Kazakhstan’s government regains control over Jusan Bank

Kazakhstani authorities have regained control over Jusan Group, according to the country’s Ministry of Justice.

«As a result of the measures taken by the Ministry of Justice of the Republic of Kazakhstan in conjunction with other state agencies the Jusan Group is now under Kazakhstani jurisdiction once again. All necessary documents have been signed,» the ministry said in an official statement.

The group is now going to work following Kazakhstani legislation, the agency noted. In turn, the group confirmed that it will continue financing educational organizations such as Nazarbayev University and Nazarbayev Intellectual Schools. As the press service of Jusan Bank reported, this point was part of the deal with the government.

Jusan Bank also said that it wants to return the public funds it received as support from the government ahead of schedule. Thanks to the good results the bank achieved last year and its current stable condition it can meet its obligation and return at least part of the public money it received in previous years.

According to the Ministry of Justice, it is going to continue to implement instructions by the country’s president who wants all assets illegally withdrawn from Kazakhstan to be returned.

Jusan Bank found itself amid a scandal after the Prosecutor General’s Office filed a lawsuit against the organization. The agency demanded the financial institution recognize that the transfer of assets from First Heartland Securities – Pioneer Capital Invest (registered in Kazakhstan) to  Jusan Technologies (registered in the U.K.) was invalid. The Jusan Technologies group is owned by Jusan Holdings registered in the U.S. In turn, its ultimate beneficiary is New Generation Foundation, an endowment fund also registered in the U.S.

As the Prosecutor General’s Office reported, the main purpose of the group was to finance Nazarbayev University and Nazarbayev Intellectual Schools. The law enforcement agency insisted that the company failed to meet its obligations, and this is why it should bring back all assets it withdrew from the country in 2020. In order to guarantee that the bank would take this message seriously, the authorities temporarily seized shares of Jusan. At the time, the bank said that the lawsuit only affects foreign shareholders and doesn’t affect the bank itself.

In turn, Jusan Holdings, the key foreign shareholder of the bank, filed a response lawsuit against the government of Kazakhstan in the court of the state of Nevada.

As of April 1, 2023, among the main shareholders of the bank are First Heartland Securities (78.73%) and Galimzhan Yessenov (20.11%).