Article 29-4. Activities of the Microfinance Ombudsman of the Law on Microfinance Activities

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1. The activities of the microfinance Ombudsman, including the procedure and deadlines for reviewing appeals for dispute resolution and decision-making, are carried out on the basis of the internal rules of the microfinance Ombudsman.

2. In order to properly perform the assigned functions, the activities of the microfinance ombudsman are funded by mandatory contributions from microfinance organizations and collection agencies that have been granted the right (claim) under a microcredit agreement concluded with the borrower.

In case of non-payment, late payment, or incomplete payment of mandatory contributions, the microfinance ombudsman must, within seven working days, notify the authorized body of the improper performance by the microfinance organization, collection agency, to which the right (claim) has been assigned under the microcredit agreement concluded with the borrower, of its obligations provided for in part one of this paragraph.

3. The Microfinance Ombudsman, in coordination with the Council of Representatives, forms an office with an organizational structure and staff.

4. The internal rules of the microfinance Ombudsman should define:

1) the structure, tasks and powers of the audit commission and other permanent bodies (if any);

2) the rights, duties and responsibilities of the microfinance Ombudsman;

3) Dispute resolution procedure;

4) other issues related to the implementation of the microfinance Ombudsman's activities.

5. The Microfinance Ombudsman is obliged to keep confidential information obtained during dispute resolution and not disclose it to third parties.

The Microfinance Ombudsman is responsible, as established by the laws of the Republic of Kazakhstan, for disclosing information obtained in the course of his activities.

IZPI's note! The third part of paragraph 5 is provided for in the wording of 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).

In case of violation by the microfinance ombudsman of the requirements stipulated in part one of this paragraph, the Council of Representatives has the right to consider the issue of early termination of the powers of the microfinance Ombudsman.

6. The following information is posted on the Microfinance Ombudsman's Internet resource:

1) full name, address (location), phone numbers, office hours, including divisions and representative offices;

2) information about the election of the microfinance Ombudsman;

3) the list of associations (unions) that are members of the Council of representatives of the Microfinance Ombudsman;

4) information about the types of services provided by the microfinance Ombudsman;

5) the procedure for accounting, consideration, adoption and execution of decisions of the microfinance Ombudsman;

6) monthly information on the results of the microfinance Ombudsman's work;

7) annual reports on the results of the microfinance Ombudsman's activities;

8) a section for consumers of financial services with the publication of information and explanatory materials and materials of judicial practice;

9) a list of agreements and memoranda concluded with microfinance market participants.

7. In case of a change of location, the microfinance Ombudsman is obliged to notify consumers of financial services by publishing an announcement in two periodicals distributed throughout the Republic of Kazakhstan, in Kazakh and Russian, no later than one month and on the Microfinance Ombudsman's Internet resource within ten working days.

8. The Microfinance Ombudsman, by decision of the Council of Representatives, must ensure:

1) the use of specialized software for automating accounting and processing applications from individual borrowers;

2) the introduction of a call center or hotline in the office of the microfinance Ombudsman to provide consulting services to individual borrowers;

3) prompt receipt of the individual borrower's credit report in the credit bureau's information base on the basis of an agreement in order to resolve disputes.

Based on the results of the analysis of individual borrowers, the microfinance ombudsman has the right to send recommendations to the authorized body on improving the legislation of the Republic of Kazakhstan on microfinance activities, as well as the activities of microfinance organizations and (or) collection agencies.

9. Authorized body:

1) coordinates the internal rules of the microfinance Ombudsman;

2) considers complaints from individual borrowers about the actions (inaction) of the microfinance ombudsman;

3) sends recommendations to the Council of Representatives on the activities of the microfinance Ombudsman in cases of violations of the rights of consumers of financial services in the actions (inaction) of the microfinance Ombudsman.;

4) performs other functions related to the activities of the microfinance Ombudsman in accordance with this Law.

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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