Kazakhstan: government approves bill on currency regulation and control

ASTANA (TCA) — At the meeting of the Government on December 26, the Chairman of the Kazakh National Bank Daniyar Akishev presented a bill on currency regulation and currency control, the official website of the Prime Minister of Kazakhstan reports.

According to Akishev, the purpose of the new bill is the planned changes in currency legislation in the context of Kazakhstan’s accession to the World Trade Organization and the establishment of the Khorgos International Center for Cross-Border Cooperation on the Kazakh-Chinese border and the Astana International Financial Center.

“The main task of the bill is to expand the coverage of statistical monitoring of foreign exchange transactions and reduce the use of foreign currency in settlements in Kazakhstan. The implementation of these norms will expand the coverage of information on foreign exchange transactions, improve the effectiveness of exchange controls, including to counter the withdrawal of money from the country,” said Akishev.

Among the main changes stipulated in the bill, the chairman of the National Bank named the recognition of branches of foreign organizations as residents of Kazakhstan, expansion of the scope of currency transactions of trans-boundary nature, strengthening of currency control over operations aimed at the withdrawal of capital, as well as clarification of the list of currency transactions permitted between residents. At the same time, Akishev stressed that the draft law preserves the principles of the liberal currency regime.

“There is no tightening, this is a planned bill that has nothing to do with tightening of conditions,” explained the chairman of the National Bank.

According to Akishev, after Kazakhstan’s accession to the WTO, an increase in the number of branches and representative offices is expected in Kazakhstan, which will lead to an increase in payments in foreign currency inside the country, which does not correspond to national interests. In this regard, it is proposed to translate the calculations of branches of foreign organizations with Kazakhstan counterparts in tenge. At the same time, there is no provision for worsening of conditions with regard to contracts concluded before the introduction of this law.

“The deadline for the enactment of the bill is July 1, 2019,” Akishev concluded.

Sergey Kwan


Sergey Kwan has worked for The Times of Central Asia as a journalist, translator and editor since its foundation in March 1999. Prior to this, from 1996-1997, he worked as a translator at The Kyrgyzstan Chronicle, and from 1997-1999, as a translator at The Central Asian Post.
Kwan studied at the Bishkek Polytechnic Institute from 1990-1994, before completing his training in print journalism in Denmark.

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