The Committee on Financial Monitoring of the Ministry of Finance of the Republic of Kazakhstan (hereinafter - the Committee) informs that in accordance with subparagraphs 13) -16) of paragraph 1 of Article 3 of the Law of the Republic of Kazakhstan «On combating the legalization (laundering) of proceeds from crime and financing of terrorism» (hereinafter AML/CFT Law), the following subjects are classified as financial monitoring entities :
individual entrepreneurs and legal entities that carry out leasing activities as a lessor without a license;
individual entrepreneurs and legal entities that carry out operations with precious metals and precious stones, jewelry from them;
individual entrepreneurs and legal entities providing intermediary services in in transactions of purchase and sale of real estate.
The AML/CFT Law provides for a number of procedures that are mandatory for financial monitoring entities.
In accordance with paragraph 3 of Article 3 of the AML/CFT Law, the above-mentioned entities of financial monitoring are obliged to send a notice of the start or termination of activities to the Committee in the manner prescribed by the Law of the Republic of Kazakhstan «On Permits and Notifications».
In turn, notification of the start or termination of activities of a subject which is entity of financial monitoring in accordance with Law on AML/CFT is automatized in the information system Government Database «E-Licensing» (www.elicense.kz) (Section «Finance» - «Notification procedure»).
For subjects who have notified the starting of activities on paper form, is not required to repeated notification through this system.
However, we wish to make the point that in accordance with paragraph 2 of Article 17 of the Law of the Republic of Kazakhstan «On Permits and Notifications», carrying out of activity or actions (operations) by individuals and legal entities, for which the permission or notification order is established, shall not be allowed without receipt of the relevant permission or without direction of the relevant notification.
At the same time, one of the obligations of financial monitoring entities on AML/CFT legislative execution is direction of data and information on transactions with money and (or) other property subject to financial monitoring as provided for in Article 4 of the AML/CFT Law.
In accordance with paragraph 2 of Article 10 of the AML/CFT Law, the above-mentioned subjects of financial monitoring provide data and information through dedicated communication channels.
In turn, in accordance with part 1 of paragraph 3 of the Rules for the submission by entities of financial monitoring of data and information on transactions subject to financial monitoring approved by Government Decree of the Government of the Republic of Kazakhstan dated November 23, 2012 No. 1484, information submitted by financial monitoring entities specified in subparagraphs 1 ) - 6), 8) - 17) of paragraph 1 of Article 3 of the Law shall be sent to the authorized body electronically no later than the business day following the day of the transaction, via telecom networks nication of the republican state enterprise on the right of economic management «Kazakhstan Interbank Settlement Center of the National Bank of the Republic of Kazakhstan» (AWP-FME) or the authorized agency web portal (Web-FME) in XML format.
At the same time, on the official Internet resource of the Committee (kfm.gov.kz), in the section «To help FME» - «CDFT» contains information on registration in the relevant systems.
We note that the subsystem Web-FME has a more simplified registration, and in its turn is intended for financial monitoring entities that have a small amount of transactions.
Thus, in order to prevent violations of Laws on AML/CFT and Permits and notifications, we strongly recommend to accept all the necessary measures provided for by the AML/CFT Law, send a notice of starting of activities and register with one of the above-mentioned subsystems.
Committee on Financial Monitoring
of the Ministry of Finance of
the Republic of Kazakhstan
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