Kazakhstani banks can now set the validity period for bank cards issued to foreigners at their own discretion, Oninvest reported. Previously, such cards were subject to a 12-month limit. The changes took effect as part of amendments to the internal control rules aimed at preventing the legalization of criminal proceeds and the financing of terrorism.
In addition, foreigners without a residence permit or permanent residence permit will no longer be automatically classified as high-risk customers solely because of their non-resident status.
Kazakhstan’s Agency for Regulation and Development of the Financial Market (ARDFM) earlier told Kursiv.media that the change does not mean requirements for foreign customers have been eased. Banks must now assess each customer’s risk level individually.
«The changes adopted do not ease AML/CFT/FPWMD requirements for non-residents. The amendments are aimed at moving from formal criteria to a risk-based approach, under which control measures are determined based on the actual risk level of each individual customer,» the ARDFM said.
Along with removing the automatic high-risk classification, the new rules also dropped several other requirements. In particular, the rules abolished lengthy customer information forms and monthly biometric identification.
At the same time, a non-resident may still be classified as a high-risk customer if the bank finds sufficient grounds.
What banks will check
When assessing a foreign customer, banks will continue to consider information about the customer, the purpose and nature of the business relationship, the banking products and service channels they use, their activity profile, and the nature of their transactions.
Financial institutions will also consider other risk factors set out in the law and in their internal policies.
If a bank identifies signs of elevated risk, it must take appropriate control measures. Customers classified as high-risk will be subject to enhanced due diligence, and their transactions will be subject to additional monitoring.
Non-residents remain subject to monitoring
The ARDFM emphasized that the changes primarily concern how risk is determined rather than eliminating monitoring of non-residents.
Now, non-resident status alone is not sufficient to automatically classify a customer as high-risk. Instead, banks must assess each customer based on their profile and transactions.
