Kazakhstan Starts Fighting Twin Beasts Of Money Laundering And Terrorism Financing Head-On

(MENAFN- Trend News Agency) ASTANA, Kazakhstan, September 4. Efforts to counter money laundering and terrorism financing are intensifying in Kazakhstan, Trend reports via the press service of the Senate (upper house) of the Parliament of the Republic of Kazakhstan.

The Senate (upper house of the Parliament of the Republic of Kazakhstan) has adopted the law on counteracting legalization (laundering) of proceeds from crime, financing of terrorism, and proliferation of weapons of mass destruction.

Key provisions of the law are as follows:

The concept of "financing the proliferation of weapons of mass destruction" has been established;

It introduces the obligation to submit Suspicious Activity Reports (SAR) for clients subject to financial monitoring;

A direct ban on the establishment of“front” (shell) banks;

The circle of financial monitoring entities has been expanded to include mobile operators and clearing centers for financial instrument transactions;

Implementation of scoring/automated systems for client risk identification;

The criterion of "impeccable business reputation" for owners of financial organizations has been clarified (measures preventing ownership of significant shares by persons connected with criminals);

The law is designed to shine a light on the financial system and bolster safeguards to keep Kazakhstan from being a hotbed for money laundering and the funding of terrorist activities.

Shell banks are fictitious or front banks that exist formally but do not engage in actual banking activities. Such banks are often used to conceal illegal transactions, launder money, or finance prohibited activities, such as the proliferation of weapons of mass destruction (WMD).

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