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Senators' Proposed Strategies to Counter Financial Restrictions and Deception

Senate mulls over legislation geared towards fostering financial market growth, safeguarding consumer rights in financial services, and streamlining administrative obstacles.

Senate mulls legislation to foster financial market growth, fortify consumer protections in...
Senate mulls legislation to foster financial market growth, fortify consumer protections in financial services, and minimize bureaucratic obstacles.

Senators' Proposed Strategies to Counter Financial Restrictions and Deception

Senate Proposes Amendments to Facilitate Financial Market Development and Consumer Protection

The Kazakhstani Senate has recently reviewed a bill aimed at enhancing the financial market, safeguarding the rights of consumers in financial services, and minimizing bureaucratic obstacles. The proposed legislation received broad support from deputies, who also suggested several amendments for consideration.

  1. Shielding Servicemen from Excessive Debt

One of the critical amendments proposed by senators aims to protect servicemen from over-indebtedness. The bill seeks to prohibit banks and microfinance organizations from lending to conscript servicemen, provided their credit reports indicate they are on active duty. To enforce this prohibition, an automated information exchange system will be established between the Ministry of Defense and credit bureaus.

  1. Combatting Telephone Fraud

In an effort to combat telephone fraud, the bill mandates telecommunications operators to implement internal anti-fraud systems to block fraudulent calls. Additionally, companies will be required to cooperate with the Anti-Fraud Center of the National Bank. If fraud is detected, subscribers' numbers will be promptly blocked.

  1. Boosting Transparency in Banking Operations

The bill also establishes clear deadlines for informing clients and relevant authorities about unauthorized access to banking and microloan secrecy. Banks and microfinance organizations must report such incidents within one day and take corrective measures within ten working days. As a result, the bill aims to enhance the transparency of banking operations and bolster trust in financial institutions.

  1. Streamlining Requirements for Foreign Banks

The legislative proposals include efforts to liberalize requirements for foreign banks by simplifying the process of establishing subsidiary structures in Kazakhstan. The minimum necessary credit rating can now be that of the parent company of the foreign bank.

  1. Regulating Investment and Venture Funds

The proposed bill introduces clear standards for the regulation and supervision of venture funds. The legislation emphasizes transparency and investor protection, laying the groundwork for a more favorable environment for investment and venture funds.

  1. Establishing Timeframes for Debt Collection

Lastly, the bill establishes clear timeframes for debt collectors' interactions with debtors, allowing them to communicate only during specified hours on weekdays.

Following the senators' proposed amendments, the bill has been returned to the Majilis for further consideration. Notably, Kazakhstan has been proactively updating its financial and tax regulations, with the introduction of a new Tax Code in early 2026. Additionally, efforts are underway to introduce updates to the payment system and transfer pricing procedures, aiming to improve transparency and administrative efficiency.

The bill also proposes regulating investment and venture funds, introducing clear standards for the regulation and supervision of such funds to lay the groundwork for a more favorable environment for investment and venture funds.

Lastly, the bill aims to establish clear timeframes for debt collectors' interactions with debtors, restricting them to communicate only during specified hours on weekdays to ensure a more balanced approach for debt management.

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