Enhanced regulations for currency exchange businesses enacted

The National Bank of Kazakhstan has proposed amendments to the internal control requirements for exchange offices, aiming to align the country's national legislation with international Financial Action Task Force (FATF) standards. These changes are expected to come into force in the fourth quarter of 2025.

To ensure compliance with international requirements and minimize money laundering risks, exchange offices will need to strengthen their client and operational controls. The proposed regulation requires financial institutions to update their customer identification systems and harmonize their dossiers with the law "On Countering the Legalization of Income Obtained through Criminal Activity and the Financing of Terrorism."

Moreover, exchange offices will be required to align their dossiers with the aforementioned law when complying with the new rules for the control of cash foreign currency exchanges. In line with this, new requirements for client verification when buying or selling refined gold bars have been introduced.

The regulation also addresses the risks associated with the use of new technologies for money laundering. Exchange offices are expected to consider these risks when updating their client identification systems.

The list of offshore zones will be synchronized with the up-to-date lists approved by financial regulators. The National Bank of Kazakhstan has published these changes on the "Open NPA" portal, providing transparency and accessibility to all stakeholders.

The implementation of these changes is not expected to have any negative socio-economic consequences. The amendments are part of Kazakhstan's ongoing efforts to enhance its financial system's security and transparency, in line with international standards.