Lawyers assessed the strictness of the new rules for opening cards in banks in Kazakhstan

Kazakhstan banks will not be able to open cards for non-residents of the country for a period longer than 12 months — such requirements have been established by the Kazakhstan Agency for Regulation and Development of the Financial Market. The new restrictions have been adopted to minimize the risks of using banking services in the field of illegal drug trafficking and digital assets. The requirements apply to the issuance of new cards and do not affect existing ones, RBK was told by the support service of one of the Kazakhstan banks. In practice, this means that even having an employment contract or a training contract will not help to open a card for a longer period, but for citizens of the EAEU countries , including RUSSIA, the checks will not be the strictest, say lawyers interviewed by RBK.

• "The validity period of payment cards issued to clients who are non-residents of the Republic of Kazakhstan does not exceed 12 (twelve) calendar months," the agency's resolution states. it specifies that the exception is cards issued to entrepreneurs, diplomatic workers and investors.
• The agency has reduced the number of cards permitted for issuance by one client. The resolution states that banks will have to assess the risk of money laundering and terrorist financing (ML/FT) of holders of more than five cards in one bank, as well as holders of cards issued by three banks, provided that more than three cards are issued in each bank. The exceptions are cards issued in the name of children, as well as cards that are used exclusively for issuing and repaying bank loans.
• At the same time, banks will have to check the documents of non-residents, including if they are residents of countries with a high risk of ML/FT "based on the factor of illegal production, trafficking and (or) transit of drugs." An exception is also being introduced for this requirement - these are residents of the countries of the Eurasian Economic Union (EAEU) who have confirmed the validity of their presence in Kazakhstan by providing an employment contract, training contract, residence permit and other documents.

Over the past year, many citizens have been unknowingly involved in criminal schemes and money laundering, with bank cards being used to transfer funds obtained through cybercrime or drug trafficking, explains the logic behind the tightening, leading lawyer at Revera Kazakhstan Alibek Slan.

“In this regard, measures to combat illegal activity are not limited to reducing the validity periods of cards, but also include the introduction of enhanced verification of banking transactions, which will be carried out using automated information systems and procedures of banks,” he says.

After the start of the military operation in Ukraine and the departure of the Visa and Mastercard payment systems from Russia, Kazakhstan has become one of the main destinations for the relocation of Russians and card tourism. From 2022 to 2024 , almost 695 thousand Russians have obtained an individual identification number (IIN) of Kazakhstan (analogous to the Russian INN), such data was provided by the Committee of the Migration Service of the Ministry of Internal Affairs in response to a request from the Kazakh democratic party Ak Zhol. Registration of an IIN is required to open cards in local banks.

In 2023, the NATIONAL BANK of Kazakhstan identified about 1,500 bank cards with a turnover of several billion tenge (1 ruble is worth about 5 tenge), which were opened by foreigners and used for the illegal sale of drugs.

With the introduction of new requirements, the process of opening payment cards for non-residents in Kazakhstan will become more complicated, as banks are required to shorten the validity period of such cards and strengthen the verification of documents confirming the validity of the client's stay in the country, such as an employment contract, a training contract or a residence permit, says Yuri Brisov, partner at Digital & Analogue Partners: "Strengthening checks and reducing the validity period of cards may increase the operating costs of banks, which potentially reduces their interest in servicing non-residents. However, the final decision will depend on the internal policy of each bank and their assessment of the risks and benefits associated with servicing non-residents." He suggested that due to a significant increase in prices, the service will become available to only a few.

Banks' interest in non-residents will not disappear completely, especially when it comes to clients with transparent goals, such as work, study or business in Kazakhstan, adds Andrey Gusev, Managing Partner of Nordic Star Law Firm. "These categories of clients are most often considered by banks as the most reliable and promising in terms of long-term cooperation. Such clients pose fewer risks and provide stable income for banks. Banks will probably focus on providing services to this category of non-residents," the lawyer believes.

At the same time, the presence of an employment contract, training contract or other documents confirming a long stay in Kazakhstan does not provide grounds for issuing a card for a period of more than 12 months, lawyers agree. According to Gusev, upon provision of updated documents confirming the extension of the grounds for stay in Kazakhstan, the bank can reissue the card for a new 12-month period.

According to the resolution, banks will be able to issue cards for a period exceeding 12 months only to entrepreneurs, diplomats and investors. The resolution does not specify specific criteria for investors falling under the exception, but given the practice of financial institutions, investors may be understood as persons making significant capital investments in the economy of Kazakhstan, Brisov reasons. “These are probably large or qualified investors making significant investments in the country. Ordinary retail investors most likely do not fall under this definition if they do not have the appropriate status or do not meet the conditions established for recognizing them as investors,” agrees Gusev.

Citizens of the EAEU countries, which include Russia , will not be subject to the enhanced checks provided for by the new rules for residents of high-risk countries, Brisov notes. However, the lawyer emphasizes that this does not exempt them from the need to provide documents confirming the validity of their stay in Kazakhstan. According to Gusev, most often, citizens of the EAEU are asked for an employment contract, a training contract, and temporary registration at the place of residence.

Russians who are not on the sanctions lists and do not engage in activities restricted by EU sanctions open accounts in most "offshore banks", as well as in banks in the EAEU countries, CHINA, South Africa and others, but everywhere the requirements for the legality of the grounds for opening an account are being tightened due to the risk of secondary US sanctions , says Brisov: "Russians who do not have enough services from Russian banks should take care of a legal basis for being in the country where they plan to open an account. This could be, for example, starting their own business or obtaining a residence permit."

While in Kazakhstan, Russians can either obtain a residence permit or regularly renew their cards, advises Gusev. Money transfer services for transactions from Russia to Kazakhstan, cards from other EAEU countries, where conditions for non-residents may be less strict, or cryptocurrencies can also be an alternative to cards from Kazakhstan banks, adds Gusev.