On 29-30 May, 2024, the OSCE Programme Office in Astana, in collaboration with the Agency for Regulation and Development of the Financial Market (ARDFM), conducted a training seminar in Almaty. The seminar focused on combating money laundering arising from tax crimes, entrepreneurial activities, and public procurement offenses. This initiative is part of a broader, multi-year co-operation aimed at strengthening Kazakhstan's capacity to counter money laundering and terrorist financing.
The host country has made significant progress in enhancing its anti-money laundering measures, improving by 16 points in the Basel AML Index score from 2021 to 2023. Despite these advancements, challenges remain. In 2023, Kazakhstan reported significant financial losses due to tax evasion and related crimes. The World Bank has estimated that the country loses approximately USD 1 billion annually due to tax violations. Additionally, fraud and corruption in public procurement processes have resulted in annual losses of about USD 300 million, according to the National Bank of Kazakhstan. These issues compromise the efficiency and transparency of public spending, highlighting the need for stringent measures to address these problems.
In regard to this, the Office organized a seminar for 20 participants, including 17 women and three men, comprising ARDFM officers and representatives from commercial banks, to enhance their skills in detecting and preventing money laundering. The expert-led sessions covered such topics as identifying suspicious activities related to tax crimes, tools for detecting and reporting potential laundering, and a comprehensive review of both international and national laws against money laundering from tax crimes. Specific tools discussed included Thomson Reuters World-Check and Fiserv AML Risk Manager, which are part of the Know Your Customer (KYC) tools category. The seminar also explored compliance requirements for financial institutions, vulnerabilities in small and medium enterprises, and the potential for abuse in public procurement processes.
Participants were provided with case studies on procurement fraud and laundering channels, equipping them with practical knowledge and tools necessary for effectively addressing financial crimes. This seminar has strengthened the capacity of the Agency representatives and bankers, thereby safeguarding the integrity of Kazakhstan's financial system.
Reflecting on the seminar's success, Almas Kalaubay, a senior officer from ARDFM, stated, "The seminar was a success, providing our staff with knowledge and practical tools to tackle money laundering more effectively. The insights gained will enhance our regulatory and investigative capabilities".
Assem Kalmagambetova from the Association of Financiers of Kazakhstan added, "The applicability of the knowledge gained during this seminar cannot be overstated. Our participants are now better equipped to implement these practices in their day-to-day operations, significantly strengthening our fight against financial crimes".
This seminar marks an important step in addressing financial crime issues and demonstrates the commitment of the Office and its partners to fostering a robust financial regulatory environment in the host country. By continuing to build on such initiatives, Kazakhstan is poised to make significant strides in combating money laundering and securing its financial systems against illicit activities. The OSCE Programme Office in Astana remains dedicated to supporting these efforts through ongoing collaboration and knowledge-sharing.
