Article 1. The basic concepts used in this Law are the Law on Countering the Legalization (Laundering) of Proceeds from Crime, the Financing of Terrorism and the Financing of the Proliferation of Weapons of Mass Destruction.

Home / RLA / Article 1. The basic concepts used in this Law are the Law on Countering the Legalization (Laundering) of Proceeds from Crime, the Financing of Terrorism and the Financing of the Proliferation of Weapons of Mass Destruction.

Article 1. The basic concepts used in this Law are the Law on Countering the Legalization (Laundering) of Proceeds from Crime, the Financing of Terrorism and the Financing of the Proliferation of Weapons of Mass Destruction.

The following basic concepts are used in this Law:

1) a suspicious transaction involving money and (or) other property (hereinafter referred to as a suspicious transaction) – a client's transaction (including an attempt to perform such an operation, an operation in progress, or an already completed operation) in respect of which there is suspicion that the money and (or) other property used to commit it is the proceeds of criminal activity, or the operation itself is aimed at the legalization (laundering) of income, criminally obtained funds, financing terrorism or financing the proliferation of weapons of mass destruction or other criminal activities;

2) transactions with money and (or) other property – actions of individuals, legal entities and foreign entities without forming a legal entity with money and (or) other property, regardless of the form and method of their implementation, aimed at establishing, changing or terminating related civil rights and obligations;

2-1) freezing of transactions with money and (or) other property – measures taken by financial monitoring entities and government agencies to suspend the transfer, transformation, alienation or movement of money and (or) other property;

2-2) individual entrepreneurs and legal entities engaged in operations with precious metals and precious stones, jewelry made from them – persons engaged in the purchase and sale of precious metals and precious stones, jewelry made from them, with the exception of religious organizations, museums and organizations using precious metals, their chemical compounds, precious stones in for medical, scientific and research purposes, or as part of instruments, devices, equipment and products for industrial and technical purposes;

3) the beneficial owner is an individual:

which directly or indirectly owns more than twenty-five percent of the shares in the authorized capital or outstanding (minus preferred and repurchased by the company) shares of the client– a legal entity or a foreign structure without forming a legal entity;

exercising control over the client in another way;

in whose interests the client performs transactions with money and (or) other property;

3-1) intermediary bank – a bank and (or) an organization performing certain types of banking operations that make payments and (or) transfer money received from the sender's bank in favor of a financial organization;

3-2) Financing the proliferation of weapons of mass destruction – provision or collection of money and (or) other property, rights to property or benefits of a property nature, as well as donation, exchange, donation, charitable assistance, provision of information and other services, or provision of financial services to an individual or group of persons, or a legal entity, committed by a person who was knowingly aware that the provided property, The information, financial and other services provided will be used to finance the spread of chemical, bacteriological (biological), radiological, nuclear and toxin weapons and (or) their means of delivery;

3-3) public official:

a person holding a responsible government position;

the official;

a person authorized to perform government functions;

a person performing managerial functions in a government organization or quasi-public sector entity;

a person appointed or elected who holds a position in the legislative, executive, administrative, judicial, or armed forces of a foreign State;

a person performing any public function for a foreign State;

a person holding a senior position in organizations established by States on the basis of agreements that have the status of international treaties;

3-4) personal account – the profile of the user (subject of financial monitoring) on the dedicated communication channels of the authorized body in the information and telecommunication network of the Internet, providing electronic interaction of its users (subjects of financial monitoring) with the authorized body;

3-5) a foreign structure without the formation of a legal entity is a foundation, partnership, trust, company, partnership, organization or other corporate entity established in accordance with the legislation of a foreign state, which are considered as independent organizational and legal forms regardless of whether they have the status of a legal entity of the foreign state where they were established.;

3-6) the register of beneficial owners of legal entities is a state database designed to record and store information about the beneficial owners of legal entities in order to counteract the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction;

3-7) independent legal specialist – an individual who provides legal services both independently and as a partner or employee on the basis of an employment contract with a business entity providing legal assistance.;

4) client – an individual, a legal entity, or a foreign entity without the formation of a legal entity that receives the services of a financial monitoring entity;

4-1) suspicious activity of the client subject to financial monitoring – a set of two or more suspicious transactions of the client with money and (or) other property, in respect of which the subject of financial monitoring has suspicions that the money and (or) other property used for their commission is income from criminal activity, financing terrorism and financing the proliferation of weapons of mass destruction;

5) correspondent relations – contractual relations that arise when banks and organizations engaged in certain types of banking operations open correspondent accounts with other banks for the purpose of performing operations related to banking services.;

6) a shell bank is a non-resident bank that does not have a physical presence in the state (territory) in which it is registered as a bank and (or) has obtained a banking license, with the exception of such a bank being owned directly or indirectly by a bank holding company subject to consolidated supervision in the state (territory) in which it is registered;

7) financial monitoring – a set of measures for the collection, processing, analysis and use of information and information on transactions with money and (or) other property carried out by the authorized body and the subject of financial monitoring in accordance with this Law;

8) transactions subject to financial monitoring – transactions of a client of a financial monitoring entity with money and (or) other property, in respect of which financial monitoring is established in accordance with this Law.;

8-1) financial group – a group of legal entities that are subjects of financial monitoring and interact with each other in accordance with this Law;

9) cashing out money obtained by criminal means – actions committed by individuals, legal entities or a foreign entity without forming a legal entity in order to obtain cash by using documents when making an imaginary transaction aimed at money laundering;

10) proceeds from crime – money and (or) other property obtained as a result of committing a criminal offense;

11) legalization (laundering) of proceeds from crime, – involvement in the legal circulation of money and (or) other property obtained by criminal means, through transactions in the form of conversion or transfer of property representing proceeds from criminal offenses, or possession and use of such property, concealment or concealment of its true nature, source, location, method of disposal, transfer, rights to property or its ownership, if it is known that such property represents proceeds from criminal offenses, as well as mediation in the legalization of money and (or) other property obtained by criminal means.;

11-1) state policy in the field of countering the legalization (laundering) of proceeds from crime and the financing of terrorism – legal, administrative and organizational measures aimed at reducing the risks of legalization (laundering) of proceeds from crime, financing of terrorism and financing the proliferation of weapons of mass destruction, and other measures in accordance with this Law;

11-2) impeccable business reputation – the presence of facts confirming professionalism and good faith, including the absence of facts of a person committing illegal actions (inaction) that led to insolvency, which led to the forced liquidation of a financial institution, or to classifying the bank as an insolvent bank, the absence of an outstanding or outstanding criminal record, including the absence of an effective judicial act on the application of criminal penalties in in the form of deprivation of the right to hold the position of a senior employee of a financial institution, a banking and (or) insurance holding company and be a major participant (major shareholder) of a financial organization for life, as well as the absence of relations with third parties (control and influence of third parties), whose actions contributed to the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, based on information from the authorized body the authority;

11-3) targeted financial sanctions are measures to freeze transactions with money and (or) other property taken by financial monitoring entities and government agencies in accordance with this Law and United Nations Security Council resolutions related to the prevention and prevention of terrorism and the financing of terrorism, the prevention, prevention and cessation of the proliferation of weapons of mass destruction and their financing;

11-4) scoring module is an automated system containing information from various data sources for risk identification of a client (his representative), used by financial monitoring entities on a voluntary basis;

11-5) Sectoral risk assessment – assessment conducted by the state bodies of the Republic of Kazakhstan, which, within their competence, monitor compliance by financial monitoring entities with the legislation of the Republic of Kazakhstan on countering the legalization (laundering) of proceeds from crime, financing of terrorism and financing the proliferation of weapons of mass destruction regarding the vulnerability of financial monitoring entities to use tools and services to counteract the legalization (laundering) of income criminally obtained, financing of terrorism and financing the proliferation of weapons of mass destruction;

11-6) national risk assessment – determination of threat levels and opportunities for the legalization (laundering) of proceeds from crime, financing of terrorism and financing the proliferation of weapons of mass destruction by analyzing the collected data in the Republic of Kazakhstan;

12) financing of terrorism – provision or collection of money and (or) other property, rights to property or benefits of a property nature, as well as donation, exchange, donation, charitable assistance, provision of information and other services or financial services to an individual or a group of persons or a legal entity, committed by a person who was aware of the terrorist nature of their activities or the fact that the provided property, information, financial and other services will be used to carry out terrorist activities or provide support to a terrorist group, terrorist organization, illegal paramilitary formation;

12-1) excluded by the Law of the Republic of Kazakhstan dated July 26, 2016 No. 12-VI (effective thirty calendar days after the date of its first official publication);

13) authorized body – a state body that carries out financial monitoring and takes other measures to counteract the legalization (laundering) of proceeds from crime, the financing of terrorism, and the financing of the proliferation of weapons of mass destruction in accordance with this Law;

14) excluded by the Law of the Republic of Kazakhstan dated 11/18/2021 No. 73-VII (effective sixty calendar days after the date of its first official publication).

15) the competent authority of a foreign state is an authority of a foreign state that, in accordance with its legislation, collects, processes, analyzes and uses information and information about transactions with money and (or) other property.;

16) physical presence – the place of business of the bank, located at a permanent address (except for an e-mail address), where the management bodies and staff of the bank are present, records and storage of documents related to banking activities are kept, and inspections are carried out by the authorized body that issued a banking license to a non-resident bank.;

17) business relations – the relations with clients arising in the process of implementation by the subject of financial monitoring of professional activity.

The Law of the Republic of Kazakhstan dated August 28, 2009 No. 191-IV.

This Law defines the legal basis for countering the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, the legal relations of financial monitoring entities, the authorized body and other state bodies of the Republic of Kazakhstan in the field of countering the legalization (laundering) of proceeds from crime and the financing of terrorism, as well as the mechanisms for implementing targeted financial sanctions, related to the prevention and prevention of terrorism and the financing of terrorism, and the prevention, prevention and cessation of the proliferation of weapons of mass destruction and their financing.

President

Republic of Kazakhstan

Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases