The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published an overview of recent legislative and supervisory changes to the framework for collection agencies, aimed at tightening conduct requirements in debt recovery and strengthening borrower protections. The update includes an extension of the moratorium on selling citizens’ bank loan and microcredit debts to collection agencies and new requirements intended to close gaps when a firm loses its collection-agency status. Under the regime anchored in the 2017 Law on Collection Activities, detailed rules govern how and when debtors may be contacted, what information must be provided, who may communicate with the debtor, and the obligation to record interactions, with breaches potentially leading to removal from the official register and a ban on presenting as a collection agency. Subsequent changes clarified grounds for early termination of collection activity in relation to borrowers, including bankruptcy, death and leaving Kazakhstan, and in 2025 prohibited collectors from interacting with affiliated notaries and private bailiffs to mitigate collusion and corruption risks. Administrative liability for breaches and unfair practices has been doubled, direct individual administrative liability for collection staff established, and criminal liability introduced for threats, pressure and other illegal actions during debt recovery; rules were also improved to require suspension of an enforcement inscription or a court claim for debt recovery when a borrower applies for a debt settlement procedure. The moratorium on selling citizens’ debts to collection agencies was extended from 1 May 2026 to 1 May 2027. Legislative amendments adopted on 16 January 2026 require organisations that have lost collection-agency status, and their legal successors, to comply with the same requirements and restrictions applicable to creditor–borrower interactions under bank loan and microcredit agreements and to update debtor information in credit bureau databases. The reforms also enable the establishment of self-regulatory organisations for the sector, which would set internal standards and report to the Agency on member inspections, reviewed borrower applications and applied measures, while the Agency retains its existing supervisory and decision-making powers and continues oversight with a focus on higher-risk firms and SRO activity.
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan 2026-04-14
Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan tightens debt collection regime and extends moratorium on selling citizens’ debts to 1 May 2027
The Agency for Regulation and Development of the Financial Market of Kazakhstan detailed new legislative and supervisory measures tightening conduct rules for collection agencies and strengthening borrower protections, including extending the moratorium on selling citizens’ bank loan and microcredit debts to collectors from 1 May 2026 to 1 May 2027. Amendments adopted on 16 January 2026 impose creditor–borrower conduct and credit bureau updating duties on entities that lose collection-agency status, increase administrative and criminal liability for abusive recovery practices, and restrict dealings with affiliated notaries and private bailiffs. The reforms also permit self-regulatory organisations for collection agencies to set internal standards and oversee members, while the Agency retains supervisory and decision-making powers, focusing on higher-risk firms and self-regulatory organisation activities.