The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan published an explanatory note on a law that entered into force on 19 March 2026 and the implementing rules for the microfinance sector. The package strengthens risk-based supervision of microfinance organisations through mandatory risk management and internal controls, creates a legal basis for self-regulatory organisations and tightens borrower protection measures, including an extension of the ban on selling consumer microcredit debt to collection agencies. The risk-management framework is built around the "three lines of defence" model, requiring clear separation of responsibilities between business units, independent risk management and compliance functions, and internal audit. Fit-and-proper expectations for microfinance organisation senior management are also raised through new minimum financial-sector experience requirements. For self-regulation, a microfinance self-regulatory organisation, if established, would be empowered to review consumer complaints, inspect its members and apply internal measures, while the Agency would retain its supervisory functions and focus attention on higher-risk entities and SRO activities. SRO performance information is to be public, and SROs must submit specified reports to the authorised body covering current operations, management and member inspection results. Risk-management requirements will apply from 1 July 2026 to microfinance organisations whose liabilities are predominantly made up of attracted funds, and from 1 January 2027 to all other market participants. Entities whose microfinance licences have been revoked, and their legal successors, must comply with all microfinance-law requirements and restrictions when dealing with borrowers, and may collect and assign claims on individuals’ consumer microcredit debt only within 24 months of licence loss, with a limited set of eligible assignees. The moratorium on microfinance organisations selling individuals’ consumer microcredit debt to collection agencies runs until 1 May 2027.
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 microfinance oversight with phased risk management rules, SRO framework and moratorium extended to 1 May 2027
The Agency for Regulation and Development of the Financial Market of Kazakhstan issued an explanatory note on a new law and rules that strengthen risk-based supervision of microfinance organisations, mandate risk management and internal controls using a three-lines-of-defence model, and raise fit-and-proper standards for senior management. The framework creates a legal basis for microfinance self-regulatory organisations with defined oversight and reporting roles, while the Agency retains supervisory authority and focuses on higher-risk entities. Borrower protection is tightened through extended restrictions on the sale and assignment of consumer microcredit debt, including a moratorium on sales to collection agencies until 1 May 2027.