Close to 900 million Tenge obtained from the Ural region via micro-lending activities
In the city of Uralsk, Kazakhstan, a significant financial scandal has come to light, involving a microloan scheme operated under the name 'Fast Money'. The Financial Monitoring Agency (FMA) has launched an investigation into this case, which has revealed a series of illegal practices that have left Kazakhstanis overpaying by a staggering 917 million tenge due to inflated interest rates.
The investigation has uncovered that the group, which operated multiple branches, issued unlicensed microloans totalling over 1.5 billion tenge. The loans were issued at interest rates five times the legal maximum, with a daily rate of 1.5%, compared to the permitted 0.3%. To disguise these high costs, the suspects presented separate agreements for 'consultation services' as the source of the inflated interest rates.
One of the suspects has an LLP registered under a relative, which was involved in these 'consultation services'. The Microfinance Organization (MFO) involved in the scheme issued a total of over 47,000 loans, with the MFO and the suspects collecting a combined preliminary profit of 917 million tenge.
The investigation is being conducted jointly by the West Kazakhstan region's department of the Financial Monitoring Agency and the prosecutor's office. As part of the investigation, arrests have been placed on the suspects' property, including a commercial-industrial building and an apartment.
Preliminary estimates show that the group, operating under the brand 'Fast Money', issued loans worth over 1.5 billion tenge to residents of Uralsk. The investigation into the activities of 'Fast Money' in Uralsk is still ongoing, and further details about the individuals or the operational methods beyond the illegal issuance and inflated costs have yet to be disclosed.
For those seeking more information, official updates from Kazakhstan’s Financial Monitoring Agency or local legal reports on the case may provide additional insights. This case highlights significant regulatory and enforcement concerns regarding microloan providers in Kazakhstan, emphasising the importance of strict adherence to financial regulations to protect consumers from such fraudulent practices.
- The Financial Monitoring Agency (FMA) investigation into the 'Fast Money' microloan scheme in Uralsk, Kazakhstan, extends beyond illegal practices and inflated interest rates, delving into the business operations of the Microfinance Organization (MFO) involved.
- Given the significance of this case, multiple entities are involved in the joint investigation: the West Kazakhstan region's department of the Financial Monitoring Agency and the prosecutor's office, targeting crime-and-justice issues in the general-news sector of the industry.
- With preliminary profits amounting to 917 million tenge, this financial scandal in Uralsk serves as a stark reminder of the importance of upholding finance regulations in the business world, emphasizing the need for crime-and-justice authorities to maintain vigilance in monitoring microloan providers in Kazakhstan.
