MICROCAPITAL BRIEF: Legislation Advances in Kazakhstan to Prohibit Anonymous Bank Accounts, Tighten Financial Monitoring of Microfinance Institutions (MFIs)

The Senate and Parliament of Kazakhstan reportedly have approved a law to expand government oversight of financial services and prohibit the use of anonymous bank accounts. This legislation is intended to reduce the use of Kazakhstani financial institutions to launder illegally acquired money or finance terrorism. According to a statement attributed to Bakhyt Sultanov, the Deputy Prime Minister and Finance Minister of Kazakhstan, “to comply with the international standards, Kazakhstan needs to embrace a system of financial monitoring of all entities and persons providing financial services” [1].

If approved by the president of Kazakhstan, the law would require the staff of banks and microfinance institutions (MFIs) to “carry out customer verification” before doing business with individuals and companies, and undergo training to identify efforts to launder money or engage in terrorist financing [1].

By Benjamin Krupp, Research Associate

Sources and Additional Resources

[1] Tengri News: Kazakhstan Bans Anonymous Bank Accounts

MicroCapital, February 26, 2013: Microcredit Regulation in Kazakhstan to Require Minimum Capital of $200k, Client Disclosure Norms

MicroCapital, December 18, 2012: Kazakhstani Government Looking to Triple Microloan Volume by Boosting Microcredit Portfolio to $80m

MicroCapital, June 25, 2013: European Bank for Reconstruction and Development (EBRD) Considers $100m Loan to Sberbank Kazakhstan (SBK) for Micro-, Small, Medium-Sized Enterprises (MSMEs)

MicroCapital, January 20, 2009: Kazhakstan Prime Minister Calls for Schemes to Improve the Functioning of MicroCredit Organizations in Rural Areas; Appoints Deputy Prime Minister to Coordinate the Efforts

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