The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published an update on the Mazhilis’ second-reading approval of a draft law amending multiple statutes to develop the financial market and strengthen protection for financial services consumers. The package combines measures to liberalise entry and activity for foreign banks, streamline approvals for certain senior roles in financial institutions, and tighten controls around unsecured consumer lending and fraud prevention. Under the proposed changes, the process to obtain permission to open a foreign bank would be eased by reducing the document set, with the number of required documents linked to the foreign parent company’s rating. For establishing branches, the minimum asset requirement for a foreign bank would be lowered to USD 10bn from USD 20bn, and the list of permitted activities for branches would be expanded to include foreign exchange operations, custody and transfer agent services, participation in syndicated financing, and issuance of payment cards. Additional amendments would introduce a 24-hour “decision-making” period for unsecured online consumer loans above a threshold to be set in an Agency regulatory act, require first-time credit applicants to appear in person at a bank branch or microfinance organisation, and require consent obtained via the e-government portal for specified categories of citizens before granting unsecured consumer loans. The bill would also expand grounds for writing off fraudulent loans, broaden the composition and functions of the National Bank’s Anti-fraud Centre, empower banks to suspend outgoing transactions on accounts and e-wallets for up to five business days when transactions with signs of fraud are detected, and allow banks to refuse transactions and restrict customer service where a bank or its counterparty is in the Anti-fraud Centre database. Other elements include a ban on lending to conscripts during compulsory military service, protections against third-party collection of charitable aid to citizens affected by emergencies, changes to out-of-court bankruptcy procedures for bank loans and microcredits concluded before 1 January 2025, securities market measures affecting issuance securities sold abroad, and government-initiated provisions on banks’ participation in financial technology company capital, cross-border exchange of credit history data, and clarification of macroprudential functions between the National Bank and the Agency.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan 2025-04-09
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan reports Mazhilis second-reading approval of reforms easing foreign bank entry and expanding anti-fraud powers
Kazakhstan's Financial Market Agency announced Mazhilis' second-reading approval of a draft law to enhance the financial market and consumer protection. Key measures include easing foreign bank entry, streamlining senior role approvals, and tightening unsecured consumer lending controls. The amendments also address fraud prevention, expand the National Bank's Anti-fraud Centre, and introduce various financial market and consumer protection provisions.