Kazakhstan: officials to be checked for offshore accounts

By the end of this year, the authorities of Kazakhstan intend to check the citizens for the existence of offshore accounts. This was stated by Deputy Prime Minister Alikhan Smailov.

Recall that on September 1, the President of Kazakhstan, Kassym-Zhomart Tokayev, addressed a message, in which he announced a further reform of the public administration system, a new economic course for the country, and also stated the need to further improve national legislation to combat torture.

In addition, the head of state instructed to introduce new anti-corruption tools.

“From 2021, a new anti-corruption restriction should be introduced for civil servants, deputies, judges regarding their account ownership, storage of cash and valuables in foreign banks. If civil servants or heads of quasi-state organizations have dual citizenship, they are subject to dismissal from their posts. It is necessary to amend the Criminal Code in terms of toughening penalties for the corruption of law enforcement officials, judges, bribe givers, and intermediaries in bribery. Parole will not be applied to persons who committed corruption offenses. It is necessary to strictly adhere to the rule prohibiting persons convicted of corruption from working in the civil service or the quasi-public sector for life. We must form at the legislative level a system of protection of persons who reported acts of corruption, ”Tokayev said.

Following the instructions given by the President, Deputy Prime Minister Alikhan Smailov said on September 4, it is planned to carry out the first exchange of information on the financial accounts of individuals and legal entities between the tax authorities of the Organization for Economic Cooperation and Development (OECD) countries by the end of this year.

Meanwhile, as the Minister of Finance Yerulan Zhamaubayev said, to date, the country has launched a set of operational and preventive measures (OPM) Kazyna (aimed at identifying embezzlement of budget funds in the framework of state purchases and implementation of state programs) and STOP-OBNAL, aimed at countering fictitious invoice statements and tax evasion.

“It is planned to launch similar OPMs to counter the shadow circulation of oil and oil products, as well as the illegal withdrawal of capital abroad. It should be noted that we have already achieved positive results in the fight against the shadow economy. For the first time in the past five years, we observe a decrease in the level of cash-out by 40%, “Zhamaubayev noted.

He also said that the Ministry of Finance of Kazakhstan intends to implement the recommendations of the Financial Action Task Force on Money Laundering (FATF is an intergovernmental organization that develops world standards in the field of combating money laundering and financing of terrorism) in terms of introducing a ban on opening and maintaining foreign accounts for state officials and persons of the quasi-public sector, and members of their families, legislative consolidation of the right of tax authorities to receive information from business entities about the ultimate beneficiaries.

“The plan to counter the shadow economy will also be updated and the legislation regarding money transfers to offshore jurisdictions will be improved,” the minister added.

Recall, as ACCA has already reported, at the end of August in Kazakhstan, on the portal of open regulatory legal acts, a public discussion of the Concept of the draft law “On Amendments and Addit/wplative Acts of the Republic of Kazakhstan on Civil Service and Anti-Corruption Issues” was completed. One of the main points of this concept was “The introduction of anti-corruption restrictions on opening and owning accounts (deposits) in foreign banks”, according to which the country proposes to introduce restrictions for civil servants and other persons authorized to perform state functions, their spouses, minor children on opening and owning accounts (deposits) in foreign banks located outside the territory of the Republic of Kazakhstan, keeping cash and valuables in foreign banks located outside the territory of the Republic of Kazakhstan, owning and (or) using foreign financial tools “.