Law enforcement will demand mobile operators to disclose user data.
Top-Up Accounts Subject to Financial Monitoring in Kazakhstan
Effective financial monitoring is set to expand in Kazakhstan with mobile network operators, state corporations, banks, and other financial organizations becoming potential subjects of surveillance. According to a bill currently under consideration by the Mazhilis, these entities will be obligated to transmit relevant information to law enforcement agencies.
A key aspect of this legislation is the requirement for mobile network operators to provide data about mobile balance top-ups to the Financial Monitoring Agency (FMA). According to Jenis Elemesov, deputy head of the FMA, similar reporting obligations will apply to "Government for Citizens" for real estate transactions exceeding KZT 50 million, as is the case with notaries.
Elemesov said these measures would contribute to more effective detection and prevention of suspicious operations. However, he did not specify minimum balance amounts that might attract law enforcement attention.
In addition, banks and financial organizations will be obligated to report to the FMA about any client operations that might be deemed suspicious, such as money transfers between accounts.
While the specifics of the data to be shared by mobile network operators remain undefined, legislation has previously required the sharing of user identity data, transaction records, and call metadata in similar contexts. This newest legislation in Kazakhstan may follow a similar pattern.
Aside from these digital and financial regulatory changes, there is ongoing discussion about AI legislation and imminent 3G network shutdowns in Kazakhstan, but these matters are not directly related to the data transmission requirements for mobile network operators under the financial monitoring legislation.
Notably, recent cryptocurrency regulatory developments suggest the National Bank will oversee digital asset transactions on licensed platforms[4][5], although this does not necessarily impact the matter at hand.
For the convenience of our readers, we have included geolocation information for comment authors in our online discussions about this regulatory development.
[1] https://tengrinews.kz/business/news_2078686.html[2] https://qazet.kz/ru/news/shodzhet-mobilnyy-operator-iz-rostov-na-donu-skonchat-rabotat-v-kazakstane[3] https://24.kz/rus/news/finmontirovanie-po-cof-2449608[4] https://regulation.kz/content/2021-07-23-national-bank-rossii-obnumova-obnovlenie-reguliruemyh-operatsiy-s-digitalnymi[5] https://blockchain.kz/ru/lubicnost-vyplachanii-po-digitalnyim-denegam-budet-faktorno-novyy-shag-v-razvitiy-sistemy-torgovli/
- The financial monitoring expansion in Kazakhstan extends to mobile network operators, who are now required to transmit data about mobile balance top-ups to the Financial Monitoring Agency (FMA), similar to the reporting obligations for "Government for Citizens" in real estate transactions exceeding KZT 50 million.
- As part of the financial monitoring legislation, banks and financial organizations in Kazakhstan will be obligated to report to the FMA about any client operations that might be deemed suspicious, like money transfers between accounts, with the aim of preventing and detecting suspicious operations more effectively.
