Kazakhstan Country Summary

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 implemented 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 declarations. Despite these efforts, corruption remains a significant barrier to foreign investment and is prevalent across multiple sectors. Additionally, the country faces challenges related to human trafficking, drug trafficking, and financial crimes, with a judicial system that struggles against corruption and political influence.

Kazakhstan has made significant strides in developing a market economy since its independence in 1991, attracting $173.4 billion in foreign direct investment (FDI) as of October 2023, primarily in the mineral and hydrocarbon sectors. Despite challenges such as corruption and bureaucratic hurdles, 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 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 tendency to favor domestic companies remain concerns for potential investors. Despite these challenges, Kazakhstan's commitment to improving its investment climate is evident through ongoing reforms and the establishment of a dedicated Investment Command Center.