Money Laundering - The Times Of Central Asia

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Crypto market

Kazakhstan Seizes $16.7 Million in Virtual Assets in Crypto Crackdown

Kazakhstan has shut down 130 illegal cryptocurrency exchanges suspected of laundering criminal proceeds, seizing virtual assets worth $16.7 million, Deputy Chairman of the Financial Monitoring Agency (AFM) Kairat Bizhanov announced during a recent government meeting. Under Kazakh law, only crypto exchanges licensed by the Astana Financial Services Authority (AFSA) and integrated with local banks are permitted to operate. These licenses are granted under the Law on Digital Assets. Platforms operating without such authorization are deemed illegal. “The activities of 130 unlicensed crypto exchanges involved in laundering criminal proceeds have been terminated this year. Virtual assets worth $16.7 million were seized,” Bizhanov said. Targeting Cash-Out Schemes The AFM is also intensifying efforts to combat illegal cash-out operations. According to Bizhanov, 81 shadow groups with a combined turnover of 24 billion KZT (over $43 million) were uncovered in 2024. He emphasized that ATMs remain a critical vulnerability. “Despite the measures taken, the volume of cash withdrawals continues to grow. A total of 13.2 trillion KZT ($24.1 billion) has already been withdrawn, one trillion more than last year. The main risk is the ability to carry out anonymous transactions without identifying the sender or recipient. These operations are often conducted using bank cards issued to nominal owners,” he said. To curb these practices, the AFM and the National Bank of Kazakhstan have introduced new regulations. Card top-ups exceeding 500,000 KZT ($913) now require the input of an individual identification number (IIN) and confirmation via mobile applications. Since January 1, banks have also been required to retain ATM camera footage for at least 180 days. Authorities plan to expand biometric identification, including facial and fingerprint recognition for all cash transactions. New Rules to Curb Shell Companies In cooperation with the Ministry of Justice and the Ministry of Artificial Intelligence, the AFM has drafted amendments to tighten business registration protocols. “The main focus is on verifying company founders and executives based on risk criteria,” Bizhanov noted, pointing to a surge in fictitious companies used for money laundering and financial fraud. Over the past three years, tax authorities have annulled the registration of 3,600 shell firms linked to 30,000 fraudulent transactions totaling 280 billion KZT ($511 million). As The Times of Central Asia previously reported, Kazakhstan is positioning itself as a regional leader in blockchain innovation, aiming to become Central Asia’s hub for digital asset regulation and blockchain development.

Anti-fraud

Kazakhstan to Hold Banks and Mobile Operators Liable for Online Fraud Losses

Kazakhstan will introduce joint liability for banks and mobile operators in cases of internet fraud involving their infrastructure, President Kassym-Jomart Tokayev announced during an extended meeting of the country’s law enforcement agencies. Addressing the growing threat of cybercrime, Tokayev emphasized the importance of prevention, noting that many internet and phone scams originate from well-organized criminal networks operating abroad, complicating investigation and prosecution. “Preventive measures are therefore crucial. Last year, a modern anti-fraud center was established at the National Bank of Kazakhstan to detect and block suspicious transactions,” Tokayev said. “We are now introducing joint liability for banks and mobile operators in fraud cases involving their infrastructure.” Tokayev also raised concerns over citizens' involvement in money laundering schemes. “Fraudsters lure people into laundering operations by offering rewards for access to their bank accounts. Many comply without considering the severe legal consequences,” he noted. A major enabler of these crimes is the widespread use of SIM cards registered under false identities. According to the president, nearly 100,000 such cases have been detected so far in 2025. The National Bank reported that since July 2024, the anti-fraud center has frozen over 63,000 suspicious transactions worth 2.5 billion tenge (approximately $4.83 million). Common schemes include telephone scams (22%), fake investment platforms (19%), and misuse of so-called “dropper” cards (19%).Continue reading

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.