Annual Report on Exchange Arrangements and Exchange Restrictions 2005
Chapter

KAZAKHSTAN

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2005
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(Position as of January 31, 2005)

Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: July 16, 1996.
Exchange Arrangement
CurrencyThe currency of Kazakhstan is the Kazakhstani tenge.
Exchange rate structureUnitary.
Classification
Managed floating with no predetermined path for the exchange rateThe exchange rate of the tenge is determined on the basis of supply and demand in the foreign exchange market. The foreign exchange market includes the Kazakhstan Stock Exchange (KASE), which conducts daily trading online using an electronic trading system, an over-the-counter interbank market, and a network of about 2,600 exchange bureaus handling foreign exchange cash transactions. Banks may participate in trading sessions on their own account or on behalf of their clients. Banks may also trade in an over-the-counter interbank market at freely negotiated rates.
The official exchange rate of the tenge against the dollar is determined daily on the basis of the weighted average rate at 11:00 a.m. the previous day on the KASE. The rates for other currencies are calculated on the basis of their cross rates against the dollar. The National Bank of Kazakhstan (NBK) publishes daily exchange rates of certain currencies against the tenge for accounting and customs payments computation purposes. Commercial banks set their own exchange rates without restrictions.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketForeign exchange futures are quoted on the KASE. Forward exchange operations are also conducted in the interbank market.
Arrangements for Payments and Receipts
Prescription of currency requirementsPayments and transfers in transactions between residents must be effected only in tenge unless provided otherwise by the NBK’s regulations and tax and customs laws.
Payments and transfers between residents and nonresidents may be conducted in any currency as long as they comply with the requirements of foreign exchange laws.
Resident and nonresident natural persons may use foreign cash in Kazakhstan to conduct transactions through authorized banks, credit their own foreign exchange accounts, make transfers through authorized banks (including transfers not associated with accounts) in cases specified by legislation, and effect settlements of goods and services sold by residents possessing the appropriate NBK license.
Controls on the use of domestic currency
For capital transactionsWhen used in transactions between residents and nonresidents, domestic currency is considered a foreign exchange asset. Therefore, such transactions are subject to all provisions of foreign exchange laws in respect of capital transactions.
Transactions in capital and money market instrumentsYes.
Transactions in derivatives and other instrumentsYes.
Credit operationsThe use of foreign currency to repay credits received in domestic currency, and to make interest payments and payments associated with such credits, is prohibited except for settlements between residents and nonresidents.
Nonresident juridical persons are prohibited from using credits received in domestic currency to purchase foreign exchange in the domestic foreign exchange market.
Use of foreign exchange among residentsPayments or transfers between residents must be effected in tenge unless provided otherwise by the NBK regulations or tax and customs laws.
Payments arrangementsNo.
Administration of controlThe NBK is the principal agency for foreign exchange regulation and control.
The NBK (1) establishes procedures for foreign exchange transactions and monitors compliance therewith; (2) issues licenses for conducting transactions involving the use of foreign exchange assets; (3) issues licenses for conducting foreign exchange transactions with institutions that are engaged in certain types of banking operations; and (4) establishes procedures, forms, and deadlines for submitting reports pertaining to foreign exchange control and regulation.
For the purpose of national economic security, the NBK has the right to impose restrictions on the form of settlement for certain export-and-import transactions and on the currency of payment in residents’ export transactions, and to introduce export proceeds surrender regime.
For the purpose of fulfilling international obligations and in the event of emergencies, the president of Kazakhstan is empowered to restrict or suspend foreign exchange transactions.
The MOF ensures monitoring and control over the government’s borrowing, control over the earmarked and efficient use of government-guaranteed borrowing, and monitoring of government and government-guaranteed debt.
The Ministry of Industry and Trade issues licenses to import and export goods and services and to perform other activities within the scope of its authority, and it also monitors licensees’ compliance with qualification requirements and licensing regulations.
The Customs Control Committee of the MOF performs customs control and, within the scope of its authority, foreign exchange control. Authorized banks and authorized institutions engaged in certain types of banking operations, and other institutions with a responsibility under their license to monitor compliance with foreign exchange legislation in the course of their transactions, are foreign exchange control agents.
On January 1, 2004, the NBK’s functions pertaining to regulation, licensing, and control and supervision of banks and other financial institutions were transferred to the newly created Financial Supervision Agency.
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)Yes.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)Refined gold bullion is classified as a foreign exchange asset. Effective August 12, 2004, the licensing of bank transactions involving refined metals no longer applies.
Controls on external tradeThere are no restrictions on the export of refined precious metals. Control over the foreign trade of refined precious metals, however, is maintained in the same manner as that applied to other goods.
Controls on exports and imports of banknotes
On exports
Foreign currencyIndividuals may export foreign currency cash up to the equivalent of $10,000 in the case of residents and up to $3,000 in the case of nonresidents, without documentary evidence of legal origin. Exports of amounts in excess of these limits are prohibited unless documentary evidence indicates that they were previously imported and declared to customs.
No restrictions apply on cross-border transfers of foreign currency cash by the NBK and banks. Similarly, no restrictions apply on exports of precious metals by the NBK and banks for deposit in precious metals accounts abroad.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyYes.
Approval requiredPublic institutions financed by republican and local budgets require permission to open foreign exchange accounts. Other residents may open foreign currency accounts in authorized banks without restrictions.
Held abroadYes.
Approval requiredAn NBK license is required to open these accounts except in cases where the account holders are (1) banks; (2) resident natural persons residing abroad temporarily for purposes of medical treatment, study, vacation, or work; and (3) resident natural persons that open accounts with banks in OECD-member countries that satisfy minimum rating requirements.
Accounts in domestic currency held abroadYes.
Accounts in domestic currency convertible into foreign currencyAll domestic currency accounts are convertible.
Nonresident Accounts
Foreign exchange accounts permittedNo.
Domestic currency accountsNo.
Convertible into foreign currencyNo.
Blocked accountsNo.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for importsA transaction passport must be completed for each import transaction valued in excess of the equivalent of $10,000 for the customs authorities and the serving bank. The transaction passport is checked to verify compliance with the terms of the import contract and is monitored by the customs office and the bank involved until the completion of the transaction.
Domiciliation requirementsResident juridical persons are required to submit relevant import contracts to a bank when purchasing foreign exchange for import payments.
Import licenses and other nontariff measuresImport licenses are required for 12 categories of goods.
Negative listOn the basis of the Lists of the 1961 Single Convention on Narcotic Drugs, the 1971 Convention on Psychotropic Substances, and the 1988 Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, which Kazakhstan signed in 1997, narcotic drugs, psychotropic substances and their precursors, and poisonous substances are subject to controls. However, certain multi component medicines containing small quantities of narcotic drugs, psychotropic substances, and their precursors are not subject to controls. Imports of hazardous industrial waste are prohibited.
Import taxes and/or tariffsImports are subject to (1) VAT and customs duties (certain goods are exempted); (2) excise taxes, where applicable; and (3) antidumping, protection, and compensation duties (when such duties exist). Effective January 1, 2004, the VAT rate is reduced to 15% from 16%.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsExporters are required to credit export proceeds in foreign exchange to a bank account at an authorized bank in Kazakhstan within 180 days of the shipment date, unless stipulated differently in the NBK license. In case the repatriation period exceeds 180 days and the amount of export proceeds exceeds the equivalent of $10,000, the exporter must take steps to obtain an NBK license. An NBK license is required to credit export proceeds to accounts in foreign banks.
Advance payments for exports exceeding 180 days and valued at more than the equivalent of $100,000 require NBK registration.
Financing requirementsNo.
Documentation requirementsSupporting documents must be presented.
Export licensesExport licenses are required for 21 categories of goods.
Without quotasCertain listed exports require licenses or special licenses that are issued with governmental approval.
With quotasCertain listed exports require licenses in accordance with the international obligations of Kazakhstan.
Export taxes
Other export taxesEffective January 1, 2005, the rental tax of 33% on crude oil imports is replaced by a tax on excess profits of up to 60%, which does not apply to developers who signed product sharing contracts.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersTo make payments and transfers, supporting documents indicating the validity of payments (e.g., contract, agreement, or accord) must be submitted to an authorized bank. Resident and nonresident natural persons may make payments and transfers exceeding the equivalent of $10,000 provided that there is evidence that such payment or transfer is not related to entrepreneurial activity, investments, or acquisition of real estate.
Trade-related paymentsDeferral of payment for services rendered or of delivery of services after receipt of payment by more than 180 days is considered a capital transaction.
Quantitative limitsThe total amount of insurance premiums paid by the assignor to nonresident reinsurance organizations, less commissions received from them by the assignor, must not exceed 85% of the total amount of insurance premiums received under insurance agreements (with consideration for those paid by reinsurance organizations) at the completion of a full fiscal year.
Indicative limits/bona fide testSupporting documents must be presented.
Investment-related paymentsCurrent payments related to investments are not restricted. Leasing real estate, as a transfer of rights, is treated as a capital transaction.
Indicative limits/bona fide testDocumentary evidence of the validity of payments must be presented.
Payments for travel
Indicative limits/bona fide testTo withdraw funds from foreign currency accounts in authorized banks, juridical persons must provide supporting documents.
Personal payments
Indicative limits/bona fide testThe presentation of supporting documents is required, except in cases where natural persons transfer funds up to the equivalent of $10,000 and, when making the transfer, such persons either provide information on the nature of the transaction or authorize a bank to submit information to the NBK regarding the payment.
Foreign workers’ wages
Indicative limits/bona fide testSupporting documents must be presented.
Credit card use abroadThe use of credit cards by resident juridical persons is permitted only for business travel and foreign representation expenses. No restrictions apply for natural persons.
Indicative limits/bona fide testSupporting documents must be presented by juridical persons.
Other paymentsDeferral of payment for services rendered or of delivery of services after receipt of payment by more than 180 days is considered a capital transaction.
Prior approvalAn NBK license is required for advance payments in an amount exceeding the equivalent of $10,000 for services provided by nonresidents if the delivery of such service is deferred more than 180 days.
Indicative limits/bona fide testSupporting documents must be presented.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsYes.
Restrictions on use of fundsDeferral of payments for the services provided for a period exceeding 180 days is treated as a capital transaction.
When a transaction is treated as a capital transaction, a license and/or registration certificate is required for the exporter to be able to credit foreign exchange proceeds from exported services to an account.
Capital Transactions
Controls on capital transactionsEffective January 1, 2004, the FSA exercises the functions of regulating, licensing, controlling, and supervising banks and other financial institutions, functions previously exercised by the NBK.
Controls on capital and money market instruments
On capital market securities
Shares or other securities of a participating nature
Purchase locally by nonresidentsPurchases in excess of the equivalent of $100,000 must be registered with the NBK, except for those effected through resident broker companies.
Sale or issue locally by nonresidentsShares of foreign issues with a rating no lower than A (based on the classification of the Standard & Poor’s and Fitch rating agencies) or A2 (Moody’s Investors Service) may be traded in Kazakhstan without authorization. Transactions in domestic markets involving other categories of shares and other equity securities require authorization for trading in the organized securities market.
Purchases of foreign shares from nonresidents by residents are subject to prior NBK licensing, with the exception of (1) purchases of foreign shares made by banks in the context of dealer activity; and (2) purchases of foreign shares that meet requirements established in foreign exchange and banking laws of Kazakhstan.
Purchase abroad by residentsPurchases of foreign shares by residents are subject to NBK licensing, with the exception of (1) purchases of foreign shares made by banks in the context of dealer activity; and (2) purchases of foreign shares which meet requirements established in foreign exchange and banking laws of Kazakhstan.
Sale or issue abroad by residentsNBK registration is required when the value of sales or stock issue exceeds the equivalent of $100,000. The issuer is required to notify the NBK in advance about the forthcoming issue and to submit offering statements and reports about the results of the issue. An NBK license or registration certificate is required to make investments in special purpose entities abroad through which a bond issue is undertaken. An issue of depositary receipts for domestic securities exceeding the equivalent of $100,000 requires registration.
Bonds or other debt securities
Purchase locally by nonresidentsPurchases in excess of the equivalent of $100,000 must be registered with the NBK. This requirement does not apply in cases when purchases of government securities, depository certificates, or domestic securities are made through resident brokers.
Sale or issue locally by nonresidentsSecurities of international financial institutions and debt securities issued abroad with a rating no lower than A (based on the classification of the Standard & Poor’s and Fitch rating agencies) or A2 (Moody’s Investors Service) may be traded in Kazakhstan without authorization. Transactions in domestic market involving other categories of bonds and other debt securities require authorization for trading in the organized securities market of Kazakhstan in accordance with the procedure specified in the authorized agency’s regulation.
Bond issues implemented by nonresidents in conformity with Kazakhstan laws are subject to state registration with the NBK.
Purchases of foreign bonds from nonresidents by residents are subject to NBK licensing, with the exception of (1) purchases of foreign bonds made by banks in the context of dealer activity; and (2) purchases of foreign bonds that meet the requirements established in foreign exchange and banking laws of Kazakhstan.
Purchase abroad by residentsPurchases of foreign bonds by residents are subject to prior NBK licensing, with the exception of (1) purchases of foreign bonds made by banks in the context of dealer activity; and (2) purchases of foreign bonds that meet the requirements established in foreign exchange and banking laws of Kazakhstan.
Sale or issue abroad by residentsNBK registration is required when the volume of sales or bond issue exceeds the equivalent of $100,000. The issuer is required to notify the NBK in advance about the forthcoming issue and to submit offering statements and reports about the results of the issue. An NBK license or registration certificate is required to make investments in special purpose entities abroad through which bond issue is undertaken.
On money market instruments
Purchase locally by nonresidentsPurchases in excess of the equivalent of $100,000 must be registered with the NBK. This requirement does not apply in cases when purchases of Kazakhstan government securities, depositary receipts, or domestic securities are made by nonresidents through resident brokers.
Sale or issue locally by nonresidentsIf such instruments have the form of securities, their purchase from nonresidents by residents requires an NBK license, unless they pertain to banks’ dealer activities, securities investments that meet the requirements of the foreign exchange legislation, and investments made from attracted pension assets.
Purchase abroad by residentsAn NBK license is required unless the transaction pertains to banks’ dealer activities, securities investments that meet the requirements of foreign exchange legislation, and investments made from attracted pension assets.
Sale or issue abroad by residentsRegistration with the NBK is required in cases when the amount of sales or issue exceeds the equivalent of $100,000 unless they pertain to purchases by nonresidents of domestic depositary receipts and domestic securities through resident brokers.
On collective investment securitiesThe regulations governing shares and other securities of a participating nature apply.
Controls on derivatives and other instrumentsControls apply to all these transactions. Accounting and registration of transactions involving derivative securities traded in the organized securities markets are performed in accordance with the rules for securities trading at stock exchange.
Controls on credit operations
Commercial credits
By residents to nonresidentsA license from the NBK is required for lending operations in excess of the equivalent of $10,000 for a term of more than 180 days.
To residents from nonresidentsA registration certificate from the NBK is required for operations for a term of more than 180 days and in amounts exceeding the equivalent of $100,000.
Financial credits
By residents to nonresidentsAn NBK license is required for operations for a term of more than 180 days, except for credits extended by banks.
To residents from nonresidentsA registration certificate from the NBK is required for credits in amounts exceeding the equivalent of $100,000 for a term of more than 180 days.
Controls on direct investment
Outward direct investmentRegistration with the NBK is required for direct investments in OECD-member countries or countries with which Kazakhstan has reached and ratified agreements on mutual encouragement and protection of investments if, as a result of such investments, the domestic investor will own 50% or more of voting shares in a foreign entity. All other outward investments are subject to NBK licensing.
Inward direct investmentA certificate of registration from the NBK is required for residents to solicit foreign investments in excess of the equivalent of $100,000 (excluding reinvestments).
Controls on liquidation of direct investmentNo.
Controls on real estate transactions
Purchase abroad by residentsTransfers of funds from residents to nonresidents to pay for purchases of real estate are subject to NBK licensing.
Purchase locally by nonresidentsTransfers of funds in excess of the equivalent of $100,000 from nonresidents to residents to pay for purchases of real estate are subject to NBK registration.
Sale locally by nonresidentsAn NBK license is required.
Controls on personal capital transactions
Loans
By residents to nonresidentsLoans extended by residents to nonresidents for a term of more than 180 days are subject to NBK licensing.
To residents from nonresidentsLoans extended by nonresidents to residents for a term of more than 180 days and in an amount exceeding the equivalent of more than $100,000 are subject to registration with the NBK.
Transfer of assets
Transfer abroad by emigrantsNonresident natural persons are entitled to transfer their funds abroad without restriction upon presentation of supporting documents.
Provisions specific to commercial banks and other credit institutionsInvestments abroad by resident banks are limited by requirements regarding the investment of own and borrowed funds in domestic assets.
Direct or indirect (through participation in the authorized capital of other juridical persons) participation by a bank in the authorized capital of another juridical person may not exceed 10% of the bank’s net worth. Direct participation by a bank in the authorized capital of a juridical person resulting from the bank’s becoming the owner of shares previously accepted as collateral, appraised at their fair value determined in accordance with international financial reporting standards, may not exceed 25% of the bank’s net worth.
Approval from the authorized agency is required for the establishment or acquisition of a subsidiary by a bank.
Banks are prohibited from performing business operations and transactions not related to banking and from participating in the authorized capital of juridical persons, except in cases of (1) participation in the authorized capital of banks, nongovernment fully funded pension funds, pension asset management companies, investment funds, insurance companies, leasing companies, and juridical persons whose shares are listed on the stock exchange, provided that the amount does not exceed 15% of the total number of shares issued by a single issuer; (2) participation in the authorized capital of juridical persons that are part of the financial market infrastructure and/or are engaged in automating the activities of banks and institutions performing certain types of banking operations; (3) participation in the authorized capital of organizations engaged in professional activities in the securities market; (4) participation in the authorized capital of juridical persons in cases where shares of these organizations accepted as collateral become the property of the banks in accordance with the terms of the security agreement before they are sold by the banks; (5) activities related to the management of the property and affairs of insolvent debtors in bankruptcy proceedings; and (6) the performance of transactions with bonds of juridical persons whose securities are listed on the stock exchange.
Lending locally in foreign exchangeAuthorized banks may extend credit in foreign currency to resident and nonresident juridical persons only in noncash form. Settlement in foreign exchange of loans received in domestic currency and of payment of interest and other charges on them are prohibited, except in cases where these settlements are effected between residents and nonresidents.
Purchase of locally issued securities denominated in foreign exchangeThe securities that banks may purchase are specified in banking legislation.
Investment regulations
Abroad by banksYes.
In banks by nonresidentsRepresentative offices of nonresident banks may be opened with the consent of the authorized agency. Foreign banks are prohibited from opening branches in Kazakhstan.
Nonresident juridical persons, including banks, may hold 10% or more of the stock of a resident bank, provided that they have received a required rating from one of the major rating agencies listed by the authorized agency. Nonresident banks may establish or own subsidiary banks in Kazakhstan only if they have a specific rating assigned by one of the major rating agencies. The list of such major rating agencies and the minimum required rating are established by the authorized agency.
The following requirements must be observed when establishing and operating banks with foreign participation: (1) the total authorized capital of banks with foreign participation must not exceed 50% of the total authorized capital of all Kazakhstani banks, except in cases permitted by the authorized agency; (2) at least one member of the supervisory board of a bank with foreign participation must be a citizen of Kazakhstan who has worked in an executive capacity for not less than three years in a bank operating in Kazakhstan and has knowledge of Kazakhstani banking and economic legislation; (3) a bank with foreign participation is required to place resources in domestic assets in an amount and in accordance with procedures established by the authorized agency—a list of domestic assets is established by the authorized agency; and (4) at least 70% of the employees of the bank must be citizens of Kazakhstan. The authorized agency has the right to impose additional requirements on banks with foreign participation with respect to the makeup of their governing bodies, the banking operations they may perform, prudential standards, other binding rules and limits, and reporting procedures.
Juridical persons registered in offshore zones or having affiliated persons registered in offshore zones, or natural persons who are participants (founders, shareholders) of juridical persons registered in offshore zones, a list of which is established by the authorized agency, may not be founders or shareholders of resident banks.
A nonresident bank that is a founder of or participant in a resident bank is required to submit, in addition to other necessary documents, written confirmation from a bank supervisory body of the relevant country that the bank possesses a current banking license and is subject to supervision on a consolidated basis.
A nonresident juridical or natural person who is a founder of a bank is required to append to the application for a permit to open a bank—in addition to other necessary documents—(1) information on the participation of the bank in the authorized capital of other banks and financial institutions; and (2) a written statement from an authorized body (for nonresident banks, a bank supervisory body) of the relevant country allowing the person to participate in the authorized capital of a Kazakhstani resident bank or a statement from an authorized body (for nonresident banks, a bank supervisory body) of the relevant country to the effect that such permission is not required by law in the country of this founder.
Juridical persons, including banks, that purchase (possess) 10% or more of the shares of stock of a resident bank and banks that establish (possess) subsidiary banks in Kazakhstan (except for juridical persons registered in offshore zones or having affiliated persons registered in offshore zones, a list of which is established by an authorized banking supervision agency and resident banks) must have a long-term rating that is not below the sovereign (or similar) rating assigned to the Republic of Kazakhstan from one of the rating agencies specified by the authorized agency.
Open foreign exchange position limits
On resident assets and liabilitiesThe following limits apply: (1) the long and short open foreign exchange position limits for currencies of countries with a sovereign rating of no lower than A from Standard & Poor’s (or a similar rating from one of the other rating agencies) and for euros is 15% of a bank’s net worth; (2) the long and short open foreign exchange position limit for currencies of countries with a sovereign rating below A from Standard & Poor’s (or similar rating from one of the other rating agencies) is 5% of a bank’s net worth; and (3) in all other cases, the net foreign exchange position limit is set at 30% of a bank’s net worth.
Provisions specific to institutional investorsA subsidiary insurance organization may not be established in Kazakhstan by a nonresident that is not an insurance organization.
It is prohibited to establish branches of nonresident insurance organizations. Juridical persons registered in offshore zones, or having juridical persons registered in offshore zones among the persons who participate in their authorized capital directly or indirectly through affiliated persons, may not be founders of an insurance organization in Kazakhstan.
Kazakhstan citizens must comprise at least one third of the board of directors and executive board of an insurance (reinsurance) organization with nonresident participation.
It is prohibited to open branches and representative offices of nonresident insurance brokers.
A nonresident organization that is not an insurance broker may not participate in the establishment of an insurance broker in the territory of Kazakhstan
Limits (max.) on investment portfolio held abroadA pension asset management organization and/or pension fund may independently invest up to 40% of their total pension assets (including the current volume of investments and the balance of funds in the investment accounts of the pension fund held with the custodian on the date the transaction is concluded) in foreign government securities, foreign nongovernment securities, and investment fund shares and securities of international financial institutions. An authorized agency shall establish requirements for such securities with regard to their long-term foreign exchange rating according to an international credit rating scale (based on classifications used by Standard & Poor’s, Fitch, and Moody’s Investors Service) and with regard to the shares of such securities in the portfolio.
To achieve financial sustainability, an insurance organization must invest a portion of its assets in the following assets: (1) up to 30% of the amount of its assets in securities of foreign governments with a sovereign rating no lower than A- (based on Standard & Poor’s and Fitch classification) or no lower than A3 (based on Moody’s Investor Service classification); (2) up to 30% of the amount of its assets in nongovernment securities issued by nonresidents having a long-term foreign exchange rating no lower than A- (based on Standard & Poor’s and Fitch classification) or no lower than A3 (based on Moody’s Investor Service classification); and (3) up to 30% of the amount of its assets in securities of international financial institutions, the list of which is established by the authorized agency.
Limits (min.) on investment portfolio held locallyPension asset management organizations and funded pension funds are required to place not less than 25% of the total amount of pension assets (including the current volume of investments and the balance of funds in the investment accounts of the pension fund held with the custodian on the date the transaction is concluded) in government securities of Kazakhstan (including those issued in compliance with legislation of other countries), other than securities issued by local governments of Kazakhstan.
An insurance organization is required to place not less than 20% of the amount of its assets in government securities of Kazakhstan (including those issued in compliance with legislation of other countries).
Other controls imposed by securities lawsAn authorized agency is required to conduct professional activities in the securities market, to operate a stock exchange, and to operate as a self-regulating organization of professional participants in the securities market.
Changes During 2004
Arrangements for payments and receiptsJanuary 1. The functions of regulating, licensing, controlling, and supervising banks and other financial institutions was transferred to the FSA from the NBK.
August 12. The licensing of bank transactions involving refined precious metals was abolished.
Imports and import paymentsJanuary 1. The VAT was reduced to 15% from 16%.
Changes During 2005
Exports and export proceedsJanuary 1. The 33% rental tax on exports of crude oil was replaced with an excess profits tax of up to 60%, which did not apply to developers that had concluded product sharing contracts.

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