Main Changes In Kazakhstan's Financial Legislation In Q1 2025

CHANGES TO THE CIVIL CODE (SPECIAL PART)

Amendments have been introduced to the Civil Code of the Republic of Kazakhstan (Special Part) No. 409-I dated 1 July 1999 (the "Civil Code") aimed at updating the regulatory framework in the area of public-private partnership (the "PPP") and enhancing the social protection of individuals in connection with the use of educational savings and insurance payments.
The regulation of the lease of state property under PPP arrangements has been simplified: references to concessions have been removed, with the focus placed solely on public-private partnerships.
Article 738-2 has been revised, the specifics of financing PPP projects through the assignment of monetary claims are now governed by the special PPP legislation, without reference to concession regulation. The law clarifies the regulatory framework by establishing that PPP norms apply separately from concession agreements, reflecting the development of an independent legislative framework on public-private partnerships.
Clarifications have been made to the provisions restricting enforcement and disposal of funds held in bank accounts, including explicit protection of funds from educational savings deposits and insurance payments under educational savings insurance agreements, where such funds are used for the purpose of improving housing conditions. These amendments strengthen legal safeguards for individuals by rendering such funds immune from enforcement by third parties.
Obsolete terminology has been replaced (e.g., "targeted contribution funds" replaced with "transfers") to ensure consistency with current budgetary and financial legislation.

CHANGES TO THE LAW ON BANKS

Amendments have been introduced to the Law of the Republic of Kazakhstan "On Banks and Banking Activities" No. 2444 dated 31 August 1995 (the "Banking nLaw").
From March 2025, the transfer of information to tax authorities regarding individuals who are not registered as individual entrepreneurs or engaged in private practice, but who carry out transactions exhibiting characteristics of entrepreneurial activity, shall no longer be considered a breach of banking secrecy. The criteria for identifying such transactions and the procedure for information disclosure shall be established jointly by the tax authority and the National Bank.
From March 2025, the imposition of seizures or other restrictions shall not be permitted on funds held in bank accounts designated for the following purposes:
- One-time pension payments from the Unified Accumulative Pension Fund (UAPF) used for education expenses, in addition to the already permitted uses for housing improvement and medical treatment;
- Disbursements from educational savings deposits and insurance payments under educational savings insurance agreements, now also allowed for education expenses, rather than being limited to housing improvements as previously provided.
These amendments expand the list of socially and purpose-specific payments that are protected from enforcement measures, reinforcing the State's policy objective of supporting citizens in the areas of education, along with housing and healthcare.
In addition, from 6 May 2025, the Agency for Regulation and Development of the Financial Market has developed draft Laws of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan" and "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on the Regulation and Development of the Financial Market." These draft laws were prepared in execution of the instruction of the President of the Republic of Kazakhstan announced in the Address to the People of the Republic of Kazakhstan "Fair Kazakhstan: Rule of Law, Economic Growth, Public Optimism" dated 2 September 2024.

CHANGES TO THE LAW ON THE SECURITIES MARKET

From March 2025, targeted amendments were introduced to the Law of the Republic of Kazakhstan "On the Securities Market" No. 461 dated 2 July 2003 (the " Securities Market Law."), primarily addressing terminology. Specifically, the words "including concession agreements" were removed from Part 3 of Article 18-1 of the Securities Market Law. As a result, concession agreements are no longer singled out as a separate basis under which the State may assume obligations under infrastructure bonds in the event of default; instead, they are now encompassed within the broader concept of "public-private partnership agreements".
The amendment is editorial and aimed at simplification, intended to eliminate redundancy without altering the substance of the provision: the State retains the authority to fulfill obligations arising under PPP arrangements, including concession agreements, albeit without express reference to concessions.

CHANGES TO THE LAW ON PAYMENTS AND PAYMENT SYSTEMS

From March 2025, amendments were introduced to the Law of the Republic of Kazakhstan "On Payments and Payment Systems" No. 11-VI dated 26 July 2016 (the "Law on Payments"), providing for the replacement of the term "targeted contribution funds" with the term "transfers" in order to align the legislation with the provisions of the Budget Code of the Republic of Kazakhstan. The amendments also include the removal of references to concession agreements and the establishment of separate regulation for PPP projects, reflecting the ongoing legislative trend toward distinguishing between the PPP mechanism and concession arrangements.

CHANGES TO THE LEGISLATION ON CURRENCY REGULATION AND CURRENCY CONTROL

The National Bank of the Republic of Kazakhstan has adopted amendments to the Rules for Conducting Foreign Exchange Operations in the Republic of Kazakhstan and the Rules for Monitoring Foreign Exchange Organizations in the Republic of Kazakhstan.
From 14 March 2025, important changes to currency regulation and reporting procedures in Kazakhstan will enter into force, pursuant to Resolution No. 4 of the Board of the National Bank dated 20 February 2025. These amendments are aimed at strengthening oversight of currency flows and improving the transparency of transactions by both residents and non-residents.
A key change is the reduction of the reporting deadline for foreign exchange reports: whereas previously authorized banks submitted data by the 18th of the month, they are now required to report by the 10th (inclusive). This applies to reports on foreign exchange operations and all other reporting forms, including the monitoring of demand and supply in the domestic currency market. The same reporting deadline now applies to professional securities market participants conducting exchange transactions.
The scope of foreign exchange operations that may be classified as aimed at circumventing currency legislation has been significantly expanded. In particular, the following may now be considered such operations.
- Payments and/or transfers by one person within a calendar month under two or more foreign exchange contracts with the same non-resident, in an aggregate amount exceeding the threshold requiring registration of a contract number;
- A non-resident's purchase of non-cash foreign currency in one authorized bank on a single business day in an amount exceeding the equivalent of USD 50,000, where the source of national currency is not linked to proceeds from the sale of goods (performance of work, provision of services) to a resident, the sale of other financial assets for national currency, receipt of dividends in national currency from activities in the Republic of Kazakhstan, refund of previously paid taxes or mandatory payments to the budget, or other economically substantiated sources (new rule).
Banks are now required to analyze such transactions in detail as part of their internal control and monitoring programs under the Law "On Counteracting Legalization (Laundering) of Proceeds from Crime and Financing of Terrorism". Where necessary, banks may request additional information and documents from clients.
Particular attention has been paid to the unification and revision of reporting formats. New report templates have been introduced for currency movement through accounts, cash currency transactions, and large-volume transactions. Reports must now specify the purpose of the transaction, the type of currency, residency codes, and other parameters. This significantly enhances the level of detail in currency monitoring and allows the National Bank to respond more promptly to potential risks.
These changes are intended not only to improve the efficiency of currency control but also to strengthen preventive measures against capital outflows and the laundering of illicit funds.

CHANGES TO THE LAW ON DIGITAL ASSETS

From 7 January 2025, amendments entered into force to Article 1 of the Law of the Republic of Kazakhstan "On Digital Assets in the Republic of Kazakhstan" No. 193- VII dated 6 February 2023 (the "Law on Digital Assets"). The amendments revise the definitions of secured digital assets (i.e., digital assets registered via a digital platform and meeting established requirements) and unsecured digital assets (i.e., those not meeting the criteria for secured assets), and clarify that a digital asset is not a unit of account or legal means of payment.

CHANGES TO THE LAW ON INFORMATIZATION

New definitions have been introduced into the Law of the Republic of Kazakhstan "On Informatization" No. 418-V dated 24 November 2015 (the "Informatizatio n Law"):
- "сloud computing" — defined as a technology enabling network access to computing resources via the Internet;
- "data processing center" — defined as an ICT infrastructure facility that ensures faulttolerant and uninterrupted operation of equipment and storage systems;
- "national technical audit of the data processing center" — defined as voluntary assessment of the reliability of data processing centers;
- "platform software product" — defined as software developed and placed on the information and communication platform of the "electronic government".
Two new articles have been added to the Informatization Law: Article 13-3 "Data processing center" and Article 13-4 "Cloud Computing". Article 13-3 establishes requirements for the location, infrastructure, and operations of data centers, including the possibility of undergoing national or international technical audits. Article 13-4 governs the use of cloud computing by state bodies and quasi-public sector entities, establishes liability principles for cloud service providers, and sets out mechanisms for removing information that violates third-party rights. These provisions aim to ensure the reliability and legal certainty of modern digital technologies.
Additionally, technical amendments and additions were made to various provisions regarding the functions of the competent authority, operators, software placement, e-government architecture, specialist requirements, and the procedure for using cloud services in the public sector. These changes are aimed at facilitating digital transformation in public administration, strengthening ICT infrastructure, and enhancing regulation of digital solutions.

CHANGES TO THE LAW ON PERMITS AND NOTIFICATIONS

Amendments to the Law of the Republic of Kazakhstan "On Permits and Notifications" No. 202-V dated 16 May 2014 supplement column 3 of line 53 in Annex 1 with items 29 and 30. Under the amendments, to open and operate current accounts for individuals with housing construction savings banks - for the purpose of receiving targeted savings for housing improvements and/or education - or to accept deposits and open bank accounts under the state educational savings system, a banking license for carrying out banking and other operations is required.

CHANGES TO THE LAW ON PROCUREMENT BY CERTAIN ENTITIES OF THE QUASI-PUBLIC SECTOR

From 1 January 2025, amendments entered into force to the Law of the Republic of Kazakhstan "On Procurement by Certain Entities of the Quasi-Public Sector" No. 47-VII dated 8 June 2021.
The scope of procurement purposes was expanded to include transactions under Islamic finance. The integration of Islamic finance transactions into the procurement system reflects the State's commitment to adopting modern financial practices and broadening project financing opportunities.
The definition of an affiliate of a potential supplier was expanded, and a restriction was introduced prohibiting affiliated entities from participating in the same lot. This aims to prevent manipulation and conflicts of interest, ensuring fair competition.
The exclusion of procurement via commodity exchanges is intended to mitigate the risk of circumventing transparent procedures and to enhance oversight over public funds.

CHANGES TO THE LAW ON PROJECT FINANCING AND SECURITIZATION

From 1 January 2025, amendments to the Law of the Republic of Kazakhstan "On Project Financing and Securitization" No. 126-III dated 20 February 2006 entered into force. Paragraphs 1 and 2 of Article 6-8 were restated. The new wording establishes that the State may participate in project financing as a client, under the procedure and conditions set exclusively by the Law of the Republic of Kazakhstan "On Public-Private Partnership". It also provides that selection of the contractor under the basic agreement shall be carried out on a competitive basis in accordance with PPP legislation. References to regulation under the Law "On Concessions" were removed. These changes are aimed at distinguishing the legal frameworks applicable to project financing and concession arrangements, thus providing greater clarity and uniformity in the legal regime for infrastructure projects.

CHANGES TO THE DECREE APPROVING THE CONCEPT FOR THE DEVELOPMENT OF FINANCIAL MONITORING FOR 2022–2026

Significant amendments were introduced to the Concept for the Development of Financial Monitoring for 2022–2026, approved by Presidential Decree No. 1038 dated 6 October 2022 (the "Concept"), by Presidential Decree No. 823 dated 19 March 2025.
Section 1 "Passport" was updated to clarify the list of government agencies responsible for implementation of the Concept. The updated list includes, inter alia, the Ministry of Science and Higher Education, Ministry of Labor and Social Protection, Ministry of Culture and Information, Ministry of Transport, Ministry of Industry and Construction, and the Bureau of National Statistics under the Agency for Strategic Planning and Reforms and etc.
In Section 4 "Vision for the Development of Financial Monitoring," the priorities were revised. The primary focus has shifted from comprehensive development of the financial monitoring system to the identification and recovery of criminally obtained assets in favor of the State.
Section 5 "Basic principles and approaches of financial monitoring development" was amended in relation to staffing and digital assets. The task of developing a national professional standard for financial monitoring specialists was removed, and focus was placed instead on international certification programs such as ACAMS and CFCS.
Subsection "Direction 4: Monitoring and Prevention of Illegal Activities Involving Unsecured Digital Assets in the Republic of Kazakhstan" was restated. It now provides for a ban on the issuance and circulation of unsecured digital assets in Kazakhstan, except within the jurisdiction of the AIFC. It was noted that only 5% of Kazakh crypto investors use AIFC infrastructure, while with the remainder operating in the "grey zone," prompting a shift in the regulatory approach and the development of broader legal infrastructure for digital asset circulation. Pursuant to the instruction of the President of the Republic of Kazakhstan, a new infrastructure will be created to support the expanded legal turnover of digital assets. At the same time, a sectoral risk assessment will be conducted to evaluate money laundering/terrorist financing risks associated with digital assets.
Section 6 "Target Indicators and Expected Results" has been updated to raise planned performance targets. By 2026, the share of universities conducting open lectures on financial security is expected to reach 70%, up from the previously planned 60%. Training of specialists is now required to be conducted under AML/CFT programs through JSC "AML Academy". Target values for the number of international ratings of "largely compliant" and "compliant" have been revised. Additionally, the expected results related to customer engagement with licensed virtual asset platforms have been clarified.
The Concept's Action Plan annex was revised to clarify task descriptions, implementation timelines, and responsible government bodies. Outdated measures were removed. Special emphasis was placed on digital asset oversight, international cooperation, and automation of information access for law enforcement agencies.

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