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 a challenging business environment characterized by patronage and ineffective enforcement of anti-corruption laws. The lack of regulatory oversight and a weak judicial system further hinder the implementation of anti-corruption standards.

Kazakhstan has made notable strides in establishing a market economy since its independence in 1991, significantly attracting foreign investment, particularly in its mineral and hydrocarbon sectors, with total foreign direct investment reaching $173.4 billion as of October 2023. Despite the ongoing challenges posed by geopolitical tensions, such as Russia's war against Ukraine, Kazakhstan's economy has shown resilience, bolstered by favorable commodity prices and efforts to diversify into other sectors. The government continues to engage with foreign investors and implement reforms aimed at improving the business climate, although issues such as corruption and bureaucratic hurdles remain concerns.

Kazakhstan has successfully attracted significant foreign direct investment (FDI), totaling $173.4 billion as of October 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, bureaucratic hurdles, and a tendency to favor domestic companies persist. Despite these issues, Kazakhstan's commitment to improving its investment climate and ongoing economic reforms signal a positive outlook for foreign investment.