Kazakhstan Proposes Stricter Monitoring of Financial Transactions Under New Banking Rules

The Agency for Regulation and Development of the Financial Market (ARDFM) has released a draft resolution outlining enhanced oversight measures in the banking sector, mainly targeting specific types of individual financial activity, Orda.kz reports.

According to the agency, the initiative aims to reduce financial crime risks and combat illegal activity such as drug trafficking, online gambling, pyramid schemes, and the use of "droppers" — individuals who allow their bank accounts to be used for illicit transactions.

Who Will Be Monitored More Closely?

The draft resolution identifies several high-risk categories:

• Individuals with five or more payment cards at a single bank (excluding cards for children or loan repayment purposes)
• Non-residents without temporary or permanent residence permits and who do not live in the country
  
• Kazakhstanis aged 14–25 without official income who regularly receive large transfers from non-relatives, send frequent payments (especially abroad), or don’t use their accounts to pay bills or taxes
  
• Holders of cards issued in the border regions of Kazakhstan 

These groups will be classified as high-risk for money laundering and terrorist financing. Banks will be required to verify the origin of their funds more thoroughly, monitor transactions, and, in the case of foreigners, require documents proving the legality of their stay in the country.

More Details

Transfers made by Kazakhstanis exceeding 500,000 tenge sent or received abroad will now draw special attention. The list of countries considered high-risk for money laundering and terrorism financing will also be expanded — removing previous exceptions for Eurasian Economic Union (EAEU) states.

Banks must factor international sanctions into their risk assessments and monitor non-residents’ transactions for three months after issuing them a new payment card.

When issuing new cards, banks must report clients’ personal information, IP addresses, mobile data, transaction details, and risk ratings to the National Bank’s anti-fraud center.

A separate category covers suspected “droppers.” These are individuals whose accounts may be used by others for unlawful activity.

Red flags include:

• Past transactions with individuals on fraud or bank blacklists
  
• Use of the same mobile number, device, or IP address as other clients
  
• Transactions that deviate from the client's typical behavior (in terms of location, purpose, volume, or recipient)

If a dropper is identified, the bank immediately suspends electronic banking services to the client and informs the National Bank’s anti-fraud center and the financial monitoring authority,
the draft states. 

Services may resume if suspicions are cleared.

Remote use of banking services via a mobile application will now officially be possible only through one device and one number.

Remote account opening will no longer be allowed for:

• Kazakhstanis aged 18 to 21 - they must now visit a branch in person to get or renew a bank card
  
• Non-residents suspected of terrorism financing or laundering criminal proceeds

AI to Track Suspicious Transactions

The draft also introduces artificial intelligence (AI) to detect suspicious behavior through “client behavioral analysis based on big data analytics.” AI will review transactions, public data, social media, internal reports, and open-source research to flag unlawful financial activity.

Clients whose accounts show no signs of domestic economic activity, such as paying taxes or bills, will be asked to submit clarifications via special questionnaires.

Banks will also be required to retain biometric identification records, e.g., Face ID scans or video conference footage, for five years even after the end of a client relationship.

Original Author: Nikita Drobny