Government approved amendments to legislation on currency regulation
"The main goal of the new draft law is the planned changes in currency legislation in the context of Kazakhstan's entry to the World Trade Organization and the establishment of the International Center for Cross-Border Cooperation "Khorgos" and the International Financial Center "Astana". The main task is to expand the scope of statistical monitoring of foreign exchange operations and reduce the use of foreign currency in Kazakhstan", the Head of the National Bank said.
The main changes of the draft law are: recognition of branches of foreign organizations as residents, expansion of the scope of currency transactions of a cross-border nature, strengthening of currency control over operations aimed at withdrawing capital, clarifying the procedure for circulation of currency values in Kazakhstan and the list of currency transactions permitted between residents.
"The implementation of these norms will expand the coverage of information on currency transactions, improve the effectiveness of exchange controls, including to counter the withdrawal of money from the country. At the same time, the draft law provides for the preservation of the principles of the liberal monetary regime", Daniyar Akishev said.
As he said, another direction of changes to the legislation is to counter the withdrawal of money from the country.
"The draft law defines a list of currency transactions that have signs of withdrawing money from the country: providing a resident with a financial loan to a non-resident who does not provide for repayment by crediting money to accounts in Kazakhstan; provision of a non-resident financial loan to a resident who does not provide for the transfer of money to accounts in Kazakhstan; granting by a resident of an interest-free financial loan to an affiliated non-resident for more than 720 days; operations to pay for exports or imports with a repatriation period of more than 720 days", the Chairman of the National Bank said.
Akbota Kuzekbay
