LAW OF THE REPUBLIC OF KAZAKHSTAN

of July 12, 2023 No. 21-VIII ZRK

About return to the state of illegally acquired assets

This Law for the benefit of present and future generations of Kazakhstan citizens governs the public relations on identification and return to the state of illegally acquired assets (further - return of assets) for the purpose of recovery of the violated rights of the people of Kazakhstan, ensuring supremacy of law, social justice, sustainable economic and social development of Kazakhstan to the benefit of its people.

Chapter 1. General provisions

Article 1. The basic concepts used in this Law

For the purposes of this Law the following basic concepts are used:

1) the fair acquirer - person not affiliated with persons specified in article 2 of this Law who is paid and on market conditions acquired property and at the same time did not know and did not owe know that the property belongs to illegally acquired assets;

2) the fair creditor - the person not affiliated with persons specified in article 2 of this Law, having the property rights of the requirement which arose from transactions with specified persons, provided with their property including creditors, and also lessees;

3) assets - the property benefits and the rights (property) which are in the Republic of Kazakhstan and beyond its limits including any property benefits and the rights (property) taken (taken) of such property;

4) authorized body on return of assets - department of bodies of prosecutor's office of the Republic of Kazakhstan for return of assets;

5) transformation of assets - any form of material, financial or legal change and (or) transformation of asset, its form or type, partial or complete accession of asset to other asset irrespective of method of such change and (or) transformation or accession, including currency conversion, currency values, securities or other financial instruments from one type in another, converting of securities or other financial instruments in shares, converting of other assets in other asset types, exchange of asset for other asset, asset realization in exchange for payment of sum of money or other counter provision and other actions, similar on the orientation;

6) control over asset (further - control) - opportunity in any way directly or indirectly to manage asset and (or) opportunity in any manner to determine legal destiny of asset, including indirectly and on any basis through one or several persons and the organizations during the period when assets were or presumably were in property, use, ownership and (or) under control of person (group of persons);

7) the nominal owner of asset - person performing the rights of the owner (the owner, the user) of asset in interests and (or) at the request of the other person;

8) administrative and imperious resources (communications, influence) - possibility of person to exert impact on acceptance of regulatory legal acts of the Republic of Kazakhstan or decisions (acts, making of actions, failure to act) state bodies of the Republic of Kazakhstan, and equally in decisions of bodies of the state companies and organizations, subjects of the quasi-public sector, other organizations with direct or indirect participation of the state in the authorized capital for the purpose of forming of favorable non-competitive conditions for conducting business activity of appropriate subject and (or) its affiliates;

9) social projects - projects in health sector, educations, supports of socially unprotected segments of the population, persons with disability, orphan children, children without parental support, rural youth, the unemployed, objects of municipal and welfare infrastructure for needs of residents of monotowns, rural settlements and other projects determined by the Government of the Republic of Kazakhstan;

10) illegally acquired assets - the assets which are subject to return to the state in connection with their recognition by court on the bases provided by this Law, assets of inexplicable origin;

11) assets of inexplicable origin - assets of the subject and (or) its affiliates whose cost compliance to the size of the legal income or other legal sources of covering of expenses on acquisition of such assets of the corresponding person is not proved to them to court according to the procedure, established by the legislation of the Republic of Kazakhstan;

12) persons having related relations - parents (parent), children and their spouses, adoptive parents (adopters) and their spouses, the adopted (adopted) and their spouses, full and not full brothers and sisters and their spouses, the grandfather, the grandmother, grandsons, great-grandsons and their spouses, the great-grandfather, the great-grandmother;

13) super profits - income gained as a result of use (with use) administrative and imperious resources (communications, influence), conditions of obtaining and the size (amount) of which is established according to this Law.

Article 2. Coverage of this Law

1. This Law acts on the territory of the Republic of Kazakhstan concerning physical persons - the citizens of the Republic of Kazakhstan, foreigners and stateless persons, legal entities registered in the territory of the Republic of Kazakhstan including the territory of the International financial center "Astana", the legal entities registered outside the Republic of Kazakhstan, and equally foreign structures without formation of legal entity irrespective of the country of their organization (registration), or under control of which are in property, use, ownership (were) or presumably are there (were) assets in the territory of the Republic of Kazakhstan or the assets outside the Republic of Kazakhstan acquired on means (income) illegally received in the Republic of Kazakhstan.

2. This Law is effective concerning citizens of the Republic of Kazakhstan regardless of the place of their stay and availability (absence) in their property, ownership or under control of assets in the territory of the Republic of Kazakhstan.

3. This Law is effective concerning foreigners and stateless persons regardless of the place of their stay and availability (absence) in their property, ownership or under control of assets in the territory of the Republic of Kazakhstan if such persons earlier constantly lived in the territory of the Republic of Kazakhstan or were tax residents of the Republic of Kazakhstan.

Part one of this Item is effective concerning assets of the specified persons illegally acquired by them or their affiliates during their permanent residence in the territory of the Republic of Kazakhstan or the tax residence of the Republic of Kazakhstan.

4. This Law is effective concerning the foreigners and stateless persons which are (being) affiliates persons specified in part one of Item 3 of this Article.

This Law is also effective concerning foreigners, stateless persons, legal entities registered outside the Republic of Kazakhstan, and equally foreign structures without formation of legal entity irrespective of the country of their organization (registration), including being (being) affiliated and (or) connected persons persons specified in Items 1-3 of this Article and (or) directly or indirectly having (having) or directly or indirectly presumably having (having) in property, use, ownership or under control assets in the territory of the Republic of Kazakhstan or the assets outside the Republic of Kazakhstan acquired on means (income) illegally received in the Republic of Kazakhstan or which acquired assets at persons specified in Items 1-3 of this Article.

5. Taking into account the provisions provided by Items 1-4 of this Article, regulation on the address to the income of the state illegally of acquired assets of this Law are applied to persons who correspond to the following signs:

1) physical persons concerning which of the sources provided by this Law there are data (in total) about (further - the subject):

the fact that this person is (was) person holding the responsible state position, positions assuming accomplishment of managerial functions in the state legal entity or the subject of the quasi-public sector, and (or) about availability (including being available earlier) administrative and imperious resources (communications, influence) concerning persons holding (holding) responsible state position and (or) persons performing (performing) managerial functions in the state legal entity or the subject of the quasi-public sector;

obtaining (including directly or through affiliates, including legal entities, shares (shares in the authorized capital) which the physical person) assets and (or) the income (including from earlier received assets) as a result of use (with use) administrative and imperious resources owns (communications, influence);

2) physical persons and legal entities affiliated with subjects.

6. Affiliates of subjects are the physical and (or) legal entities connected with subjects or among themselves on one of the following bases, having and (or) who had opportunity directly and (or) indirectly or to otherwise determine decisions (actions, failure to act) and (or) to exert any impact on accepted with each other (one of persons) decisions (the made actions, failure to act):

1) the faces having related relations, spouses (spouse), including the being spouses (spouse), persons having related relations with the spouse (spouse), including the faces having related relations with the former spouse (spouse);

2) relatives, relatives of the spouse (spouse), and also relatives of the former spouse (spouse);

3) the persons which are dependent on physical person or conducting with it joint economy;

4) physical persons, legal entities and associations (organization) without formation of legal entity irrespective of the country of their organization (registration) concerning which the subject or other physical person provided by this Article have the actual opportunity to determine actions, including opportunity to instruct them, to persons who by law, other legal act or the constituent document are authorized to act from their name, and also to members of governing bodies of the legal entity or consolidation (organization) without formation of legal entity;

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