The Law of the Republic of Kazakhstan “On combating legalization
(laundering) of Illegally Gained Income and Financing of Terrorism”
(hereinafter – the Law) was amended by virtue of the Law of the Republic
of Kazakhstan № 343-V of 08.02.2015. In particular, the amendments were
made into the threshold amount of transactions in money and (or) other
assets, subject to financial monitoring.
Pursuant to the amendments to Article 4 of the Law provide that, a transaction in money and (or) other assets is subject to financial monitoring, when it falls under any of the following types of operations by its nature, amount and form[1]:
| № | Operation | Amount of operation(new) | Type of operation | Amount of operation(old) |
| 1. | Getting winnings based on the results of the betting game of chance in gambling establishments and lotteries, including in electronic form | in amount equal to or exceeding KZT 3 million or amount in foreign currency equivalent to 3 million KZT or exceeding | Cash | in amount equal to or exceeding KZT 1 million or amount in foreign currency equivalent to 1 million KZT or exceeding |
| 2. | Lombard operations in money, securities, precious metals and precious stones, jewels from them and other values (except for national currency coins made of precious metals) | No. | ||
| 3. | Crediting or transfer of client’s money to the bank account of the client’s money, by an individual or legal entity, which has registration, place of residence or location offshore or a bank account registered in the offshore zone,or client’s operations on money and (or) other property with this category of persons. | in an amount equal to or exceeding KZT 5 million or equivalent in foreign currency equivalent to KZT 5 million or exceeding | Cashless | in amount equal to or exceeding KZT 2 million or amount in foreign currency equivalent to 2 million KZT or exceeding |
| 4. | Remittance abroad into the accounts (deposits) opened for an anonymous owner, receipt of money from abroad from the account (deposit) opened for an anonymous owner | |||
| 5. | Payments and remittance by a client in favour of another person on a non-repayable basis | in an amount equal to or exceeding KZT 7 million or equivalent in foreign currency equivalent to KZT 7 million or exceeding | Cashless | in amount equal to or exceeding KZT 6 million or amount in foreign currency equivalent to 6 million KZT or exceeding |
| 6. | Transactions in shares and units of mutual funds, except for repo transactions at the organized market by open trade method | No. | ||
| 7. | Purchase, sale and exchange of foreign currency cash through exchange offices | in an amount equal to or exceeding 10 million KZT or amount in foreign currency equivalent to 10 million KZT or exceeding | Cash |
in amount equal to or exceeding KZT 7 million or amount in foreign currency equivalent to 7 million KZT or exceeding |
| 8. | Collection of cheque or bill | |||
| 9. | Withdrawal or crediting money to a client’s bank account of the client money, or acceptance of cash or giving cash to a client, except for cases, prescribed in subparagraphs 13) and 14) of paragraph 2 of Art. 4, the Law. | |||
| 10. | All operations of a legal entity that exist less than three months | Cashless | ||
| 11. | Import or export from the Republic of Kazakhstan of currency, certified securities, promissory notes, checks, except for import or export carried by the National Bank of the Republic of Kazakhstan, the banks and the National Post. | Cash | ||
| 12. | Insurance payments or receipt of insurance premiums | |||
| 13. | Deduction and transfer of voluntary pension contributions into a single accumulative pension fund and (or) the voluntary accumulative pension fund,and pension payments from a single accumulative pension fund and (or) the voluntary accumulative pension fund at the expense of voluntary pension contributions | |||
| 14. | Transactions in services, inter alia contracting services, transportation, freight forwarding, storage, commissions, trust asset management, safe deposit services except for property lease (rent) safe deposit boxes | |||
| 15. | Purchase and sale of precious metals and stones, and jewelleries made of precious metals. | |||
| 16. | Purchase (sale), import or export of cultural values from the Republic of Kazakhstan | in an amount equal to or exceeding 45 million KZT or amount in foreign currency equivalent to 45 million KZT or exceeding | Cash | in amount equal to or exceeding KZT 30 million or amount in foreign currency equivalent to 30 million KZT or exceeding |
| 17. | Receiving or giving property under a finance lease agreement | |||
| 18. | Transactions in bonds and government securities, except for repo transactions at the organized market by open trade method | Cashless | No. | |
| 19. | Transactions in immovable property and other assets subject to state registration | in an amount equal to or greater than 200 million KZT or amount in foreign currency equivalent to 200 million KZT or exceeding | Cashless | in amount equal to or exceeding KZT 150 million or amount in foreign currency equivalent to 150 million KZT or exceeding |
By virtue of Art. 1, the Law, financial monitoring shall mean a set of procedures involving collection, processing, analysing and use of data and information on operations with money and (or) other assets, carried out by the competent authority and subject to financial monitoring.
When any of the above operations is carried, the law compliance should be ensured (for example, the subjects of financial monitoring is carried out adequate verification of their clients (or their representatives) and beneficial owners, after which data and information on transactions subject to financial monitoring, are provided to the authorized body – Committee for Financial Monitoring of the Finance Ministry of the Republic of Kazakhstan).
[1] These amendments will come into force in February 2016
Saida Shukurova