Foreign currency control laws of the Republic of Kazakhstan comprise of the Constitution of the Republic of Kazahstan, Law on foreign currency regulation and control (the Currency Law) and other legal acts of the Republic of Kazakhstan. Should any international agreement estalbishes any other rules, international agreement rules will prevail subject to ratification of such agreement.
Pursuant to the article 282, Civil Code of the Republic of Kazakhstan, pecuniary (monetary) liabilities should be fixed in tenge (KZT) except for the cases provided by law.
As per the article 13, the Currency Law pecuniary liabilities in the territory of the Republic of Kazahstan can be established in a foreign currency, provided it is allowed by law.
NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN
The National Bank of the Republic of Kazakhstan (the NB) and foreign exchange control agencies and agents are in charge of the foreign exchange control in the Republic of Kazakhstan within the estabished legal competence. The NB, as a main foreign exchange control agency, establishes:
- Procedures and requirements for activity on organisation of exchange operations with foreign currency;
- Currency operations ordrees for residents and non-residents, inter alia regimes:
- Procedures of monitroing of currency operations by non-residents, carrying out activiity in the territory of the Republic of Kazakhstan (currency monitoring);
- A form of reporting and recording of currency operations, mandatory for all residents and non-residents, subject to approval of authorised state agencies within their competence.
Any other currency operations that do not fall under any established currency regimes may be carried without any limits and restrictions.
Currently the NB license is reguired only for organisation of offices for foreign currency exchange operations, which are carried solely by the authorised banks and authorised organisaiton.
The NB is in charge of registration of the following operations:
- Payments between residents and non-residents on commerical credits on export and import of goods for the period longer than 180 days;
When a repayment time exceeds 180 days in any commercial credit, it triggers registration with the NB by default.
- Direct investments of non-residents to the Republic of Kazakhstan and residents abroad;
- Financial loans between residents and non-residents for the period of more than 180 days ;
When a repayment time exceeds 180 days in any financial loan, it triggers registration with the NB by default.
- Payments of residents to non-residents as well as payment of non-resident to residents pertaining to acquisition of exclusive rights for the intellectual property, also transfer and receipt of money and other property as fulfillment of obligation of a participant of joint activity.
The NB estalbishes the triggering value for registration with the NB and exceptions from the registration regime, which may be put under the regime of notification at discretion of the NB.
Pursuant to the Foreign Exchange Operations Rules, a transaction triggers registration if it covers:
- Arrival of property (means) in the Republic of Kazakhstan and/or repayment by a resident of property (means) to a non-resident, is above the $US 500 000 (five hundred thousands US dollars) equivalent to KZT;
- Transfer of means or transfer or property from the Republic of Kazakhstan and/or repayment by a non-resident to a resident property (means) is above the $US 100 000 (one hundred thousands US dollars) equivalent to KZT.
A resident party to a foreign exchange transaction should apply to the NB for registration in a timely manner:
- Prior to performance of obligations by any party - when the transaction falls under the registration by default;
- Prior to performance of the obligation the performance of which triggers registration;
- Prior to performance of the obligations which will trigger registration after the transaction document is amended or supplemented and one of the parties should perform obligatons within thirty calendar days after the transaction falls under the registration regime;
- in other cases - not later thirty calendar days after the day when the transaction became triggering registration.
When a resident becomes a party of a foreign exchange transaction that fall under the registration regime as a result of debt assignment or transfer, such resident party should apply to the NB for registration not later thrity calendar days after such transaction is made.
The registration takes ten calendar days from the day of receipt of a full bandle of documents and the NB issues a standard Regisrtation Certificates.
The registration does not apply to banking operations and operations of residents/non-residents with foreign securities when they are carried under brokerage services contract with a broker-resident or based on agreement on investment portfolio management made with managing company-resident.
Notification procedures include filing information on a transaction documents in an established form with the NB by resident parties of the transactions or by banks, also professional members of securities markets that carrying transaction operations as per the instructions from clients. and subsequent filing the data on performed operations and changes in the transaciton document.
The following transaction (currency operations) may be carried subject to the notification to the NB:
- Foreign currency transactions, connected with acquiistion of securities, paying in money and other property to ensure shareholding in an entity (inter alia, in a registered capital) and as a distribution into the property, and also on foreign currency transactions, connected wtih derivative securities;
- Payments between residents and non-residents as to the acquiistion of property right for immovable property, also transfer of money and other property from residents to non-residents for trust management;
- Opening of bank accounts in foreign banks by the Kazakhstani legal entities, except for the banks and the NB, within thirty calendar days from signature of bank services agreement.
The notification triggering values for the above transactions are as follows:
- Arrival of property (means) into the Republic of Kazakhstan and/or repayment of property (means) to non-resident, exceeds the $US 500 000 (five hundred thousands US dollars) in equivalent to KZT;
- Transfer of means (property transfer) from the Republic of Kazakhstan and/or obligation on repayment of property (means) exceeds the $US 100 000 (one hundred thousands US dollars) to the KZT;
- Payment or money transfer from resident to a non-resident or a non-resident to a resident on derivative securities transactions exclusive of basic asset payment, and also on payments connected with export/import of works, services in the amount of more than the $US 100 000 (one hundred US dollars) equivalent to the KZT.
ACCOUNTS OF NON-RESIDENTS
Non-residents may open bank accounts in foreign and national currencies in the Kazakhstani authorised banks without any restrictions.
Non-residents may remit money in foreign and national currencies from and to the accounts in the foreign and Kazakhstani banks without restrictions.
Residents may open bank account in foreign curreny in the Kazakhstani authorised banks without any restrictions, if none other is provided by law.
Contacts of the National Bank of the REpublic of Kazakhstan:
Address: 050040, Kazakhstan, Almaty,21 building, Koktem-3 microdistrict
Fax: 8 (727) 2704-703, 8 (727) 2617-352, 8 (727) 2704-799
Receiption: 8 (727) 2704-591