Bank card disclosure for "obnal" activities now carries legal penalties
In response to the rising concerns of financial crimes and the need to protect personal data, the Republic of Kazakhstan has made significant updates to its criminal legislation.
The Ministry of Internal Affairs, in a recent report, emphasized the importance of these changes, particularly in the context of personal data protection. The updates aim to criminalize the unauthorized sharing and misuse of personal financial data, enhance financial transaction monitoring, tighten anti-money laundering laws, and implement severe sanctions for corruption and related financial crimes.
One of the key changes is the establishment of new administrative offenses under Article 640 of the Code of Administrative Offenses. This article penalizes the unauthorized use of another person’s electronic digital signature private key. Both the person sharing their signature and the user are held accountable, with the aim of protecting personal data more effectively amid rising data leak concerns.
The Ministry of Internal Affairs has also reported taking proactive measures against fraudulent financial activities. In a recent action, over 24,000 bank cards were blocked due to suspicious transactions, such as large cash withdrawals and frequent transfers without clear purposes, often linked to drug-related crimes.
The Agency for Regulation and Development of the Financial Market (ARDFM) has proposed new draft regulations focused on combating fraud, money laundering, and terrorism financing. These drafts signal ongoing legislative strengthening in the financial crime area.
The updated Criminal Code of Kazakhstan includes stricter liability for misuse of personal electronic data. Money laundering offenses (Article 218) have tiered penalties, including hefty fines, corrective labor, restriction of freedom, or imprisonment (up to 10 years in aggravated cases), alongside confiscation of property. Public officials face even stricter penalties, including lifelong prohibitions on holding positions.
Corruption-related offenses see similar stringent penalties, with fines multiple times the bribe amount, imprisonment, property confiscation, and lifelong bans on certain activities.
Legislative reforms are underway aimed at improving personal data protection laws, with draft amendments being considered by the Mazhilis (lower parliamentary chamber) to enhance information security, particularly in state-owned informatization facilities.
The new Article 232-1 of the Criminal Code of the RK criminalizes the transfer of one’s bank details to third parties. Participating in schemes that involve the transfer of a bank card or account may potentially make one an accomplice to illegal activities. The cardholders in these schemes may not realize they are becoming accomplices to such activities.
It is advised to avoid 'easy money' schemes involving the transfer of a bank card or account, and to not share bank details with third parties. Immediate reporting of any suspicions to your bank or law enforcement agencies is also advised.
These changes, reported by Vechernyaya Astana citing Polisia.kz, respond to the cybersecurity challenges and increased financial crime risks reported by national authorities. The updates in Kazakhstan's legislation underscore the nation's commitment to combating financial crimes and protecting its citizens' personal data.
The updates in Kazakhstan's criminal legislation aim to tighten anti-money laundering laws and implement severe sanctions for corruption, specifically addressing the unauthorized use of electronic digital signatures (Article 640 of the Code of Administrative Offenses). Furthermore, the new Article 232-1 of the Criminal Code of the RK criminalizes the transfer of one's bank details to third parties, suggesting the importance of avoiding 'easy money' schemes and immediate reporting of any suspicions to banks or law enforcement agencies.
