FATF Status

Kazakhstan is not currently identified by FATF as having substantial money laundering and terrorist financing (ML/TF) risks or having strategic AML/CFT deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Kazakhstan was undertaken in 2023. According to that Evaluation, Kazakhstan was deemed Compliant for 5 and Largely Compliant for 28 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective 7 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Kazakhstan has established various laws and policies to combat corruption, including the Criminal Code and the Law on Combating Corruption, which impose penalties on public officials and require income and property declarations. Despite these measures, corruption remains a significant barrier to foreign direct investment, affecting multiple sectors and leading to widespread bribery and patronage networks. The effectiveness of anti-corruption efforts is undermined by poor implementation, a lack of regulatory oversight, and a weak judicial system.

Kazakhstan has made notable strides in establishing a market economy since its independence in 1991, attracting substantial foreign investment, particularly in its mineral and hydrocarbon sectors, with total foreign direct investment reaching $173.4 billion as of October 2023. Despite challenges such as corruption and excessive bureaucracy, the government is actively working to diversify the economy and improve the investment climate through reforms and dialogue with foreign investors.

Kazakhstan has successfully attracted significant foreign direct investment (FDI), totaling $173.4 billion as of October 1, 2023, primarily in the oil and gas sector. The government actively engages with foreign investors through various councils and committees, although challenges such as corruption, excessive bureaucracy, and a preference for domestic firms persist, raising concerns among foreign investors.