Article 9. Functions and powers of the authorized body of the Law on State Regulation, Control and Supervision of the Financial Market and Financial Organizations

Home / RLA / Article 9. Functions and powers of the authorized body of the Law on State Regulation, Control and Supervision of the Financial Market and Financial Organizations

1. For the purposes of state regulation, control and supervision of the activities of financial organizations, as well as other persons in accordance with this Law and other laws of the Republic of Kazakhstan, the authorized body:

1) in cases stipulated by the laws of the Republic of Kazakhstan, issue permits for the opening (establishment) of financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations of non-residents of the Republic of Kazakhstan, branches of insurance brokers of non-residents of the Republic of Kazakhstan, their voluntary reorganization and liquidation, including voluntary reorganization of banking and insurance holding companies, voluntary termination of the activities of branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations that are non-residents of the Republic of Kazakhstan, and also determines the procedure for issuing these permits.;

1-1) in cases stipulated by the laws of the Republic of Kazakhstan, issues permits for the voluntary reorganization of a microfinance organization in the form of conversion into a bank.;

2) in cases stipulated by legislative acts of the Republic of Kazakhstan, gives consent or refuses to give consent to the election (appointment) of persons to the positions of senior officials of financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations of non-residents of the Republic of Kazakhstan, branches of insurance brokers of non-residents of the Republic of Kazakhstan, bank holding companies, insurance holdings, and also determines the procedure for giving the specified consent or refusal to give consent, including criteria for the absence of an impeccable business reputation.;

3) carries out licensing of activities in the financial sphere and activities related to the concentration of financial resources within the competence established by the laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan;

3-1) excluded by the Law of the Republic of Kazakhstan dated 07/03/2020 No. 359-VI (effective from 01/01/2021);

3-2) carries out accounting registration and maintenance of the register of collection agencies;

3-3) issues a permit for the right to carry out the activities of the credit bureau and an act on the compliance of the credit bureau with the requirements for the credit bureau to protect and ensure the safety of the database of credit histories, information systems used and premises;

3-4) monitors and supervises compliance by second–tier banks, branches of non-resident banks of the Republic of Kazakhstan and the National Postal Operator with the requirements for the arrangement of premises;

3-5) excluded by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective ten calendar days after the date of its first official publication);

4) adopt regulatory legal acts that are mandatory for financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations that are non-residents of the Republic of Kazakhstan, branches of insurance brokers that are non-residents of the Republic of Kazakhstan, consumers of financial services, and other individuals and legal entities in the territory of the Republic of Kazakhstan;

5) approves prudential standards and other mandatory norms and limits for financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations that are non-residents of the Republic of Kazakhstan, branches of insurance brokers that are non-residents of the Republic of Kazakhstan, including on a consolidated basis;

5-1) excluded by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective after ten calendar days after the date of its first official publication); 6) excluded by the Law of the Republic of Kazakhstan dated 03.07.2019 No. 262-VI (effective from 01.01.2020);

6-1) carries out, within its competence, control and supervision over compliance by financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations of non-residents of the Republic of Kazakhstan, branches of insurance brokers of non-residents of the Republic of Kazakhstan and the Development Bank of Kazakhstan with the accounting automation procedure;

7) excluded by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (effective after ten calendar days after its first official publication);

7-1) sends its representative to participate in the general meeting of shareholders (participants) of financial organizations, banking and insurance holdings;

8) verifies the activities of financial organizations and other persons specified in paragraph 1 of Article 15-1 of this Law, in the cases and within the limits provided for by this Law and other laws of the Republic of Kazakhstan, including with the involvement of the National Bank of the Republic of Kazakhstan and an audit organization;

8-1) verifies legal entities that have applied to the authorized body for a license to operate in the financial market, in cases and within the limits provided for by the laws of the Republic of Kazakhstan;

8-2) carries out remote supervision, including on a consolidated basis, of the activities of financial organizations, their major participants, banking and insurance holdings, organizations belonging to a banking conglomerate and insurance group, branches of non–resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations – non–residents of the Republic of Kazakhstan, branches of insurance brokers - non-residents of the Republic of Kazakhstan, an organization guaranteeing insurance payments, in accordance with the procedure established by the laws of the Republic of Kazakhstan;

9) applies to financial organizations and other persons, branches of non–resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations that are non–residents of the Republic of Kazakhstan, branches of insurance brokers that are non–residents of the Republic of Kazakhstan limited measures of influence, supervisory response measures, including using reasoned judgment, sanctions and other measures provided for by the laws of the Republic of Kazakhstan, on issues within its competence;

9-1) applies methods for assessing risks arising in the activities of banks, bank holdings, banking conglomerates, insurance (reinsurance) organizations, insurance groups, insurance holdings, branches of non–resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations of non–residents of the Republic of Kazakhstan, organizations engaged in brokerage and (or) dealer activities in the market securities and (or) investment portfolio management activities;

10) in coordination with the Government of the Republic of Kazakhstan, decides on the compulsory repurchase of shares of financial organizations in cases provided for by legislative acts of the Republic of Kazakhstan.;

11) monitors the activities of liquidation commissions of financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations of non-residents of the Republic of Kazakhstan, branches of insurance brokers of non-residents of the Republic of Kazakhstan in cases provided for by legislative acts of the Republic of Kazakhstan;

12) publishes information in the mass media about financial organizations, branches of non–resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations of non–residents of the Republic of Kazakhstan, branches of insurance brokers of non–residents of the Republic of Kazakhstan, collection agencies, credit bureaus, operators of electronic trading platforms for the sale of banking and microfinance assets (with the exception of information constituting official, commercial, banking or other legally protected secrets), including information about the measures taken against them;

12-1) excluded by the Law of the Republic of Kazakhstan dated 29.03.2016 No. 479-V (effective after twenty-one calendar days after the day of its first official publication); 12-2) excluded by the Law of the Republic of Kazakhstan dated 29.03.2016 No. 479-V (effective after twenty-one calendar days after the day of its first official publication).

13) applies a risk-based approach in the framework of control and supervision of the activities of banks, banking conglomerates, organizations engaged in certain types of banking operations, insurance (reinsurance) organizations, insurance groups, branches of non–resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations – non-residents of the Republic of Kazakhstan, organizations engaged in brokerage and (or) dealer activities in the securities market, investment portfolio management activities, including using reasoned judgment in cases provided for in paragraph 2 of Article 13-5 of this Law.;

14) introduces a special regulatory regime for financial organizations and (or) other legal entities and regulates their activities within their competence;

15) excluded by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 205-VIII (effective ten calendar days after the date of its first official publication);

16) performs the functions of an industry information security center for the financial market and financial organizations, branches of non–resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations of non–residents of the Republic of Kazakhstan, branches of insurance brokers of non–residents of the Republic of Kazakhstan;

17) analyzes information about information security incidents of banks, branches of non–resident banks of the Republic of Kazakhstan and organizations engaged in certain types of banking operations, including information about violations and failures in information systems;

18) independently and (or) jointly with other state bodies of the Republic of Kazakhstan within their competence, as well as with organizations, carries out the development of Islamic finance, taking into account international standards of Islamic financial instruments and Islamic financial services;

19) implements measures to improve the health of second-tier banks, including those financed by the National Bank of the Republic of Kazakhstan and (or) its subsidiaries, as well as monitoring the fulfillment by banks of obligations assumed under these measures;

20) implements programs for refinancing residential mortgage loans and mortgage loans to individuals carried out through subsidiaries of the National Bank of the Republic of Kazakhstan, as well as monitoring the fulfillment by banks of obligations assumed under these programs;

20-1) carries out, within the limits of its competence, control and supervision of financial organizations' compliance with information security requirements;

21) performs other functions and powers provided for by this Law, other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

2. The authorized body has the right to conduct inspections of financial organizations and their affiliates, branches of non–resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations that are non–residents of the Republic of Kazakhstan, branches of insurance brokers that are non–residents of the Republic of Kazakhstan, including with the involvement of auditing organizations, appraisers and specialists in the field of financial technologies in order to:

1) determining the financial condition of financial organizations and their affiliates, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations that are non-residents of the Republic of Kazakhstan, branches of insurance brokers that are non-residents of the Republic of Kazakhstan;

2) determining compliance with the legislation of the Republic of Kazakhstan of the management structure and decision-making procedures of financial organizations and their affiliates, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations of non-residents of the Republic of Kazakhstan, branches of insurance brokers of non-residents of the Republic of Kazakhstan;

3) definitions of affiliated persons of financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations that are non-residents of the Republic of Kazakhstan, branches of insurance brokers that are non-residents of the Republic of Kazakhstan;

4) identification and prevention of violations of the rights of consumers of financial services;

5) identification and prevention of unauthorized activities related to the provision of financial services or the issuance of financial instruments;

6) identification and (or) prevention of risks inherent in information technologies when performing financial transactions;

7) assessment of the objectivity of determining the value of financial instruments.

2-1. The authorized body carries out, within its competence, control and supervision over compliance by financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations of non-residents of the Republic of Kazakhstan, branches of insurance brokers of non-residents of the Republic of Kazakhstan, the National Postal Operator with the requirements of the legislation of the Republic of Kazakhstan on countering the legalization (laundering) of proceeds from crime, and the financing of terrorism.

2-2. The authorized body has the right to have its representative in banks, branches of non–resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations that are non–residents of the Republic of Kazakhstan, bank holdings that manage investment portfolios, insurance (reinsurance) organizations, insurance holdings, organizations that guarantee insurance payments to policyholders (insured, beneficiaries) in the event of liquidation of insurance organizations (hereinafter referred to as the representative), for the purpose of exercising supervisory functions.

3. In addition to the functions and powers provided for in paragraphs 1, 2, 2-1 and 2-2 of this Article, the authorized body exercises other powers for state regulation, control and supervision of financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations of non-residents of the Republic of Kazakhstan, branches of insurance brokers of non-residents of the Republic of Kazakhstan, banking and insurance holdings, banking conglomerates and insurance groups, taking into account the specifics provided for in articles 10 - 13 of this Law, as well as other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

4. The authorized body has no right to interfere in the activities of financial organizations, branches of non-resident banks of the Republic of Kazakhstan, branches of insurance (reinsurance) organizations that are non-residents of the Republic of Kazakhstan, branches of insurance brokers that are non-residents of the Republic of Kazakhstan, except in cases provided for by legislative acts of the Republic of Kazakhstan.

5. The authorized body for the purposes of granting a loan of last resort by the National Bank of the Republic of Kazakhstan submits the following information to the National Bank of the Republic of Kazakhstan:

1) an opinion on the expediency of granting a loan of last resort and the bank's compliance with the requirements provided for in subparagraph 1) paragraph 1 of Article 51-3 of the Law of the Republic of Kazakhstan "On the National Bank of the Republic of Kazakhstan", for consideration by the Board of the National Bank of the Republic of Kazakhstan of the issue of granting a loan of last resort;

2) on determining the assets of the bank acceptable for acceptance by the National Bank of the Republic of Kazakhstan as collateral under the loan agreement of the last instance;

3) on the current status of the bank's assets accepted and (or) accepted as collateral under the loan agreement of the last instance;

4) the list of second-tier banks for making a decision on the sale of assets that are collateral under the loan agreement of the last instance.

6. Cancellation of decisions of the authorized body on depriving a financial institution, a branch of a non-resident bank of the Republic of Kazakhstan, a branch of a non-resident insurance (reinsurance) organization of the Republic of Kazakhstan, a branch of a non-resident insurance broker of the Republic of Kazakhstan of a license to conduct all types of operations and activities, on classifying the bank as an insolvent bank, classifying a branch of a non-resident bank of the Republic of Kazakhstan as insolvent branches of non-resident banks of the Republic of Kazakhstan, the application of measures to regulate the bank, classified as an insolvent bank, the establishment of a conservation regime for a financial institution, as well as decisions of the interim administration of the bank, insurance (reinsurance) organizations on the transfer of assets and liabilities of the bank, the transfer of the insurance portfolio does not entail changes or termination of the legal consequences resulting from these decisions.

The Law of the Republic of Kazakhstan dated July 4, 2003 No. 474-II.

This Law regulates public relations related to the implementation of state regulation, control and supervision of the financial market and financial organizations, and is aimed at increasing the stability of the financial system of the Republic of Kazakhstan and creating conditions to prevent violations of the rights and legitimate interests of consumers of financial services.

President

Republic of Kazakhstan

Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases