Dear Readers,

In January 2022, amendments1 to the anti-money laundering legislation will come into force. The amendments expand the list of transactions subject to financial monitoring. We offer you a brief overview of some of the most important changes.

The amendments expanded the functions of the Financial Monitoring Agency. In particular, the amendments granted the Financial Monitoring Agency access to the National Register of Business Identification Numbers. This norm came into effect on 30 November 2021.

Politically Exposed Persons (PEP)

Previously, the anti-money laundering legislation required a financial monitoring entity to apply enhanced due diligence measures on customers that are identified as foreign PEPs. The legislation did not establish this requirement for domestic PEPs.

The amendments revise this approach. The updated definition of PEPs includes both, individuals entrusted with prominent public functions domestically and by a foreign country.

Accordingly, domestic PEPs, their spouses and close relatives will be subject to the enhanced due diligence measures similar to foreign PEPs, if they receive services from financial monitoring entities.

The amendments establish that domestic PEPs retain their classification until 12 months after they leave office. The President will approve the list of positions observed as politically exposed. The Financial Monitoring Agency will keep the list of domestic PEPs, their spouses and close relatives.

Monitoring of Activities Related to Digital Assets

The amendments include taxpayers engaged in activities related to digital assets (issue, trade, exchange) to the list of financial monitoring entities. In addition, these taxpayers will be obligated to notify the state authorities on information technology of the start or termination of their activities.

Monitoring of Real Estate Transactions

The amendments reduce the threshold on real estate transactions subject to financial monitoring from KZT 200 million to KZT 50 million.

The amendments will come into effect on 19 January 2022.


1Law No. 73-VII of the Republic of Kazakhstan On the Introduction of Amendments and Addenda to Certain Legislative Acts of the Republic of Kazakhstan on Anti-Money Laundering and Countering the Financing of Terrorism , dated 18 November 2021