Mutual Evaluation Report on Anti-Money Laundering and Counter-Terrorist Financing in Kazakhstan ()

Key Chapter Title List

1. Money Laundering/Terrorist Financing Risks and Context
2. National Anti-Money Laundering/Counter-Terrorist Financing Policy and Coordination
3. Legal System and Operational Issues
4. Terrorist Financing and Counter-Proliferation Financing
5. Preventive Measures
6. Supervisory Oversight
7. Legal Persons and Arrangements
8. International Cooperation
9. Technical Compliance Assessment

Document Introduction

This report is the outcome of the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG) mutual evaluation of Kazakhstan, summarizing the anti-money laundering (AML), counter-terrorist financing (CFT), and counter-proliferation financing (CPF) measures implemented by the country as of the on-site assessment period in September 2022. The core objective of the report is to analyze Kazakhstan's level of compliance with the Financial Action Task Force (FATF) Recommendations, assess the practical effectiveness of its relevant systems, and propose recommendations for system strengthening.

The report first outlines Kazakhstan's money laundering and terrorist financing risk landscape, identifying core predicate offenses such as tax crimes, corruption, illegal business activities, drug trafficking, and providing context for the medium-risk rating for terrorist financing. Based on the results of the first national risk assessment in 2018 and the separate money laundering risk and terrorist financing/counter-proliferation financing risk assessments conducted in 2021, it systematically explains the foundational framework for the country's risk identification and response.

At the operational level, the report analyzes multiple dimensions including policy coordination, legal enforcement, preventive measures, supervisory oversight, and international cooperation. It focuses on evaluating the functionality of the Financial Intelligence Unit (FIU), the effectiveness of investigations and prosecutions by law enforcement agencies, the implementation of asset confiscation mechanisms, and the compliance performance of Designated Non-Financial Businesses and Professions (DNFBPs). Data indicates that Kazakhstan has made significant progress in areas such as inter-agency cooperation, financial intelligence analysis, and supervision of high-risk sectors. However, there remains room for improvement in areas like legal person transparency, oversight of cross-border cash movements, and the application of sanctions on legal persons.

The report employs a combined quantitative and qualitative analytical approach, integrating official statistics, case studies, on-site interviews, and compliance verification results to comprehensively present the strengths and weaknesses of Kazakhstan's AML/CFT system. Its key findings provide a core basis for the country to formulate targeted improvement measures and serve as an authoritative reference for the international community to understand AML/CFT practices in the Central Asian region.

Finally, the report proposes 17 priority action recommendations, covering key areas such as legislative enhancement, law enforcement strengthening, regulatory optimization, and deepening international cooperation. These are aimed at assisting Kazakhstan in further improving the effectiveness and compliance of its AML/CFT system to address the evolving threats of transnational organized crime and terrorist financing.