Article 14. The procedure for creating the registry The Law on the Return of Illegally Acquired Assets to the State

Home / RLA / Article 14. The procedure for creating the registry The Law on the Return of Illegally Acquired Assets to the State

1. If, based on monitoring and analysis of information, the authorized asset recovery body has reasonable doubts about the legality of the sources of acquisition (origin) of assets that are (were), allegedly owned, used, owned or controlled by the entity and (or) its affiliated persons, as well as the heirs and legal successors of the entities and (or) their affiliated companies, the total amount of which is equal to or exceeds thirteen million times the monthly calculation index, The issue of inclusion in the register of the entity and (or) its affiliated persons is submitted for consideration by the commission.

2. The grounds for reasonable doubt about the legality of the sources of acquisition (origin) of the assets of the entity and (or) its affiliated persons are information indicating one of the following features::

1) the discrepancy between the value of assets owned, used, owned or controlled by the entity and (or) its affiliates and the amount of legitimate income or other legitimate sources of coverage for the acquisition of such assets, including with respect to (up to) primary assets and with respect to (up to) primary income (sources of cost coverage).

For the purposes of this Law, legitimate income or other legitimate sources of covering the costs of an entity and (or) its affiliates for the acquisition of assets include income acquired legally in compliance with all requirements of the legislation of the Republic of Kazakhstan, including legitimate sources of covering the costs of acquiring assets, up to primary assets and sources of covering the costs of acquiring primary assets. assets;

2) acquisition by entities and (or) their affiliated persons of assets, collectively exceeding the threshold value established by this Law, after (during) the occupation by one of such persons of a responsible public position or a position involving the performance of managerial functions in a state legal entity or a quasi-public sector entity;

3) identification of information based on the results of operational search activities provided for by the Law of the Republic of Kazakhstan "On Operational Search Activities", which gives sufficient grounds to assume that the entity and (or) its affiliated persons own assets of illegal origin.;

4) the existence of a conviction issued by a foreign court in respect of entities and (or) its affiliated persons;

5) availability of favorable non-competitive legislative (regulatory, regulatory) and other conditions for conducting business activities of the entity and (or) its affiliated persons, including conditions for granting and receiving tax and other benefits and preferences, state support, state aid, conditions for participation in public-private projects, access to credit resources, access to government procurement, as well as procurement of quasi-public sector entities or procurement of subsurface users, any other actions and measures on the part of the state or quasi-public sector entities, the economic and (or) legal meaning of which is to support the financial stability and profitability of the assets of the entity and (or) its affiliates;

6) the presence of signs of anomalous business conditions of the entity and (or) its affiliated persons, including signs of economic inexpediency of transactions, non-market conditions of transactions;

7) the availability of information about losses caused by the entity and (or) its affiliated entity to the second-tier bank, the Development Bank of Kazakhstan, including those who participated in government support programs (in any form) and (or) received support from quasi-public sector entities in the form of placing funds on deposits, renegotiating deposit and other conditions. accounts, purchase of bonds issued by second-tier banks, review of the terms of second-tier banks' bond programs, and other actions, the economic and (or) legal meaning of which is to support the financial stability of a second–tier bank, the Development Bank of Kazakhstan (hereinafter referred to as the banks that received state support), by obtaining knowingly non-repayable loans (loans), obtaining loans (loans) on non-market terms or in violation of the current legislation of the Republic of Kazakhstan and internal documents of the bank or otherwise by;

8) availability of information containing signs of involvement of entities and (or) their affiliated persons in operations having characteristics corresponding to typologies, schemes and methods of legalization (laundering) of criminal proceeds and financing of terrorism, in accordance with the legislation on countering the legalization (laundering) of proceeds from crime, financing of terrorism and financing the proliferation of weapons mass destruction;

9) the availability of information on the actual concentration of economic resources in the relevant market of goods, works or services, including through the ownership of shares (shares in the authorized capital) of market entities that occupy and (or) occupied a dominant or monopolistic position in the relevant commodity market.

3. Based on the results of the review at the meeting, the commission forms a register.

4. The register is formed by including a person (group of persons) and specifying the following information:

for individuals – last name, first name, patronymic (if it is indicated in the identity document), individual identification number (taxpayer number, other equivalent similar details, if any), citizenship;

for legal entities – name, registration number, business identification number, location (registration).

5. The deadline for the presence of a person (group of persons) in the register is one year from the date of the person's inclusion in the register.

The specified period is interrupted if:

1) the realization of procedural rights by participants in pre-trial proceedings;

2) sending additional requests to persons included in the register;

3) sending requests to authorized state, law enforcement and special government agencies;

4) conducting audits, audits, inspections, claims and other measures related to requests for information, legal assistance and other special measures for interaction with foreign courts and authorized bodies, including those aimed at ensuring the return of assets;

5) conducting pre-trial investigations against the entity and (or) its affiliated persons included in the register;

6) conducting proceedings on administrative offences against the entity and (or) its affiliated persons included in the register;

7) sending requests for legal assistance, requests for information, requests for arrest, taking other preliminary interim measures, interim measures or confiscation of assets and obtaining evidence to the competent authorities and organizations of foreign States or international organizations;

8) filing civil lawsuits with foreign courts and other competent authorities of foreign states;

9) conducting investigative actions in the framework of joint investigations with the competent authorities of foreign states on the territory of a foreign state to carry out a pre-trial investigation or other actions in the framework of civil or criminal proceedings, as well as in the case of an administrative offense and obtaining information, information or documents on behalf of the Republic of Kazakhstan;

10) recognition and enforcement of decisions of courts or other competent authorities of foreign states regarding the search (disclosure), confirmation of origin, application of provisional interim measures, interim measures, security, management, sale and return of assets;

11) filing by a person (group of persons) of lawsuits in courts of foreign states or in arbitration against the Republic of Kazakhstan and (or) government agencies or officials of government agencies of the Republic of Kazakhstan in connection with asset recovery measures;

12) initiation of administrative cases by the courts of the Republic of Kazakhstan on claims of a person (group of persons) in relation to administrative acts or actions (inaction) of state bodies related to the exercise of their powers, at the request of the authorized body for asset recovery;

13) conducting conciliation and other procedures within the framework of voluntary asset recovery.

After the completion of the circumstances that served as the basis for the interruption of the period of stay of a person (group of persons) in the register, in accordance with the established procedure, the period of this period is resumed.

Upon expiration of the deadline for being on the register, a person is considered to be excluded from the register. The commission's decision is not required to exclude a person from the register.

After a person is excluded from the register, a claim may not be filed against him by the authorized asset recovery authority for the forced conversion of such assets to State revenue as assets of unexplained origin.

The suspension, renewal or termination of the period of stay of a person (group of persons) in the register shall be notified to the persons included in the register in accordance with the procedure provided for in paragraph 2 of Article 15 of this Law.

It is not allowed to re-include a subject in the register for the same reasons that a person (group of persons) has previously been included in the register.

This Law, in the interests of current and future generations of Kazakhstanis, regulates public relations to identify and return illegally acquired assets to the state (hereinafter referred to as asset recovery) in order to restore the violated rights of the people of Kazakhstan, ensure the rule of law, social justice, and sustainable economic and social development of Kazakhstan for the benefit of its people.

President

Republic of Kazakhstan

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