Dear Readers,
The President signed amendments1 to the anti-money laundering legislation. One of the changes obliges companies to identify and keep records of their beneficial owners.
According to a new norm in the Anti-Money Laundering Law, legal entities and foreign structures not creating a legal entity in Kazakhstan (trusts, funds, partnership, etc.) are required to take appropriate measures to identify their beneficial owners and record the identification information.
The law clarifies that legal entities and foreign structures not creating a legal entity are obliged to:
1) Verify the accuracy of the information regarding their beneficial owners;
2) Update information about their beneficial owners at least once a year or in case of changes;
3) Keep information on their beneficial owners, as well as on the measures taken to identify their beneficial owners for at least five years from the date of receipt.
Legal entities and foreign structures not creating a legal entity are required to provide information and documents on their beneficial owners to the state authorities upon a request within the time limits established by the state authorities.
A failure to provide or a delay in the provision of the requested information or documents will be subject to an administrative fine2 of 80, 200 or 300 times the monthly index factor for small, medium and large-sized entities, respectively.
The amendments will come into effect on 3 September 2022.
1 Law No. 131 - VII On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Anti-Money Laundering and Countering the Financing of Terrorism, as well as the State Price Regulation, dated 1 July 2022
2 Law No. 132- VII On Amendments Additions to the Code of the Republic of Kazakhstan on Administrative Offenses on Anti-Money Laundering and Countering the Financing of Terrorism, dated 1 July 2022