Capital legalization campaign gathering speed in Kazakhstan

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ALMATY (TCA) — Since the beginning of the property and capital legalization campaign in Kazakhstan through 1 April 2016, Kazakhstanis had deposited more than 475 billion tenge (around US $1.4 billion according to the exchange rate on April 20) on special accounts of the country’s banks, the press service of the Kazakh National Bank said.    

After the government amended the legalization rules, more than 390 billion tenge had been deposited on bank accounts from 29 November 2015.  

According to the National Bank, such a significant increase in the money legalization was due to the simplification of the legalization procedure, particularly the cancellation of the requirement to keep legalized money on special bank accounts for five years and pay a 10-percent commission.

The legalization campaign in Kazakhstan started on 1 September 2014 and will last until the end of 2016.

It was earlier reported that the government of Kazakhstan expected to legalize more than $10 billion during this capital amnesty campaign.

Capital or property declared during the legalization campaign will not be taxed.

According to the capital legalization law, the amnesty applies to money, securities, stakes in authorized capitals of legal entities, and real estate beyond Kazakhstan. Property received as a result of corruption and other crimes will not be legalized.

In line with the capital amnesty law, legalized monies will be transferred to special accounts in second-tier banks in Kazakhstan.

It is the third capital amnesty campaign in Kazakhstan since the country gained independence in 1991. The first such campaign took place in 2001, when $480 million was legalized during one month. The second legalization campaign was carried out in 2006 and 2007, when the amnesty was applied to both capitals and property, and resulted in legalization of $6.8 billion.

Sergey Kwan

TCA