Kyrgyzstan Introduces Voluntary Loan Ban to Curb Financial Fraud

Starting November 1, Kyrgyzstan will implement a self-restriction mechanism allowing citizens to voluntarily block the issuance of loans and credits in their name, a measure aimed at protecting individuals from financial fraud involving unauthorized loans. Announcing the initiative at a press conference on October 30, Bektur Aliyev, Deputy Chairman of the National Bank of Kyrgyzstan, said the new regulation comes in response to a rise in cases where fraudsters used fake or stolen passports to secure loans online. The self-restriction can be activated or revoked remotely at any time via the State Portal of Electronic Services or the Tunduk mobile app. Once submitted, the restriction takes effect immediately, while cancellations require a 12-hour waiting period. Financial institutions, including banks and microfinance organizations, are legally required to check for any active self-restriction before issuing a loan. If such a restriction is in place, the loan cannot be granted. Should a loan be issued during the restricted period, the contract is deemed legally invalid and the lender has no legal grounds to demand repayment. According to the National Statistics Committee, microcredit organizations issued over 40 billion soms in loans to more than 567,000 recipients in the first half of 2025. More than 60% of those loans were for consumer purposes, and the volume of microloans increased by 34% compared to the same period last year. A similar voluntary loan restriction system has been in place in Kazakhstan since 2023.

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