LAW OF THE REPUBLIC OF KAZAKHSTAN

of August 28, 2009 No. 191-IV ZRK

About counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction

List of amending documents

This Law determines the legal basis of counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction, legal relations of subjects of financial monitoring, authorized body and other state bodies of the Republic of Kazakhstan in the field of counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction and also mechanisms of implementation of the target financial sanctions relating to the prevention and prevention of terrorism and financing of terrorism, and the prevention, hindrance and the termination of distribution of weapons of mass destruction and its financing.

Chapter 1. General provisions

Article 1. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) suspicious transaction with money and (or) other property (further - suspicious transaction) - transaction of the client (including attempt of making of such transaction, the transaction which is in process of making or already committed transaction) concerning which there are suspicions that the money and (or) other property used for its making are the income from criminal activities, or transaction is directed to legalization (washing) of income gained in the criminal way, financing of terrorism or financing of distribution of weapons of mass destruction or other criminal activities;

2) transactions with money and (or) other property - the actions of physical, legal entities and foreign structures without formation of legal entity with money and (or) other property irrespective of form and method of their implementation directed to establishment, change or the termination of the related civil laws and obligations;

2-1) freezing of transactions with money and (or) other property - the measures taken by subjects of financial monitoring and state bodies on suspension of transfer, transformation, alienation or movement of money and (or) other property;

2-2) individual entrepreneurs and legal entities performing transactions with precious metals and gemstones, jewelry from them - persons performing purchase and sale of precious metals and gemstones, jewelry from them, except for the religious organizations, the museums and the organizations using precious metals, their chemical compounds, gemstones in the medical, research purposes or as a part of tools, devices, the equipment and products of technological appointment;

3) the beneficial owner - physical person:

which directly or indirectly possesses more than twenty five percent of shares in the authorized capital or placed (less exclusive and redeemed by society) shares of the client - the legal entity or foreign structure without formation of legal entity;

exercising control over the client otherwise;

for the benefit of which the client makes transactions with money and (or) other property;

3-1) intermediary bank - bank and (or) the organization performing separate types of banking activities which make the payment and (or) money transfer received from bank of the sender of money for benefit of the financial organization;

3-2) financing of distribution of weapons of mass destruction - provision or whip-round and (or) other property, the right to property or benefits of property nature, and also donation, exchange, donation, the charitable help, rendering information and other services either the rendering financial services to physical person or group of persons, or the legal entity which is commited by person who was obviously realizing that the provided property, the rendered information, financial and other services will be used for financing of distribution of chemical, bacteriological (biological), radiological, nuclear and toxin weapons and (or) means of its delivery;

3-3) public official:

person holding responsible state position;

official;

person authorized on accomplishment of the state functions;

person performing managerial functions in the state organization or the subject of the quasi-public sector;

the person designated or elected, holding any position in legislative, executive, administrative, judicial bodies or armed forces of foreign state;

person performing any public function for foreign state;

person holding executive position in the organizations created by the states on the basis of agreements which have the status of international treaties;

3-4) personal account - the user's profile (the subject of financial monitoring) on the allocated communication channels of authorized body on the information and telecommunication Internet providing electronic interaction of its users (subjects of financial monitoring) with authorized body;

3-5) foreign structure without formation of legal entity - fund, partnership, trust, the company, partnership, the organization or other corporate education created according to the legislation of foreign state which are considered as independent forms of business irrespective of whether they have the status of the legal entity of foreign state where they are created;

3-6) register of beneficial owners of legal entities - the state database intended for accounting and storage of information about beneficial owners of legal entities for the purpose of counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction;

3-7) independent legal issues specialist - the physical person rendering legal services as independently, and as the partner or the worker based on the employment contract with the subject of the entrepreneurship giving legal aid;

4) the client - the physical, legal entity or foreign structure without formation of legal entity receiving services of the subject of financial monitoring;

4-1) suspicious activities of the client which are subject to financial monitoring - set of two and more suspicious transactions of the client with money and (or) other property concerning which the subject of financial monitoring has suspicions that the money and (or) other property used for their making are the income from criminal activities, financing of terrorism and financing of distribution of weapons of mass destruction;

5) correspondence relations - the contractual relations arising when opening by banks, the organizations performing separate types of banking activities, the correspondent accounts to other banks for the purpose of making of transactions linked with implementation of bank servicing;

6) bank screen - the nonresident bank which has no physical presence in the state (territory) at which it is registered as bank and (or) obtained the license for implementation of banking activity, except for findings of such bank in immediate or indirect possession of the bank holding which is subject to the consolidated supervision in the state (territory) in which it is registered;

7) financial monitoring - set of measures for collection, processing, the analysis and use of data and information on the transactions with money and (or) other property performed by authorized body and the subject of financial monitoring according to this Law;

8) the transactions which are subject to financial monitoring - transactions of the client of the subject of financial monitoring with money and (or) other property concerning which according to this Law financial monitoring is established;

8-1) financial group - group of the legal entities who are subjects of financial monitoring and interacting among themselves according to this Law;

9) cashing in of the money received in the criminal way - the actions made by physical, legal entities or foreign structure without formation of legal entity for the purpose of receipt of cash by use of documents when making the imaginary deal directed to legalization (washing) of money;

10) income gained in the criminal way - the money and (or) other property received as a result of making of criminal offense;

11) legalization (washing) of income gained in the criminal way, - involvement in legal money turnover and (or) other property, received in the criminal way, by means of transactions in the form of conversion or transfer of the property representing the income from criminal offenses, or ownership and use of such property, concealment or concealment of its authentic nature, source, the location, method of the order, movement, the rights to property or its accessories if it is known that such property represents the income from criminal offenses, and is equal mediation in legalization of the money and (or) other property received in the criminal way;

11-1) state policy in the field of counteraction of legalization (washing) of income gained in the criminal way and to terrorism financing - the legal, administrative and organizational measures directed to decrease in risks of legalization (washing) in income gained in the criminal way, financings of terrorism and financing of distribution of weapons of mass destruction and other measures according to this Law;

11-2) faultless goodwill - availability of the facts confirming professionalism, conscientiousness including lack of the facts of committing by person of illegal actions (failure to act) which resulted in the insolvency which entailed involuntary liquidation of the financial organization, or to reference of bank to category of insolvent banks, lack of not removed or unspent conviction, including lack of the court resolution which took legal effect about application of criminal penalty in the form of deprivation of the right to hold leading employee position of the financial organization, bank and (or) insurance holding and to be the large member (large shareholder) of the financial organization for life, and also lack of the relations with the third parties (control and influence of the third parties) whose actions promoted legalization (washing) of income gained in the criminal way to financing of terrorism and financing of distribution of weapons of mass destruction, based on data of authorized body;

11-3) target financial sanctions - the measures for freezing of transactions with money and (or) other property accepted by subjects of financial monitoring and state bodies according to this Law and resolutions of the Security Council of the United Nations relating to the prevention and prevention of terrorism and financing of terrorism, the prevention, hindrance and the termination of distribution of weapons of mass destruction and its financing;

11-4) scoring module - the automated system comprising information from different data sources for risk identification of the client (his representative) used by subjects of financial monitoring on voluntary basis;

11-5) sectoral risks assessment - assessment which is carried out by the state bodies of the Republic of Kazakhstan exercising within the competence control of observance by subjects of financial monitoring of the legislation of the Republic of Kazakhstan on counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction regarding exposure of use of tools and services of subjects of financial monitoring for the purpose of counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction;

11-6) national risks assessment - determination of levels of the threats and opportunities of legalization (washing) of the income which are had in the criminal way, financings of terrorism and financing of distribution of weapons of mass destruction by method of the analysis of collected data in the Republic of Kazakhstan;

12) terrorism financing - provision or whip-round and (or) other property, the right to property or benefits of property nature, and also donation, exchange, donations, the charitable help, rendering information and other services either the rendering financial services to physical person or group of persons, or the legal entity which is commited by person who was obviously realizing terrorist nature of their activities or the fact that the provided property, the rendered information, financial and other services will be used for implementation of terrorist activities or providing terrorist group, the terrorist organization, illegal paramilitary force;

12-1)  No. 12-VІ ZRK is excluded according to the Law of the Republic of Kazakhstan of 26.07.2016;

13) authorized body - the state body performing financial monitoring and taking other measures for counteraction of legalization (washing) of income gained in the criminal way, to terrorism financing, financing of distribution of weapons of mass destruction according to this Law;

14) No. 73-VII ZRK is excluded according to the Law of the Republic of Kazakhstan of 18.11.2021;

15) competent authority of foreign state - the body of foreign state performing according to its legislation collection, processing, the analysis and use of data and information on transactions with money and (or) other property;

16) physical presence - the place of conducting activities of bank located at the permanent address (except the e-mail address) in which there are governing bodies and bank staff, are recorded also document storage, belonging to banking activity, and are performed the authorized body which granted to nonresident bank the license for implementation of banking activity;

17) business relations - the customer relations arising in the course of implementation by the subject of financial monitoring of professional activity.

Article 2. The legislation of the Republic of Kazakhstan on counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction

1. The legislation of the Republic of Kazakhstan on counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction is based on the Constitution of the Republic of Kazakhstan, consists of this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. The international agreements ratified by the Republic of Kazakhstan have priority before this Law. The procedure and conditions of action in the territory of the Republic of Kazakhstan of international treaties which participant is the Republic of Kazakhstan are determined by the legislation of the Republic of Kazakhstan.

Article 2-1. The main purpose and tasks of this Law

1. Main objective of this Law is protection of the rights and legitimate interests of citizens, societies and the states by creation of legal mechanism of counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction.

2. The main objectives of this Law are:

1) counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction;

2) realization of single state policy in the field of counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction;

3) creation of effective system of counteraction of the legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction conforming to the conventional international standards;

4) creation of unified information system and maintaining single information and analytical system in the field of counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction;

5) prevention of creation of conditions and the opportunities for legalization (washing) of the income which are had in the criminal way, financings of terrorism and the financing of distribution of weapons of mass destruction, and also taking measures directed to identification and elimination of the vulnerabilities promoting legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction;

6) organization of training of subjects of financial monitoring and employees of state bodies for the purpose of advanced training in the field of counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction;

7) development of international cooperation concerning counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction;

8) ensuring interdepartmental interaction concerning counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction.

Article 2-2. Principles of this Law

This Law is based on the following basic principles:

1) equalities of all before the law and court, justice;

2) protection of financial system of the Republic of Kazakhstan against threats of legalization (washing) of income gained in the criminal way, financings of terrorism and financing of distribution of weapons of mass destruction.

Chapter 2. The prevention of legalization (washing) of income gained in the criminal way, financings of terrorism and financing of distribution of weapons of mass destruction

Article 3. Subjects of financial monitoring

1. For the purposes of this Law treat subjects of financial monitoring:

1) banks, branches of banks - nonresidents of the Republic of Kazakhstan, the organizations performing separate types of banking activities, except for the operator or the operational center of interbank money transfer system and also legal entities whose exclusive activities is collection of banknotes, coins and values;

2) the exchanges, the organizations performing clearing activities for transactions with financial instruments, the exchange brokers performing the activities at commodity exchange and making transactions with exchange goods, and also clearing centers of commodity exchanges;

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