Anti-Corruption - The Times Of Central Asia

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Anti-Corruption

Kazakhstan Transfers Anti-Corruption Authority to National Security Committee

Kazakh President Kassym-Jomart Tokayev has signed a decree dissolving the country’s standalone Anti-Corruption Agency and transferring its functions to the National Security Committee (NSC), in what officials describe as a move to modernize and streamline public administration. According to the decree, the Anti-Corruption Agency, previously a direct presidential subordinate tasked with both strategic and operational anti-corruption efforts, will now be integrated into the NSC as its sixth division. It joins the ranks of other specialized units including the Border Service, Foreign Intelligence Service, Government Communications Service, Special Division “A” (special forces), and the Aviation Service. Some responsibilities, particularly those involving the development and implementation of anti-corruption policy, interagency coordination, and public outreach, will be transferred to the Agency for Civil Service Affairs. That agency will also absorb part of the former Anti-Corruption Agency’s staff and resources. “In order to modernize and improve the efficiency of the public administration system, I hereby decree: to reorganize the Anti-Corruption Agency by merging it with the National Security Committee...” the decree states. The Anti-Corruption Agency was created in 2014 as the successor to the Agency for Combating Economic and Corruption Crimes, also known as the financial police, which had operated since 1994. Throughout its existence, the agency reported directly to the president and was central to the country’s efforts to combat corruption, from policy design to investigations. Under the decree, the NSC must draft new regulations for the anti-corruption division and submit personnel redistribution proposals, particularly concerning the Agency for Civil Service Affairs, within one month. Additionally, the government has until September 1, 2025, to prepare and submit a bill to parliament reflecting the institutional changes. As previously reported by The Times of Central Asia, President Tokayev recently launched a broad reform initiative targeting the entire law enforcement system. The incorporation of anti-corruption functions into the NSC may thus represent only the first phase of a wider restructuring.

Money Laundering

Kazakhstan Improves Standing in Global Anti-Money Laundering Ranking

Kazakhstan has made significant progress in the Basel AML Index, moving up to 111th place out of 164 countries in the 2025 global ranking for quantifying money laundering. The index, published by the Basel Institute on Governance, ranks countries from highest to lowest risk, meaning Kazakhstan's lower position reflects improved performance and reduced vulnerability. According to a recent analysis by Finprom.kz, Kazakhstan now ranks among the top three performers in the Commonwealth of Independent States (CIS), surpassed only by Armenia (129th) and Moldova (112th). The country’s index score improved from 4.71 in 2024 to 4.65 in 2025, signaling enhanced resilience in anti-money laundering (AML) measures. At the other end of the CIS spectrum, Turkmenistan (23rd), Tajikistan (30th), and Kyrgyzstan (45th) were listed among the top 50 countries facing the highest money laundering risks. Belarus (53rd), Azerbaijan (74th), Uzbekistan (81st), and Ukraine (82nd) fared slightly better but remained behind Kazakhstan in terms of overall AML performance. Globally, Myanmar, Haiti, and the Democratic Republic of the Congo recorded the highest risk levels. In contrast, San Marino, Iceland, and Finland topped the rankings as the countries least susceptible to money laundering activities. Analysts caution that the Basel Index does not measure actual volumes of money laundering, but rather evaluates countries based on the potential risk and their institutional capacity to prevent and combat financial crime. Stronger Law Enforcement Activity in 2025 Domestically, Kazakhstan has also seen a surge in law enforcement activity. In the first four months of 2025, authorities registered 77 criminal offences under the legalisation of criminal proceeds article, 2.8 times more than during the same period in 2024, when 28 cases were reported. The capital, Astana, led with nine cases, up from two in January-April 2024. Shymkent followed with eight cases (up from three), and Almaty recorded seven (up from four). Significant increases were also reported in the Almaty region (from one to six cases) and the Karaganda region (from one to five). These figures point to intensified law enforcement efforts and a greater capacity to detect and prosecute money laundering-related crimes.

Corruption

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...

NGO

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...

Corruption

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...

Rule of law

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.