Economy of Kazakhstan experiences shadow turnover worth 42 billion tenge, reveals Sairov
Illegally Exported Capital: Kazakhstan MP Calls for Comprehensive Audit and Strengthened Regulation
Kazakhstan is losing significant sums due to a lack of systemic control in its economy, particularly in the crypto sector, according to Erlan Sairov, Chairman of the Republican Anti-Corruption Council of the Amanat Party and a member of the Mazhilis. Sairov voiced these concerns during a discussion of legislative amendments on combating money laundering and terrorist financing.
Sairov noted that Kazakhstan's shadow economy amounts to approximately $42 billion, a figure that has remained stagnant for the past year. Worse still, he pointed out that an estimated $15 billion in cryptocurrency has been illegally exported abroad, with no clear accountability from state bodies.
The absence of reliable data on the scale of illegal capital flight raises further concerns. Foreign sources have estimated that up to $200 billion could have been taken out of Kazakhstan over time. Sairov urged for an audit of capital exported over the past three decades to determine the extent of this financial loss.
The deputy also criticized the disproportionate focus of oversight bodies. He claimed that rather than investigating large-scale capital flight, these bodies focus on smaller transgressions such as checks on rural fishermen. Sairov warned that illegally exported funds could return to the country as a tool for political destabilization, underscoring the need for strengthened cooperation between parliamentary corps and executive bodies to bolster economic and national security.
Sairov expressed confidence that deputies would offer full backing for legislative support to combat money laundering and terrorist financing. He concluded by emphasizing the need to systematically search for and return the nation's wealth.
The challenges Kazakhstan faces in managing capital flows and financial transactions are not isolated. Factors such as falling oil prices, aging infrastructure, and a shortage of skilled workers in the energy sector have all exacerbated the issue. In addition, the regulatory environment for cryptocurrencies is still evolving, with miners required to sell a significant portion of their assets through the Astana International Financial Centre starting from January 1, 2025.
To address these challenges, Kazakhstan needs to strengthen its digital infrastructure, enhance its regulatory frameworks, diversify its economy, and address systemic issues in the energy sector. By implementing these measures, the country can better manage capital flows and mitigate economic risks.
- The concerns raised by Erlan Sairov, a Kazakhstan MP, about the lack of control in the economy, specifically in the finance and crypto sectors, extend beyond just his country's borders, as they intersect with global business news and politics.
- Sairov's call for a comprehensive audit and strengthened regulation in Kazakhstan, particularly in relation to capital exported over the past three decades, could potentially be impacted by general-news events, such as the evolving regulatory environment for cryptocurrencies and the challenges faced in managingcapital flows and financial transactions, especially in light of falling oil prices and aging infrastructure.
