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 related to crime and corruption, with pervasive issues in law enforcement and public procurement undermining governance and stability. The country has implemented various legal frameworks and reforms aimed at combating corruption, including mandatory income declarations for officials and the establishment of an Asset Recovery Committee, yet the effectiveness of these measures is hampered by ongoing political influence and a lack of transparency in civil society.

Kazakhstan has made notable strides in establishing a market economy since its independence in 1991, successfully attracting significant foreign investment, particularly in its mineral and petroleum sectors, with total foreign direct investment reaching $166 billion by January 2025. While hydrocarbons remain a cornerstone of the economy, the government is actively pursuing diversification through reforms aimed at industrial development, increased privatization, and the establishment of alternative trade routes, despite facing challenges such as inconsistent regulatory enforcement and concerns about corruption. The ongoing geopolitical tensions, particularly due to Russia's war in Ukraine, have affected Kazakhstan's economic landscape, prompting the country to seek new trade routes and maintain compliance with Western sanctions, which has, however, highlighted the resilience of its economy amid fluctuating commodity prices.