kazakhstan's AML/CFT legislation into line with the FATF standards and to bolster defences against terrorism."

In particular, the law amends AML/CFT procedures such as customer due diligence, internal controls and suspicious transaction reporting. 

In addition, the new law empowers the Committee on Financial Monitoring to take administrative sanctions against reporting entities that lack their own state regulator (5 reporting entities): independent legal professionals; unlicensed leasing companies; accounting firms; real estate agents; and dealers in precious metals, stones and jewellery);

The law also regulates international AML/CFT cooperation procedures for the Committee on Financial Monitoring, including with respect to the search for and recovery of criminal assets.

To ensure compliance with international standards, the law includes new provisions designed to combat the abuse of the non-profit sector for TF purposes (the requirements apply to charities and religious associations seeking voluntary financial and other donations).

The law also enables the use of targeted financial sanctions for terrorist and proliferation financing required by UN Security Council resolutions.

At the same time, the law introduces amendments designed to bolster defences against terrorism, by proposing the use of an industry-wide approach.

According to its drafters, amendments, which are preventive in their nature, are designed to strengthen the country's financial system and combat the abuse of businesses and NPOs for ML/TF purposes. 

Zakon.kz