The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has outlined legislative amendments signed by President Kassym-Jomart Tokayev that introduce new consumer protection mechanisms for unsecured consumer credit, with a focus on online lending and fraud-related losses. For unsecured online consumer loans, the law introduces a “decision-making period” between signing the contract and the actual disbursement, with disbursement permitted only after the period has elapsed and the borrower has confirmed consent. The agency will set, via a regulatory act, the minimum loan amount from which this period applies and the process for obtaining borrower consent. First-time applicants for unsecured consumer credit will also be required to visit a bank branch or microfinance organisation in person, with the minimum loan amount triggering this requirement to be defined by the agency. For certain categories of borrowers under 21 and over 55, unsecured consumer loans will be granted only after consent is obtained, including through the e-government portal, a credit bureau, or a creditor application integrated with the e-government gateway. The law also expands grounds for writing off debt on fraudulently originated loans, including out-of-court write-offs where a borrower is recognised as a victim in a criminal case and the loan was issued in breach of specified safeguards, and court write-offs in cases such as unlawful use of identification tools by third parties, breaches of biometric identification procedures, or violations of agency requirements on detecting and analysing internal and external fraud. Banks are additionally empowered to temporarily suspend outgoing transactions on bank accounts or electronic wallets for up to five working days where fraud indicators are detected, and to refuse transactions and restrict service where a customer or counterparty is listed in the Anti-fraud centre database. The requirements enter into force 60 calendar days after official publication, except the requirement to apply the “decision-making period”, which enters into force after 90 calendar days. Further implementing parameters, including thresholds and consent procedures, will be set in the agency’s normative legal acts.

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