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 for corruption-related offenses and require officials to declare their income and property. Despite these measures, corruption remains a significant barrier to foreign direct investment, with reports indicating its prevalence across multiple sectors and ineffective enforcement of anti-corruption standards. The country's political environment is characterized by patronage networks and bureaucratic challenges, undermining the effectiveness of existing legal frameworks.

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 a total foreign direct investment (FDI) stock of $173.4 billion as of October 2023. While the economy remains heavily reliant on these resources, the government is actively pursuing diversification and industrial development, despite facing challenges such as corruption and bureaucratic hurdles that concern foreign investors.

Kazakhstan has 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, bureaucratic hurdles, and a preference for domestic companies persist. Despite these issues, Kazakhstan's commitment to improving its investment climate is evident through ongoing reforms and the establishment of special economic zones.