Article 27. Competence of the authorized body of the Law on Microfinance Activities

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Authorized body:

1) carries out licensing of microfinance activities;

IZPI's note! The first part of Article 27 is provided to be supplemented by subparagraph 1-1) in accordance with the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective sixty calendar days after the date of its first official publication).

1-1) adopt regulatory legal acts binding on organizations engaged in microfinance activities in the field of regulating microfinance activities in accordance with the purpose and objectives provided for in paragraphs 1 and 2 of Article 2-1 of this Law and the legislation of the Republic of Kazakhstan. The list of subordinate regulatory legal acts is defined in the regulation on the authorized body.;

2) excluded by the Law of the Republic of Kazakhstan dated 02.01.2021 No. 399-VI (effective from 01.01.2021);

3) develops and approves prudential standards and other norms and limits that must be observed by a microfinance organization, as well as the methodology for calculating them in relation to the relevant type of microfinance activity;

4) excluded by the Law of the Republic of Kazakhstan dated 03.07.2019 No. 262-VI (effective from 01.01.2020);

4-1) determines the calculation procedure and the maximum value of the borrower's debt burden ratio of a microfinance organization (with the exception of a pawnshop);

4-2) determines the list of documents required to obtain a micro-loan, as well as the procedure for maintaining a credit file under a micro-loan agreement;

4-3) in coordination with the Ministry of Internal Affairs of the Republic of Kazakhstan, approves the procedure for organizing the activities of pawnshops, including the issues of storing things in a pawnshop, establishing requirements for ensuring the safety and technical security of pawnshops, and measures to counteract the trafficking of illegally obtained items in pawnshops.;

4-4) Approves, in coordination with the authorized body in the field of permits and notifications and the authorized body in the field of informatization, the rules for licensing microfinance activities.;

4-5) approves, in coordination with the authorized body in the field of permits and notifications and the authorized body in the field of informatization, the rules for issuing permits for the voluntary reorganization of a microfinance organization in the form of conversion to a bank, as well as the list of documents required for issuing permits from the authorized body for the voluntary reorganization of a microfinance organization in the form of conversion to a bank, application forms for obtaining permits, permission of the authorized body to convert a microfinance organization into a bank and information forms;

5) develops and approves, in coordination with the state body responsible for ensuring tax revenues and other mandatory payments to the budget, rules for classifying assets and contingent liabilities for granted micro-loans and creating provisions (reserves) against them.;

6) carries out an audit of the microfinance organization's activities;

6-1) monitors compliance by microfinance organizations with the requirements stipulated by the legislation of the Republic of Kazakhstan on countering the legalization (laundering) of proceeds from crime and the financing of terrorism;

7) files a claim in court for compulsory reorganization or liquidation:

microfinance organizations in case of non-fulfillment of the requirement provided for in paragraph 9 of Article 16 of this Law;

legal entities registered as microfinance organizations, credit partnerships, pawnshops that have not applied for a license to carry out microfinance activities within the period specified in paragraph 1 of Article 14 of this Law, as well as those that have not fulfilled the requirements provided for in parts one and three of paragraph 2 of Article 15 of this Law.;

legal entities registered as microfinance organizations, credit partnerships, pawnshops until 2021 that have not applied for a license to carry out microfinance activities within the period established by paragraph 2-1 of Article 31 of this Law.;

legal entities engaged in loan provision activities (with the exception of persons registered as credit partnerships, pawnshops, and microfinance organizations licensed to carry out microfinance activities) that have not passed state registration (re-registration) as a microfinance organization in accordance with this Law;

micro-credit organizations that have not passed the state re-registration in accordance with paragraph 1 of Article 31 of this Law;

8) exercise other powers provided for by this Law, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

IZPI's note! The second part of Article 27 is provided to be deleted by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective sixty calendar days after the date of its first official publication).

The National Bank of the Republic of Kazakhstan, in coordination with the authorized body, approves:

1) the list, forms of reporting on the implementation of prudential standards and other mandatory standards and limits by a microfinance organization, the terms and procedure for its submission to the National Bank of the Republic of Kazakhstan;

2) the list, forms of financial and other reporting, terms and procedure for its submission by a microfinance organization to the National Bank of the Republic of Kazakhstan.

The Law of the Republic of Kazakhstan dated November 26, 2012 No. 56-V.

This Law regulates public relations related to the provision of micro-loans, establishes the specifics of the creation and reorganization of organizations engaged in microfinance activities, the legal status, activities of organizations engaged in microfinance activities, and also defines the specifics of state regulation of organizations engaged in microfinance activities, control and supervision of their activities.

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Republic of Kazakhstan

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