Kazakhstan's Majilis Approves Amendments To Banking Law

(MENAFN- Trend News Agency) ** ASTANA, Kazakhstan, December 29.** Kazakhstan’s Majilis, the lower house of Parliament, has given the green light to the amendments put forth by the Senate (the upper house) regarding the draft law on banks and banking activity, Trend reports, citing the Majilis.

At a meeting held on December 25, senators conceptually supported the law“On Banks and Banking Activity,” as well as the accompanying draft law on regulation and development of the financial market, communications, and bankruptcy. During the review, a number of new revisions to individual articles were proposed.

The amendments delineate foundational and comprehensive banking license frameworks designed to foster a more resilient and competitive financial ecosystem. Should a financial institution surpass the designated asset threshold, it must either reconfigure its foundational license to a universal classification while adhering to prudential regulations or undertake measures to decrease its asset portfolio.

The statute elucidates stipulations regarding remuneration structures for financial institution lending operations. Financial institutions will be permitted to levy commissions strictly within the parameters explicitly delineated by statutory provisions, eschewing any broad or expansive interpretative frameworks.

Moreover, a prohibition has been instituted regarding the unilateral modification of fixed interest rates pertaining to consumer banking loans.

A centralized office for a singular financial ombudsman will be established to facilitate pre-litigation dispute resolution across banking, insurance, and microfinance sectors, with a specific focus on issues pertaining to problematic debt scenarios.

In accordance with the newly instituted regulatory framework, financial institutions will be mandated to uphold fiduciary duties to their clientele, necessitating the restitution of funds in instances where a transaction is executed to a recipient identified within the anti-fraud intelligence repository as exhibiting indicators of fraudulent activity.

The remote execution of banking loan contracts with individuals, absent biometric verification protocols, has been deemed impermissible.

Specifications have been established for the creation and upkeep of a“data showcase” to facilitate oversight, proactive risk identification, and secure data interchange.

The legislative modifications delineate a prohibition on the appropriation of capital earmarked for disbursements to beneficiaries of exigencies, in addition to resources allocated for facilitating interbank settlements and card transaction processes.

Enhanced surveillance mechanisms for currency transactions have been implemented to mitigate illicit capital flight. The modifications elucidate the jurisdictional authority of sanctioned entities and delineate the protocols for data interchange among financial institutions.

Furthermore, the stipulations regarding self-regulatory frameworks within the microfinance and debt recovery domains have been meticulously enhanced, encompassing protocols that delineate the temporal parameters and methodologies for the assessment of consumer grievances, while duly considering the jurisdictional expertise of the financial ombudsman.

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