Kazakh government approves draft law on foreign currency transactions control

ASTANA – The Kazakh government approved Dec. 26 the nation’s draft law on foreign currency transactions control during its weekly meeting.

Снимок экрана 2017-12-27 в 16.02.29

National Bank Chair Daniyar Akishev noted changes in foreign currency legislation were planned in line with the requirements entailed by Kazakhstan’s membership in the World Trade Organisation (WTO), establishment of the Khorgos international border cooperation centre and Astana International Financial Centre.

“The key goal of the draft law is expanding the scope of statistical monitoring of foreign currency transactions and reducing the domestic use of foreign currency. The implementation of these norms will enrich the data about foreign currency operations, improve the efficiency of currency control, including the efforts to prevent flow of money out of the country,” said Akishev.

The changes include recognising offices of international organisations as residents, expanding the scope of cross border foreign currency transactions, tightening control in foreign currency operations involving capital outflow, clarifying the circulation of currency values in Kazakhstan and the list of transactions allowed between residents.

Akishev said the draft maintains commitment to the principles of liberal foreign currency regime.

The increase in the amount of the data submitted to the nation’s financial regulator is accompanied by decreasing amount of administrative reporting and subsequently the resources allotted to that.

“There is no tightening of control. It was planned and it has nothing to do with the tightening of conditions,” he added.

With Kazakhstan’s accession to the WTO, more branches and representative offices are expected to come to Kazakhstan, and according to Akishev, this could entail the increase in foreign currency transactions, which goes opposite to the national interests.

The draft law, therefore, envisions obliging branches of international organisations to conduct transactions with local contractors in tenge.

“The draft law will come into a full effect July 1, 2019,” said Akishev.