Kazakhstan Country Summary

FATF Status

Kazakhstan is not currently identified by FATF as having substantial money laundering and terrorist financing (ML/TF) risks or having strategic AML/CFT deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Kazakhstan was undertaken in 2023. According to that Evaluation, Kazakhstan was deemed Compliant for 5 and Largely Compliant for 28 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective 7 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Kazakhstan faces significant challenges with corruption and crime, as evidenced by the pervasive nature of corrupt practices across various sectors, including public health and infrastructure. Despite the government's efforts to combat corruption through legislative measures and public participation initiatives, implementation remains weak, and the judicial system is hindered by corruption and political influence, which undermines resilience to crime.

Kazakhstan has made notable strides in transitioning to a market economy since its independence in 1991, successfully attracting substantial foreign direct investment (FDI), particularly in its mineral and hydrocarbon sectors, which account for a significant portion of its economic backbone. As of October 2023, the total FDI stock reached $173.4 billion, with significant contributions from the United States, although challenges such as corruption, bureaucratic hurdles, and a preference for domestic firms continue to hinder foreign investment. The government is actively pursuing economic diversification and reform initiatives, including tax reforms set for implementation in 2025, while navigating external pressures from geopolitical events such as Russia's war against Ukraine, which have both disrupted supply chains and opened new trade opportunities for Kazakhstan.