Anti-Corruption - The Times Of Central Asia

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Recovering Assets: Kazakhstan’s Prosecutors Expand Network to Moldova, Bulgaria

Kazakh prosecutors who focus on reclaiming national assets are sharing ideas and experiences with counterparts from Moldova and Bulgaria, two eastern European countries where anti-corruption investigators have faced big challenges. The Asset Recovery Committee of the Prosecutor General’s Office of Kazakhstan signed agreements in those nations in February, increasing the international collaboration that is essential to tracking down stolen wealth. Kazakhstan is building ties with foreign jurisdictions and institutions such as Interpol as it seeks to get back illegally acquired assets valued in the billions of dollars, much of it funneled out of the Central Asian country by powerful business and political figures over many years. “Strengthening partnerships in asset recovery plays a crucial role in combating illicit enrichment and ensuring transparency and accountability in financial systems worldwide,” said the Kazakh committee, which held a ceremony with the National Anti-Corruption Center of Moldova in Chișinău, the Moldovan capital. The Moldovan side discussed its national digital platforms, legal framework, and procedures for asset seizure, freezing, and management. The Kazakh side explained Kazakhstan’s asset recovery law and how recovered funds are being reinvested in social projects. Some money has been earmarked for facilities such as schools and medical facilities. Kazakh prosecutors also signed a deal with the Commission for Illegal Asset Forfeiture of Bulgaria in Sofia, the Bulgarian capital, allowing for “active collaboration in the tracing, identification, seizure, and repatriation of assets,” the Kazakh asset recovery committee said. Kazakhstan’s 2023 asset recovery law, described by the government as in line with “international standards,” has aided the country in successful efforts to repatriate some lost wealth. Partners such as the United Nations Office on Drugs and Crime have encouraged Kazakhstan to be transparent about how the recovered funds are used as a way to build confidence among Kazakh citizens who are worried about corruption. There have also been concerns that the law could be used selectively, targeting some suspects and sparing others, but Kazakhstan’s international outreach has received high marks in many circles. Bulgaria has made some progress against graft, but still has a lot of work ahead. In a report published last month, the Council of Europe’s anti-corruption body said Bulgaria had fully implemented seven of its 28 recommendations to prevent corruption and promote government integrity. Of the other 21 recommendations, 11 have been partly implemented and 10 have not been implemented. Moldova´s chief anti-corruption prosecutor, Veronica Dragalin, announced her resignation last month because of a governing party bill that would merge her office with the office of organized crime prosecutors. Dragalin, who previously worked as a U.S. federal prosecutor, said the change would undermine national security and benefit people involved in crime. Bulgaria is in the European Union; Moldova has applied for membership. A 2024 index compiled by Transparency International ranks countries by perceived levels of public sector corruption – 0 is very corrupt and 100 is very clean. Kazakhstan scored 40, up one point since 2023; Bulgaria scored 43 points, down two points since 2023; and Moldova also scored 43, up...

Kazakhstan Proposes Foreign Agents Law for NGOs and Media

Members of Kazakhstan’s parliament have proposed adopting a law on foreign agents, requiring media outlets and non-governmental organizations (NGOs) that receive foreign funding to disclose their financial sources. The initiative, put forward by deputies from the People's Party of Kazakhstan (PPK), has sparked debate within the country’s political and expert circles. Push for Greater Transparency Irina Smirnova, a deputy from the PPK, a party that won 10 of the 98 seats in the 2023 parliamentary elections, publicly announced the proposal. The PPK is currently the third-largest political force in Kazakhstan, following AMANAT and Ak Zhol. Citing open-source data, Smirnova claimed that approximately 200 NGOs in Kazakhstan receive foreign funding, with around 70% of these organizations reportedly financed by sources from the United States. She added that, in an official capacity, Kazakhstan has received grants from 165 different foreign donors, including 53 international organizations, 31 foreign government entities, and 81 foreign NGOs. “Financial and material-technical assistance to Kazakhstani NGOs is also provided by other foreign structures, including embassies that are not listed among these donors,” Smirnova stated. According to her, much of this foreign support is directed toward projects related to media and freedom of speech, the protection of vulnerable groups, democracy promotion, civil society development, liberal reforms, and fostering civic engagement. “And even specialists cannot always determine which resources are friendly and where we must be cautious to avoid exposure to ‘destructive soft power,’” she said. “This is a problem and a challenge for our entire society.” As a solution, the PPK is calling for a reassessment of certain NGOs operating in what it describes as a “gray zone” and a revision of the regulations governing foreign donors in Kazakhstan. Following Global Trends Smirnova cited international examples of foreign agent laws, noting that similar regulations exist in Israel (since 2016), China (since 2017), Australia (since 2018), the United Kingdom (since 2023), and France (since 2024). She also pointed to the United States’ Foreign Agents Registration Act (FARA), enacted in 1938, as a model for regulating individuals and organizations acting in the interests of foreign entities. She argued that Kazakhstan should adopt a similar law, mandating foreign-funded media and NGOs to disclose their financial sources. The proposed legislation would also outline penalties for failing to comply with registration requirements or deviating from declared activities. At the same time, the PPK suggested introducing exemptions for humanitarian and scientific organizations that receive foreign funding. Expert Skepticism The proposal has received a lukewarm response from Kazakhstan’s political analysts. Analyst Islam Kurayev dismissed the idea, arguing that Kazakhstan’s existing legal framework already regulates foreign funding and foreign-affiliated entities. “MP Irina Smirnova has been in the [parliament, the Mazhilis] for several years and should be aware that such a law is unnecessary,” Kurayev wrote on his Telegram channel. “The reason is simple: Kazakhstan’s legislation already contains provisions regulating foreign financing and individuals connected to third countries. These regulations are embedded in various legal acts, meaning the necessary restrictions are already in place. There is no need...

U.S. Suspends Enforcement of Foreign Bribery Law: Should Kazakhstan Be Worried?

U.S. President Donald Trump has issued an executive order suspending enforcement of the Foreign Corrupt Practices Act (FCPA), effectively allowing U.S. companies to offer bribes to foreign officials and politicians. This decision is expected to prompt tighter scrutiny of potential corruption among officials in Kazakhstan. On February 12, 2025, Trump signed an executive order pausing enforcement of the FCPA, a landmark anti-bribery law that has regulated U.S. business practices abroad since 1977. The order directs the U.S. Department of Justice to suspend enforcement of the law, which previously criminalized bribery of foreign officials by American companies. Trump argued that the FCPA puts U.S. businesses at a competitive disadvantage internationally. “The law looks good on paper, but in practice, it's a disaster,” Trump stated, emphasizing that excessive regulatory oversight harms U.S. economic and national security interests. Under the FCPA, companies and individuals could face up to 15 years in prison and fines of up to $250,000 for offering or coordinating bribes. The law was enforced in 24 cases in 2024 and 17 cases in 2023. Trump’s executive order tasks the attorney general with reviewing the law’s provisions. U.S. companies have previously been linked to corruption scandals involving high-ranking Kazakhstani officials. The most infamous case, known as Kazakhgate, dates back to the late 1990s. American businessman James Giffen was accused of funneling tens of millions of dollars in bribes, along with luxury gifts, to secure access to Kazakhstan’s vast oil reserves. The investigation implicated former President Nursultan Nazarbayev and ex-Prime Minister Nurlan Balgimbayev, who allegedly received payments through offshore accounts in exchange for favorable investment conditions. However, Kazakhstani officials were never formally charged, and Giffen ultimately received a minor fine. In December 2024, Mazhilis deputy Yermurat Bapi warned that a similar scandal — dubbed Kazakhgate-2 — could soon unfold. “According to my information, a new grandiose scandal is brewing in the United States,” Bapi stated in an interview with Elmedia. “The U.S. Department of Justice is preparing a new criminal case against global kleptocrats who previously relied on American companies, insurers, and consultants. If they used these services, they will face prosecution.” Speculation surrounding Kazakhgate-2 intensified after Nazarbayev’s December 2024 trip to Moscow to meet with Russian President Vladimir Putin. However, Trump’s decree has now cast doubt on whether the case will proceed. Another major corruption-related dispute involving Kazakhstan is the Stati case. Since 2010, the Kazakhstani government has been embroiled in legal battles with Moldovan oligarchs Anatol and Gabriel Stati over the early termination of their subsoil use contracts. The dispute has led to litigation across multiple jurisdictions, including the U.S., U.K., and EU countries, with Kazakhstan's National Fund assets being temporarily frozen. Some sources suggest that Timur Kulibayev, Nazarbayev’s son-in-law, played a role in the case. Corruption concerns are not limited to Kazakhstan. In late January 2025, Russian Prime Minister Mikhail Mishustin publicly criticized Kyrgyz authorities for allegedly extorting Russian businesses operating in Kyrgyzstan. “We urge the Kyrgyz leadership to cease administrative pressure on our companies and ensure the protection...

Kazakhstan Proposes Polygraph Testing for Law Enforcement Officials

Kazakhstan’s General Prosecutor’s Office has drafted a decree proposing the use of polygraph examinations when appointing law enforcement officers to senior positions. Previously, there had been discussions about requiring all government job applicants to undergo lie detector tests. According to the proposal, polygraph testing could be applied to candidates for leadership roles in all law enforcement agencies, state protection services, and the State Courier Service. “The main objectives of the test are to identify hidden negative motives for seeking employment in law enforcement agencies, including affiliations with banned public associations, criminal organizations, and terrorist groups,” the draft states. Additionally, polygraph tests would aim to detect potential issues such as alcohol or drug addiction, gambling problems, concealed illnesses, suicidal tendencies, undisclosed income, dual citizenship, or the use of forged documents. Candidates may also be questioned about corruption-related offenses, unauthorized disclosure of classified or official information, and abuse of power. “The examination of an employee from a law enforcement agency, civil protection agency, or the State Courier Service of the Republic of Kazakhstan will be conducted when they are nominated for higher managerial positions - whether as part of regular or unscheduled attestation or through a competition for a leadership role. It may also be used during official investigations, with the individual's consent,” the draft decree states. The proposal, published on the Open NPA portal, is open for public discussion until February 14, 2025. Kazakhstan established a legal framework for polygraph use late last year. However, this is not the country’s first attempt to introduce lie detector tests for civil servants. In 2010, members of the Nur Otan party proposed using polygraphs to screen government officials involved in financial matters. At that time, the plan covered all government departments - both law enforcement and civilian - though it faced greater resistance from the latter. Ultimately, the proposal was not implemented in the civil service. Now, 15 years later, discussions have resumed, though with a narrower focus on law enforcement personnel. As The Times of Central Asia previously reported, Kazakhstan also has plans to establish a register of corrupt officials.

Register of Corrupt Officials to Be Created in Kazakhstan

Kazakhstan is set to establish a public register of officials convicted of bribery and other corruption-related offenses. Some parliamentary deputies are also proposing additional measures, including banning convicted individuals from leaving the country to ensure they return stolen funds. The Kazakhstani parliament is currently reviewing amendments to anti-corruption legislation. Among the proposals, according to Albina Mautova of the Prosecutor General's Office, is the creation of a public register of individuals convicted of corruption offenses. This registry will be accessible to all citizens through the anti-corruption agency's website. “This register will include individuals who have committed serious and particularly serious corruption offenses. Inclusion in the register will be based on the presence of a conviction that has entered into legal force. Removal from the register will occur only in the event of an acquittal or the expungement of the criminal record,” Mautova explained. The legislative amendments also aim to broaden the scope of criminal liability related to bribery. According to Ulan Sarkulov, deputy chairman of the Anti-Corruption Agency, the new provisions would criminalize not only the act of receiving or giving bribes but also the promise or extortion of a bribe. Sarkulov emphasized that these measures are designed to have a preventive effect by addressing bribery at its earliest stages before damage is caused to the state. However, Sarkulov acknowledged the challenges of enforcement. “The investigative practices of other countries show that proving the promise or extortion of a bribe is difficult. There will never be widespread prosecutions here. International experience demonstrates only a handful of such cases globally,” he noted. Mazhilis deputy Azat Peruashev has called for an additional provision to bar convicted corrupt officials from leaving Kazakhstan. He argues that such a restriction would help recover stolen assets taken out of the country. “As our experience in recovering capital shows, the most effective measure is a ban on traveling abroad. Major corrupt officials often don’t simply take bribes in cash; they transfer funds to offshore accounts, re-hide them, and make it nearly impossible to trace. Sometimes, even our law enforcement agencies are unaware of how much money they have or where it’s located,” Peruashev stated. He further explained, “These individuals serve reduced sentences or pay fines, then go abroad to access the billions they’ve stolen—wealth they could never have earned legally. If they’re forced to remain in Kazakhstan, they will be more likely to return the stolen funds if they want to use them.” The Times of Central Asia previously reported that, according to Transparency International's 2023 Corruption Perceptions Index (CPI), Kazakhstan was ranked as the least corrupt country in Central Asia, marking a significant achievement in the region's fight against corruption.

Kyrgyzstan Strengthens Fight Against Corruption

Kyrgyzstan’s president, Sadyr Japarov, has signed a new law to intensify the fight against corruption by introducing tougher penalties for offenders and eliminating opportunities for them to avoid imprisonment. Under the new legislation, individuals convicted of corruption will no longer be able to pay fines or compensate the state for damages in exchange for avoiding prison sentences. Instead, they will be required to serve a mandatory prison term - even if they confess to their crimes. The new law amends Article 79 of Kyrgyzstan’s Criminal Code by adding Part 1/1. According to this amendment: Offenders who plead guilty and fully compensate the material damage caused to the state for crimes listed under Articles 336-348 (corruption and other offenses against state and municipal interests) must receive a prison sentence. The sentence will be no less than half the minimum term prescribed under the relevant criminal article. Additionally, corrupt individuals will be permanently barred from holding state or municipal positions, regardless of whether their criminal record is later expunged. This law signals Kyrgyzstan’s commitment to eradicating corruption within state structures. Authorities believe it will create the necessary mechanisms to deter corrupt activities and hold offenders accountable. One of the country’s most high-profile corruption cases involved former customs officer and oligarch Raimbek Matraimov, nicknamed “Million.” As previously reported by The Times of Central Asia, Matraimov avoided imprisonment by paying over $200 million to the state, sparking public outrage over leniency in sentencing. The new law addresses such loopholes, ensuring that financial restitution alone will no longer suffice to escape imprisonment. This reform underscores Kyrgyzstan’s broader efforts to strengthen governance, restore public trust, and ensure accountability at all levels of government.