Kazakhstan's Financial Regulator Tightens Banking Regulations for Non-Residents

Kazakhstan's Agency for Regulation and Development of the Financial Market (ARFMR) has introduced stricter regulations for domestic second-tier banks and foreign banks operating there, Orda.kz reports.

Under the new regulations, payment cards issued to non-residents will now expire after 12 months.

However, this restriction won't affect three categories: business-related cards, diplomatic cards, and those issued to investors.

The regulations also reduce the number of cards non-residents can hold, reducing the previous ten-card allowance.

Banks must now implement automated systems to flag suspicious transactions that might indicate money laundering or terrorism financing.

The oversight has intensified for individuals with more than five bank cards, with enhanced transaction monitoring requirements.

This regulatory shift follows recent developments in the banking sector.

In mid-November, after the US imposed new sanctions, several countries, including Kazakhstan, halted services for UnionPay cards issued by Gazprombank.

By November 22, Gazprombank had removed the UnionPay card from its available registration options and advised clients to carry cash instead.

Original Author: Ruslan Loginov