Kazakhstan: Bank accounts of Nazarbayev’s family are under threat of arrest
The British Parliament discussed the issue of applying anti-corruption sanctions against the first President of Kazakhstan Nursultan Nazarbayev and his inner circle. Margaret Hodge (Member of the British Parliament, Co-Chairman of the Anti-Corruption Committee and Responsible Taxation) put forward an initiative to impose sanctions at a meeting of Parliament.
According to the deputy, Great Britain should impose sanctions on the Kazakhstani elite, who got rich on the money stolen from the people.
“Until 2019, Nursultan Nazarbayev was the autocratic dictator. In Kazakhstan, 162 persons own 55% of the country’s wealth; mostly, they are the members of Nazarbayev’s family or his close associates. The country has a poor reputation for human rights and little media freedom. In 2006, Jonathan Wiener (former Deputy Assistant Secretary of State for International Law Enforcement in the administration of Clinton) said, “I can’t imagine a leader in the free world as notoriously corrupt as Nazarbayev… We have known about his corruption for at least 15 years.” “However, in Britain, we turned a blind eye, ignored corruption and helped the Kazakhstani regime launder and spend dirty money,” Margaret Hodge said in her speech.
As a confirmation of this conclusion, the parliamentarian gave three examples. Firstly, between 2008 and 2015, the UK issued golden visas to 205 Kazakh kleptocrats. Secondly, the Kazakh elite owns more than half a billion pounds of real estate in the UK, of which about ₤330 million belongs to Nazarbayev’s family. Thirdly, Mrs. Hodge noted that the organized crime and corruption research project revealed that Nursultan Nazarbayev secretly controls four charitable foundations with assets worth at least $7.8 billion invested in everything – from hotels to banks. This global fortune is partly owned by UK-registered holding company Jusan Technologies, established in 2020.
“We have opened our borders, our real estate market and our financial structures to the Kazakh ruling class, enabling them to launder and spend their illicit wealth. Even worse, we don’t even apply our existing laws against any of these offenses,” the MP protested.
The reasons that prompted Mrs. Hodge to put forward this initiative right now, according to her, were the January events in Kazakhstan.
“The protests, initially sparked by a surge in LPG prices, quickly escalated into a nationwide movement against the ruling regime. On January 7, President Tokayev dispatched the military against the protesters with orders ‘to shoot to kill without warning’. The protesters, most of whom were civilians, were gunned down without firing a warning shot. According to some experts, 225 people died, 4,500 were injured and 10,000 were arrested as a result of this shocking brutal crackdown. This horrific loss of life in Kazakhstan should make us think in the UK. We are accomplices of what is happening in Kazakhstan. Our lack of transparency regarding foreign property, our lax regulatory regime and our weak law enforcement have all helped and abetted the Kazakhstani elite,” she emphasized.
However, according to Margaret Hodge, the UK is not too late to change the situation. Parliament should introduce anti-corruption sanctions (freezing assets, banning entry into the country, restricting access to financial and legal instruments) against Kazakh oligarchs.
“I urge the UK to take action to impose anti-corruption sanctions against the following individuals, whom I name, all of whom are allegedly involved in asset forfeiture and bribery. This is Timur Kulibayev, his wife Dinara Nazarbayeva (Nazarbayev’s daughter) and their companion Arvind Tiku. Evidence suggests that Kulibayev abused his position to amass a huge fortune. In 2020, the Financial Times revealed that Kulibayev profited by a secret scheme to divert profits from major government pipeline contracts. He has faced money laundering and bribery investigations in other jurisdictions. He is worth $2.9 billion according to Forbes and owns at least £60 million worth of real estate here in the UK,” Mrs. Hodge said.
The next candidates for the sanctions’ list, at the suggestion of the deputy, were the eldest daughter of Nursultan Nazarbayev, Dariga Nazarbayeva, and her alleged husband, Kairat Sharipbayev.
“Her empire, estimated by Forbes at $595 million, is hidden in an incredibly complex system of offshore companies, funds and trusts. Her three London properties have been sued for inexplicable wealth, but Source Material investigators say that Nazarbayeva could have misled the UK High Court. Meanwhile, Sharipbayev is allegedly one of the beneficiaries of a $334 million scam at Bank RBK, a Kazakh bank that is said to be ‘the bank of Nazarbayev’s family’. There is Nuraly Aliyev, the son of Dariga and the grandson of the former ruler. There is Karim Masimov and his colleague Aigul Nuriyeva. According to FT, Masimov is a former Prime Minister of Kazakhstan, against whom allegations of bribery were brought, including by British companies. Nuriyeva is a Kazakhstani banker and an alleged confidant of Masimov, who is involved in major bribery scandals totaling $64 million with the Swedish telecommunications company Teli,” Mrs. Hodge listed the names of Kazakhstani oligarchs.
Her list also includes Vladimir Kim (the richest man in Kazakhstan; his fortune is about $4.3 billion) and his partner Eduard Ogay, businessman Kenes Rakishev (his fortune is $1.6 billion), former Minister of Energy and Mineral Resources of Kazakhstan Sauat Mynbayev (secretly owned a $3 billion Bermuda company that won government contracts in Kazakhstan), Eurasian Natural Resources Corporation owners Alexander Mashkevich and Patokh Chodiev, another businessman, ex-head of the presidential administration Bulat Utemuratov (his fortune is $3.9 billion ), brother of the first President Bolat Nazarbayev, former head of Samruk-Kazyna fund Akhmetzhan Yessimov, businessmen Kairat Boranbayev, Alexander Klebanov, former speaker of the lower house of the Kazakh Parliament Nurlan Nigmatulin, former deputy of Nur Otan (the political party of Nazarbayev) Bauyrzhan Baybek, adviser to the Prime Minister Marat Beketayev, the youngest daughter of the first President Aliya Nazarbayeva, and the nephews of Nursultan Nazarbayev – Kairat Satybaldy and Samat Abish. Almost all of the above have real estate or other assets in the UK.
“The imposition of sanctions on this corrupt elite will not in itself eradicate bad practices or lead to radical democratic transformation in Kazakhstan, but it will demonstrate that we are fulfilling our obligations to fight dirty money and corruption. The cost of inaction is high. The reputation of London and our financial services sector is already tarnished as the UK is seen as a jurisdiction for dirty money. With swift action, we can begin to rebuild the idea of a good global Britain and demonstrate to our allies that we will not harbor kleptocrats or oligarchs,” Mrs. Hodge urged MPs.
In response to Margaret Hodge’s speech, Junior Minister for the Middle East, North Africa and International Development James Cleverly noted that this year marks the 30th anniversary of the establishment of diplomatic relations between the UK and its largest partner in Central Asia – Kazakhstan. He also stated that the current President of Kazakhstan, Kassym-Jomart Tokayev, called the January events an “attempted coup d’état” and now the British authorities are waiting for Kazakhstan to prove this statement.
“We are well aware of reports of alleged asset acquisitions by wealthy members of Kazakh society’s elite, including significant holdings here in the UK. The UK, unfortunately, can be a destination for the proceeds of corruption, despite the findings of the Financial Action Task Force on Money Laundering, according to which the UK has one of the strongest anti-money laundering and terrorist financing systems in over 60 countries around the world, assessed to date,” Cleverly noted, boasting that the UK has allocated significant funds to fight corruption and economic crime. “Criminals, corrupt elites and individuals, who threaten our security, are not welcome in the UK.”
However, such a vague answer didn’t satisfy Deputy Hodge. And she asked a direct question, “Will sanctions be imposed on the 20 people whose names she listed in her speech?”
“We will take note of the information about the individuals you have listed. With regard to Kazakhstan, and indeed any other country, our law enforcement agencies continue to monitor and, if necessary, investigate particular cases when circumstances so require. We know that corruption and illicit finance can be devastating to states and citizens, undermining democracy, funding authoritarian programs, and facilitating serious and organized crime. The UK has shown on the world stage that it has both the means and the will to promote responsible financial behavior. We have shown that we are ready to act domestically and internationally when it’s necessary. Together we must show that there is no place for corruption in this country,” Cleverly replied.
On this, in fact, the debate on Kazakhstan was completed, since the parliamentary session came to an end.
