Article 2. Scope of this Law The Law on the Return of Illegally Acquired Assets to the State

Home / RLA / Article 2. Scope of this Law The Law on the Return of Illegally Acquired Assets to the State

1. This Law is valid on the territory of the Republic of Kazakhstan in respect of individuals. – 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 Astana International Financial Center, legal entities registered outside the Republic of Kazakhstan, as well as foreign entities without forming a legal entity, regardless of the country of their establishment (registration), owned, used, owned or controlled by which they are (were) or are suspected to be (were) assets in the territory of the Republic of Kazakhstan or assets outside the Republic of Kazakhstan acquired with funds (income) illegally obtained in the Republic of Kazakhstan.

2. This Law applies to citizens of the Republic of Kazakhstan, regardless of their location and the presence (absence) of assets owned, owned or controlled by them in the territory of the Republic of Kazakhstan.

3. This Law applies to foreigners and stateless persons, regardless of their location and the presence (absence) of assets owned, owned or controlled by them in the territory of the Republic of Kazakhstan, if such persons previously permanently resided in the territory of the Republic of Kazakhstan or were tax residents of the Republic of Kazakhstan.

The first part of this paragraph applies to the assets of the said persons illegally acquired by them or their affiliated persons during their permanent residence in the territory of the Republic of Kazakhstan or the tax residence of the Republic of Kazakhstan.

4. This Law applies to foreigners and stateless persons who are (were) affiliated persons of the persons specified in the first part of paragraph 3 of this Article.

This Law also applies to foreigners, stateless persons, legal entities registered outside the Republic of Kazakhstan, as well as foreign entities without forming a legal entity, regardless of the country of their establishment (registration), including those who are (were) affiliated and (or) related persons of the persons specified in paragraphs 1 – 3 of this Article, and (or) directly or indirectly having (had) or directly or indirectly allegedly having (had) assets in the territory of the Republic of Kazakhstan or assets outside the Republic of Kazakhstan acquired with funds (income) illegally obtained in the Republic of Kazakhstan, or which acquired assets from the persons specified in paragraphs 1-3 of this article.

5. Subject to the provisions provided for in paragraphs 1-4 of this article, the rules on the conversion of illegally acquired assets of this Law into State revenue shall apply to persons who meet the following criteria::

1) natural persons in respect of whom, from the sources provided for by this Law, there is information (in aggregate) about (hereinafter referred to as the subject):

that this person is (was) a person holding a responsible public position, positions involving the performance of managerial functions in a public legal entity or a quasi-public sector entity, and (or) the availability (including previously existing) of administrative and power resources (connections, influence) in relation to persons holding (who) a responsible government position, and (or) persons performing (who performed) managerial functions in a state-owned legal entity or quasi-public sector entity;

obtaining (including directly or through affiliated persons, including legal entities, whose shares (shares in the authorized capital) are owned by an individual) assets and (or) income (including from previously received assets) as a result of using (using) administrative and power resources (connections, influence);

2) individuals and legal entities affiliated with the subjects.

6. Affiliated persons of subjects are individuals and (or) legal entities related to subjects or among themselves for one of the following reasons, who have and (or) had the opportunity to directly and (or) indirectly or otherwise determine decisions (actions, omissions) and (or) exert any influence on the decisions taken. decisions by each other (one of the persons) (actions performed, inaction):

1) persons having family relations, spouse, including former spouse, persons having family relations with spouse, including persons having family relations with former spouse;

2) relatives, relatives of the spouse, as well as relatives of the former spouse;

3) persons who are dependent on an individual or who run a joint household with him;

4) individuals, legal entities and associations (organizations) without forming a legal entity, regardless of the country of their establishment (registration), in respect of which the entity or other individual provided for in this article has the actual ability to determine actions, including the ability to give instructions to them, to persons who, by virtue of a law, other legal act or constituent document, are authorized to act on their behalf, and also, members of the governing bodies of a legal entity or association (organization) without forming a legal entity;

5) persons who otherwise act on behalf of and (or) in the interests of entities and persons affiliated with them, including persons who are the trust managers of the property of such entities and persons affiliated with them, as well as other purchasers, nominal or actual owners of the assets of these entities and persons affiliated with them;

6) persons who own, use or dispose of property on the basis of an agreement and/or other arrangement with entities and persons affiliated with them;

7) persons who have common ownership with entities and persons affiliated with them;

8) individuals and legal entities associated with entities and persons affiliated with them by common commercial and economic interests;

9) a legal entity that is directly and (or) indirectly controlled by entities and (or) persons affiliated with them;

10) persons involved in the creation of trust funds and (or) other similar structures, as well as in the ownership and (or) management of trust funds and (or) other similar structures, including their founders, financial organizations, including banks, beneficiaries, managers and other persons related to the trust and other similar structure of management and (or) ownership and (or) use of assets;

11) other individuals and (or) legal entities recognized by the commission as affiliated with entities and persons affiliated with them.

7. Subject to the provisions provided for in paragraphs 1-6 of this Article, the provisions of this Law on the inclusion of persons in the register, the filing of asset disclosure declarations, as well as on the transfer of assets of such persons to State ownership in connection with the recognition of their assets of unexplained origin, apply to persons owned, used, owned or controlled by (as well as their heirs and legal successors) have assets whose total amount is equal to or exceeds thirteen million times the monthly calculation index.

The total amount of assets of a person (group of persons) is determined on the basis of any available sources, including information from accounting, tax, audit reports, information on cadastral, balance sheet, market, estimated value of assets, information on the purchase price or subsequent disposal of assets, information from analytical reviews in the media and other information.

For the purposes of this paragraph, the monthly calculation index is determined in accordance with its size established by the legislation of the Republic of Kazakhstan in force during the period for which the total amount of assets of a person (group of persons) is determined. If the total amount of assets of a person (group of persons) is determined as of a date in a period in which the previous legislation of the Republic of Kazakhstan did not provide for the establishment of a monthly calculation index, for such a period the value of the monthly calculation index will be the value of that first established by the legislation of the Republic of Kazakhstan.

8. Entities and (or) their affiliated persons are obliged, in cases and on the grounds established by this Law, to prove in court the legality of the sources of acquisition (origin) of assets belonging to them.

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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