Astana, 21 September 2023 (TDI): The new law on the return of illegally withdrawn assets will not impact conscientious investors, as stated on the Kazakh Prime Minister’s website on Thursday.
President Kassym-Jomart Tokayev signed the law on the return of illegally acquired assets to the state in July. This law establishes a framework for the government to identify and repatriate assets that have been unlawfully acquired and taken out of the country.
The statement affirms, “The law is not aimed at responsible investors, including foreign ones. Unless other conditions are met, possessing assets valued at over 13 million monthly calculation index (MCI) or 44.8 billion tenge (US$93.9 million) will not independently trigger the application of this law to bona fide investors.”
The law sets clear limits on expanding the list of individuals or organizations subject to its provisions.
Only those entities and affiliated entities that meet specific criteria, including significant asset holdings, can be included in the register for verifying the legality of asset sources and potentially filing a claim for their return.
Article 2 of the law mandates entities and their affiliated individuals to demonstrate the legal sources of their asset origins in court, based on the criteria outlined in this law.
Illegally acquired assets are those subject to return to the state when a court deems them to have an unexplained origin, indicating that there is insufficient evidence to establish their legality according to the criteria specified in the law.
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In line with international standards in asset recovery, the law provides sufficient safeguards for the rights of bona fide asset purchasers and creditors.
It also includes provisions to protect individuals who report cases of illegal asset acquisition and withdrawal or contribute to the asset recovery process.
This law adheres to international standards and draws from the experience of developed Western nations.
Emphasizing the rule of law, its aim is to promote social equity and sustainable growth in Kazakhstan.
It lays the foundation for addressing factors that encourage the outflow of assets from the country while upholding the rights guaranteed by Kazakhstan’s Constitution, international commitments, and laws governing national and foreign investors, businesses, and individuals.