Kazakhstan Unveils Sweeping New Measures to Strengthen Defenses Against Financial Crime

Kazakhstan’s government has approved a wide-ranging resolution aimed at significantly reinforcing the country’s safeguards against money laundering, terrorist financing, and the proliferation of weapons of mass destruction, in what officials describe as one of the most far-reaching financial security reforms in recent years. The new measures are scheduled to take effect on November 20 and represent a comprehensive overhaul of how financial risks are identified, monitored, and prevented across the economy.

Central to the reform package is an effort to dismantle the so-called “mop-up” system, a method that relies on front men to conceal and move illicit funds. To counter this practice, the Financial Monitoring Agency (FMA) will develop and circulate detailed typologies and red-flag indicators to banks, enabling them to better detect suspicious transaction patterns and identify potential abuse at an earlier stage.

The initiative extends beyond regulatory enforcement and places a strong emphasis on public education. In cooperation with financial institutions, the government is launching a nationwide awareness campaign titled “Don’t Become a Mop!” designed to inform citizens about how ordinary individuals can be unwittingly drawn into money laundering schemes and the risks associated with acting as intermediaries.

Cross-border financial activity will also face tighter oversight. Foreign trade transactions, particularly those involving fictitious contracts or full prepayments without the actual exchange of goods, will be subject to closer scrutiny. Banks will be instructed to assess whether such transactions have genuine economic justification, with the aim of preventing shell operations and sham deals from slipping through the system.

The resolution introduces new mechanisms for monitoring cash withdrawals and identifying fictitious lending practices. Using updated methodologies developed by the FMA, cash withdrawals will be continuously analyzed to detect funds suspected of originating from criminal sources. Banks will be required to flag transactions deemed questionable. In addition, specific criteria will be applied to identify “fictitious loans,” including an examination of repayment schedules, funding sources, and loan amounts.

Addressing the growing risks associated with digital assets, the government plans to intensify its response to illegal crypto activity. Unauthorized cryptocurrency exchanges will be blocked, and a registry of “high-risk” crypto wallets will be maintained. Information from criminal investigations involving digital assets will be systematically organized, while public information campaigns will be rolled out to alert citizens to potential abuses and fraud linked to unlicensed platforms.

The reforms also target sectors traditionally vulnerable to money laundering, such as real estate and luxury goods. Banks, notaries, and real estate agents will receive enhanced guidelines to verify property ownership and confirm the legitimacy of funds used in high-value purchases, including luxury homes, precious metals, and designer goods.

Corporate transparency is another pillar of the new framework. A risk-profiling system will be introduced to evaluate legal entities, including trusts and foreign corporate structures, for potential money laundering risks. By increasing transparency and oversight, the authorities aim to limit the misuse of complex corporate vehicles for illicit financial activities.

High-risk industries, including gambling and other sectors prone to criminal exploitation, will be brought under stricter regulation. Technical systems will be implemented to improve transparency and reduce the likelihood that these industries are used as channels for laundering illicit proceeds.

In a notable expansion of scope, the resolution includes a dedicated strategy to prevent the financing of weapons of mass destruction. This element of the plan предусматривает specialized training programs across relevant government agencies, with the goal of ensuring that prevention efforts are proactive rather than merely reactive.

To ensure accountability, all government bodies and their subordinate agencies will be required to submit progress reports to the FMA twice a year. The FMA will compile this information and present a consolidated report to the government by the 20th day following each reporting period, providing a structured mechanism to track implementation and effectiveness of the new measures.

By fLEXI tEAM