Kazakhstan's New Law Protects Military, Combats Banking & Telecom Fraud
New regulations in Kazakhstan aim to protect military personnel and combat fraud in the banking and telecommunications sectors. The Senate has reviewed and approved a law that introduces several measures to achieve these goals.
One key provision bans banks and microfinance organizations from lending to conscript military personnel with negative credit reports. This ban will be enforced through automatic information exchange between the Ministry of Defense and credit bureaus like Experian.
To ensure fairness, the minimum necessary credit rating can be held by the foreign bank itself or its parent company. Additionally, foreign banks can open subsidiary structures in Kazakhstan with simplified requirements.
In the fight against fraud, enhanced cooperation is key. The announced entities engaging in this effort include banks, financial institutions, digital economy actors, and law enforcement authorities. This cooperation will be bolstered by EU initiatives, such as new rules on data retention and telecommunications data access, and the development of AI tools for data processing by authorities by 2028.
Telecommunications operators will play a significant role in fraud prevention. They must create internal anti-fraud systems and block fraudulent calls promptly. Moreover, operators must cooperate with the Anti-Fraud Center of the National Bank to block fraudulent numbers swiftly.
To protect consumers and investors, clear standards for regulating and supervising venture funds have been introduced. Banks and microfinance organizations are required to report and eliminate unauthorized data access incidents within one day and ten working days, respectively.
The approved law in Kazakhstan introduces several measures to protect military personnel from predatory lending, strengthen cooperation in combating fraud, and enhance consumer and investor protection. These changes aim to develop the financial market and reduce bureaucracy.
