National Bank to Report Large Foreign Currency Transactions to Tax Authorities

Kazakhstan plans to begin monitoring foreign currency transactions of $50,000 or more, according to a draft order published by the Ministry of Finance, Orda.kz reports.

Information about the draft was posted on the Open Legal Acts portal, where it will remain open for public discussion until October 28. The proposed order sets out the procedures for cooperation between the National Bank and the State Revenue Committee (SRC) in tracking major foreign currency transactions.

In a brief explanatory note, the Ministry stated that the draft order is linked to the new Tax Code, specifically Paragraph 4 of Article 53. Under the proposal, the National Bank will be required to transmit data to the SRC on all large foreign currency operations — those exceeding $50,000.

The new regulation is expected to apply, among other things, to non-commodity transactions, non-resident income, and transactions involving AIFC participants. However, the level of detail in the information to be provided to the SRC has not yet been specified.

According to the Ministry, the measure is aimed at combating the illegal outflow of assets from Kazakhstan.

The expected outcome is the detection of illegal capital withdrawals and a reduction in the risk of fictitious transactions, the Ministry of Finance said in its explanation.

Original Author: Nikita Drobny