Kazakhstan Banks Scrap 12-Month Limit on Cards for Foreigners
Banks in Kazakhstan now set the validity period of cards for foreigners themselves. Previously it was capped at 12 months, and the changes have already taken effect.
Abdulrahman Sadikhli3 min read
Banks in Kazakhstan can now independently determine the validity period of bank cards issued to foreigners. Previously, such cards were subject to a 12-month limit. The corresponding changes have entered into force in the internal control rules on combating the legalization of criminal proceeds and the financing of terrorism.
In addition, banks will no longer automatically classify foreigners without residence permits or permanent residence permits as higher-risk clients solely because of their non-resident status.
From formal criteria to risk assessment
The Agency for Regulation and Development of the Financial Market (ARDFM) explained that this does not mean a relaxation of requirements for foreign clients. Banks must now determine each client's risk level individually.
“The adopted changes do not provide for a relaxation of requirements in the AML/CFT/CFT area with regard to non-residents. The amendments are aimed at a transition from formal criteria to a risk-based approach, in which control measures are determined on the basis of the actual risk level of a specific client,” the ARDFM explained.
Along with the abolition of the automatic higher risk level, a number of previous requirements were removed from the rules. In particular, multi-page questionnaires and monthly biometric identification have been abolished. At the same time, a non-resident may still receive a high risk level if the bank identifies the relevant grounds.
What banks will check
When assessing a foreign client, banks will continue to take into account information about the client, the purposes and nature of the business relationship, the banking products and service channels used, the activity profile and the nature of the transactions conducted. Financial organizations will also take into account other risk factors provided for by legislation and their internal documents.
If a bank identifies signs of elevated risk, it must take appropriate control measures. For high-risk clients, enhanced due diligence is provided, and their operations will be additionally monitored.
Control over non-residents remains
The ARDFM emphasizes that the changes concern primarily the principle of determining risk, rather than the abolition of control over foreigners. Now non-resident status alone is not enough for an automatic increase in the risk level: the bank must assess the specific client, their profile and operations.
“The key principle of the changes: fewer formal restrictions — not less control, but more targeted control corresponding to the client's actual risk level,” the agency emphasized.
Recall that the validity period of payment cards for foreigners without a residence permit in Kazakhstan was limited to one year in January 2025. The restriction was in effect for more than a year and a half.
Source: kz.kursiv.media
